Cognitive biases and decision support systems development: a design science approach

Abstract. This paper presents design science research that aims to improve decision support systems (DSS) development in organizations. Evolutionary development has been central to DSS theory and practice for decades, but a significant problem for DSS analysts remains how to conceptualize the improvement of a decision task during evolutionary DSS development. The objective of a DSS project is to improve the decision process and outcome for a manager making an important decision. The DSS analyst needs to have a clear idea of the nature of the target decision task and a clear strategy of how to support the decision process. Existing psychological research was examined for help with the conceptualization problem, and the theory of cognitive bias is proposed as a candidate for this assistance. A taxonomy of 37 cognitive biases that codifies a complex area of psychological research is developed. The core of the project involves the construction of a design artefact – an evolutionary DSS development methodology that uses cognitive bias theory as a focusing construct, especially in its analysis cycles. The methodology is the major contribution of the project. The feasibility and effectiveness of the development methodology are evaluated in a participatory case study of a strategic DSS project where a managing director is supported in a decision about whether to close a division of a company.