Tools for Decision-Making

PEST, PESTLE, STEEP, STEP

PEST analysis (“Political, Economic, Social and Technological analysis'') describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT others inserted Environmental factors, thereby expanding it to PESTEL or PESTLE, which is particularly popular in the United Kingdom.

PESTLE can be part of the external strategic analysis when conducting market research, for example, and can provide an overview of the different macro-environmental factors a company should take into consideration. It can also be a useful strategic tool for understanding market growth or decline, business positioning, and the potential of and direction for operationp

http://en.wikipedia.org/wiki/PEST_analysis

EIDOS can provide a systemic analysis to identify the main driver of a system. It is recommended to use color-coding of the PESTLE elements to identify if one or more categories of the PESTLE are specifically influencing the system.

PEST, PESTLE, STEEP, STEP

PEST analysis (“Political, Economic, Social and Technological analysis'') describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT others inserted Environmental factors, thereby expanding it to PESTEL or PESTLE, which is particularly popular in the United Kingdom.

PESTLE can be part of the external strategic analysis when conducting market research, for example, and can provide an overview of the different macro-environmental factors a company should take into consideration. It can also be a useful strategic tool for understanding market growth or decline, business positioning, and the potential of and direction for operations.

http://en.wikipedia.org/wiki/PEST_analysis

EIDOS supports classical PESTLE analysis through a brainstorming approach enhanced by an attractive background. To enhance the potential value of the analytical results from the brainstorming exercise, it is recommended that results be documented in the PESTLE Analysis (Systemic) tool.

A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.

Source: http://en.wikipedia.org/wiki/Supply_chain
Source: http://en.wikipedia.org/wiki/Value_chain

EIDOS provides the rapid creation of supply or value chain visuals. These visuals can be created in parallel and are not bound by formal formatting constraints. Therefore, the use of different colors can provide the flexibility and coherence needed. In addition, comments and attachments can also provide added details and context. Lastly, the analyst can easily zoom in and out or split the upstream and downstream activities.

A common approach of a qualitative risk analysis is to evaluate the probability of occurrence of a risk as well as its impact relative to comparable risks. The challenge is to select risks with and maintain the same Optimal Cognitive Distance (OCD). It is recommended to phrase a question describing the nature of risks that should be captured and evaluated.

See also: http://en.wikipedia.org/wiki/Risk_analysis

Note: Risks and chances are often perceived as two sides of the same coin. This is why a second template is available for a positive analysis of events. A more elaborate, alternative approach is to develop a risk portfolio, which is also part of the EIDOS Management Toolbox.

Originally, System Analysis was developed to support the analysis of complex systems. Today, the Situation Analysis Tool can be leveraged to analyze any kind of systems.

To better understand complex systems analysis, though, known as “Systemic Analysis” in EIDOS, it is ideal to generate a common understanding of a system and to identify factors of a system without an initial ranking of the importance of those factors. This is why all boxes (factors) in EIDOS are of the same size. The challenge is to connect factors by only considering the most important relations.

With these factors identified and connected, the tool allows the analyst to distinguish the relative importance of these different factors with the active/passive map and select the interesting elements form the workspace or chart.

You can learn more about this topic by selecting the HELP Ribbon. Click on the Icon ‘EIDOS Tour’ and select the second icon below the Intro.