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



Executive information systems (EIS) Executive support systems (ESS) Enterprise information systems (EIS)

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

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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

Executive Support System (ESS)

Comprehensive support system that goes beyond EIS to include
   

Communications Office automation Analysis support Intelligence

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
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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

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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

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Characteristics of EIS
       

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

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Critical Success Factors

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Characteristics and Benefits of EIS

(Table 8.1)

   

Quality of information User interface Technical capability provided Benefits

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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

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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

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Traditional EIS Software



Major Commercial EIS Software Vendors

 

Comshare Inc. (www.comshare.com) Pilot Software Inc. (www.pilotsw.com) In-house components Comshare Commander tools Pilot Softwares Command Center Plus and Pilot Decision Support Suite

Application Development Tools

  

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EIS  Data access  Data warehousing  OLAP  Multidimensional analysis  Presentations  Web

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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
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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.)
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Including Soft Information in EIS

Soft information is fuzzy, unofficial, intuitive, subjective, nebulous, implied, and vague

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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

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Organizational DSS (ODSS)



Three Types of Decision Support

  

Individual Group Organizational

Hackathorn and Keen (1981)

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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

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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)
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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)
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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

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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

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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)

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George, Nunamaker & Valacich, 1992: Classification of ODSS based on Key Issues


Outsourcing:
Strategic versus tactical issues Coordination issues

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The Internet

Corporate Data,Model, Knowledge Bases, etc.

Internet Server

EIS Data, Model, Knowledge Bases

User Interface Resident OLAP Tools

Intranet Server

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An EIS Architecture
Environment Individual problem solvers Other group members

Report writing software

Mathematical Models

GDSS GDSS software software

RDB

Decision support system Environment Legend: Data Communication Information

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Decision Maker Views

The decision makingintrepretation process

Title
Note: This is the footnote
Y 1 T i t l e

Subtitle

50 45 40 35 30 25 20

Infromation Sources

Cognitive Style Cognitive Style Mental Models Mental Models

15 Column 1 Column 2 Column 3 Column Title Column 4

Row 1

Row 2
Row Title

Row 3

Row 4

Outcomes
Links: relationships bewteen nodes

New link

Hypertext Links

Nodes: data, models, knowledge

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Management Decision Making Processess

Strategy Formulation

Planning & Budgeting

Dialectical Intelligence
90 80 70 60 50 40 30 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Inquiry Consensus Generating

Design Choice
East West North

Stakeholder Communications

Performance Measure ment & Reporting Technical Infrastructure Building Human Resource Management

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GroupWare/GSS

MD Data Base Business Forecasting Organizational Structures

Legacy Systems

R DBs

SQL

Business Processess

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Repository-Based EIS

ESS Architecture
Data

GSS Structure
GSS Model Base

Repository

Interface

Environmentally
Target IS Development Tools

Base

Collected & Scanned Information: Internal/External

Interface Process Support

Problem & Opprotunity Data Base

Problem Identification: Intelligence

Process Tool Data Base

Normative Design
DeSanctis and Gallupe, 1985 Turban and Watson, 1989 Teng, Kettinger, and Guha, 1992 Chen, 1995 This paper

Descriptive Design Business Process Redesigns Decision Choice

Implementation/Outcomes

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Strategies to Processes
Process Tool Data Base

Business Strategy

EIS ESS Process Selection GSS DSS CMC Enabling Technology

Process Vision

Process Process Objectives Attributes

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Adapted from Davenport, 1993

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

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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

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Supply Chain Management (SCM)



To deliver an effective supply chain and do it effectively To plan, organize, and coordinate the supply chains activities

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SCM Benefits
Reduction in uncertainty and risks in the supply chain  Positively affect


inventory levels  cycle time  processes  customer service



Increase profitability
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Supply Chain Components

Upstream  Internal supply chain  Downstream


Involves product life cycle activities Example (Figure 8.2)

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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


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Supply Chain Problems

Uncertainty in the demand forecast  Uncertainty in delivery times  Quality problems  Poor customer service  High inventory costs  Low revenue  Extra costs

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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

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Computerized Systems
MRP  ERP  SCM


Integrating the supply chain

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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

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ERP Software Vendors

SAP  Baan  PeopleSoft  Oracle  J.D. Edwards  Computer Associates


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ERP
Very (VERY!) expensive  2nd generation: doing better  Early 2000: moving to Web  Will fail if an organizations business processes do not fit the ERP systems model


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Application Service Providers and ERP Outsourcing



ASP: software vendor who leases ERPbased applications Outsourcing Now via the Web

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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
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Frontline Decision Support Systems



Process of automating decision processes and pushing them down into the organization and even partners Includes empowering employees

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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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