MIS-409:

DECISION SUPPORT SYSTEMS

APPLICATION CASE SOLUTION

OF
DECISION SUPPORT SYSTEMS
APPLICATION CASE SOLUTION OF DECISION SUPPORT
SYSTEMS

Submitted to:
Md. Fahami Ahsan Mazmum
Assistant Professor
Dept. of MIS
University of Dhaka

Submitted by:
Name ID
Shah Ibney Soad 029-12-084
Munira Parvin 029-12-090
Md Nahian Sarowar 029-12-102
Khadija Sharmin 029-12-116
Md Mahfujur Rahman 029-12-126
Md Tahjibul Alam 029-12-291

Date of Submission: 18TH March, 2021

 Group Name: MAMAST (Section: B)

LETTER OF TRANSMITTAL

March 18, 2021

Md. Fahami Ahsan Mazmum
Assistant Professor
Department of Management Information Systems
University of Dhaka

Dear Sir,
Here is the term paper on title of the report that you asked us to conduct on assigned date. Our
studies revealed considerable solutions of different cases included in our textbook. The term
paper has been prepared keeping in mind the case topic and covers its summary, answer to the
questions and application in the perspective of our country.
We hope that we were able to successfully apply our theoretical learnings that we have learnt
from you.
Sincerely yours,
Shah Ibney Soad (029-12-084)
Munira Parvin (029-12-090)
Md. Akib Sarowar (029-12-102)
Khadija Sharmin (029-12-116)
Md. Mahfuzur Rahman (029-12-126)
Md. Tahjibul Alam (029-12-291)

Dept. of Management Information Systems

Faculty of Business Studies
University of Dhaka
 ACKNOWLEDGEMENT

First, we would like to thank MIS Department of BBA program to offer us a nice chance to make
a term paper on solutions of different cases included in our textbook from chapters 2,4,6,8,10,12
and 14.
Thanks to our chairman Dr. Md. Akram Hossain and course instructor Mr. Md. Fahami Ahsan
Mazmum.
We would also like to thank some of classmates who help by giving suggestion and cooperation
with us a lot for giving me their valuable time and providing us with the necessary information
for preparing this term paper.
 Executive Summary

This report is all about summarized the application case located on the last chapter of each and

retrieve the content actual or useful information, designation, decision driving model, answering

with respective questions based on the actual scenario of different perspective and implication of

those knowledge, model, or data driven structural decision-based modeling technique to the

different organizations of Bangladesh. Deploying the knowledge of real time business scenario

or the application or impact of implying those knowledges. Decision-making style and the type

of report were examined as independent variables in the study. The dependent variables were

decision time, decision confidence, and total cost of production. Thus, a manager's performance

was measured by decision time, confidence, and the manager's total cost. Each manager was

classified by decision-making style and received as output one of four report designs, i.e.,

tabular-raw data, tabular-summarized data, graphical raw data, or graphical-summarized data. In

making decisions, production managers usually rely on information contained in reports

generated by an information system. Unfortunately, a production manager is likely to receive a

report that best supports his/her decision-making style only by chance. This investigation studies

the individual differences in decision-making style for production managers making production

scheduling decisions, and the decision support design that best supports their decisions.
List of Acronyms:

DSS (Decision support systems)

DM (Data mining)

SBW (strategic business unit)

ERC (Enterprise resource collaborators)

CSS (Cascading Style Sheet)

HTML (Hypertext Markup Language)

RJSC - Registrar of Joint Stock Companies and Firms

BASIS - Bangladesh Association of Software and Information Services

TDCC - Transportation Data Coordination Committee

 Introduction

Rationale of the study:

The study emphasizes the importance of Decision support systems (DSS) for corporate
performance. Prior studies have been reviewed to validate theories that explain how Decision
support systems (DSS) affect corporate performance. Decision support systems (DSS) provides
information that is valuable to take decisions and reflects current economic, and financial state of
the company: efficiency, output rates, information on the effect of different events, that relate to
the impact that the employees’ decision has on the performance of other departments (al, 1995).
Furthermore, greater management information system capability leads to a higher degree of
strategic performance. These and many other factors are suggested to be critical features of DSS
that have a direct influence on the financial and strategic performance of companies. This report
is all about summarized the application case located on the last chapter of each and retrieve the
content actual or useful information, designation, decision driving model, answering with
respective questions based on the actual scenario of different perspective and implication of
those knowledge, model, or data driven structural decision-based modeling technique to the
different organizations of Bangladesh. Deploying the knowledge of real time business scenario
or the application or impact of implying those knowledges. Decision-making style and the type
of report were examined as independent variables in the study. For this purpose, this paper
formulates conceptual framework which explains the link of DSS capabilities to absorptive
capacity through the interaction of market access competency, integrated related competency,
functionality related competency. Finally, the influence of DSS capabilities is described in terms
of their influence on companies’ market based and operation performance. DSS has an influence
on flexibility-based strategic performance and cost-based strategic performance in terms of the
decentralization of responsibilities, updating customer knowledge and customer participation in
management, the cooperation with other units with the scope of increasing firm 9 budget, and
actualization and use of management information (Slotegraaf and PauwelsNaranjo-Gil,
2009,2008)

Problem statement:
The problem of the study with its rational area of study is that, identifying the opening vignette
of each chapter and thus identify the core business problem of the specific or the mentioned
company faces their way of business operations or real time customer interaction. The have to
identify their core value of business for providing a satisfactory business performance or result,
by identifying those business problems they mutually develop and come out with a solutions that
refers or facilitating the parties or thus provided a core business solution thus identifying those
area of problem and solution we need to imply those aspects of solution in the area of
Bangladesh perception

Objective of the study:

 Broad objective:
Business performance software allow faster decision making, identification of negative trends, and better
allocation of business resources. Due to DSS all the information from any organization is represented in
the form of charts, graphs in a summarized way, which helps the management to take strategic decision,
where the long planning horizon and the spatial dimension of planning problems demands specific
requirements. All aspects of Forest management, from log transportation, harvest scheduling to
sustainability and ecosystem protection have been addressed by modern DSSs. A cooperative DSS allows
for an iterative process between human and system towards the achievement of a consolidated solution:
the decision maker (or its advisor) can modify, complete, or refine the decision suggestions provided by
the system, before sending them back to the system for validation, and likewise the system again
improves, completes, and 10 refines the suggestions of the decision maker and sends them back to them
for validation.

 Specific objective
 To know basic requirements for technology oriented DSS implications with its utter benefits or
problem/data management.

 Expenses regards to implement a decision driven area of specific problem solution-oriented business
platform.

 To know opportunity of agile business data or decision support management in Bangladesh.

 To know about government policies about the discovers or proposed solution aspects of business.

 To identify challenges of decision support with efficiency, implication or the future prospects of DSS
activity in the business organizations of Bangladesh and global perspective.

 Scope of the study:

The data-driven DSS is responsible for collecting the information, which is then manipulated to
meet the need of the person responsible for the decision. The document-based DSS system uses
various types of documents (pages of text, spreadsheets, database reports, etc.) to solve decision
problems, as well as to manipulate the information in an attempt to renew strategy. Knowledge-
based systems analyze specific rules stored in a computer or rules used by a group of humans,
which allows one to establish whether a decision should be made. Finally, systems based on
models use statistic simulations and financial models to solve decision problems strategy.it is
important to note that although these are very good computer tools for analyzing information,
and even though they give options to be selected as the best alternative, the final decision of the
decision-making.

Methodology of the report:

Source of information:

This report has been constructed based on primary and secondary information regarding start-up or
venture business. Secondary information is assembled from Books, Journals, Research paper, online
documents etc. Primary information is gathered through perception and interview methods, mentioning
tools or methodologies are the main methodologies that has been used to prepare this report. Besides this
we also need to follow some of the data collection method or technique like:

 Some sample questions that were included in the semi-structured questionnaire.

 Sample selection (The method of purposive sampling was used to develop the sample of the research
under discussion. According to this method, which belongs to the category of non-probability sampling
techniques, sample members are selected on the basis of their knowledge, relationships and expertise
regarding a research subject (freeman, 2006)

 Data analysis (McCabe, 2005), this is the type of research whereby data gathered is categorized in
themes and sub-themes, so as to be able to be comparable. Moreover, content analysis gives the ability to
researchers to structure the qualitative data collected in a way that satisfies the accomplishment of
research objectives. However, human error is highly involved in content analysis, since there is the risk
for researchers to misinterpret the data gathered, thereby generating false and unreliable conclusion.

 Ethical considerations (the current study was subject to certain ethical issues) as it was mentioned
earlier, all participants reported their written acceptance regarding their participation in the research,
through a signed Consent and Briefing Letter. Participants were not harmed or abused, both physically
and psychologically, during the conduction of the research. In contrast, the researcher attempted to create
and maintain a climate of comfort.

Limitations of the report

 Though we tried to provide the more analytical insights but lack of more necessary data, effort of
participator.

 Due to not having proper knowledge of analytics solution provide or implementation not be so accurate.
 Authenticity or trusted data source or information.

 Qualitative research is not allowing the measurement of the examined problem.

Table of Contents

Letter of
Transmittal…………………………………………………………………………….3
Acknowledgement…………………………………………………………………………..….4

Executive Summary…………………………………………………………………………….5
List of Acronyms……………………………………………………………………………….6

Introduction………………………………………………………………………….………….7
Rationale of the study………………………………………………………………….7
Problem Statement…………………………………………………………………......8
Objective of the study……………………………………………………………….....8
Broad Objective……………………………………………………………….8
Specific Objective……………………………………………………………..8
Scope of the Study……………………………….....………………………….……....9
Methodology of the Report……………………………………………...…………….9
Limitations of the Report…………………………………………………………….10
Chapter 2………………………………………………………………………………………12
Chapter 4………………………………………………………………………………………15
Chapter 6………………………………………………………………………………………19
Chapter 8………………………………………………………………………………………22
Chapter 10……………………………………………………………………………………..26
Chapter 12……………………………………………………………………………………..33
Chapter 14……………………………………………………………………………………..36
References……………………………………………………………………………………..39
 Chapter 2

OPENING VIGNETTE: DECISION MODELING AT HP USING SPREADSHEETS

Summary of the case:

The objective was to propel software engineering by investigating new ways for PC innovation
to influence science, business, and society. HP embraced a test to manufacture a PC framework
that could contend at the human hero level continuously on the American TV test show
Jeopardy. The degree of the test remembered handling an ongoing programmed hopeful for the
show, equipped for tuning in, understanding, and reacting not just a research center exercise.
 
Review Question Answers:

1. What are some of the key questions to be asked in supporting decision making through
DSS?
 
What are the root issues underlying the decision situation?  Do we understand the problem
sufficiently to support it?
How structured is the decision? Is it unstructured, semi-structured, or structured?
Does the decision involve judgment? To what extent?
What data is needed to solve the problem?
Can an existing tool be leveraged or reused?
Is a tool needed?
What is the implementation plan?
 
2. What guidelines can be learned from this vignette about developing DSS?
 
 Before building a model, decision makers should develop a good understanding of the
problem that needs to be addressed.
 Coming up with non-modelling solutions is important because if the problem is due to
conflicting priorities, or the misalignment of incentives or unclear lines of authority or
plans, then no DSS can help support the decision.
 A model many not be necessary to address the problem.
 Before developing a new tool, decision makers should explore reuse of existing tools.
 The goal of model building is to gain better insight into the problem, not just to generate
more numbers.
 

3. What lessons should be kept in mind for successful model implementation?

 
 Implementation plans should be developed along with the model. Successful
implementation results in solving the real problem.
 Including the end users in the development process enhances the decision makers’
analytical knowledge and capabilities. And by working together, their knowledge and
skills complement each other in the final solution and the success of the implementation.

Learning from the case:

It is protected to state that PC innovation, on both the equipment and programming fronts, is
progressing quicker than everything else in the last 50 or more years. Things that were too large,
as well intricate, difficult to explain are currently well inside the scope of data innovation. One of
those empowering advancements is maybe message investigation/content mining. We made
databases to structure the information with the goal that it very well may be prepared by PCs.
Content, then again, has continuously been intended for people to process. HP’s case is an
incredible case of the separation that we have gone in tending to the inconceivable. PCs are
presently keen enough to take on men at what we think men are the best at.

Application of case learning In Bangladeshi Organization

Understanding the inquiry that was presented in communicated in human language, handling
also, processing it, scanning for an answer, and answering inside a couple of moments was
something that we couldn't have envisioned conceivable before HP really did it. With this
Bangladesh will gain proficiency with the devices and methods inserted in Spreadsheets and
numerous other shrewd machines to make marvels in handling issues that were once accepted
difficult to unravel.

END OF CHAPTER APPLICATION CASE: LOGISTICS OPTIMIZATION IN A MAJOR

SHIPPING COMPANY (CSAV)

Summary of the case:

CSAV is keen on recognizing what existing customers and conceivable new ones-think about it
through online life. Along these lines, the bank has actualized a mechanized purchaser
knowledge answer for screen and quantify the effect of brand recognition online-whether this be
client remarks via web-based networking media locales (Twitter, Facebook, discussions, web
journals, and so forth.), the voices of specialists in online articles about CSAV and its rivals, or
references to CSAV on news destinations to distinguish potential dangers to its notoriety or to
conceivable business openings.

Review Question Answers:

1. Explain why solving the empty container logistics problem contributes to cost savings for
CSAV.
 
The container fleet of 700,000 is valued at $2 billion, second only to vessel fuel in terms of cost.
Empty containers are wasted space, and reducing this has a large impact on spending and
operational efficiency.
 
2. What are some of the qualitative benefits of the optimization model for the empty
container movements?
 
It allows system activities in all regional centers to be well coordinated while still maintaining
operational flexibility and creativity. Forecasting errors were reduced with this model, allowing
CSAV’s depot to maintain lower safety stocks. The generation of intelligent information from
historical transactional data helped increase efficiency of operations. The MC Network Flow
model helps optimize the repositioning of empty containers.
 
3.What are some of the key benefits of the forecasting model in the ECO system
implemented by CSAV?
 
Reducing forecasting errors, allow for lower safety stock levels.
 
4.Perform an online search to determine how other shipping companies handle the empty
container problem. Do you think the ECO system would directly benefit those companies?
 
Many companies can be found on the Web with reference to the empty container problem. In
addition to CSAV, a Google search finds: Magellan, Maersk, and TransBaltic (to name a few) as
companies grappling with the empty container problem. Two big issues with empty containers
are the cost (waste of space), and the problem of repositioning the empty containers on a ship. 
Also, since containers are usually leased, this raises the question of which to keep on board.
There are many web sources describing strategies, heuristics, and intelligent systems that tackle
these complex problems, so ECO is part of an industry-wide effort in applying intelligent
systems to the empty container problem.
 
5.Besides shipping logistics, can you think of any other domain where such a system would
be useful in reducing cost?
 
Many industries and services include complex logistics, including problems of scheduling,
inventory management, routing, and work flow. These problems often require managing limited
resources of various kinds, with the danger that sometimes resources will be underutilized and
other times overutilized. The models and reasoning algorithms of a system like ECO can be
applied to these problems as well.

Learning from the case:

Operations Research (OR) methods were used by CSAV to provide efficient and cheaper sources
of energy for states in the midwestern region of the United States. A combination of linear
programming and the Lagrangian relaxation methods was used to determine an optimized
approach to generate and supply power. By extension, this methodology could be used by both
government agencies and the private sector to optimize the cost and provision of services such as
healthcare and education.

Application of case learning In Bangladeshi Organization

Based on up-front cost, the model is able to provide the best optimized configuration of where to
locate a warehouse and how much invento1y should be kept. It is able to provide an optimization
result based on estimates of frequency, location, and level of potential demand that is generated
by the model. Based on this model, Bangladesh can establish water purification kits to supply to
the victims from the flood. In the future, the pre-positioning network is expected to be expanded.

Chapter 4

OPENING VIGNETTE: SELF SERVICE REPORTING ENVIRONMENT SAVES MILLIONS

FOR CORPORATE CUSTOMERS.

Summary of the case:

The main purpose of the model was to increase the capacity and swiftness to respond to sudden
natural disasters like earthquakes, as opposed to other slow-occurring ones like famine.

Review Questions Answers:

1. What does Travel and Transport, Inc., do?

Travel and Transport, Inc., is the sixth largest travel management company in the United States,
with more than 700 employee-owners located nationwide. The company has extensive
experience in multiple verticals, including travel management, loyalty solutions programs,
meeting and incentive planning, and leisure travel services.
2. Describe the complexity and the competitive nature of the business environment in which
Travel and Transport, Inc., functions.

The travel industry is a very crowded marketplace. With travel arrangements often made on an
ad hoc basis, customers find it difficult to analyze costs or instate optimal purchase agreements.

3. What were the main business challenges?

In the field of employee travel services, the ability to effectively communicate a value
proposition to existing and potential customers is critical to winning and retaining business. With
travel arrangements often made on an ad hoc basis, customers find it difficult to analyze costs or
instate optimal purchase agreements. Travel and Transport wanted to overcome these challenges
by implementing an integrated reporting and analysis system to enhance relationships with
existing clients, while providing the kind of value-added services that would attract new
prospects.

4. What was the solution? How was it implemented?

Travel and Transport implemented Information Builders’ WebFOCUS business intelligence (BI)
platform (called eTTek Review) as the foundation of a dynamic customer self-service BI
environment. This dashboard-driven expense-management application helps more than 800
external clients, and more than 200 internal employees, to plan, track, analyze, and budget their
travel expenses more efficiently, and generate more precise forecasts. The approach was to
create an online system that allows clients to access information directly, so they won’t have to
rely on the IT department to run reports for them.

5. Why do you think a multi-vendor, multi-tool solution was implemented?

Travel and Transport decided to combine multiple vendor tools, including Adobe Flex,
WebFOCUS, DB2, and Global Distribution Systems (GDS). A combination of vendors and tools
was required for their solution; each vendor brings a unique technological contribution to the
mix. Adobe helps with the reporting features, WEBFOCUS contributes online BI capabilities,
DB2 serves as the database back-end, and GDS brings the domain expertise (i.e., travel agency
knowledge) into the system.

6. List and comment on at least three main benefits of the implemented system. Can you
think of other potential benefits that are not mentioned in the case?

The implemented system benefits customers by enabling them to plan, track, analyze, and budget
their travel expenses more efficiently. Customers are getting the best pricing from airlines,
hotels, and car rental companies. For employees, including customer service representatives, the
system helps with forecasting and quickly responding to client needs. Metrics derived from
actionable data are key to helping Travel and Transport negotiate with their suppliers, enforce
their travel policy, and save their company money.

Learning from the case:

Understand the concept and the dual use of predictive analytics and optimization in solving real-
world problems. Predictive analytics was used to determine the future tax behavior of taxpayers
based on their past behavior. Learn the rule-based system which is implemented using the
information derived from optimization models.

Application of case learning In Bangladeshi Organization

In Bangladesh, we may follow the rule-based system to collect tax. The rule-based system is
implemented using the information derived from optimization models. This method for tax
collection employed a linear approach to identify, initiate, and collect delinquent taxes. This
approach emphasized what should be done, rather than what could be done, by tax collection
officers. A “one-size-fits-all” procedure for data collection was used within the constraints of
allowable laws.

END OF CHAPTER APPLICATION CASE: SMART BUSINESS REPORTING HELPS

HEALTHCARE PROVIDERS DELIVER BETTER CARE

Case Summary:

Premier, which serves more than 2,600 U.S. hospitals and 84,000-plus other healthcare sites,
exists to help its members improve the cost and quality of the care they provide the communities
they serve. The Price Optimization module determines optimal room rates based on occupancy,
price elasticity and competitive prices. The approach is a major advancement over existing
revenue management systems which assume demands by rate segments are independent of each
other and of price. The Price Optimization module is currently deployed to 2,077 hotels globally
and will eventually be deployed to all IHG properties. A 2.7% increase in revenue has been
verified and acknowledged in the IHG 2009 annual review. To date Price Optimization has
achieved $145M in incremental revenue for the IHG hotel estate. At full rollout, this capability
will generate $300M per year.

Review Question Answers:

1.What is Premier? What does it do?

Premier is a healthcare services company that serves more than 2,600 U.S. hospitals and 84,000-
plus other healthcare sites. It exists to help its members improve the cost and quality of the care
they provide the communities they serve. Premier also assists its members to prepare for and stay
ahead of health reform, including accountable care and other new models of care delivery and
reimbursement.

2.What were the main challenges for Premier to achieve its vision?

Premier had developed a series of “siloed” applications, making it difficult for members to
connect different data sources and metrics and see the “big picture” of how to drive healthcare
transformation. These platforms and associated software systems also lacked the scalability
required to support the massive transaction volumes that were needed. The company’s existing
technical infrastructure could not support their needs for better integration.

3.What was the solution provided by IBM and other partners?

Premier “re-platformed” their IT architecture to enable the sharing and analysis of data from its
thousands of member organizations. The new data architecture and infrastructure uses IBM
software and hardware, including a data model called IBM Healthcare Provider Data Warehouse
(HCPDW), based on IBM DB2 pureScale. The organization’s IT division is building its new
infrastructure from the ground up. This includes replacing its existing x86 servers from a variety
of hardware vendors with IBM POWER7 processor-based systems. Data from IBM DB2
database software is loaded to an IBM Netezza data warehouse so that members can conduct
advanced and rapid analytics. The new platform is designed to deliver trusted information in the
right context at the right time to users based on their roles. Using the new platform, Premier
members will be able to use the portal to access the integrated system for various clinical,
business, and compliance-related applications. This helps healthcare organizations provide their
staff with accurate and timely information to support evidence-based, patient-centric, and
accountable care.

4.What were the results? Can you think of other benefits coming from such an integrated
system?

Potential benefits for saving lives, helping people enjoy healthier lives, and reducing healthcare
costs are enormous. In one Premier project, 157 participating hospitals saved an estimated
24,800 lives while reducing healthcare spending by $2.85 billion. Over the next 5 years, Premier
plans to provide its members with many new applications in support of healthcare reform and
other legislative requirements. As capabilities are added, the SaaS model will enable the platform
to support its commitment to keep all 2,600 hospital members on the same page, and even
expand its user community.

Learning from the case:

Understand the concept and applications of development of retail price optimization system,
Rule-based expert systems, linear and nonlinear regression models, and genetic algorithms are all
possible approaches for solving price optimization problems.

Application of case learning In Bangladeshi Organization

The type of price optimization described in this case may be used by the Bangladeshi’s
organization in the airline industry (for ticket pricing), decisions related to purchasing from
vendors and pricing in other areas such as grocery services.

Chapter 6

OPENING VIGNETTE: PREDICTIVE MODELING HELPS BETTER UNDERSTAND AND

MANAGE COMPLEX MEDICAL PROCEDURES.

Case learning & case summary:

Policy makers and the healthcare industry could use the findings of this study to predict which
communities will pass a gambling initiative and which will strongly oppose it. & that is where
Ann excels can help through analysis & finding objectives.

Review Question Answers:

1. Why is it important to study medical procedures? What is the value in predicting
outcomes?
 
Demand for healthcare services is increasing because of the aging population, but the supply side
is having problems keeping up with the level and quality of service. Healthcare systems ought to
significantly improve their operational effectiveness (doing the right thing, such as diagnosing
and treating accurately) and efficiency (doing it the right way, such as using the least amount of
resources and time). Clinical decision support systems that use the outcome of data mining
studies can support healthcare managers and/or medical professionals in making accurate and
timely decisions to optimally allocate resources in order to increase the quantity and quality of
medical services.
 
2. What factors do you think are the most important in better understanding and
managing healthcare? Consider both managerial and clinical aspects of healthcare.
 
Healthcare systems ought to significantly improve their operational effectiveness (doing the right
thing, such as diagnosing and treating accurately) and efficiency (doing it the right way, such as
using the least amount of resources and time). Effectiveness is probably more of a clinical
concern, while efficiency is more of a managerial concern.
 
3. What would be the impact of predictive modeling on healthcare and medicine? Can
predictive modeling replace managerial or medical personnel?
 
Clinical decision support systems that use the outcome of data mining studies (such as the ones
presented in this case study) are shown to be useful and reasonably accurate predictors,
especially if used in combination. These are not meant to replace healthcare managers and/or
medical professionals. Rather, they intend to support them in making accurate and timely
decisions to optimally allocate resources in order to increase the quantity and quality of medical
services. There still is a long way to go before we can see these decision aids being used
extensively in healthcare practices. Among others, there are behavioral, ethical, and political
reasons for this resistance to adoption. Maybe the need and the government incentives for better
healthcare systems will expedite the adoption.

4. What were the outcomes of the study? Who can use these results? How can the results be
implemented?
 
The main outcome of this study was to show the efficacy of data mining in predicting the
outcome and in analyzing the prognostic factors of complex medical procedures such as CABG
surgery. The study showed that using a number of prediction methods (as opposed to only one)
in a competitive experimental setting has the potential to produce better predictive as well as
explanatory results. SVM, ANN, and both C5 and CART decision trees were used.
 

Application of the case learning in Bangladeshi Organization:

Bangladesh constitution refuse any short of gambling happened in Bangladesh. Rather it is
punishable to do so. Government strictly refuses any short of gambling in Bangladesh. But for
gaming without any short of gambling related it is allowed. Anyone can open a business of game
or games related if it’s out of any sort of gambling.

END OF CHAPTER APPLICATION CASE: COORS IMPROVES BEER FLAVORS WITH

NEURAL NETWORKS

Case learning & case summary:

The given case shows us the importance of neural network & verities usage of neural network. It
shows how we can implement neural network almost everywhere like disaster, business,
engineering etc. the case shows how neural network work in different statement & give us
ultimate analysis & findings.

Review Question Answers:

1.Why is beer flavor important to the Coors profitability?

Beer flavor is a key factor in customer preferences and buying behavior.

 
2.What is the objective of the neural network used at Coors?

To determine the link between the chemical composition of a beer, which can be measured, and
its flavor, which cannot be measured but which consumers can detect and care about.
 

3.Why were the results of the Coors neural network initially poor, and what was done to
improve the results?
The results were initially poor for two reasons. First, the network was only trained with one type
of beer, so the variation in its inputs was low. Second, it was only trained for one flavor factor,
so its performance was impacted by the inputs that had no impact on that factor but whose
variations within the training sample created distracting “noise.”
To improve the results, Coors trained the neural network using a wider variety of products and
more combinations of inputs.

4.What benefits might Coors derive if this project is successful?

If this project is successful, Coors might ultimately be able to control the flavors of its beers via
their chemical composition, which could be monitored automatically and presumably controlled
during the brewing process. Being able to do this depends, of course, on more than knowing the
relationships between the chemicals in beer and its flavor.
 
5.What modifications would you provide to improve the results of beer flavor prediction?
Based on the next-to-last paragraph of the case, I would refine the sensitivity of the
instrumentation, measure a larger number of flavor-active compounds, and measure the factors
that contribute to mouth-feel and the beer’s physical characteristics. Whether this is practical, if
practical whether it is cost-effective, and whether it would result in a more effective been
production process than Coors can achieve with experienced, professional brew masters, is (as
far as we can tell from this case) still an open question.
 
Application of neural network in Bangladesh:

It is observed that NN (neural network) technique can be applied successfully to predict the
casualties and damages caused by cyclone. This paper also presents the methodology to use these
models for the analysis of the effects of cyclone parameters. The models developed in this study
may be used to plan relief and rehabilitation works judiciously to alleviate economic losses
caused by cyclone.

Chapter 8

OPENING VIGNETTE: SECURITY FIRST INSURANCE DEEPENS CONNECTIONS WITH

POLICYHODERS

Summary of the case:

Security First reached IBM Business Partner Integritie for help with bridling online life to
improve the client experience. Integritie designed an answer based on key IBM Enterprise
Content Management programming segments. highlighting IBM Content Analytics with
Enterprise Search, IBM Content Collector for Email and IBM® FileNet® Content Manager
programming. Called Social Media Capture (SMC4), Because the arrangement utilizes open
IBM Enterprise Content Management programming, Security First can without much of a stretch
connection it to basic organization applications, databases and procedures.

Review Question Answers:

1.What does Security First do?

 
Security First Insurance is one of the largest homeowners’ insurance companies in Florida.
Headquartered in Ormond Beach, it employs more than 80 insurance professionals to serve its
nearly 190,000 customers. Security First is one of a few Florida homeowners’ insurance
companies that has the financial strength to withstand multiple natural disasters.
 
2.What were the main challenges Security First was facing?
 
During a typical month, Security First processes 700 claims. However, in the aftermath of a
hurricane, that number can swell to tens of thousands within days. It was a challenge for the
company to quickly scale up to handle the influx of customers trying to file post-storm insurance
claims, via phone, email, Facebook, or Twitter.
 
3.What was the solution approach? What types of analytics were integrated in the
solution?
 
Security First contacted IBM Business Partner Integritie for help with harnessing social media to
improve the customer experience. Integritie configured a solution called Social Media Capture
built on key IBM Enterprise Content Management and Content Analytics tools. The Integritie
solution offers four critical capabilities for managing social media platforms: capture, control,
compliance, and communication.
 
4.Based on what you learn from the vignette, what do you think are the relationships
between Web analytics, text mining, and sentiment analysis?
 
As we learned in Chapter 7, sentiment analysis can be thought of as a specialized form of text
mining, geared specifically at feeling, opinion, and judgment. Web analytics is a broad area
including Web content, structure, and usage mining, including both text mining and social
network analysis. Much of Web analytics involves social media analysis.
 
5.What were the results Security First obtained? Were any surprising benefits realized?
 

The text analysis capabilities provided in the IBM software help Security First filter
inappropriate incoming communications and audit outbound communications, avoiding potential
issues with message content. This ensured compliance with industry regulations and Security
First policies. Security First had the confidence to expand its use of social media. Because
compliance is covered, the company can focus on additional opportunities for direct dialog with
customers. Before this solution, Security First filtered customer communications through agents.
Now it can reach out to customers directly and proactively as a company.

Learning from the case:

At the point when a huge number of policyholders require help inside a brief timeframe, Security
First should triage demands rapidly. The Content Analytics with Enterprise Search programming
that stays the SMC4 arrangement gives the data important to enable the organization to recognize
and address the direst cases first. The product consequently filters through information in email
and online networking posts, tweets and remarks utilizing content mining, content examination,
characteristic language preparing and notion investigation to recognize words and tones that
distinguish huge property harm or that pass on trouble. Security First would then be able to
organize the messages and course them to the best possible staff to give consolation, handle
grievances or procedure a case.

Application of case learning In Bangladeshi Organization

The content investigation abilities gave in the IBM programming help Security First channel
unseemly approaching interchanges and review outbound correspondences, keeping away from
potential issues with message content. The organization can be certain that the reactions its
representatives give are agreeable and controlled dependent on both Security First arrangements
and industry regulations. By the imaginative utilization of Web and Social Analytics, Security
First ventured ahead than different firms in the business similarly.

END OF CHAPTER APPLICATION CASE: KEEPING STUDENTS ON TRACK WITH WEB

AND PREDICTIVE ANALYTICS

Summary of the case:

This case took investment bank APUS as an example in implementing wiki, a multi-page
website that anybody could edit. Wiki was the solution for anyone without HTML or web-
authoring knowledge. Wikis can also contain social media features such as blogging and RSS. In
addition, wikis work best in environments where the organization's leadership is comfortable
delegating control to its employees of the system and a business or commercial organization
having a trusting community that isn't looking for the computer to enforce some "behavior".
After introducing Wiki, the case turned its focus to Socialtext, wikis for the corporate market. In
the example of APUS, SocialText was chosen to be their wiki provider. After some testing of the
wikis and had it had taken off with immense popularity, Myrto Lazopoulou, head of User
Centered Design was pleased by this popularity but was also puzzled by it. This was because her
training in computer usability had taught her that the user interface (UI) was one of the most
important aspects of any piece of software, and that any text editing software should have a
“what-you-see-is-what-you-get” UI. The Socialtext wiki, however, did not have WYSIWYG
capability. Despite this apparent shortcoming, the Socialtext software was still popularly used
within the APUS IT department.

Review Question Answers:

1.Describe challenges that APUS was facing. Discuss the ramifications of such challenges.
 
One big challenge is keeping and improving retention in an online university. But educators
lacked the hard data to prove conclusively what really drives retention. Colleges and universities
have struggled to understand how to lower dropout rates and keep students on track all the way
to graduation. APUS faced this challenge in a new online environment, which further
complicates the retention dilemma.
 
2.What types of data did APUS tap into? What do you think are the main obstacles one
would have to overcome when using data that comes from different domains and sources?
 
APUS tapped into demographic data, registration data, and course level data. They used online
activity as well as end-of-course survey data. (The remainder of this answer may vary according
to student.) One obstacle with bringing in data from different domains is the complexity of
finding meaningful patterns in the data. This could require data extraction, cleaning, and
transforming the source data.
 
3.What solutions did they pursue? What tools and technologies did they use?
 
They used predictive analytics to zero in on those factors that most influence a student’s decision
to stay in school or drop out. In addition, they built dashboards to put the predictive analytics
into the hands of deans and other administrators.
 
4.What were the results? Do you think these results are also applicable to other educational
institutions? Why? Why not?
 
Some of the findings generated by its predictive models actually came as a surprise to APUS.
For example, it had long been assumed that gender and ethnicity were good predictors of
attrition, but the models proved otherwise. Educators also assumed that a preparatory course
called “College 100: Foundations of Online Learning” was a major driver of retention, but an in-
depth analysis using Modeler came to a different conclusion. Also, the results showed that a
sense of community was an important retention factor. So, APUS is putting more effort into
promoting interaction between students via social media and online collaboration tools.
 
Predictive analytics are clearly applicable at other universities. But some metrics may not apply.
For example, click-stream analysis won’t apply for universities with traditional face-to-face
classroom delivery.
 
5.What additional analysis are they planning on conducting? Can you think of other data
analyses that they could apply and benefit from?
 
APUS also plans to delve deeper into the surveys by mining the open-ended text responses that
are part of each questionnaire (IBM SPSS Text Analytics for Surveys will help with that
initiative). All of these data-driven initiatives aim to increase student learning, enhance the
student’s experience, and build an environment that encourages retention at APUS.

Learning from the case:

It can be difficult to communicate to the skeptical why wikis work so well in enterprise precisely
because, as demonstrated at APUS, they are so flexible and they do not focus on solving one
specific business issue. Thus, the return on investment for wikis can be hard to define, and even
harder to measure. At APUS, wiki users have seen demonstrable value. Their meetings run more
smoothly and are more productive; unnecessary barriers between teams are being broken down;
the quality of product specifications and documentation is improving; presentations are being
written faster and more effectively; and the risks posed by staff are reduced. More than that, wiki
is helping people form business relationships with people that they would otherwise never have
met. It’s strengthening existing relationships, and providing a forum for high quality
conversation and exchange of ideas. Those who have been converted to the ‘wiki way’ at APUS
have been convinced by the wiki’s utility, ease of use, and business benefits, they have not been
converted by theory or rhetoric. It is through day-to-day experience, through seeing how other
people use the wiki and then adopting the ideas that solve your own problems, and through
sharing knowledge and connecting with colleagues in different locations and teams that the
wiki’s evangelists have discovered and encourage wiki use. Investment banking is a highly
regulated and conservative industry, yet APUS have built an open, collaborative, live intranet
that is robust, up-to-date, and continuing to expand.

Application of case learning In Bangladeshi Organization

In our country, wikis may be used when an organization needs to collect, organize and distribute
information. This can reduce the need for building courses, as employees access the information
they need. Learning often arises out of collaboration and wikis are good for this. The wiki format
is ideal for sharing and getting feedback from team members. Wikis may be used to hold all the
training and informational resources in an enterprise. Some of the more modern wikis may
interface with an LMS. When employees have access to the resources they need, it can reduce
the time spent in formal training as well.

Chapter 10
CASE 1: SYSTEM DYNAMICS ALLOWS FLUOR CORPORATION TO BETTER PLAN
FOR PROJECT AND CHANGE MANAGEMENT

Summary:
Fluor Corporation designs and builds many of the world's most complex projects and serves
clients in many industries across six continents. On their most complex projects, they have
implemented a System Dynamics Model based system that has improved their project
management, transformed the change management, and brought large quantified business
benefits to them and their clients. The model can be rapidly set up and tailored to each major
engineering and construction project. The company use it to foresee the future cost and schedule
impacts of project changes, and most important, to test ways to avoid the impacts. Since 2005,
Fluor has used the system on over 100 projects and has trained hundreds of project managers and
planners in its ongoing internal use. Quantitative business benefits exceed $800 million to date
for Fluor and its clients. It has also transformed the mindset of the managers away from the
industry's typical retrospective view, in which disputes could become the channel for resolving
cost responsibility, and replaced it with a proactive approach, in which they work with their
clients to find, in advance, ways to mitigate impacts and reduce costs—a win-win situation for
Fluor and its clients.

Review Question Answers:

1. Explain the use of system dynamics as a simulation tool for solving complex problems?
System dynamics is a methodology and simulation-modelling technique for analyzing complex
systems using principles of cause and effect, feedback loops, and time-delayed and nonlinear
effects. It is widely used to analyze a range of systems in, e.g. business, ecology, medical and
social systems as well as engineering. The methodology focuses on the way one quantity can
affect others through the flow of physical entities and information. Often such flows come back
to the original quantity causing a feedback loop. The behavior of the system is governed by these
feedback loops. There are two important advantages of taking systems dynamics approach to
solve complex problems of a particular organization.
 The interrelationship of the different elements of the systems can be easily seen in terms
of cause and effects. Thus, the true cause of the behaviour of a particular system can
easily be identified.
 The other advantage is that it possible to investigate which parameters or structures need
to be changed in order to improve behaviour.

Moreover, system dynamics fosters the understanding of business processes by creating “what-
if” analyses of the impact of both expected and unexpected changes in project plans. As a
simulation-modelling technique, it falls under the same general category with other simulation
modelling techniques (Monte Carlo, discrete/continuous event, probabilistic, agent-based).
In short, System dynamics (SD) is a powerful methodology and computer simulation modelling
technique for framing, understanding and discussing complex issues and problems.

2. In what ways was it applied in Fluor Corporation to solve complex problems?

At Fluor, system dynamics was used to analyze changes in project plans over time, and the
company was able to save $10 million by predicting future impact of changes to a mining
project. On their most complex projects, they have implemented the system which has improved
their project management, transformed the change management, and brought large quantified
business benefits to them and their clients. The model can be rapidly set up and tailored to each
major engineering and construction project. The company has also used it to foresee the future
cost and schedule impacts of project changes, and most important, to test ways to avoid the
impacts. Also, based on the what-if capability of Fluor’s model, a company saved $10 million
when the project team used the model to redesign the process of reviewing changes so that the
speed of the company’s definition and approval procedures was increased. In fact, Fluor’s use of
system dynamics helped the company understand the dynamics of the different situations that
could warrant changes to project plans. Using the original project plan, industry standards, and
company references as input, their system dynamics model simulated the correct amounts and
timing of other factors like staffing, project progress, and effects on productivity. The resultant
system not only provided reports on project impacts but also helped to perform cause–effect
diagnostics to solve multiple complex problems of the company.
3. How does a what-if analysis help a decision maker to save on cost?
Through the use of what-if analysis stemming from their system dynamics modelling
approaches, Fluor’s customers were able to perform “what-if” analysis even before a project was
started so the project performance could be gauged. The model explained why certain effects
were realized based on impact to the project plan. Also the model was used to analyze and saved
$10 million in the future impact of changes to a mining project, as well as cutting down the costs
when the project team used the model to redesign the process of reviewing changes so that the
speed of the company’s definition and approval procedures was increased. Thus from the above,
we can say that creating what-if analysis can help to provide a clear understanding of the impact
of both expected and unexpected changes in project plans which will result in the decreasing of
the costs of a decision maker.

4. In your own words, explain the factors that might have triggered the use of system
dynamics to solve change management problems in Fluor Corporation.
Fluor had experienced situations of reduced efficiencies, friction with their clients, and legal
ramifications in previous projects. They estimated that changes accounted for about 20 to 30
percent of their revenue. Most changes were due to secondary impacts like ripple effects,
disruptions, and productivity loss. Also the changes in systems were collated and reported at a
later period and the burden of cost allocated to the stakeholder responsible, leading to late
surprises regarding project costs and schedules. In certain instances when late surprises about
cost and project schedule are attributed to clients, it causes friction between clients and Fluor,
which eventually affect future business dealings. Sometimes, cost impacts occur in such a time
and fashion when it is difficult to take preventive measures. The company determined that to
improve on its efficiency, reduce legal ramification with clients, and keep them happy it had to
review its method of handling changes to projects. One challenge the company faced was the fact
that changes stayed extremely remote from the situation, which warranted the change. In such a
case, it is difficult to determine the cause of a change, and it affects subsequent measures to
handle related change issues.
5. Pick a geographic region and business domain and list some corresponding relevant
factors that would be used as inputs in building such a system.
Fluor’s business domain is in engineering and construction; and it is a worldwide company.
System dynamics have also been used for modelling impact in other domains, such as electronic
health records in hospital settings, in principle, any complex system with multiple interacting
components acting over time can be modelled using the system dynamic approach. In fact, the
company used the model to foresee the future cost and schedule impacts of project changes, and
most important, to test ways to avoid the impacts. It has also transformed the mindset of the
managers away from the industry's typical retrospective view, in which disputes could become
the channel for resolving cost responsibility, and replaced it with a proactive approach, in which
they work with their clients to find, in advance, ways to mitigate impacts and reduce costs—a
win-win situation for Fluor and its clients.
System dynamics have various "back of the envelope" management applications. They are a
potent tool to:
i. Teach system thinking reflexes to persons being coached
ii. Analyse and compare assumptions and mental models about the way things work
iii. Gain qualitative insight into the workings of a system or the consequences of a decision
iv. Recognize archetypes of dysfunctional systems in everyday practice

Learning from the case:

Changes to project plans and timelines are a major contributing factor to upward increase in cost
from initial amount budgeted for projects. In this case, Fluor relied on system dynamics to
understand what, why, when, and how changes occurred to project plans. The models that the
system dynamics model produced helped them correctly quantify the cost of projects even before
they started. The vignette demonstrates that system dynamics is still a credible and robust
methodology in understanding business processes and creating “what-if” analyses of the impact
of both expected and unexpected changes in project plans.

Application of case learning In Bangladeshi Organization:

We can apply System Dynamics Modelling in business, academic, and other organizations of our
country. System Dynamics is a computer-aided approach for strategy and policy design. It uses
simulation modelling based on feedback systems theory and is an analytical approach that
complements systems thinking. It applies to dynamic problems arising in complex social,
managerial, economic, or ecological systems — literally any dynamic systems characterized by
interdependence, mutual interaction, information feedback, and circular causality. And although
System Dynamics models are sophisticated, they are also compact enough to run instantly on a
laptop computer, permitting a whole series of alternative assumptions and scenarios to be tested
quickly and thoroughly in interactive strategy development sessions which can be beneficial for
any organization of our country.

CASE 2: HP APPLIES MANAGEMENT SCIENCE MODELING TO OPTIMIZE ITS

SUPPLY CHAIN AND WINS A MAJOR AWARD

Summary:
The company HP (Hewlett and Packard) is one of the most innovative companies in the
technology industry. HP offers more than a thousand products/ services in more than 100
countries resulting in over a million dollars in revenue. HP’s use of innovative operations
research earned them a dramatic return on investments and the 2009 Edelman Award from
INFORMS; HP’s success did not come without serious, costly obstacles. Before winning the
award, HP had dug themselves into a hole that was getting deeper by the minute due to a
complex product/ option line, overwhelming negative operational costs and customer
dissatisfaction. At that time the mentioned circumstances caused HP to use most of the profit
made on unplanned and high operational cost situations.

Review Question Answers:

1. Describe the problem that a large company such as HP might face in offering many
product lines and options.
The main problem that large companies, such as HP, may face when they offer many product
lines and options is that at some point, managing such a broad inventory become extremely
complex, leading to higher risks levels and operational costs. This is mainly due of the high
extent of uncertainty into the assessment of customer satisfaction levels. According to Chou, as
the product variety grew, their forecasting accuracy suffered, and as a result they ended up with
excesses of some products and shortages of others. Suppliers also suffered due to their inventory
issues and product design changes. To bring a new product, feature, or option to the market, the
company needs to know the return of investment in order to drive the right investment decisions
and maximize profits. Naturally, this is considered to be a difficult process because these critical
decisions must be made with little information about customer demand, specific design
requirements, and the time and money investments required. Therefore, the bigger the company
and the wider its portfolio, the more difficult this process turns.

2. Why is there a possible conflict between marketing and operations?

In a large company like HP, there remain a conflict between marketing and sales which was
regarded as “organizational divide.”
Marketing and sales always wanted more—more SKUs, more features, more configurations—
and for good reason. Providing every possible product choice was considered an obvious way to
satisfy more customers and generate more sales. Supply chain managers, however, always
wanted less. They wanted less to forecast, less inventory, and less complexity to manage. The
drivers (on the supply chain side) were cost control. In fact, Supply chain wanted fast and
predictable order cycle times. With no fact-based, data-driven tools, decision making between
different parts of the organization was time consuming and complex due to these differing goals
and objectives

3. Summarize your understanding of the models and the algorithms.

 Producing an analytically driven process for evaluating new products for introduction,
 Creating a tool for prioritizing existing products in a portfolio,
 Analyzing current state of the system.
 Performing causal analysis: in this stage causal and cyclic relations which affect quality
are identified.
 Recognizing archetypes of dysfunctional systems in everyday practice
 Developing an algorithm that solves the problem many times faster than previous
technologies, thereby advancing the theory and practice of network optimization and
 Problem Solving and selecting solution strategy: Finally simulating this model illustrates
the impacts of these factors in improving product quality and managers can observe the
consequences prior to implementation.

4. Perform an online search to find more details of the algorithms.

The concept of algorithm has existed since antiquity. Arithmetic algorithms, such as a division
algorithm, was used by ancient Babylonian mathematicians circa 2500 BC and Egyptian
mathematicians circa 1550 BC. Greek mathematicians later used algorithms in the sieve of
Eratosthenes for finding prime numbers, and the Euclidean algorithm for finding the greatest
common divisor of two numbers. Arabic mathematicians such as Al-Kindi in the 9th century
used cryptographic algorithms for code-breaking, based on frequency analysis. A medium to
provide instant feedback from the rest of the users.
5. Why would there be a need for such a system in an organization?
HP produces computation and measurement products whose supply chains include
manufacturing integrated circuits, board assembly, final assembly, and delivery to customers. To
reduce inventory and improve order fulfilment, HP called on an internal team of industrial
engineers and management scientists augmented by academic collaboration. The team used an
iterative process, enriched by the interaction of model development and application. HP reaped
benefits well beyond its manufacturing operations, extending to diverse functions throughout the
organization. Similarly, the academic partners have infused their research with real-life
experience. The supply-chain methodology is now matured, and HP is transferring the
technology into the product divisions. Thus a very large organization like HP requires tenacity
and skills to bring about major changes in the processes of a company.

6. What benefits did HP derive from implementation of the models?

Smart application of analytics is becoming increasingly important to businesses, especially in the
areas of operational efficiency, risk management, and resource planning, The RCO algorithm is a
fantastic example of an innovation that helps drive efficiency with the businesses and their
customers. The following algorithm was developed as part of HP Labs’ “analytics” theme, which
applies mathematics and scientific methodologies to help decision making and create better-run
businesses. The RCO algorithm and the complexity ROI calculators helped HP improve its
operational focus on key products, while simultaneously reducing the complexity of its product
offerings for customers. For example, HP implemented the RCO algorithm to rank its Personal
Systems Group offerings based on the interrelationship between products and orders. It then
identified the “core offering,” which is composed of the most critical products in each region.
This core offering represented about 30 percent of the ranked product portfolio. All other
products were classified as HP’s “extended offering.” Based on these findings, HP adjusted its
service level for each class of products. Core offering products are now stocked in higher
inventory levels and are made available with shorter lead times, and extended offering products
are offered with longer lead times and are either stocked at lower levels or not at all. The net
result: lower costs, higher margins, and improved customer service.

Learning from the case:

The analytics that were created to support the direction of HP required a lot of planning and
modelling. HP couldn’t create this change alone; they needed a lot of help that came from
several areas including from within HP itself. The RCO algorithm and the complexity ROI
calculators have helped HP improve its operational focus on key products, while also reducing
the complexity of its product offering for customers. Again, the completion of HP’s portfolio
gave it a totally diverse look. There were several deliverables that were created during the
process of bringing HP out of the age they were in. Even though the company was still making a
profit during the changes in the organization and with the changes, the company was made by
using the Revenue Coverage Optimization (RCO) algorithm, and the Strategic Planning and
Modelling Team (SPaM) caused the creation of newly developed ROI calculators that took into
account what happened downstream from the ordering processes.

Application of case learning In Bangladeshi Organization:

Management science modelling process is the application of scientific methods to complex
organizational problems. Models are aimed at assisting the decision-maker in decision-making
process. In fact, this innovative decision-making tool can help the organizations of our country in
many ways. In the ever-growing corporate environment, it will also support managers in decision
making under lot of constraints. Thus, to stay strong in the competitive marketplace Bangladeshi
companies need to have a proper by understanding of the models and the algorithms of
management science modelling.

Chapter 12

OPENING VIGNETTE: EXPERTISE TRANSFER SYSTEM TO TRAIN FUTURE ARMY

PERSONNEL

Summary of the case:

Knowledge management initiatives in many organizations have no succeeded. Although many
studies have been conducted on this issue and we will learn more about this topic in future
sections, two major issues seem to be critical. Compilation of a lot of user-generated information
in a large Web compilation by itself does not present the needed information in the right format
to the user. Nor does it make it easy to find the right knowledge at the right time. so developing a
friendly knowledge presentation format that includes audio, video, text summary and Web 2.0
features such as tagging, sharing, comments and ratings makes it more likely that users will
actually use the KM content. Second, organizing the knowledge to be visible in specific
taxonomies as well as search and enabling the users to tag the content enable this knowledge to
be more easily discovered within knowledge management systems.

Review Question Answers:

1.What are the key impediments to the use of knowledge in a knowledge management
system?
These systems fail for two main reasons: inadequate representation and lack of integration into
the department’s decision-making process.
2.What features are incorporated in a knowledge nugget in this implementation?
Knowledge nuggets in this implementation have several features that make the KNs easy to find,
more user-friendly, and more effective in classroom training. The summary page delivers the
main point along with links to the features. Users can link to the video (with captions) of the
interview that was used to capture the knowledge. Another link takes the user to a transcript of
the interview, and still another links to a causal map illustrating the interviewee’s thought
process. A feature called “related links” takes the user to lists of related regulatory guidance and
KNs on relevant topics. The KN also provides information about the interviewee and subject
matter experts, as well as supporting images. Users can apply Web 2.0 tools such as the ability to
rate the KNs and suggest additional tags to aid future searches. A feature called My URL lets
trainers insert URLs into lessons to link the lesson to the KN.
3.Where else could such a system be implemented?
This type of system could be implemented wherever an organization would benefit from
capturing and sharing ideas that employees have devised. Some of the conditions in the case are
relevant: significant turnover (service members leaving and being replaced by new recruits) and
working conditions that require individuals to improvise and be innovative. It would be less
useful where jobs are very routine. Any reasonable ideas from students would be correct.
Examples would be sharing knowledge from salespeople at a company that requires creative
selling, sharing repair solutions among repair technicians who encounter unusual problems, and
sharing customer service solutions at a company with high standards for customer satisfaction.

Learning from the case:

Understand the technologies that can be used in a knowledge management system (KMS), It can
help a group follow a process, save cost, expedite decisions, support virtual teams, improve
access to external experts, and improve the decision-making process overall.

Application of case learning In Bangladeshi Organization

We know that knowledge management system is important for all types of organization, so we
may apply in the all types of organization of Bangladesh. Developing a friendly knowledge
presentation format that includes audio, video, text summary and Web 2.0 features such as
tagging, sharing, comments and ratings makes it more likely that users will actually use the KM
content. Organizing the knowledge to be visible in specific taxonomies as well as search and
enabling the users to tag the content enable this knowledge to be more easily discovered within
knowledge management systems.
END OF CHAPTER APPLICATION CASE: SOLVING CRIMES BY SHARING DIGITAL
FORENSIC KNOWLEDGE

Summary of the case:

Its goal is to digitize its processes from end to end and has also fundamentally changed the way it
gathers reports and interprets data while reducing cost from other areas of business. For what
kind of innovation, you can ultimately decide by employees, you definitely benefit from tapping
the wealth of ideas for your workforce such as employee collaboration, experience,
empowerment and affiliation etc.

Review Question Answers:

1.Why should digital forensics information be shared among law enforcement
communities?
 
Law enforcement agencies seeking evidence face a staggering number and variety of digital
devices to search, and each type of hardware and software requires the creation of new methods
of search. As new techniques are developed and tested in the courts, applying the accepted
methods would save an enormous amount of time and effort. Although little time is available for
sharing through formal means such as briefings, not sharing causes duplication of effort and
failure to take consistent advantage of precedent rulings that could strengthen the chance a court
will accept the use of a given process.
 
2.What does egocentric theory suggest about knowledge sharing?

Egocentric theory says that within a group, members identify experts through interaction, and
knowledge remains primarily tacit. Group members use informal means of communication to
transfer knowledge from one person to another. The informality of knowledge transfer results in
local pockets of expertise and redundant effort across the larger community.
 

3.What behavior did the developers of NRDFI observe in terms of use of the system?

The developers saw that more than 1,000 users quickly joined, but their usage pattern was almost
entirely unidirectional. Typically, a user would log on, download tools and documents, and then
wait to return until after the content on the site had be extensively refreshed. For the most part,
the tools for communities to share information with one another were unused. The culture of law
enforcement values the protection of information, rather than the sharing of knowledge. The
developers have been exploring and trying ways to promote greater communication and
knowledge sharing.
 
4.What additional features might enhance the use and value of such a KMS?
Answers will vary; accept any reasonable suggestions, including features described in other
chapters, if they enhance knowledge sharing. Tools and technologies mentioned in the chapter
include artificial intelligence, Web 2.0 (for example, social networking, media sharing, and
blogs), groupwork applications to improve the efficiency and effectiveness of meetings, virtual
meeting systems, and group support systems.

Learning from the case:

The case illustrates how teams that are properly supported by collaborative technologies and
procedures can achieve incredible results. The fast pace of today’s economy requires companies
to innovate, and to do so rapidly and continuously. Group support systems (such as the one
referred to in the opening vignette, ThinkTank by GroupSystems) make it possible to bring forth
the best ideas from people of different status and backgrounds. As problems become increasingly
more complex, computer-mediated group support systems that facilitate brainstorming, idea
generation, and decision making are progressively becoming an integral part of the corporate
life.

Application of case learning In Bangladeshi Organization

We can apply Group support systems in business, academic, and other organizations of our
country. Group support systems are collaborative software tools that can be used to focus and
structure a team's deliberation, while minimizing costs and distractions among teams working
collaboratively. Several advantages are present such as anonymity, parallel communication,
automated record keeping, more structure, and increased productivity. Companies such as IBM,
Procter and Gamble, Boeing and Marriott have used these systems to reduce meetings times and
project times by 90 percent. In short, GSS software offers organizations a range of applications
from brainstorming to categorizing to analyzing alternatives. These systems allow people to
share, organize, evaluate, make decisions, and plan for action. Thus, through the use of GSS
tools, organizations in our country can highly be benefitted.

Chapter 14

OPENING VIGNETTE: OKLAHOMA GAS AND ELECTRIC EMPLOYS ANALYTICS TO

PROMOTE SMART ENERGY USE

Case learning and Summary:

Many organizations are now integrating the data from the different internal units and turning
toward analytics to convert the integrated data into value. The ability to view the
operations/customer-specific data using in-database geospatial analytics gives organizations a
broader perspective and aids in decision making.
Review Question Answers:

1. Why perform consumer analytics?

Consumer analytics helps a company’s customers make better purchasing and usage decisions.
OG&E is using it to help conserve on energy usage and ultimately to delay their need to build
new fossil fuel generation plants. This helps both OG&E (by reducing costs), its customers (by
reducing their energy costs), and the environment as a whole (by reducing pollution from fossil
fuels).
 

2. What is meant by dynamic segmentation?

Dynamic segmentation refers to real-time or near-real-time customer segmentation analytics that
will enhance their understanding about individuals’ responses to the price signals and identify
the best customers to be targeted with specific marketing campaigns.
 
3. How does geospatial mapping help OG&E?
Using geospatial mapping and visual analytics, OG&E views a near–real-time version of data
about its energy-efficient prospects spread over geographic areas and comes up with marketing
initiatives that are most suitable for these customers. Geospatial mapping gives OG&E an easy
way to narrow down to the specific customers in a geographic region based on their meter usage.
In addition, OG&E can find no communicating smart meters, track the outages, and weather
overlay of their services.

 
4. What types of incentives might the consumers respond to in changing their energy use?
OG&E has started working on consumer-oriented efficiency programs to shift the customer’s
usage out of peak demand cycles. OG&E is targeting customers with its smart hours plan. This
plan encourages customers to choose a variety of rate options sent via phone, text, or e-mail.
These rate options offer attractive summer rates for all other hours apart from the peak hours of 2
p.m. to 7 p.m. OG&E is making an investment in customers by supplying a communicating
thermostat that will respond to the price signals sent by OG&E and help customers in managing
their utility consumption. OG&E also educates its customers on their usage habits by providing
5-minute interval data every 15 minutes to the demand-responsive customers.

Application of Big Data in Bangladesh:

For a country boasting a population of about 158.6 million people and an internet penetration
rate of 3.5%5, the potential that big data holds are not really insignificant. Moreover, key drivers
catalyzing big data adoption are all present in Bangladesh. Quick adoption of online platforms
such as bikroy.com, proliferation of smart phones and the consumerization of 3G technology –
all indicate the onset of a Big Data era where data will increase in volume, with increasing
velocity and variety.

END OF CHAPTER APPLICATION CASE: SOUTHERN STATES COOPERATIVE

OPTIMIZES ITS CATALOG CAMPAIGN

Summary of the case:

Predictive models built on historical data can be used to help quantify the effects of new
techniques employed, as part of a retrospective assessment that otherwise cannot be quantified.
The quantified values are estimates, not hard numbers, but obtaining hard numbers simply isn’t
possible. Often in a real-world scenario, many business problems require application of more
than one type of analytics solution. There is often a chain of actions associated in solving
problems where each stage relies on the outputs of the previous stages.

Review Question Answers:

1. What is the main business problem faced by Southern States Cooperative?

 Southern States Cooperative is one of the largest farmer-owned cooperatives in the United
States, with over 300,000 farmer members being served at over 1,200 retail locations across 23
states.  The firm realized the need to continually optimize marketing activities by gaining
insights into its customers. It wanted to maintain and extend its success by better targeting the
right customers in its direct-marketing campaigns. Specifically, the main business challenges
included determining the right set of customers to be targeted for mailing the catalogs, choosing
the right combination of storage keeping units (SKUs) to be included in the catalog, cutting
down mailing costs, and increasing customer response.
 
2. How was predictive analytics applied in the application case? 
SSC first built a predictive model to determine which catalogs the customer was most likely to
prefer. The data for the analysis included Southern States’ historical customer transaction data
analyzed on the basis of decency, frequency, and monetary value of customer transactions
(known as RFM analysis). Sample data was analyzed via logistic regression models, a decision
tree, and a random forest model. Based on the predictive modeling results, an incremental
revenue model based on linear regression was used to estimate revenue per customer. In sum, the
predictive model aimed to determine the customer’s catalog use in purchasing selected items.
 
3. What problems were solved by the optimization techniques employed by Southern States
Cooperative? 
An optimization model was developed to maximize the total income from mailing the catalogs to
customers. This model was solved using genetic algorithms, aiming to maximize the combined
selection of the catalog SKUs and the customers to whom the catalog should be sent to result in
increased response, at the same time increasing the revenues and cutting down the mailing costs.
In sum, the prescriptive model helped the marketing department prepare the customized catalogs
containing the SKUs that suited the targeted customer needs, resulting in better revenue
generation.

Learning from the case:

Valuable insights can be derived by application of each type of analytic technique, which can be
further applied to reach the optimal solution. This application case illustrates a combination of
predictive and prescriptive analytics where geospatial data also played a role in developing the
initial model.

Application of case learning In Bangladeshi Organization

Believe it’s a safe bet to say that the private sector will be an early adopter before the
government sector embraces it. Zooming into the private sector, who do you presume would be
the key decision makers who would spearhead the concept of mining big data for insights?
Across Asia Pacific, recent trends suggest that technology is increasingly moving out of the
realms of IT departments and CIOs. By 2016, Line of Business Executives will be directly
involved in 80% of new IT Investments8. Heads of Marketing, for instance, will have a bigger
say than CIOs, on what technology to adopt for better measurement of churn rate and gaining
insight into loyalty figures.

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