Motivations and Foundations
Created: March 16, 2024 (Saturday); 07:29 PM
Modified: April 04, 2024 (Thursday); 12:06 AM
Can you imagine a manager or a leader of a company who can’t understand, read, or utilize data presented to them? A leader who doesn’t have a background in business management.
If you are one of their employees, I suggest that you don’t waste your time, and find a new job as early as possible.
Every business, maliit man or malaki, should have vision (goals), mission, objectives, and strategies. If naka-focused ka lang sa kikitain ng business mo, then the chances na hindi tatagal ‘to are high. It is important that leaders in a company should have a prosprective of target profit. They should have foresight.
In business, hindi maiiwasan na magkaroon ng uncertainties sa future. If wala kang plans para solusyunan ito, then your business is damned. That’s why, it really is important to have a background in Quantitative Method (QM).
Importance of Quantitative Method
Data are everywhere! If you have the available data or information, then hindi ka na mag-aalinlangan when you make a decision. Decisions should be deterministic or may pinagbabasehan. If you are uncertain about a choice, mahirap syang piliin.
Business decision making is very critical. Every manager or leader’s decisions ay may implication or epekto sa overall situation ng company. That’s why kaya nilang i-quantify yung magiging impact ng kanilang decision. Alam nila yung mga possible risks — uncertain situations or outcomes that could lead to negative result — and they could classify it. If the risks are on a medium or high scale, instead of iwasan ‘to and lose the business opportunity, they rather have possible solutions that they came up in advanced. In other words, if may risk sa isang business, come up with a mitigation plan to remove or at least lessen its effect.
Huge demand in job market, especially on large scale data or statistical analysis. If you have the skillset in QM, kailangan ka ng company because they are essential for the scientific study of social groups and societies. Hindi sapat ang basic probabilities and statistic to meet the challenges of complex reality. Sometimes, you need tools, such as multivariate analysis tools, to bridge the gap between these challenges. Hindi sapat yung mga basic or standard procedures na binibigay sa mga books if iko-compare mo ‘to sa reality.
Quantitative vs. Qualitative
Quantitative methods are collection of numerical methods/approches used for analyzing and solving problems.
Basically, any reasoning that uses numbers is quantitative. On the other hand, if naka base ‘to sa judgement or opinion ng isang tao, then it is qualitative.
How Qualitative and Quantitative Methods Work?
In qualitative method, kailangan may experience ka with the particular situation by either creating a survey/interview or immersing yourself within that group or location.
Sa quantitative method, you don’t need to immerse yourself in a situation just to gain an experience; just gather, treat, and model the numbers para makapag-decide.
Why We Use Numbers?
We use numbers in quantiative method because they give us a clear, precise, and objective measure of things. Unlike sa qualitative method na gumagamit ng estimations, having a precise measure of things eliminate or at least reduce the possibility of errors.
Moreover, we can perform calculations on numbers; thus, we can use the data to perform operations.
Typical Decision Making Approach
Identify the problem ➜ Analysis ➜ Decision ➜ Implementation
- Kailangan mo munang alamin kung ano bang problem (maybe within an organization) yung gusto mong solusyunan.
- Next, you have to analyze the problem and the current situation either by quantitative or qualitative analysis. Then, assess and evaluate yung magiging resulta.
- Then, you have to make the decision. You need to decide wether to pursue or not pursue the decison. Or maybe even implement another solution.
- Lastly, implement the decision or the solution to solve the problem.
Model
”A representation of an object, a system, or an idea in some form other than that of the entity itself.” (Claude Shannon)
Whenever you come up with a solution to a problem, it’s not recommended na i-apply mo agad s’ya. There could be some effects, reaction, or resistance to the processes involved. There could be a huge impact sa overall situation if you immediately implement the solution. What we could do is experiment — maybe by applying it to a small sample size — and check kung ano yung magiging epekto ng in-implement mong solution. That’s why, it is important start with a model of a problem.
Ingredients of a Good Model
- Similar but simpler than what it represents. When you create a model, hindi sya dapat kaagad complicated but rather a simple representation ng system.
- Enable the analyst to predict the effect of changes to the system. Since the model is the representation of the model, dapat similar yung magiging reaction nito sa reaction ng system.
- A close approximation to the real system and incorporate most of its salient features. That means, yung mga important features ng system ay kasama sa model.
- Not complex that it is impossible to understand and experiment with it. You should be able to experiment with things and mimic the model.
- Judicious tradeoff between realism and simplicity. Realism would make the model too complex, while achieving simplicity lessen the features you implement with the system. That’s why you have to find the right balance.
- Can be validated. You can perform retest and should give a stable and similar results.
Modeling
The process of producing a model is called modeling.
Process in Designing a Model
- Start at end. Everytime you design a model, you have to think kung ano ba dapat yung magiging output ng model — ano ba dapat gawin ng model.
- Problem orientation. Dapat kahit nag-start ka sa dulo when designing the model, you always have to keep in mind the objective. Para saan ba yung model na ‘yon? And ano bang problem yung nais solusyunan by creating that model?
- Model simple; think complicated. You have to think critically and see the bigger picture, but you only need to model what is needed.
- Start small: and add.
- Avoid mega models. There’s a chance na hindi magtugma yung model sa actual system if nag-model ka ng malaki.
- Let the model decide the input. This answers, “Ano ba dapat yung maging input ng model para maging ganito yung result?”
Classification of Models
- Conceptual/Physical Models - these are physical and miniatured representation of the actual object. It is a replica of the actual object.
- Abstract/Mathematical Models - unlike physical models, these are intangible or hindi nakikita. You are making an abstract representation of the problem.
- Simulation Models - either conceptual or abstract model na ginamitan ng computer.
- Heterogeneous Models - these are the combination of the physical, mathematical, and simulation models.
Side-note
- For the diagrams for Stages in Problem Solving and Modelling as Quantitative Approach, just check the pdf file na sinend ni Sir sa GClass.