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CHAPTER 8

CHAPTER 8. Enterprise Decision Support Systems. Enterprise Decision Support Systems. DSS to provide enterprise-wide support Executives Many decision makers in different locations Enterprise Resource Planning (ERP) systems. Enterprise Systems: Concepts and Definitions.

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CHAPTER 8

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  1. CHAPTER 8 Enterprise Decision Support Systems

  2. Enterprise Decision Support Systems • DSS to provide enterprise-wide support • Executives • Many decision makers in different locations • Enterprise Resource Planning (ERP) systems

  3. Enterprise Systems: Concepts and Definitions • Executive information systems (EIS) • Executive support systems (ESS) • Enterprise information systems (EIS)

  4. Evolution of Executive and Enterprise Information Systems • DSS and ODSS • 1980s: Top execs get Executive Information Systems • 1995+’s: Move to everybody’s information systems and enterprise information systems • Definitions follow

  5. Executive Information System (EIS) • A computer-based system that serves the information needs of top executives • Provides rapid access to timely information and direct access to management reports • Very user-friendly, supported by graphics • Provides exceptions reporting and "drill-down" capabilities • Easily connected to the Internet • Drill down

  6. Executive Support System (ESS) Comprehensive support system that goes beyond EIS to include • Communications • Office automation • Analysis support • Intelligence

  7. 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 and knowledge management systems

  8. 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

  9. 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

  10. Characteristics of EIS • Drill down • Critical success Factors (CSF) • Status access • Analysis • Exception reporting • Colors and audio • Navigation of information • Communication

  11. 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

  12. Critical Success Factors

  13. Characteristics and Benefits of EIS(Table 8.1) • Quality of information • User interface • Technical capability provided • Benefits

  14. 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

  15. 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 enhancements and Web/Internet/Intranet links

  16. Traditional EIS Software • Major Commercial EIS Software Vendors • Comshare Inc. (www.comshare.com) • Pilot Software Inc. (www.pilotsw.com) • Application Development Tools • In-house components • Comshare Commander tools • Pilot Software’s Command Center Plus and Pilot Decision Support Suite

  17. EIS • Data access • Data warehousing • OLAP • Multidimensional analysis • Presentations • Web

  18. Multidimensional Analysis • Easy to develop an EIS in an OLAP system • Most are Web-ready • Can tap into data in a data warehouse via the Web • Use advanced visualization tools

  19. Representative OLAP / Multidimensional Analysis Packages • BrioQuery (Brio Technology Inc.) • Business Objects (Business Objects Inc.) • Decision Web (Comshare Inc.) • DataFountain (Dimensional Insight Inc.) • DSS Web (MicroStrategy Inc.) • Focus Fusion (Information Builders Inc.) • InfoBeacon Web (Platinum Technology Inc.) • Oracle xpress Server (Oracle Corporation) • Pilot Internet Publisher (Pilot Software Inc.)

  20. Including Soft Information in EIS Soft information is fuzzy, unofficial, intuitive, subjective, nebulous, implied, and vague

  21. 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

  22. Organizational DSS (ODSS) • Three Types of Decision Support • Individual • Group • Organizational Hackathorn and Keen (1981)

  23. Organizational decision support focuses on an organizational task or activity involving a sequence of operations and actors • Each individual's activities must mesh closely with other people's work • Computer support is for • Improving communication and coordination • Problem solving

  24. Definitions of ODSS • A combination of computer and communication technology designed to coordinate and disseminate decision-making across functional areas and hierarchical layers in order that decisions are congruent with organizational goals and management's shared interpretation of the competitive environment (R. T. Watson, 1990) • A DSS that is used by individuals or groups at several workstations in more than one organizational unit who make varied (interrelated but autonomous) decisions using a common set of tools (Carter et al., 1992)

  25. A distributed decision support system (DDSS). Not a manager's DSS, but supports the organization's division of labor in decision making (Swanson and Zmud, 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)

  26. 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

  27. 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

  28. George, Nunamaker & Valacich, 1992: Classification of ODSS based on Key Issues • 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)

  29. George, Nunamaker & Valacich, 1992: Classification of ODSS based on Key Issues • Outsourcing: • Strategic versus tactical issues • Coordination issues

  30. Corporate Data,Model, Knowledge Bases, etc. The Internet EIS Data, Model, Knowledge Bases Internet Server User Interface Resident OLAP Tools Intranet Server

  31. An EIS Architecture Environment Other group members Individual problem solvers Mathematical Models GDSS software Report writing software GDSS software RDB Decision support system Environment Data Communication Information Legend:

  32. Decision Maker Views The decision making- intrepretation process Cognitive Style Mental Models Cognitive Style Mental Models Infromation Sources Outcomes Links: relationships bewteen nodes New link Nodes: data, models, knowledge Hypertext Links

  33. Management Decision Making Processess Process Tools Strategy Formulation Planning & Budgeting Dialectical Inquiry Intelligence Design Choice Consensus Generating Stakeholder Communications Performance Measure ment & Reporting Technical Infrastructure Building Human Resource Management

  34. Repository-Based EIS GSS Structure Data Base Model Base GSS Repository Interface Environmentally Collected & Scanned Information: Internal/External Interface Development Tools Process Support Problem Identification: Intelligence Normative Design Descriptive Design Decision Choice Implementation/Outcomes ESS Architecture Target IS Problem & Opprotunity Data Base Process Tool Data Base Business Process Redesigns DeSanctis and Gallupe, 1985 Turban and Watson, 1989 Teng, Kettinger, and Guha, 1992 Chen, 1995 This paper

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