enterprise decision support systems

8/3/2019 Enterprise Decision Support Systems

1/70

Page

Prof. Rushen Chahal

Enterprise DecisionSupport Systems


2/70

Page

Enterprise Decision Support

Systems

DSS to provide enterprise-wide support

Executives

Many decision makers in different locations

Enterprise Resource Planning (ERP) systems


3/70


4/70

Page

Evolution of Executive and Enterprise

Information Systems

DSS and ODSS

1980s: Top execs get ExecutiveInformation Systems

1995+s: Move to everybodys

information systems and enterpriseinformation systems

Definitions follow


5/70


6/70

Page

Executive Support System

(ESS)Comprehensive support system that goes

beyond EIS to include

Communications

Office automation

Analysis support Intelligence


7/70

Page


8/70

Page

Enterprise Information System

Corporate-wide system

Provides holistic information

From a corporate view

Part of enterprise resource planning (ERP)

systems

For business intelligence

Leading up to enterprise information portals andknowledge management systems


9/70

Page

Executives Role and Their

Information Needs Decisional Executive Role (2 Phases)

1. Identification of problems and/or opportunities

2. The decision of what to do about them

Flow chart and information flow (Figure 8.1)

Use phases to determine executives

information needs


10/70

Page


11/70

Page

Methods for Finding

Information Needs Wetherbe's Approach

1. Structured Interviews

IBM's Business System Planning (BSP)

Critical Success Factors (CSF)

Ends/Means (E/M) Analysis

2. Prototyping

Watson and Frolick's Approach

Asking (interview approach) Deriving the needs from an existing information system

Synthesis from characteristics of the systems

Discovering (Prototyping)

Ten methods

Other Methods


12/70

Page

Characteristics of EIS Drill down

Critical success Factors (CSF)

Status access

Analysis

Exception reporting

Colors and audio Navigation of information

Communication


13/70

Page

Critical Success Factors (CSF)

Monitored by five types of information

1. Key problem narratives

2. Highlight charts

3. Top-level financials

4. Key factors (key performance indicators (KPI))

5. Detailed KPI responsibility reports


14/70


15/70

Page

Characteristics and Benefits of

EIS(Table 8.1)

Quality of information

User interface

Technical capability provided

Benefits


16/70

Page


17/70

Page

Comparing and Integrating

EIS and DSS

Tables 8.2 and 8.3 compare the two systems

Table 8.2 - DSS definitions related to EIS

Table 8.3 - Comparison of EIS and DSS

EIS is part of decision support


18/70

Page


19/70

Page


20/70

Page

Integrating EIS and

Group Support Systems

EIS vendors - easy interfaces with GSS

Some EIS built in Lotus Domino / Notes

Comshare Inc. and Pilot Software, Inc. -

Lotus Domino/Notes-based enhancementsandWeb/Internet/Intranet links


21/70


22/70

Page

EIS

Data access

Data warehousing

OLAP

Multidimensional analysis

Presentations

Web


23/70

Page

Multidimensional Analysis

Easy to develop an EIS in an OLAP system

Most areWeb-ready

Can tap into data in a data warehouse via

theWeb

Use advanced visualization tools


24/70

Page

Representative OLAP / Multidimensional

Analysis Packages

BrioQuery (Brio Technology Inc.)

Business Objects (Business Objects Inc.)

DecisionWeb (Comshare Inc.) DataFountain (Dimensional Insight Inc.)

DSSWeb (MicroStrategy Inc.)

Focus Fusion (Information Builders Inc.)

InfoBeaconWeb (Platinum Technology Inc.)

Oracle xpress Server (Oracle Corporation)

Pilot Internet Publisher (Pilot Software Inc.)


25/70


26/70

Page

Soft Information Used in Most

EIS Predictions, speculations, forecasts, estimates (78.1%)

Explanations, justifications, assessments, interpretations(65.6%)

News reports, industry trends, external survey data(62.5%)

Schedules, formal plans (50.0%)

Opinions, feelings, ideas (15.6%)

Rumors, gossip, hearsay (9.4%)

Soft Information Enhances EIS Value


27/70

Page

Organizational DSS (ODSS)

Three Types of Decision Support

Individual

Group

Organizational

Hackathorn and Keen (1981)


28/70

Page

Organizational decision support focuses onan organizational task or activity involving asequence of operations and actors

Each individual's activities must meshclosely with other people's work

Computer support is for

Improving communication and coordination

Problem solving


29/70

Page

Definitions of ODSS A combination of computer and communication

technology designed to coordinate and disseminatedecision-making across functional areas and

hierarchical layers in order that decisions are congruentwith organizational goals and management's sharedinterpretation of the competitive environment (R. T.Watson, 1990)

A DSS that is used by individuals or groups at severalworkstations in more than one organizational unit whomake varied (interrelated but autonomous) decisionsusing a common set of tools (Carter et al., 1992)


30/70

Page

A distributed decision support system (DDSS). Not

a manager's DSS, but supports the organization's

division of labor in decision making (Swanson andZmud, 1990)

Apply the technologies of computers and

communications to enhance the organizational

decision-making process. Vision of technological

support for group processes to the higher level of

organizations (King and Star, 1990)


31/70

Page

Common Characteristics of

ODSS (George, 1991)

Focus is on an organizational task or activity or a decision

that affects several organizational units or corporate

problems

Cuts across organizational functions or hierarchical layers

Almost always involves computer-based technologies, and

may involve communication technologies

Can Integrate ODSS with Group DSS and Executive

Information Systems ODSS are an enterprise information system directly

concerned with decision support


32/70

Page


33/70


34/70

Page


35/70

Page


36/70

Page


37/70

Page


38/70

Page


39/70

Page

George, Nunamaker & Valacich, 1992:

Classification of ODSS based on Key Issues

Downsizing: Reduction in the number

of human resources and hierarchical

layers- Keys to ODSS:

ODSS to act as knowledge filters and amplifiers

ODSS to handle increased communication caused by an

increase in the span of control

ODSS to integrate the gaps created by the missing Management


40/70

Page



Self-Managed Teams: This address the

gaps.

Need increased coordination tools: Groupware

Need increased flexibility in decision making

Need different types of people (for discussion)


41/70

Page



Outsourcing:

Strategic versus tactical issues

Coordination issues


42/70

Page


43/70

Page


44/70


45/70

Page


46/70


47/70

Page

Decision Maker Views

Hypertext Links

Cognitive Style

Mental ModelsInfromation Sources

15

20

25

30

35

40

45

50

Column 1 Column 2 Column 3 Column 4

Row 1 Row 2 Row 3 Row 4

Column Title

Y

1

Ti

t

l

e

Row Title

Title

SubtitleNote: This is the footnote

Outcomes

Cognitive Style

Mental Models

Nodes: data, models, knowledge

Links: relationshipsbewteen nodes

The decision making-

intrepretation process

New link


48/70

Page

Management Decision Making Processess

010

20

30

40

50

60

70

80

90

1st Qtr 2nd

Qtr

3rd

Qtr

4th

Qtr

East

West

North

Intelligence

Design

Choice

Consensus

Generating

Dialectical

Inquiry

Strategy Formulation

Planning & Budgeting

Stakeholder

Communications

Performance

Measure ment &

Reporting

Technical Infrastructure Building

Human Resource Management


49/70

Page

MD

Data Base

Legacy

Systems

R DBs SQL

GroupWare/GSS

Business

Processess

Business Forecasting

Organizational Structures


50/70

Page

Environmentally

Collected & Scanned Information:

Internal/External

Problem &

Opprotunity

Data Base

Process

Tool Data Base

Business

Process

Redesigns

Problem

Identification:

Intelligence

Normative

Design

Descriptive

Design

Decision

Choice

Implementation/Outcomes

Target IS

ESS Architecture

DeSanctis and Gallupe, 1985

Turban and Watson, 1989

Teng, Kettinger, and Guha, 1992

Chen, 1995

This paper

Repository

Repository-Based EIS

Interface

Development Tools

GSS

Interface

Data

Base

Model

Base

Process

Support

GSS Structure


51/70

Page

Business Strategy

Process SelectionProcess Tool

Data Base

Process Vision

Process ObjectivesProcess

Attributes

Enabling Technology

EIS

ESS

GSS

DSS

CMC

Strategies to

Processes

Adapted from Davenport, 1993


52/70

Page

Supply and Value Chains and

Decision Support Supply chain: (originally) flow of materials

from sources to internal use

Demand chain: flow from inside to

customers


53/70


54/70

Page

Supply Chain Management

(SCM

) To deliver an effective supply chain and do

it effectively

To plan, organize, and coordinate the

supply chains activities


55/70

Page

SCM

Benefits Reduction in uncertainty and risks in the

supply chain

Positively affect

inventory levels

cycle time

processes

customer service

Increase profitability


56/70

Page

Supply Chain Components

Upstream

Internal supply chain

Downstream

Involves product life cycle activities

Example (Figure 8.2)


57/70

Page


58/70

Page


59/70

Page

Supply Chain

Related to Porters (1985)Value Chain 1. Inbound logistics (inputs)

2. Operations (i.e manufacturing)

3. Outbound logistics (i.e. storage,distribution)

4. Marketing and Sales

5. Service


60/70

Page

Supply Chain Problems Uncertainty in the demand forecast

Uncertainty in delivery times

Quality problems Poor customer service

High inventory costs

Low revenue

Extra costs


61/70

Page

Solutions to Supply Chain

Problems Outsourcing Buy, not make

Configure optimal shipping plans

Optimize purchasing

Strategic partnerships with suppliers Just-in-time delivery of purchases

Reduce intermediaries

Reduce lead times (EDI)

Use fewer suppliers

Improve the supplier-buyer relationships Build-to-order

Accurate demand by working with suppliers


62/70

Page

Computerized Systems MRP

ERP

SCM

Integrating the supply chain


63/70

Page

Enterprise Resource Planning

(ERP) Objective: integrate all departments and

functions across an organization into a

single computer system that can serve the

entire enterprises needs


64/70

Page

ERP Software Vendors SAP Baan

PeopleSoft Oracle

J.D. Edwards

Computer Associates


65/70

Page

ERP Very (VERY!) expensive

2nd generation: doing better

Early 2000: moving toWeb

Will fail if an organizations business

processes do not fit the ERP systems model


66/70

Page

Application Service Providers and ERP

Outsourcing ASP: software vendor who leases ERP-

based applications

Outsourcing

Now via theWeb

C t (E t i ) P t l


67/70

Page

Corporate (Enterprise) Portals

and EIS

Integrates internal applications withexternal applications

Generally via theWeb Can include

groupware technologies

presentation and customization

publishing and distribution search

categorization

integration


68/70

Page

Frontline Decision Support

Systems Process of automating decision processesand pushing them down into the

organization and even partners

Includes empowering employees


69/70

Page


70/70

Future of Executive and Enterprise

Support Systems

Toolbox for customized systems

Multimedia support

Better access (via PDFs and cell phones)

Virtual Reality and 3-D Image Displays

Merging of analytical systems (OLAP / multidimensional analysis))with desktop publishing

Client/server architecture

Web-enabled EIS

Automated support and intelligent assistance

Integration of EIS and Group Support Systems Global EIS

Integration and deployment with ERP products

enterprise decision support systems

Documents