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IBM TWRC QPRC 2003 Cross-Enterprise Data Analysis Methodologies, Challenges, Opportunities James Ding Michael G. DeGroote School of Business McMaster University.

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Presentation on theme: "IBM TWRC QPRC 2003 Cross-Enterprise Data Analysis Methodologies, Challenges, Opportunities James Ding Michael G. DeGroote School of Business McMaster University."— Presentation transcript:

1 IBM TWRC QPRC 2003 Cross-Enterprise Data Analysis Methodologies, Challenges, Opportunities James Ding Michael G. DeGroote School of Business McMaster University May 23, 2003

2 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 1 Presentation Agenda Enterprise Decision-Making After-ERP Solutions Modeling and Analysis Tools Adaptive System Design (ASD) Global Development Modeling (GDM) Differential Integration System (DIS) Case Studies Quality-related Information Sharing under JIT Operation DW/DM Integration for Massive Data Processing Cross-Enterprise BPR for Supply Chain Design Concluding Remarks

3 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 2 Enterprise Decision-Making: Framework Strategy Planning Operation EIS DSS ERP MANAGEMENT INFORMATION SYSTEM

4 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 3 Enterprise Decision-Making: Contents Strategy Planning Operation MANAGEMENT Global Strategy Competitive Priorities Process, Quality, Technology Capacity, Location, Layout SOP, MRP, CRP, DRP, IM/WM Transaction-based Decision - Time Horizon - Life Cycle

5 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 4 After-ERP Solutions: Extension View Prior-ERP Solutions ERP Solutions After-ERP Solutions Technology - Data Warehouse/Data Mining - Intelligent Portal - Integration (BOB, Plug-in/Add-on) - E-Business Operation (Function) - SCM - CRM/SFA - APS - LIS - WMS Strategy (Organization) - Cross-Enterprise BPR - Out-Sourcing - Virtual Firm - Learning Organization

6 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 5 After-ERP Solutions: Value Chain View Supplier Manufacturer Distributor Retailer Customer Strategy Planning Operation APS WMS CRM SFA Demand Management LIS ERP MES Catalogue Management After-ERP Solutions Supply Chain Management Chopra (2001), Porter (1985)

7 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 6 After-ERP Solutions: Wave View SAP AG (2003) Mainframe C/S Structure Internet ERP SRP Prior-ERP Solutions After-ERP Solutions - Intelligent ERP - ERP II - XRP - Mental Data - Relationship Transactional AnalyticInferential Technology: Data: System:

8 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 7 Modeling and Analysis: Framework Strategy Planning Operation DIS GDM ASD MANAGEMENT MODELING TOOLS

9 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 8 Modeling and Analysis: ASD Tools for decision-making under complex systems Bayesian Statistics (Thomas Bayes, 1821) Information Theory (Shannon, 1948) Cybernetics (Wiener, 1950) System Dynamics (Forrester, 1961) Game Theory … … … … Adaptive System Design (ASD) Approach Simulation is a useful tool for complex systems but can not explore values of latent variables Prediction with updated training data can lead to graduate exploration of values of latent variables

10 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 9 Modeling and Analysis: GDM Global Development Modeling (GDM) is all about Optimization under Different Decision Spaces with Different Information Define A, B, C as decision spaces, under the decision space X. Step I, Generalization: Derive the optimal function from A to C. Step II, Specialization: Derive the optimal function from C to B. Managerial Interpretation and Pitfalls in the Implementation Approach I, Strategic Solution Approach II, Myopic Solution as the decision function A B C A B A C A B B

11 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 10 Modeling and Analysis: DIS Strategy Planning Operation KI BI SI IIPIOI Differential Integration System (DIS) is all about Effective Integration KI: Knowledge Integration BI: Business Integration SI: System Integration PI: Process Integration II: Information Integration OI: Organization Integration

12 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 11 Modeling and Analysis: DIS DIS is a Powerful Tool to Achieve Strategic Fit under Complex Systems Strategic Fit Chopra (2001) Certainty Information Uncertainty KI BI SI

13 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 12 Case Study: Information Sharing Bullwhip Effect: Good Thing or Bad Thing Academic Research Focuses on Evaluations of Information Sharing Practitioners are in need of Methodologies to Guide Practices Information Sharing in Practice DataModelIntegration Truncated Quality DataMixed Distribution Model Censored Quality DataPH Regression Model Complete Quality DataLog-Linear Regression Model Case Study: Intl. Pump Mfg. Company Scrap-Processing for the Optimal Order Quantity under ATO Global JIT/SCM/TQM Strategy in Emerging Economy Area Push for Complete Data Pull for Implementation

14 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 13 Case Study: DW/DM Integration Utilization of the Accounting Transaction Data for Standard Costing ERP DW DM COA F/S COA Consolidated Algorithms Entry Actual Costing System Standard Costing System Classification

15 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 14 Case Study: DW/DM Integration Automatic BOM Generation System with Finite Experiment Design Business Scenario Semi-mechanical, semi-chemical industry, Bill of Materials (Recipe) is decided by latent variables, eg. temperature, location, hardness, etc. Repeated experiments are needed for each individual order to decide the BOM, hence generate massive technical data in the computer. DW/DM Integration Solution Utilization of the existing experimental data in the Data Warehouse to construct the function curve for each known product series Utilization of the existing function curves to construct the critical points of the finite experiment design for unknown product series Utilization of the DM algorithm to predict the function curve for unknown product series based on results from the finite experiment design What is the Advantage of DW for DM ?

16 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 15 Case Study: Cross-Enterprise BPR Strategic Planning is Important for the Supply Chain Design, even before the ERP Implementation SWOT Analysis helps to leverage Priorities of SCM during the ERP Implementation Cross-Enterprise Business Process Re-engineering (BPR) helps to smooth the move to SCM and E-Business after the ERP Implementation Comparison of Three Companies in Asia CompanyERPSCM FocusIntegration BASFR/2, R/3ResourceCOSMOS System KodakR/3DC NetworkSales/Mfg. GMR/3Supply NetworkSupply/Mfg.

17 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 16 Concluding Remarks: Conclusion Challenges in Cross-Enterprise Data Analysis Increasing Qualitative Data Increasing Uncertainty in Data Resource Involvement of Relationships Involvement of Mental Data and Latent Variables Approaches for Cross-Enterprise Data Analysis Utilization of the Dynamic/Adaptive Mechanism Utilization of the Power of Integration for the Existing Methods Utilization of the Differential Strategy for the Integration Challenges are just Opportunities New Tools to Quantify the Qualitative Data New Methodologies to Make Prediction under Latent Variables

18 IBM TWRC Cross-Enterprise Data Analysis James Ding QPRC 2003Slide 17 Concluding Remarks: Further Information To request working papers or further information, contact: James Ding MGD A210, School of Business, McMaster University Hamilton, Ontario, Canada Tel.: (905) X (Voice) Fax: (905)


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