SEGMENT 7 Enterprise Decision Support Systems 1 Enterprise

SEGMENT 7 Enterprise Decision Support Systems 1

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

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

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

Executive Information System (EIS) n n n 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 n n Communications Office automation Analysis support Intelligence 6

Enterprise Information System n n n 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 n Decisional Executive Role (2 Phases) 1. Identification of problems and/or opportunities 2. The decision of what to do about them n Flow chart and information flow (Figure 8. 1) n Use phases to determine executives’ information needs 8

Methods for Finding Information Needs n Wetherbe's Approach 1. Structured Interviews – IBM's Business System Planning (BSP) – Critical Success Factors (CSF) – Ends/Means (E/M) Analysis n 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 n Other Methods 9

Characteristics of EIS n n n n Drill down Critical success Factors (CSF) Status access Analysis Exception reporting Colors and audio Navigation of information Communication 10

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 11

Characteristics and Benefits of EIS (Table 8. 1) n n Quality of information User interface Technical capability provided Benefits 12

Comparing and Integrating EIS and DSS n 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 n EIS is part of decision support 13

Integrating EIS and Group Support Systems n EIS vendors - easy interfaces with GSS n Some EIS built in Lotus Domino / Notes n Comshare Inc. and Pilot Software, Inc. Lotus Domino/Notes-based enhancements and Web/Internet/Intranet links 14

Traditional EIS Software n Major Commercial EIS Software Vendors – Comshare Inc. (www. comshare. com) – Pilot Software Inc. (www. pilotsw. com) n Application Development Tools – In-house components – Comshare Commander tools – Pilot Software’s Command Center Plus and Pilot Decision Support Suite 15

EIS n Data access n Data warehousing n OLAP n Multidimensional analysis n Presentations n Web n 16

Multidimensional Analysis n Easy to develop an EIS in an OLAP system n Most are Web-ready n Can tap into data in a data warehouse via the Web n Use advanced visualization tools 17

Representative OLAP / Multidimensional Analysis Packages n n n n n Brio. Query (Brio Technology Inc. ) Business Objects (Business Objects Inc. ) Decision Web (Comshare Inc. ) Data. Fountain (Dimensional Insight Inc. ) DSS Web (Micro. Strategy Inc. ) Focus Fusion (Information Builders Inc. ) Info. Beacon Web (Platinum Technology Inc. ) Oracle xpress Server (Oracle Corporation) Pilot Internet Publisher (Pilot Software Inc. ) 18

Including Soft Information in EIS Soft information is fuzzy, unofficial, intuitive, subjective, nebulous, implied, and vague 19

Soft Information Used in Most EIS n n n 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 20

Organizational DSS (ODSS) n Three Types of Decision Support – Individual – Group – Organizational Hackathorn and Keen (1981) 21

n Organizational decision support focuses on an organizational task or activity involving a sequence of operations and actors n Each individual's activities must mesh closely with other people's work n Computer support is for – Improving communication and coordination – Problem solving 22

Definitions of ODSS n 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) n 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) 23

n 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) n 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) 24

Common Characteristics of ODSS (George, 1991) n n n 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 25

Supply and Value Chains and Decision Support n Supply chain: (originally) flow of materials from sources to internal use n Demand chain: flow from inside to customers 26

Supply Chain n The flow of materials, information, and services from raw material suppliers through factories and warehouses to the end customers n Includes the organizations and processes that create and deliver value to the end customers 27

Supply Chain Management (SCM) n To deliver an effective supply chain and do it effectively n To plan, organize, and coordinate the supply chain’s activities 28

SCM Benefits n n Reduction in uncertainty and risks in the supply chain Positively affect – inventory levels – cycle time – processes – customer service n Increase profitability 29

Supply Chain Components n n n Upstream Internal supply chain Downstream Involves product life cycle activities Example (Figure 8. 2) 30

Supply Chain n Related to the Value Chain Model (Porter) 31

Supply Chain Problems n n n n Uncertainty in the demand forecast Uncertainty in delivery times Quality problems Poor customer service High inventory costs Low revenue Extra costs 32

Solutions to Supply Chain Problems n n n 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 33

Computerized Systems n n n MRP ERP SCM Integrating the supply chain 34

Enterprise Resource Planning (ERP) n Objective: integrate all departments and functions across an organization into a single computer system that can serve the entire enterprise’s needs 35

ERP Software Vendors n n n SAP Baan People. Soft Oracle J. D. Edwards Computer Associates 36

ERP n n Very (VERY!) expensive 2 nd generation: doing better Early 2000: moving to Web Will fail if an organization’s business processes do not fit the ERP system’s model 37

Application Service Providers and ERP Outsourcing n ASP: software vendor who leases ERPbased applications n Outsourcing n Now via the Web 38

Corporate (Enterprise) Portals and EIS n n n Integrates internal applications with external applications Generally via the Web Can include – – – groupware technologies presentation and customization publishing and distribution search categorization integration 39

Frontline Decision Support Systems n Process of automating decision processes and pushing them down into the organization and even partners n Includes empowering employees 40

Future of Executive and Enterprise Support Systems n n n 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 41