Models are simplified representations of reality, specifically designed to help understand and describe complex contexts, systems, and the relationships between their components. For strategic decision-makers facing vast and intricate information, models serve as a crucial tool. They abstract away non-essential details and highlight the most critical elements and their interactions. This process reduces the cognitive load and transforms an overwhelming amount of data into a manageable and understandable format, thereby facilitating more effective analysis and informed strategic choices.

A. Reduction: This describes the desired outcome (reducing information) rather than the specific technique or tool used to achieve it. Models are a formal method for performing this reduction.

B. MoSCoW approach: This is a prioritization technique used to categorize requirements or features (Must have, Should have, Could have, Won't have), not a method for simplifying complex information sets for strategic analysis.

D. Filtering: This involves selecting a subset of data based on specific criteria. While it reduces the quantity of information, it does not inherently simplify the complexity of the relationships within the remaining data.

1. IIBA. (2017). Agile Extension to the BABOK® Guide

Version 2. Section 7.2.3

Models. "Models are used to help understand and describe contexts

complexities

and relationships between things... A model is a simplified representation of a complex reality

created to serve a particular purpose."

2. IIBA. (2017). Agile Extension to the BABOK® Guide

Version 2. Section 4.1.3

See the Whole. This section emphasizes that to make good decisions

it is necessary to understand the system as a whole

and "Models are used to help understand and describe contexts

complexities

and relationships."

3. Sterman

J. D. (2000). Business Dynamics: Systems Thinking and Modeling for a Complex World. Irwin/McGraw-Hill. Chapter 3

"The Modeling Process

" explains that models are essential tools for understanding the complexity of systems to improve decision-making.

4. Simon

H. A. (1979). "Information processing models of cognition." Annual Review of Psychology

30(1)

363-396. This work discusses how humans use simplified mental models to deal with the "bounded rationality" imposed by complex environments

a foundational concept in strategic decision-making. DOI: https://doi.org/10.1146/annurev.ps.30.020179.002051