Enterprise Decision

Support Systems

Enterprise Decision Support Systems

DSS to provide enterprise-wide support

Executives

Many decision makers in different locations

Enterprise Resource Planning (ERP) systems

Enterprise Systems: Concepts and

Definitions

Executive information systems (EIS)

Executive support systems (ESS)

Enterprise information systems (EIS)

Evolution of Executive and

Enterprise Information
Systems

DSS and ODSS

1980s: Top execs get Executive
Information Systems
1995+s: Move to everybodys
information systems and enterprise
information systems
Definitions follow
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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

Executive Support System (ESS)

Comprehensive support system that goes
beyond EIS to include

Communications
Office automation
Analysis support
Intelligence
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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
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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
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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

Characteristics of EIS

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

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Characteristics and Benefits of EIS

(Table 8.1)

Quality of information
User interface
Technical capability provided
Benefits

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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

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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
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Traditional EIS Software

Major Commercial EIS Software Vendors

Comshare Inc. (www.comshare.com)
Pilot Software Inc. (www.pilotsw.com)

Application Development Tools

In-house components
Comshare Commander tools
Pilot Softwares Command Center Plus and Pilot
Decision Support Suite

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EIS
Data access
Data warehousing
OLAP
Multidimensional analysis
Presentations
Web

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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

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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.)
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Including Soft Information in EIS

Soft information is fuzzy, unofficial,

intuitive, subjective, nebulous,
implied, and vague

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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

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Organizational DSS (ODSS)

Three Types of Decision Support

Individual
Group
Organizational
Hackathorn and Keen (1981)

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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

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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)
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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)

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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
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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

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Supply Chain

The flow of materials, information, and

services from raw material suppliers
through factories and warehouses to the
end customers

Includes the organizations and processes

that create and deliver value to the end
customers
27

Supply Chain Management

(SCM)

To deliver an effective supply chain and

do it effectively

To plan, organize, and coordinate the

supply chains activities

28

SCM Benefits

Reduction in uncertainty and risks in the

supply chain
Positively affect

inventory levels
cycle time
processes
customer service

Increase profitability
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Supply Chain Components

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

Related to the Value Chain Model

(Porter)

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Supply Chain Problems

Uncertainty in the demand forecast

Uncertainty in delivery times
Quality problems
Poor customer service
High inventory costs
Low revenue
Extra costs
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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

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Computerized Systems

MRP
ERP
SCM
Integrating the supply chain

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Enterprise Resource Planning

(ERP)

Objective: integrate all departments and

functions across an organization into a
single computer system that can serve the
entire enterprises needs

35

ERP Software Vendors

SAP
Baan
PeopleSoft
Oracle
J.D. Edwards
Computer Associates
36

ERP

Very (VERY!) expensive

2nd generation: doing better
Early 2000: moving to Web
Will fail if an organizations business
processes do not fit the ERP systems model

37

Application Service Providers

and ERP Outsourcing

ASP: software vendor who leases ERPbased applications

Outsourcing

Now via the Web

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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

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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

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
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