CHAPTER 8
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)

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

A computer-based system that serves the information
needs of top executives
Provides rapid access to timely information and
direct access to management reports
Very user-friendly, supported by graphics
Provides exceptions reporting and "drill-down"
capabilities
Easily connected to the Internet
Drill down
5
Executive Support System
(ESS)
Comprehensive support system that goes
beyond EIS to include




Communications
Office automation
Analysis support
Intelligence
6
Enterprise Information
System



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

Corporate-wide system
Provides holistic information
From a corporate view
Part of enterprise resource planning (ERP)
systems
For business intelligence
Leading up to enterprise information portals and
knowledge management systems
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

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
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
Critical Success Factors
12
Characteristics and
Benefits of EIS
(Table 8.1)




Quality of information
User interface
Technical capability provided
Benefits
13
14
Comparing and
Integrating EIS and DSS

Tables 8.2 and 8.3 compare the two systems



Table 8.2 - DSS definitions related to EIS
Table 8.3 - Comparison of EIS and DSS
EIS is part of decision support
15
Integrating EIS and
Group Support Systems

EIS vendors - easy interfaces with GSS

Some EIS built in Lotus Domino / Notes

Comshare Inc. and Pilot Software, Inc. Lotus Domino/Notes-based enhancements
and Web/Internet/Intranet links
16
Traditional EIS
Software

Major Commercial EIS Software Vendors



Comshare Inc. (www.comshare.com)
Pilot Software Inc. (www.pilotsw.com)
Application Development Tools


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In-house components
Comshare Commander tools
Pilot Software’s Command Center Plus and Pilot
Decision Support Suite
17
EIS
 Data access
 Data warehousing
 OLAP
 Multidimensional analysis
 Presentations
 Web

18
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
19
Representative OLAP /
Multidimensional Analysis Packages

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BrioQuery (Brio Technology Inc.)
Business Objects (Business Objects Inc.)
Decision Web (Comshare Inc.)
DataFountain (Dimensional Insight Inc.)
DSS Web (MicroStrategy Inc.)
Focus Fusion (Information Builders Inc.)
InfoBeacon Web (Platinum Technology Inc.)
Oracle xpress Server (Oracle Corporation)
Pilot Internet Publisher (Pilot Software Inc.)
20
Including Soft Information
in EIS
Soft information is fuzzy, unofficial,
intuitive, subjective, nebulous,
implied, and vague
21
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
22
Organizational DSS
(ODSS)

Three Types of Decision Support



Individual
Group
Organizational
Hackathorn and Keen (1981)
23

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
24
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)
25

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)
26
Common Characteristics
of ODSS (George, 1991)


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Focus is on an organizational task or activity or a decision
that affects several organizational units or corporate
problems
Cuts across organizational functions or hierarchical layers
Almost always involves computer-based technologies, and
may involve communication technologies
Can Integrate ODSS with Group DSS and Executive
Information Systems
ODSS are an enterprise information system directly
concerned with decision support
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32
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George, Nunamaker & Valacich, 1992:
Classification of ODSS based on Key Issues

Downsizing: Reduction in the number
of human resources and hierarchical
layers- Keys to ODSS:

ODSS to act as knowledge filters and amplifiers

ODSS to handle increased communication caused by an
increase in the span of control

ODSS to integrate the gaps created by the missing Management
34
George, Nunamaker & Valacich, 1992:
Classification of ODSS based on Key Issues

Self-Managed Teams: This address the
gaps.

Need increased coordination tools: Groupware

Need increased flexibility in decision making

Need different types of people (for discussion)
35
George, Nunamaker & Valacich, 1992:
Classification of ODSS based on Key Issues

Outsourcing:
•
Strategic versus tactical issues
•
Coordination issues
36
The Internet
Internet Server
Corporate Data,Model,
Knowledge Bases, etc.
EIS Data, Model,
Knowledge Bases
Intranet Server
User
Interface
Resident
OLAP
Tools
37
An EIS Architecture
Environment
Other
group
members
Individual
problem
solvers
Report
writing
software
GDSS
GDSS
software
software
Mathematical
Models
RDB
Decision
support
system
Environment
Legend:
Data
Communication
Information
38
Decision Maker Views
The decision makingintrepretation process
Title
Subtitle
Note: This is the footnote
Y
1
50
45
T
i
t
l
e
40
35
30
25
20
Cognitive
CognitiveStyle
Style
Mental
MentalModels
Models
Infromation Sources
15
Column 1
Row 1
Column 2
Column 3
Column Title
Row 2
Row 3
Column 4
Row 4
Row Title
Outcomes
Links: relationships
bewteen nodes
New link
Nodes: data, models, knowledge
Hypertext Links
39
Management Decision Making Processess
Strategy Formulation
Planning & Budgeting
Dialectical
Stakeholder
Communications
90
80
70
60
50
40
30
20
10
0
Intelligence
Design
Inquiry
Consensus
Generating
Choice
East
West
North
1st Qtr 2nd
Qtr
3rd
Qtr
4th
Qtr
Performance
Measure ment &
Reporting
Technical Infrastructure Building
Human Resource Management
40
GroupWare/GSS
MD
Data Base
Organizational Structures
Business Forecasting
Legacy
Systems
R DB’s
SQL
Business
Processess
41
Repository-Based EIS
Repository
ESS Architecture
GSS Structure
Data
Interface
Environmentally
Base
Collected & Scanned Information:
Target IS
GSS
Model
Base
Interface
Development Tools
Internal/External
Process
Support
Problem &
Opprotunity
Data Base
Problem
Identification:
Intelligence
Teng, Kettinger, and Guha, 1992
Chen, 1995
Tool Data Base
Normative
Descriptive
Design
Design
Business
Process
Redesigns
DeSanctis and Gallupe, 1985
Turban and Watson, 1989
Process
Decision
Choice
This paper
Implementation/Outcomes
42
Strategies to
Processes
Business Strategy
EIS
ESS
Process Tool
Data Base
Process Selection
GSS
DSS
CMC
Enabling Technology
Process Vision
Process
Process Objectives
Adapted from Davenport, 1993
Attributes
43
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
44
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
45
Supply Chain
Management (SCM)

To deliver an effective supply chain and do
it effectively

To plan, organize, and coordinate the
supply chain’s activities
46
SCM Benefits
Reduction in uncertainty and risks in the
supply chain
 Positively affect

inventory levels
 cycle time
 processes
 customer service


Increase profitability
47
Supply Chain
Components
Upstream
 Internal supply chain
 Downstream

Involves product life cycle activities
Example (Figure 8.2)
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50
Supply Chain
Related to Porter’s (1985)Value Chain
1. Inbound logistics (inputs)
 2. Operations (i.e manufacturing)
 3. Outbound logistics (i.e. storage,
distribution)
 4. Marketing and Sales
 5. Service

51
Supply Chain Problems
Uncertainty in the demand forecast
 Uncertainty in delivery times
 Quality problems
 Poor customer service
 High inventory costs
 Low revenue
 Extra costs

52
Solutions to Supply
Chain Problems

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Outsourcing
Buy, not make
Configure optimal shipping plans
Optimize purchasing
Strategic partnerships with suppliers
Just-in-time delivery of purchases
Reduce intermediaries
Reduce lead times (EDI)
Use fewer suppliers
Improve the supplier-buyer relationships
Build-to-order
Accurate demand by working with suppliers
53
Computerized Systems
MRP
 ERP
 SCM

Integrating the supply chain
54
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
55
ERP Software Vendors
SAP
 Baan
 PeopleSoft
 Oracle
 J.D. Edwards
 Computer Associates

56
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

57
Application Service Providers and
ERP Outsourcing

ASP: software vendor who leases ERPbased applications

Outsourcing

Now via the Web
58
Corporate (Enterprise)
Portals and EIS
Integrates internal applications with
external applications
 Generally via the Web
 Can include


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


groupware technologies
presentation and customization
publishing and distribution
search
categorization
integration
59
Frontline Decision
Support Systems

Process of automating decision processes
and pushing them down into the
organization and even partners

Includes empowering employees
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Future of Executive and
Enterprise Support Systems

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Toolbox for customized systems
Multimedia support
Better access (via PDFs and cell phones)
Virtual Reality and 3-D Image Displays
Merging of analytical systems (OLAP / multidimensional analysis))
with desktop publishing
Client/server architecture
Web-enabled EIS
Automated support and intelligent assistance
Integration of EIS and Group Support Systems
Global EIS
Integration and deployment with ERP products
62