An application of value-of-information to decision process reengineering

Value of information (VOI) methods were used to guide changes to recurrent organizational decision processes under a reengineering effort at a major automobile manufacturer to reduce supply and demand imbalances involving capacity for parts and products. We modeled representative decisions assuming that they would be made with and without the benefit of improved information flows and calculated the resulting increase in expected value. By factoring in the entire range of decisions affected by a process change, we scaled the value of each organizational change to a life cycle value. The results quantified the impact of organizational changes in order to refine and prioritize a portfolio of change projects.