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

  13. 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

  14. 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

  15. 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

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

  17. 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

  18. 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.)

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

  20. 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

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

  22. 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

  23. 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)

  24. 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)

  25. 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

  26. 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

  27. Supply Chain • The flow of materials, information, and services from raw material suppliers through factories and warehouses to the end customers • Includes the organizations and processes that create and deliver value to the end customers

  28. Supply Chain Management (SCM) • To deliver an effective supply chain and do it effectively • To plan, organize, and coordinate the supply chain’s activities

  29. SCM Benefits • Reduction in uncertainty and risks in the supply chain • Positively affect • inventory levels • cycle time • processes • customer service • Increase profitability

  30. Supply Chain Components • Upstream • Internal supply chain • Downstream Involves product life cycle activities Example (Figure 8.2)

  31. Supply Chain • Related to the Value Chain Model (Porter)

  32. Supply Chain Problems • Uncertainty in the demand forecast • Uncertainty in delivery times • Quality problems • Poor customer service • High inventory costs • Low revenue • Extra costs

  33. 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

  34. Computerized Systems • MRP • ERP • SCM Integrating the supply chain

  35. Enterprise Resource Planning (ERP) • Objective: integrate all departments and functions across an organization into a single computer system that can serve the entire enterprise’s needs

  36. ERP Software Vendors • SAP • Baan • PeopleSoft • Oracle • J.D. Edwards • Computer Associates

  37. ERP • Very (VERY!) expensive • 2nd generation: doing better • Early 2000: moving to Web • Will fail if an organization’s business processes do not fit the ERP system’s model

  38. Application Service Providers and ERP Outsourcing • ASP: software vendor who leases ERP-based applications • Outsourcing • Now via the Web

  39. Corporate (Enterprise) Portals and EIS • Integrates internal applications with external applications • Generally via the Web • Can include • groupware technologies • presentation and customization • publishing and distribution • search • categorization • integration

  40. Frontline Decision Support Systems • Process of automating decision processes and pushing them down into the organization and even partners • Includes empowering employees

  41. 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

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