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Enterprise Decision

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A computer-based system that serves the information needs of top executives ... BrioQuery (Brio Technology Inc.) Business Objects (Business Objects Inc. ... – PowerPoint PPT presentation

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Title: Enterprise Decision


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

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

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

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

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

8
The Decision Making Process of Executives
(Decision Role)
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

10
Executive Information System (EIS)
Characteristics and Benefits
  • Quality of information
  • User interface
  • Technical capability provided
  • Benefits

11
Executive Information System (EIS)
Characteristics
  • Drill down
  • Critical success Factors (CSF)
  • Status access
  • Analysis
  • Exception reporting
  • Colors and audio
  • Navigation of information
  • Communication

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

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

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

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

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 Softwares Command Center Plus and Pilot
    Decision Support Suite

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
  • 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)

21
Including Soft Information in EIS
  • Soft Information Enhances EIS Value
  • Intelligent Agents
  • New Feeds

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

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)

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)

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

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
    chains activities

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

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)
  • Value chain is a series of activities that
    includes
  • Inbound logistics
  • Warehousing storage
  • Production
  • Finished inventory storage
  • Outbound logistics
  • Marketing sales
  • Customer service

32
The Value Chain of a Manufacturing Company
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

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

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

36
Computerized System
  • MRP
  • ERP
  • SCM
  • Integrating the supply chain

37
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

38
Enterprise Resource Planning (ERP)
Software Vendors
  • SAP
  • Baan
  • PeopleSoft
  • Oracle
  • J.D. Edwards
  • Computer Associates

39
Enterprise Resource Planning (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

40
Application Service Providers and ERP Outsourcing
  • ASP
  • software vendor who leases ERP-based applications
  • Outsourcing
  • Now via the Web

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

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
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