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Data Informed Decision

To: New owner of El Encanto restaurants

From : The local manager, Ranim Raad

Subject: Recommendation of new table- ordering technology.

Date : 13October 2022

Hello sire

Hope you are well . First, I would like to thank you for the confidence to present my project and
suggestions. I have chosen two methods of decision-making for new technology, rational decision-
making, and Heuristics. Let’s start the first one ,here are the steps that I’ve done :

1- Define the scope: Determining the decision and define the scope is the first step which can help
us with the next steps, and the decision we will make is to "make a new technique for arranging
schedules." ("Rational decision-making model: Meaning, importance and examples,"
2021)
2- Research and get feedback:Where all available criteria such as cost and consumer acceptance of
the new idea and others are reviewed, then choose the most appropriate criteria to choose the
new mechanism to work with .
Cost: Cost is important because this decision influences the financial situations of restaurants
Customers' tastes: Customers do not prefer technology.
The atmosphere of the restaurant is lovey for customers. So, we cannot change this a lot.
3-Choices : The available options are developed to compare them in terms of criteria and then adopt
one of those alternatives, and the alternatives that we have: digital kiosk , tablet for servers and the
new Android operating system. ("Rational decision-making model: Meaning, importance
and examples," 2021)

4- Analysis the choices: ("Rational decision-making model: Meaning, importance and


examples," 2021)

Digital kiosk: The cost is $ 3600 for the cost it is high for this choice but at the same time will get a
10% increase on orders, as for consumers the atmosphere will change completely inside the
restaurant from a traditional atmosphere to a technology and this may not suit some customers and
biting may not prefer this change. For the second option, which is the tablet for servers: the cost is
1120$, and this is considered a low cost and the percentage of increase on demand is 23%, which is
a good percentage, and for consumers this method will be somewhat suitable for them and may
gain their satisfaction as this method will maintain as much as human communication with the use of
technology. The third option, which is the new operating system Android in terms of cost, is very
high $ 2300, but the costs will decrease by 12% as the traditional atmosphere inside the restaurant
will remain in addition to other features It accepts cash and credit cards, and the manager looks
forward to statistics easily and all those things suit customers greatly. )CFA 2022)
5- Chose the best one : After studying the alternatives according to the standards, it turned out that
the best alternative is the tablet for servers, in terms of cost it is the least expensive among the three
("Rational decision-making model: Meaning, importance and examples," 2021)proposals,
and on the other hand this alternative will maintain human communication between the customer
and the worker, as it is easy to use and consumers can adapt quickly to this change.

The second method is Heuristics, which is a mental abbreviation that help people solve problems
and make judgments quickly, and this method shortens the time in selection and decision-making,
and this method is often used when we want to get a quick solution. Hence, I have relied on the first
method, which is rationality in making my decision because we are not in a hurry to find the
alternative as much as we need to rationally study the alternative and choose the best alternative
that suits the customers of the restaurant and their adaptation to it, in addition to the rational study
of costs, which is important in making our decision on the choice of the alternative.
("How heuristics help you make quick decisions," 2006)

--------------------------------------------------------------

Use Heuristics
Through experience(Lumen, n.d) , we can say that customers are the ones who determine the best
alternative for the restaurant because they are the ones who will try the service and no restaurant in the
world can move forward with a service if its customers do not prefer it and the restaurant does not lose its
customers and revenue together
Looking at the presented scenario, we can infer that there are specific conditions for a possible alternative
First, El Encanto restaurants are famous for attracting traditional customers between the ages of 45 and
65, who don't like technology very much. We note that the first alternative depends on technology and
therefore is excluded.
Second: Customers love the traditional atmosphere, so the alternative must provide the same
atmosphere for customers or at least a limited change in the atmosphere of the restaurant
We note that the second alternative does not radically change the atmosphere of the restaurant, so that
the tablet gives human contact because the server brings the tablet to the table and turns it on. The third
alternative maintains the atmosphere of the restaurant as it is.
The cost is one of the factors that directly affect any decision-making process, so the best alternative is
the cheapest in most cases.
Based on the above, Tablet for Servers is the best alternative because it does not radically change the
atmosphere of the restaurant and is the cheapest alternative ($1120)

Information is required that is not provided:


I think that the information given is sufficient and there is no information missing or unavailable.
Divied the information into “important” and “not important” categories:
We can divide information into important and insignificant by environment, people, the decisions we
want to make, the data we have and the conditions that must be met in alternatives. As for the
restaurant, the customers and the consumers' and their indulgences and also their uncles can be very
important things to consider, the elderly people have tastes and requirements that do not fully agree
with the young, so it is important to take into account this information, that is, the tastes and ages of
customers who frequent this restaurant, and also the environment where it is important to work to
create an atmosphere inside the restaurant that attracts consumers and work to achieve their
comfort inside the place. ("role of management information systems in decision making,"
n.d.)
The information "not important" was information about the payment method because
consumers did not indicate one preferred method of payment, so this information was
"not important"
Nonrational decision factors:
Certainly, the cost is one of the illogical factors that have been studied and considered when
studying the alternatives, as it was used as one of the criteria because the cheaper alternative was
worked on in both cases because the cost directly affects the financial matters of the restaurants. In
addition to the time factor is also important and we are currently in the time and age of technology,
so it is important to consider the time because the technology may become obsolete and unusable.
Differences between the rational decision-making models and the nonrational
model:
One of the differences between rational and irrational decisions is the inclusion of emotions in the
decision-making process, in rational decisions the decision is made after examining and studying
measurable factors such as data, cost and time, on the other hand irrational decisions depend on
emotions more than data. We can't say that there is a better way than the other, so often making
decisions needs perhaps both methods. ("Differences between rational and irrational
decision-making models. - Search," n.d.)

Tablet for Servers are the best choice. I came to this chose as this is the most inexpensive choice and
provides a quicker experience than the regular service. Demands will be placed using tablets rather
than servers. Despite this, the human connection still exists because servers deliver tablets to
consumers. Consumers are easily able to adapt to these changes.
Elements that may influence the decision on the alternative:
1-Finance: I must look at the costs of each alternative and do a study to get the alternative that costs
less. Because the financial factor or cost is one of the important factors in this case in decision-
making (the costs of each alternative have been mentioned above)
2-Human Resources: Before making the decision to choose an alternative, it is necessary to consider
the skills and experience of employees, employees must be ready to apply this decision and help in
it, and the approval of the highest officials must be obtained for this decision
3- Technology: The techniques or alternatives I mentioned earlier must be available in addition to
the fact that the concerned people are able to use this chosen technology, that is, I must
consider the ages and types of customers who will deal with the new system that I will choose.
("Factors that affect decision making - Decision making - Higher business management
revision - BBC bitesize," n.d.)

Best wishes
Ranim Raad
References

Rational decision-making model: Meaning, importance and examples. (2021, December 7). Harappa.
https://harappa.education/harappa-diaries/rational-decision-making/
Lumen. (n.d). Rational Decision Making vs. Other Types of Decision Making.
https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/rational-decision-
making-vs-other-types-of-decision-making/

The role of management information systems in decision making. (n.d.). Bizfluent.

https://bizfluent.com/facts-7147006-role-information-systems-decision-making.html

https://learn.snhu.edu/content/enforced/1148713-MGT-20130-OL-DAC-CFA.22CFA/

course_documents/MGT-20130%20Decision-Making%20Details.pdf?

_&d2lSessionVal=fk9H7DHEO2OJojNBMyHX883gJ&ou=1148713

Differences between rational and irrational decision-making models. - Search. (n.d.).Bing.

https://www.bing.com/search?q=Differences+between+rational+and+irrational+decision-

making+models.&cvid

How heuristics help you make quick decisions. (2006, November 15). Verywell Mind.

https://www.verywellmind.com/what-is-a-heuristic-2795235

Factors that affect decision making - Decision making - Higher business management revision - BBC

bitesize. (n.d.). BBC Bitesize.

https://www.bbc.co.uk/bitesize/guides/zkdc7nb/revision/4

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