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EIS dan DSS I. Joko Dewanto
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Enterprise Decision Support Systems
DSS to provide enterprise-wide support Executives Many decision makers in different locations Enterprise Resource Planning (ERP) systems
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Enterprise Systems: Concepts and Definitions
Executive information systems (EIS) Executive support systems (ESS) Enterprise information systems (EIS)
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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
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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
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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
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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 DSS definitions related to EIS Table 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. ( Pilot Software Inc. ( Application Development Tools In-house components Comshare Commander tools Pilot Software’s 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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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
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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)
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
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Supply Chain Management (SCM)
To deliver an effective supply chain and do it effectively To plan, organize, and coordinate the supply chain’s activities
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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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Integrating the supply chain
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 enterprise’s needs
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ERP Software Vendors SAP Baan PeopleSoft Oracle J.D. Edwards
Computer Associates
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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
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Application Service Providers and ERP Outsourcing
ASP: software vendor who leases ERP-based 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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