CHAPTER 8

1. 1 CHAPTER 8 Enterprise Decision Support Systems

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

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

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

5. 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. 6 Executive Support System (ESS) Comprehensive support system that goes beyond EIS to include Communications Office automation Analysis support Intelligence

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8. 8 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

9. 9 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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11. 11 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. 12 Characteristics of EIS Drill down Critical success Factors (CSF) Status access Analysis Exception reporting Colors and audio Navigation of information Communication

13. 13 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. 14 Critical Success Factors

15. 15 Characteristics and Benefits of EIS (Table 8.1) Quality of information User interface Technical capability provided Benefits

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17. 17 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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20. 20 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 Integrating EIS and Group Support Systems

21. 21 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

22. 22 EIS Data access Data warehousing OLAP Multidimensional analysis Presentations Web

23. 23 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

24. 24 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.)

25. 25 Including Soft Information in EIS Soft information is fuzzy, unofficial, intuitive, subjective, nebulous, implied, and vague

26. 26 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. 27 Organizational DSS (ODSS) Three Types of Decision Support Individual Group Organizational Hackathorn and Keen (1981)

28. 28 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

29. 29 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)

30. 30 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)

31. 31 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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39. 39 George, Nunamaker & Valacich, 1992: Classification of ODSS based on Key Issues

40. 40 George, Nunamaker & Valacich, 1992: Classification of ODSS based on Key Issues

41. 41 George, Nunamaker & Valacich, 1992: Classification of ODSS based on Key Issues

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52. 52 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. 53 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

54. 54 Supply Chain Management (SCM) To deliver an effective supply chain and do it effectively To plan, organize, and coordinate the supply chain�s activities

55. 55 SCM Benefits Reduction in uncertainty and risks in the supply chain Positively affect inventory levels cycle time processes customer service Increase profitability

56. 56 Supply Chain Components Upstream Internal supply chain Downstream Involves product life cycle activities Example (Figure 8.2)

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59. 59 Supply ChainRelated to Porter�s (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. 60 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. 61 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. 62 Computerized Systems MRP ERP SCM Integrating the supply chain

63. 63 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

64. 64 ERP Software Vendors SAP Baan PeopleSoft Oracle J.D. Edwards Computer Associates

65. 65 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

66. 66 Application Service Providers and ERP Outsourcing ASP: software vendor who leases ERP-based applications Outsourcing Now via the Web

67. 67 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

68. 68 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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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