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GSB 522 Management Information Systems. Take Aways. Understand how and when to use Pivot Tables: Multi-Dimensional Analysis Understand how and when to provide decision support using the Scenario Manager tool: What If Analysis
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GSB 522 Management Information Systems
Take Aways Understand how and when to use Pivot Tables: Multi-Dimensional Analysis Understand how and when to provide decision support using the Scenario Manager tool: What If Analysis What was Microsoft’s revenue for its first year of operation? $16,005
Decision Support Systems Components of a Decision Support System SensitivityAnalysis
CRM: BigState Bank’s Call Center Off-Shoring Decision Decision: to maintain call center in the U.S. or send it offshore to Bangalore, India BigState Expected Benefits: • Lower wage rate/higher quality of work • Re-deploy assets (real estate & call center supervisors) • Re-focus on its core business – banking • Free up cash from infrastructure costs (telecommunication, computing, etc.)
CRM: BigState Bank’s Call Center Off-Shoring Decision If BigState decides to send its call center to India: • Hire Indian technical consulting: Bangalore information systems (BI) contracted to run BigState Bank’s Call Center; • Retain an Indian law firm & a PR firm; • Travel for executive-to-executive contact; • Must send 2 U.S. liaisons to India and 2 Indian liaisons to the U.S.; • Must consider the U.S. dollar-to-rupee exchange rate; • Must consider background checks & training costs for employees (Indian vs. U.S.).
CRM: BigState Bank’s Call Center Off-Shoring Decision BigState asks you to develop a DSS to help make this decision assumng BI’s contract will last 5 years Use: NPV – Net Present Value function to analyze multi-period investments. NPV(discount rate, (benefits-cost) over investment period) Assume the CIO will be financially justified in moving the call center to India if the potential investment shows a positive dollar NPV at 25% discount rate (“hurdle rate” – minimum acceptable rate of earnings on a potential investment)