IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v25y2014i2p239-263.html
   My bibliography  Save this article

A Machine Learning Approach to Improving Dynamic Decision Making

Author

Listed:
  • Georg Meyer

    (Information and Decision Sciences, Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

  • Gediminas Adomavicius

    (Information and Decision Sciences, Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

  • Paul E. Johnson

    (Information and Decision Sciences, Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

  • Mohamed Elidrisi

    (Department of Computer Science and Engineering, University of Minnesota, Minneapolis, Minnesota 55455)

  • William A. Rush

    (Center for Chronic Care Innovation, HealthPartners Institute for Education and Research, Minneapolis, Minnesota 55425)

  • JoAnn M. Sperl-Hillen

    (Center for Chronic Care Innovation, HealthPartners Institute for Education and Research, Minneapolis, Minnesota 55425)

  • Patrick J. O'Connor

    (Center for Chronic Care Innovation, HealthPartners Institute for Education and Research, Minneapolis, Minnesota 55425)

Abstract

Decision strategies in dynamic environments do not always succeed in producing desired outcomes, particularly in complex, ill-structured domains. Information systems often capture large amounts of data about such environments. We propose a domain-independent, iterative approach that (a) applies data mining classification techniques to the collected data in order to discover the conditions under which dynamic decision-making strategies produce undesired or suboptimal outcomes and (b) uses this information to improve the decision strategy under these conditions. In this paper, we formally develop this approach and illustrate it by providing detailed examples of its application to a chronic disease care problem in a healthcare management organization, specifically the treatment of patients with type 2 diabetes mellitus. In particular, the proposed iterative approach is used to improve treatment strategies by predicting and eliminating treatment failures, i.e., insufficient or excessive treatment actions, based on information that is available in electronic medical record systems. We also apply the proposed approach to a manufacturing task, resulting in substantial decision strategy improvements, which further demonstrates the generality and flexibility of the proposed approach.

Suggested Citation

  • Georg Meyer & Gediminas Adomavicius & Paul E. Johnson & Mohamed Elidrisi & William A. Rush & JoAnn M. Sperl-Hillen & Patrick J. O'Connor, 2014. "A Machine Learning Approach to Improving Dynamic Decision Making," Information Systems Research, INFORMS, vol. 25(2), pages 239-263, June.
  • Handle: RePEc:inm:orisre:v:25:y:2014:i:2:p:239-263
    DOI: 10.1287/isre.2014.0513
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/isre.2014.0513
    Download Restriction: no

    File URL: https://libkey.io/10.1287/isre.2014.0513?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard H. Chapman & Patricia W. Stone & Eileen A. Sandberg & Chaim Bell & Peter J. Neumann, 2000. "A Comprehensive League Table of Cost-Utility Ratios and a Sub-table of "Panel-worthy" Studies," Medical Decision Making, , vol. 20(4), pages 451-458, October.
    2. Jerome H. Friedman, 2001. "The Role of Statistics in the Data Revolution?," International Statistical Review, International Statistical Institute, vol. 69(1), pages 5-10, April.
    3. Sterman, John D., 1989. "Misperceptions of feedback in dynamic decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(3), pages 301-335, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guest Editors: Hemant Jain & Balaji Padmanabhan & Paul A. Pavlou & Raghu T. Santanam, 2018. "all for Papers—Special Issue of Information Systems Research —Humans, Algorithms, and Augmented Intelligence: The Future of Work, Organizations, and Society," Information Systems Research, INFORMS, vol. 29(1), pages 250-251, March.
    2. Mi, Yunlong & Wang, Zongrun & Liu, Hui & Qu, Yi & Yu, Gaofeng & Shi, Yong, 2023. "Divide and conquer: A granular concept-cognitive computing system for dynamic classification decision making," European Journal of Operational Research, Elsevier, vol. 308(1), pages 255-273.
    3. Siliang Tong & Nan Jia & Xueming Luo & Zheng Fang, 2021. "The Janus face of artificial intelligence feedback: Deployment versus disclosure effects on employee performance," Strategic Management Journal, Wiley Blackwell, vol. 42(9), pages 1600-1631, September.
    4. Wei Chen & Yixin Lu & Liangfei Qiu & Subodha Kumar, 2021. "Designing Personalized Treatment Plans for Breast Cancer," Information Systems Research, INFORMS, vol. 32(3), pages 932-949, September.
    5. Basile, Luigi Jesus & Carbonara, Nunzia & Pellegrino, Roberta & Panniello, Umberto, 2023. "Business intelligence in the healthcare industry: The utilization of a data-driven approach to support clinical decision making," Technovation, Elsevier, vol. 120(C).
    6. Bosse, Douglas & Thompson, Steven & Ekman, Peter, 2023. "In consilium apparatus: Artificial intelligence, stakeholder reciprocity, and firm performance," Journal of Business Research, Elsevier, vol. 155(PA).
    7. Jim Samuel, 2020. "Information Token Driven Machine Learning for Electronic Markets: Performance Effects in Behavioral Financial Big Data Analytics," Papers 2004.06642, arXiv.org.
    8. Hemant Jain & Balaji Padmanabhan & Paul A. Pavlou & T. S. Raghu, 2021. "Editorial for the Special Section on Humans, Algorithms, and Augmented Intelligence: The Future of Work, Organizations, and Society," Information Systems Research, INFORMS, vol. 32(3), pages 675-687, September.
    9. Islam, Md Rafiqul & Liu, Shaowu & Biddle, Rhys & Razzak, Imran & Wang, Xianzhi & Tilocca, Peter & Xu, Guandong, 2021. "Discovering dynamic adverse behavior of policyholders in the life insurance industry," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    10. Mehmet Eren Ahsen & Mehmet Ulvi Saygi Ayvaci & Srinivasan Raghunathan, 2019. "When Algorithmic Predictions Use Human-Generated Data: A Bias-Aware Classification Algorithm for Breast Cancer Diagnosis," Service Science, INFORMS, vol. 30(1), pages 97-116, March.
    11. Hossein Kamalzadeh & Vishal Ahuja & Michael Hahsler & Michael E. Bowen, 2021. "An Analytics‐Driven Approach for Optimal Individualized Diabetes Screening," Production and Operations Management, Production and Operations Management Society, vol. 30(9), pages 3161-3191, September.
    12. Junbo Son & Yeongin Kim & Shiyu Zhou, 2022. "Alerting patients via health information system considering trust-dependent patient adherence," Information Technology and Management, Springer, vol. 23(4), pages 245-269, December.
    13. Daniel Gartner & Rainer Kolisch & Daniel B. Neill & Rema Padman, 2015. "Machine Learning Approaches for Early DRG Classification and Resource Allocation," INFORMS Journal on Computing, INFORMS, vol. 27(4), pages 718-734, November.
    14. Bez, Sea Matilda & Georgescu, Irène & Farazi, Mohammad Saleh, 2023. "TripAdvisor of healthcare:Opportunities for value creation through patient feedback platforms," Technovation, Elsevier, vol. 121(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pastore, Erica & Alfieri, Arianna & Zotteri, Giulio, 2019. "An empirical investigation on the antecedents of the bullwhip effect: Evidence from the spare parts industry," International Journal of Production Economics, Elsevier, vol. 209(C), pages 121-133.
    2. Berry, D. & Naim, M. M., 1996. "Quantifying the relative improvements of redesign strategies in a P.C. supply chain," International Journal of Production Economics, Elsevier, vol. 46(1), pages 181-196, December.
    3. Towill, Denis R. & Zhou, Li & Disney, Stephen M., 2007. "Reducing the bullwhip effect: Looking through the appropriate lens," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 444-453, July.
    4. Oliva, Rogelio, 2003. "Model calibration as a testing strategy for system dynamics models," European Journal of Operational Research, Elsevier, vol. 151(3), pages 552-568, December.
    5. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    6. Ma, Yungao & Wang, Nengmin & He, Zhengwen & Lu, Jizhou & Liang, Huigang, 2015. "Analysis of the bullwhip effect in two parallel supply chains with interacting price-sensitive demands," European Journal of Operational Research, Elsevier, vol. 243(3), pages 815-825.
    7. Rich, Karl M. & Ross, R. Brent & Baker, A. Derek & Negassa, Asfaw, 2011. "Quantifying value chain analysis in the context of livestock systems in developing countries," Food Policy, Elsevier, vol. 36(2), pages 214-222, April.
    8. Li Chen & Hau L. Lee, 2012. "Bullwhip Effect Measurement and Its Implications," Operations Research, INFORMS, vol. 60(4), pages 771-784, August.
    9. Hazhir Rahmandad, 2012. "Impact of Growth Opportunities and Competition on Firm-Level Capability Development Trade-offs," Organization Science, INFORMS, vol. 23(1), pages 138-154, February.
    10. Gérard P. Cachon & Paul H. Zipkin, 1999. "Competitive and Cooperative Inventory Policies in a Two-Stage Supply Chain," Management Science, INFORMS, vol. 45(7), pages 936-953, July.
    11. Richard H. Chapman & Marc Berger & Milton C. Weinstein & Jane C. Weeks & Sue Goldie & Peter J. Neumann, 2004. "When does quality‐adjusting life‐years matter in cost‐effectiveness analysis?," Health Economics, John Wiley & Sons, Ltd., vol. 13(5), pages 429-436, May.
    12. Sobratee-Fajurally, N. & Mabhaudhi, Tafadzwanashe, 2022. "Inclusive sustainable landscape management in West and Central Africa: enabling co-designing contexts for systemic sensibility," IWMI Books, Reports H051652, International Water Management Institute.
    13. Zhang, Xiaolong & Burke, Gerard J., 2011. "Analysis of compound bullwhip effect causes," European Journal of Operational Research, Elsevier, vol. 210(3), pages 514-526, May.
    14. Lin, Jinchai & Fan, Ruguo & Tan, Xianchun & Zhu, Kaiwei, 2021. "Dynamic decision and coordination in a low-carbon supply chain considering the retailer's social preference," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    15. Arunachalam Narayanan & Brent B. Moritz, 2015. "Decision Making and Cognition in Multi-Echelon Supply Chains: An Experimental Study," Production and Operations Management, Production and Operations Management Society, vol. 24(8), pages 1216-1234, August.
    16. Charles L. Munson & Jianli Hu & Meir J. Rosenblatt, 2003. "Teaching the Costs of Uncoordinated Supply Chains," Interfaces, INFORMS, vol. 33(3), pages 24-39, June.
    17. Rosanna Cole & Brent Snider, 2020. "Rolling the Dice on Global Supply Chain Sustainability: A Total Cost of Ownership Simulation," INFORMS Transactions on Education, INFORMS, vol. 20(3), pages 165-176, May.
    18. F Ackermann & C Eden & T Williams & S Howick, 2007. "Systemic risk assessment: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(1), pages 39-51, January.
    19. Xuanming Su, 2008. "Bounded Rationality in Newsvendor Models," Manufacturing & Service Operations Management, INFORMS, vol. 10(4), pages 566-589, May.
    20. Florian Kapmeier, 2020. "Reflections on developing a simulation model on sustainable and healthy diets for decision makers: Comment on the paper by Kopainsky," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(6), pages 928-935, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:25:y:2014:i:2:p:239-263. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.