1. Enterprise Decision Support Systems
CHAPTER 8
Enterprise Decision
Support Systems

2. Enterprise Decision Support Systems
DSS to provide enterprise-wide support
Executives
Many decision makers in different locations
Enterprise Resource Planning (ERP) systems

3. Enterprise Systems: Concepts and Definitions
Executive information systems (EIS)
Executive support systems (ESS)
Enterprise information systems (EIS)

4. 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

5. Executive Information System (EIS)
A computer-based system that serves the information needs of top executives
Provides rapid access to timely information and direct access to management reports
Very user-friendly, supported by graphics
Provides exceptions reporting and "drill-down" capabilities
Easily connected to the Internet
Drill down

6. Executive Support System (ESS)
Comprehensive support system that goes beyond EIS to include
Communications
Office automation
Analysis support
Intelligence

7. Enterprise Information System
Corporate-wide system
Provides holistic information
From a corporate view
Part of enterprise resource planning (ERP) systems
For business intelligence
Leading up to enterprise information portals and knowledge management systems

8. 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

9. 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

10. Characteristics of EIS
Drill down
Critical success Factors (CSF)
Status access
Analysis
Exception reporting
Colors and audio
Navigation of information
Communication

11. 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

12. Critical Success Factors

13. Characteristics and Benefits of EIS (Table 8.1)
Quality of information
User interface
Technical capability provided
Benefits

15. Comparing and Integrating EIS and DSS
Tables 8.2 and 8.3 compare the two systems
Table DSS definitions related to EIS
Table Comparison of EIS and DSS
EIS is part of decision support

16. 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

17. Traditional EIS Software
Major Commercial EIS Software Vendors
Comshare Inc. (
Pilot Software Inc. (
Application Development Tools
In-house components
Comshare Commander tools
Pilot Software’s Command Center Plus and Pilot Decision Support Suite

18. EIS
Data access
Data warehousing
OLAP
Multidimensional analysis
Presentations
Web

19. 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

20. Representative OLAP / Multidimensional Analysis Packages
BrioQuery (Brio Technology Inc.)
Business Objects (Business Objects Inc.)
Decision Web (Comshare Inc.)
DataFountain (Dimensional Insight Inc.)
DSS Web (MicroStrategy Inc.)
Focus Fusion (Information Builders Inc.)
InfoBeacon Web (Platinum Technology Inc.)
Oracle xpress Server (Oracle Corporation)
Pilot Internet Publisher (Pilot Software Inc.)

21. Including Soft Information in EIS
Soft information is fuzzy, unofficial, intuitive, subjective, nebulous, implied, and vague

22. 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

23. Organizational DSS (ODSS)
Three Types of Decision Support
Individual
Group
Organizational
Hackathorn and Keen (1981)

24. Computer support is for
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

25. 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)

26. A distributed decision support system (DDSS)
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)

27. Common Characteristics of ODSS (George, 1991)
Focus is on an organizational task or activity or a decision that affects several organizational units or corporate problems
Cuts across organizational functions or hierarchical layers
Almost always involves computer-based technologies, and may involve communication technologies
Can Integrate ODSS with Group DSS and Executive Information Systems
ODSS are an enterprise information system directly concerned with decision support

34. 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

35. Self-Managed Teams: This address the gaps.
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)

36. George, Nunamaker & Valacich, 1992: Classification of ODSS based on Key Issues
Outsourcing:
Strategic versus tactical issues
Coordination issues

37. Corporate Data,Model,
Knowledge Bases, etc.
The Internet
EIS Data, Model,
Knowledge Bases
Internet Server
User
Interface
Resident
OLAP
Tools
Intranet Server

38. An EIS Architecture Environment Other group members Individual problem
solvers
Report
writing
software
Mathematical
Models
GDSS
software
GDSS
software
RDB
Decision
support
system
Environment
Data
Communication
Information
Legend:

39. Decision Maker Views Cognitive Style Mental Models Cognitive Style
The decision making-
intrepretation process
Cognitive Style
Mental Models
Cognitive Style
Mental Models
Infromation Sources
Outcomes
Links: relationships
bewteen nodes
New link
Nodes: data, models, knowledge
Hypertext Links

40. Management Decision Making Processess
Intelligence
Design
Choice
Consensus
Generating
Dialectical
Inquiry
Process Tools
Strategy Formulation
Planning & Budgeting
Stakeholder Communications
Performance Measure ment & Reporting
Technical Infrastructure Building
Human Resource Management

42. ESS Architecture Environmentally Collected & Scanned Information:
Repository
Repository-Based EIS
Interface
Development Tools
GSS
Interface
Data
Base
Model
Process
Support
GSS Structure
Environmentally
Collected & Scanned Information:
Internal/External
Target IS
Problem & Opprotunity Data Base
Problem Identification: Intelligence
Normative
Design
Descriptive
Decision
Choice
Implementation/Outcomes
Process
Tool Data Base
Business
Process Redesigns
DeSanctis and Gallupe, 1985
Turban and Watson, 1989
Teng, Kettinger, and Guha, 1992
Chen, 1995
This paper

43. Strategies to Processes
Business Strategy
EIS
ESS
GSS
DSS
CMC
Process Tool
Data Base
Process Selection
Enabling Technology
Process Vision
Process
Attributes
Process Objectives
Adapted from Davenport, 1993

44. 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

45. 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

46. Supply Chain Management (SCM)
To deliver an effective supply chain and do it effectively
To plan, organize, and coordinate the supply chain’s activities

47. SCM Benefits Reduction in uncertainty and risks in the supply chain
Positively affect
inventory levels
cycle time
processes
customer service
Increase profitability

48. Supply Chain Components
Upstream
Internal supply chain
Downstream
Involves product life cycle activities
Example (Figure 8.2)

51. 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

52. Supply Chain Problems Uncertainty in the demand forecast
Uncertainty in delivery times
Quality problems
Poor customer service
High inventory costs
Low revenue
Extra costs

53. Solutions to Supply Chain Problems
Outsourcing
Buy, not make
Configure optimal shipping plans
Optimize purchasing
Strategic partnerships with suppliers
Just-in-time delivery of purchases
Reduce intermediaries
Reduce lead times (EDI)
Use fewer suppliers
Improve the supplier-buyer relationships
Build-to-order
Accurate demand by working with suppliers

54. Integrating the supply chain
Computerized Systems
MRP
ERP
SCM
Integrating the supply chain

55. 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

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

57. 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

58. Application Service Providers and ERP Outsourcing
ASP: software vendor who leases ERP-based applications
Outsourcing
Now via the Web

59. Corporate (Enterprise) Portals and EIS
Integrates internal applications with external applications
Generally via the Web
Can include
groupware technologies
presentation and customization
publishing and distribution
search
categorization
integration

60. Frontline Decision Support Systems
Process of automating decision processes and pushing them down into the organization and even partners
Includes empowering employees

62. Future of Executive and Enterprise Support Systems
Toolbox for customized systems
Multimedia support
Better access (via PDFs and cell phones)
Virtual Reality and 3-D Image Displays
Merging of analytical systems (OLAP / multidimensional analysis)) with desktop publishing
Client/server architecture
Web-enabled EIS
Automated support and intelligent assistance
Integration of EIS and Group Support Systems
Global EIS
Integration and deployment with ERP products