Decision-Making Support and Its Application in Public Administration

Abstract

This article describes modern methods of decision-makingin companies and possible utilization of these methods in public administration.At the beginning, the articlefocuses on the current state of cooperation between the private and the public sectors.So-calledPublic-Private Partnership (Projects) are one option for such cooperation, the takeover of certain public sector services by private operators is another option for such cooperation. Then there are shown the different levels of the modern decision-making and utilization of the decision-making methods in the public sector. It includes Reporting, Ad Hoc analysis, Dashboards, Classification, Predictionand What-If modelling.Finally, there are shown two approaches in a decision-making case studyin the private sector. The first study concerns theimpact of exchange rate fluctuations in the volume of transactions at an electronic money institution. The analysis is then used in the standard reporting and has impact into Key Performance Indicators. The second example case study shows advanced techniques like statistical analysis, logistic regression, neural network and decision tree within the classification of clients.The methods in the case studycan be applied in public administration (e.g. in tax administration).