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ESS and DSS

This document discusses enterprise decision support systems and executive information systems. It provides definitions and evolution of executive and enterprise information systems. It describes characteristics of executive information systems including critical success factors, drill down capabilities, and exception reporting. It also compares executive information systems to decision support systems and discusses integrating EIS with group support systems and organizational decision support systems. Finally, it touches on supply chain management and decision support.

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67% found this document useful (3 votes)
5K views41 pages

ESS and DSS

This document discusses enterprise decision support systems and executive information systems. It provides definitions and evolution of executive and enterprise information systems. It describes characteristics of executive information systems including critical success factors, drill down capabilities, and exception reporting. It also compares executive information systems to decision support systems and discusses integrating EIS with group support systems and organizational decision support systems. Finally, it touches on supply chain management and decision support.

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api-3706009
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© Attribution Non-Commercial (BY-NC)
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SEGMENT 7

Enterprise Decision
Support Systems

1
Enterprise Decision Support Systems

■ DSS to provide enterprise-wide support

■ Executives

■ Many decision makers in different locations

■ Enterprise Resource Planning (ERP) systems

2
Enterprise Systems: Concepts and
Definitions

■ Executive information systems (EIS)

■ Executive support systems (ESS)

■ Enterprise information systems (EIS)

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
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)
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

8
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
9
Characteristics of EIS

■ 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)

■ Quality of information
■ User interface
■ Technical capability provided
■ Benefits

12
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

13
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

14
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

15
■ EIS
■ Data access

■ Data warehousing

■ OLAP

■ Multidimensional analysis

■ Presentations

■ Web

16
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

17
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.)

18
Including Soft Information in EIS

Soft information is fuzzy, unofficial,


intuitive, subjective, nebulous,
implied, and vague

19
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

20
Organizational DSS (ODSS)

■ Three Types of Decision Support


– Individual
– Group
– Organizational
Hackathorn and Keen (1981)

21
■ 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

22
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)
23
■ 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)

24
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

25
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

26
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
27
Supply Chain Management
(SCM)
■ To deliver an effective supply chain and
do it effectively

■ To plan, organize, and coordinate the


supply chain’s activities

28
SCM Benefits
■ Reduction in uncertainty and risks in the
supply chain
■ Positively affect
– inventory levels
– cycle time
– processes
– customer service
■ Increase profitability
29
Supply Chain Components
■ Upstream
■ Internal supply chain
■ Downstream

Involves product life cycle activities


Example (Figure 8.2)

30
Supply Chain
■ Related to the Value Chain Model
(Porter)

31
Supply Chain Problems
■ 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
■ 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
■ MRP
■ ERP
■ SCM

Integrating the supply chain

34
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

35
ERP Software Vendors
■ SAP
■ Baan
■ PeopleSoft
■ Oracle
■ J.D. Edwards
■ Computer Associates

36
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

37
Application Service Providers
and ERP Outsourcing
■ ASP: software vendor who leases ERP-
based applications

■ Outsourcing

■ Now via the Web

38
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

39
Frontline Decision Support
Systems
■ Process of automating decision processes
and pushing them down into the
organization and even partners

■ Includes empowering employees

40
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
41

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