1 / 42

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. Evolution of Executive and Enterprise Information Systems.

louvain
Download Presentation

Chapter 8

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 8 Enterprise Decision Support Systems Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  2. Enterprise Decision Support Systems • DSS to provide enterprise-wide support • Executives • Many decision makers in different locations • Enterprise Resource Planning (ERP) systems Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  3. 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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  4. 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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  5. Executive Support System (ESS) Comprehensive support system that goes beyond EIS to include • Communications • Office automation • Analysis support • Intelligence Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  6. 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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  7. Executives’ Role and Their Information Needs • Decisional Executive Role (2 Phases) • Identification of problems and/or opportunities • The decision of what to do about them • Flow chart and information flow (Figure 8.1) • Use phases to determine executives’ information needs Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  8. External environment Internal environment Scanning Scanning Evaluation of information Qualitative analysis Quantitative analysis Interpretation: Is there a problem (opportunity)? No Yes Input for decision making Phase I Phase II Decision: What to do about the problem (opportunity) The Decision Making Process of Executives (Decision Role) Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  9. Methods for Finding Information Need • Wetherbe's Approach • Structured Interviews • IBM's Business System Planning (BSP) • Critical Success Factors (CSF) • Ends/Means (E/M) Analysis • 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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  10. Executive Information System (EIS) Characteristics and Benefits • Quality of information • User interface • Technical capability provided • Benefits Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  11. Executive Information System (EIS) Characteristics • Drill down • Critical success Factors (CSF) • Status access • Analysis • Exception reporting • Colors and audio • Navigation of information • Communication Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  12. Critical Success Factors (CSF) Monitored by five types of information • Key problem narratives • Highlight charts • Top-level financials • Key factors (key performance indicators (KPI)) • Detailed KPI responsibility reports Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  13. Typical Key Performance Indicators Critical Success Factors (CSF) • Profitability Profitability measures for each department, product, region, comparisons among departments and products and with competitors • Financial Financial ratios, balance sheet analysis, cash reserve position, ROI • Marketing Market shares, advertisement analysis, product pricing, weekly sales results Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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.) Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  19. Including Soft Information in EIS Soft information is • Fuzzy • Unofficial • Intuitive • Subjective • Nebulous • Implied • Vague Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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%) Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  21. Including Soft Information in EIS • Soft Information Enhances EIS Value • Intelligent Agents • New Feeds Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  22. Organizational DSS (ODSS) Hackathorn and Keen (1981) • 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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  23. Organizational DSS (ODSS) Definitions • 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) Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  24. Organizational DSS (ODSS) Definitions • 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) Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  25. Organizational DSS (ODSS) Common Characteristics (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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  29. Supply Chain Management (SCM) Benefits • Reduction in uncertainty and risks in the supply chain • Positively affect • inventory levels • cycle time • processes • customer service • Increase profitability Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  30. Supply Chain Components • Upstream • Internal supply chain • Downstream Involves product life cycle activities Example (Figure 8.2) Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  31. Supply Chain • Related to the Value Chain Model (Porter) • Value chain is a series of activities that includes • Inbound logistics • Warehousing & storage • Production • Finished inventory storage • Outbound logistics • Marketing & sales • Customer service Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  32. The Value Chain of a Manufacturing Company Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  33. Supply Chain Problems • Uncertainty in the demand forecast • Uncertainty in delivery times • Quality problems • Poor customer service • High inventory costs • Low revenue • Extra costs Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  34. Supply Chain Solutions to Problems • Outsourcing • Buy, not make • Configure optimal shipping plans • Optimize purchasing • Strategic partnerships with suppliers • Just-in-time delivery of purchases Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  35. Supply Chain Solutions to Problems • Reduce intermediaries • Reduce lead times/use EDI • Use fewer suppliers • Improve the supplier-buyer relationships • Build-to-order • Accurate demand by working with suppliers Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  36. Computerized System • MRP • ERP • SCM Integrating the supply chain Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  37. 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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  38. Enterprise Resource Planning (ERP) Software Vendors • SAP • Baan • PeopleSoft • Oracle • J.D. Edwards • Computer Associates Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  39. Enterprise Resource Planning (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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  40. Application Service Providers and ERP Outsourcing • ASP: • software vendor who leases ERP-based applications • Outsourcing • Now via the Web Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  41. 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 Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

  42. Frontline Decision Support Systems • Process of automating decision processes and pushing them down into the organization and even partners • Includes empowering employees • Serves business managers such as line managers, sales executives and call center representatives • Provides • the right questions to ask • the location of needed data • metrics • suggested actions Decision Support System by Simulation Model (Ajarn Chat Chuchuen)

More Related