Transcript Chapter 11: Executive Information and Support Systems

CHAPTER 6
Executive Decision
Support Systems
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Enterprise Decision Support
Systems
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DSS to provide enterprise-wide support
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Executives
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Many decision makers in different
locations
Enterprise Resource Planning (ERP)
systems
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Enterprise Systems: Concepts
and Definitions
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Executive information systems (EIS)
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Executive support systems (ESS)
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Enterprise information systems (EIS)
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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
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Executive Information System
(EIS)
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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
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Executive Support System
(ESS)
Comprehensive support system that goes
beyond EIS to include
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Communications
Office automation
Analysis support
Intelligence
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Enterprise Information System
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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
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Decisional Executive Role (2 Phases)
1. Identification of problems and/or
opportunities
2. The decision of what to do about them
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Flow chart and information flow (Figure
8.1)
Use phases to determine executives’
information needs
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Methods for Finding
Information Needs
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Wetherbe's Approach
1. Structured Interviews
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IBM's Business System Planning (BSP)
Critical Success Factors (CSF)
Ends/Means (E/M) Analysis
2. Prototyping
Watson and Frolick's Approach
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Asking (interview approach)
Deriving the needs from an existing information
system
Synthesis from characteristics of the systems
Discovering (Prototyping)
• Ten methods
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Other Methods
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Characteristics of EIS
Drill down
 Critical success Factors (CSF)
 Status access
 Analysis
 Colors and audio
 Navigation of information
 Communication
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Critical Success Factors (CSF)
Monitored by five types of information
1.
2.
3.
4.
5.
Key problem narratives
Highlight charts
Top-level financials
Key factors (key performance indicators (KPI))
Detailed KPI responsibility reports
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Critical Success Factors
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Characteristics and Benefits
of EIS
(Table 8.1)
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Quality of information
User interface
Technical capability provided
Benefits
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Comparing and Integrating
EIS and DSS
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Tables 8.2 and 8.3 compare the two
systems
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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
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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
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Major Commercial EIS Software Vendors
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Comshare Inc. (www.comshare.com)
Pilot Software Inc. (www.pilotsw.com)
Application Development Tools
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In-house components
Comshare Commander tools
Pilot Software’s Command Center Plus and Pilot
Decision Support Suite
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EIS
 Data access
 Data warehousing
 OLAP
 Multidimensional analysis
 Presentations
 Web
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Multidimensional Analysis
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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
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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
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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)
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Three Types of Decision Support
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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
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Improving communication and coordination
Problem solving
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Definitions of ODSS
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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)
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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
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Downsizing: Reduction in the number
of human resources and hierarchical
layers- Keys to ODSS:
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ODSS to act as knowledge filters and amplifiers
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ODSS to handle increased communication caused by an
increase in the span of control
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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
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Self-Managed Teams: This address the
gaps.
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Need increased coordination tools: Groupware
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Need increased flexibility in decision making
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Need different types of people (for discussion)
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George, Nunamaker & Valacich, 1992:
Classification of ODSS based on Key Issues
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Outsourcing:
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Strategic versus tactical issues
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Coordination issues
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The Internet
Internet Server
Corporate Data,Model,
Knowledge Bases, etc.
EIS Data, Model,
Knowledge Bases
Intranet Server
User
Interface
Resident
OLAP
Tools
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An EIS Architecture
Environment
Other
group
members
Individual
problem
solvers
Report
writing
software
GDSS
GDSS
software
software
Mathematical
Models
RDB
Decision
support
system
Environment
Legend:
Data
Communication
Information
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Decision Maker Views
The decision makingintrepretation process
Title
Subtitle
Note: This is the footnote
Y
1
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T
i
t
l
e
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35
30
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Cognitive
CognitiveStyle
Style
Mental
MentalModels
Models
Infromation Sources
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Column 1
Row 1
Column 2
Column 3
Column Title
Row 2
Row 3
Column 4
Row 4
Row Title
Outcomes
Links: relationships
bewteen nodes
New link
Nodes: data, models, knowledge
Hypertext Links
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Management Decision Making Processess
Strategy Formulation
Planning & Budgeting
Dialectical
Stakeholder
Communications
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80
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60
50
40
30
20
10
0
Intelligence
Design
Inquiry
Consensus
Generating
Choice
East
West
North
1st Qtr 2nd
Qtr
3rd
Qtr
4th
Qtr
Performance
Measure ment &
Reporting
Technical Infrastructure Building
Human Resource Management
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GroupWare/GSS
MD
Data Base
Organizational Structures
Business Forecasting
Legacy
Systems
R DB’s
SQL
Business
Processess
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Repository-Based EIS
Repository
ESS Architecture
GSS Structure
Data
Interface
Environmentally
Base
Collected & Scanned Information:
Target IS
GSS
Model
Base
Interface
Development Tools
Internal/External
Process
Support
Problem &
Opprotunity
Data Base
Problem
Identification:
Intelligence
Teng, Kettinger, and Guha, 1992
Chen, 1995
Tool Data Base
Normative
Descriptive
Design
Design
Business
Process
Redesigns
DeSanctis and Gallupe, 1985
Turban and Watson, 1989
Process
Decision
Choice
This paper
Implementation/Outcomes
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Strategies to
Processes
Business Strategy
EIS
ESS
Process Tool
Data Base
Process Selection
GSS
DSS
CMC
Enabling Technology
Process Vision
Process
Process Objectives
Adapted from Davenport, 1993
Attributes
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Supply and Value Chains and
Decision Support
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Supply chain: (originally) flow of
materials from sources to internal
use
Demand chain: flow from inside to
customers
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Supply Chain
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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)
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To deliver an effective supply chain
and do it effectively
To plan, organize, and coordinate the
supply chain’s activities
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SCM Benefits
Reduction in uncertainty and risks in
the supply chain
 Positively affect
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inventory levels
 cycle time
 processes
 customer service
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Increase profitability
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Supply Chain Components
Upstream
 Internal supply chain
 Downstream
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Involves product life cycle activities
Example (Figure 8.2)
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Supply Chain
Related 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
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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
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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
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Integrating the supply chain
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Enterprise Resource Planning
(ERP)
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Objective: integrate all
departments and functions across
an organization into a single
computer system that can serve the
entire enterprise’s 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 organization’s business
processes do not fit the ERP system’s
model
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Application Service Providers and ERP
Outsourcing
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ASP: software vendor who leases
ERP-based applications
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Outsourcing
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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
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groupware technologies
presentation and customization
publishing and distribution
search
categorization
integration
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Frontline Decision Support
Systems
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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
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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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