- 1. Chapter 8 Enterprise Decision Support Systems
2. EIS and ESS Definitions
- 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
3. Executive Support System (ESS)
- A Comprehensive Support System that Goes Beyond EIS to
Include
4. Enterprise Information System
- Provides holistic information
- Part of enterprise resource planning (ERP) systems
- For business intelligence
- Leading up to enterprise information portals and knowledge
management systems
5. Characteristics of EIS
- Critical success Factors (CSF)
6. 7. 8. BENEFITS 9. 10. 11. EIS Software
- Major Commercial EIS Software Vendors
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- Comshare Inc. (Ann Arbor, MI; http://www.comshare.com)
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- Pilot Software Inc. (Cambridge, MA;
http://www.pilotsw.com)
- Application Development Tools
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- Pilot Softwares Command Center Plus and Pilot Decision Support
Suite
12. Multidimensional Analysis
- Easy to develop an EIS in an OLAP system
- Can tap into data in a data warehouse via the Web
- Use advanced visualization tools
13. Soft Information Used in Most EIS
- Soft information is fuzzy, unofficial, intuitive, subjective,
nebulous, implied, and vague
- 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
14. EIS Implementation: Success or Failure 15. EIS
Implementation: Success or FailureCritical Success Factors
forDevelopmentof EIS 16. EIS Development Success
- The quickest way to get an executive to realize the value of an
EIS is to make sure the system directly addresses a business
problem he or she has ... what we did not want to have was a
solution in search of a problem.
- Resistance in our company took the form of foot-dragging on
supplying data.It took a couple of phone calls from the executive
sponsor to straighten the problem out.
- None of us (executives) felt politically comfortable supporting
an expensive information system for so few people.If it had failed
with a huge price tag, everyone felt that its champion might take a
fall.
17. EIS Operational Success Factors
- Deliver timely information
- Provide accurate information
- Provide relevant information
- Provide access to the status of the organization
- Provide improved communications
- An IS for upper management must fit with their decision
styles
18. EIS Ongoing Support Success
- I have to have timely information to react quickly to
problems.Before I had my EIS, I depended on my sneaker network ...
for information I needed on a flash basis.My EIS is faster.
- I used to get my information from mostly my staff and I trusted
it.If my EIS had ever failed to provide me with accurate
information, I would have shut it off.
- The first things I look at (on my EIS) every morning are my
status screens.I want to know how everything is going ... variances
are flagged in color for me, so I can spot them easily.Then I start
asking questions.
19. Corporate (Enterprise) Portals
- Enterprise Information Portals (EIP) are applications that
enable companies to unlock internally and externally stored
information, and provide users a single gateway to personalized
information needed to make informed business decisions.
- It is a single, secure, web-based access point
forintegratingall enterprise information and applications.
- An amalgamation of software applications that consolidate,
manage, analyze and distribute information across and outside of an
enterprise -including Business Intelligence, Content Management,
Data Warehouse and Mart, and Data Management applications.
20. EIP Market Growth Source: Info World
(http://www.inforworld.com/cgi-bin/displayStory.Pl?/features/990125eip.html
Estimated EIP market: $14.8 billion by 2002 36% compounded annual
growth rate 21. Components of an EIP Source: Info World
(http://www.inforworld.com/cgi-bin/displayStory.Pl?/features/990125eip.html
22. The Viador Portal Architecture Viador PortalSearch Channels
Whats New User Filters Alerts Viador Sentinel Extranet Security
Viador Information Center Open APIs Repository Administration Load
Balancing Intranet Security Viador Enterprise BI Suite Viador
Agents HTML / XML UltraseekSearchEngine Database Analysis
Applications Business Applications Documents Corporate Intranet
Worldwide Web Real-time Events Events Unstructured Structured
Viador Gateway 23. A Personalized Portal PageSource: Viador
Presentation at UGA 24. A Custom-branded Portal Page Inventory
Status Procurement Status Daily Sales Billing Information Real-Time
News Shipping Schedule Advanced Search Engine Sales Analyzer
Personalization Tools 25. EIP Software 26. Types of EIP
- Business to Business (B2B) to integrate partners throughout the
supply chain
- Business to Employee (B2E)
- Collaborative Processing EIP
-
- Helps users organize and share workgroup information such as
email, discussion group material, reports, memos, meeting minutes,
etc
-
- Provides access to corporate information for decision
making
27. B2B Portal: Charles Schwab
- Monthly paper information
- Traders need info urgently
28. B2E Portal: Sprint PCS
29. B2E Portal: CIBC
- Access to financial reports from multiple data sources
including mainframe DB2
- Scale to hundreds of users
- E-banking initiative rolled out to 800 users
- Increased customer service
- Simplified mainframe reports and charts in browser
30. Enterprise Resource Planning (ERP)
- Systems that integrate financial, human resources,
manufacturing, distribution, order management processes.
- Shared data and visibility
- Connections with upstream and downstream partners
31. The ERP Industry
- Roots in Europe, manufacturing industry
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- Financial and operational data
-
-
- Focus on data entry and paperwork
- Heightened competition in the market
32. 1994 onwards
- Oracle, Baan, Peoplesoft enter the fray
-
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- 60% by Fortune 500 companies
-
-
- Top 10 had 85% of market share
- Late 90s: growth rate of 30-40% projected, >$50 b by
2002
- 1998 end: five firms held 64% of market
33. The ERP Market 3,577 5% 647.8 JD Edwards 4,254 6% 679.6 Baan
4,452 7% 815.7 Peoplesoft 29,431 10% 5,684 Oracle 12,856 30% 3,461
SAP Employees Share Sales Company 34. ERP Software Industry
- The retail industry will be a major market for ERP (growth of
e-commerce)
- ERP software will integrate with the Internet and data
warehouses
35. Distinguishing Features
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- Total implementation costs at 2-3% of revenues
- Long implementation cycles
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- 2-5 years to be up and running
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- Major rework of existing infrastructure
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- Estimates at greater than 50%
36. Why the ERP Fever?
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- Fragmentation: costs, non-integrated, redundant data, excessive
coding, inflexibility in access
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- Access to management information: streamlined data flows
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- Flexibility in reallocation of resources
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- Visibility of all key processes
37. 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
- Related to the Value Chain Model (Porter)
38. Supply Chain Components
- Involves product life cycle activities
39. Supply Chain Components
- Upstream: like placing orders:
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- Suppliers, their suppliers (several tiers)
-
- From raw material to the company
- Internal: all internal processes that add value, conversion to
final products
40. Supply Chain Components(cont.)
- Downstream: all activities in distribution and delivery to end
customers
Supply 41. An Automotive Supply Chain Source: Modified from
Handfield and Nichols (1999), p. 3. 42. The Toy Order Fulfillment
Problem
- Overall satisfaction with online purchasing declined
significantly in December 1999 and January 2000
-
- Order fulfillment infrastructure shown to be very weak
-
- Toysrus.com and other toy e-tailers had the most critical
problems
-
- Turban et al. E-Commerce: A Managerial Perspective, Prentice
Hall, 2002
43. The Toy Order Fulfillment Problem(cont.)
-
- Fierce competition in the toy industry caused inventory
deficiencies
-
- Orders could not be met in time for the holidaysso they gave
out $100 coupons
- Amazon.com had to ship orders for several products in several
shipments instead of oneraising the delivery cost
44. Order Fulfillment
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- Taking orders may be the easiest part
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- Factors responsible for delays in deliveries:
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- Inability to accurately forecast demand
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- Ineffective supply chains
45. Supply Chain Problems
- Uncertainty in the demand forecast
- Uncertainty in delivery times
46. Supply Chain Management (SCM)
- Integration of business processes from the end user through
original suppliers, that provide products, services, and
information that add values for customers
- To plan, organize, and coordinate the supply chains
activities
47. Proper SCM
- Proper SCM and inventory management requires coordination of
all activities and links in the supply chain to:
-
- Ensure that goods move smoothly and on time from suppliers to
customers
48. IT and SCM(Rai et al. IT Platform Impacts on SC
Integration,Working Paper, Georgia State Univ., 2002)
- IT infrastructure Integration
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- Automatic data capture systems used across SC
-
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- Definitions of key data elements (e.g., customer, order, part
#) are common across SC
-
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- Same data stored in different dbs across SC is consistent
-
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- Same data does not need to be re-entered across SC
-
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- Applications across SC communicate in real time
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-
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- Planning Applications (demand, transportation, manufacturing
planning)
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-
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- Transaction Applications (order management, procurement,
manufacturing, distribution)
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-
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- SC applications with internal applications (e.g., ERP)
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-
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- CRM applications with internal applications
49. IT and SCM (cont/d)
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- Information Flow Integration across SC
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- Production and delivery schedules
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- Supply chain members collaborate in arriving at demand
forecasts
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- Downstream partners share their actual sales data
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- Inventory data visible across SC
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- Order fulfillment and shipment status are tracked across
SC
50. IT and SCM
- Physical Flow Integration
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- Inventory Holdings are minimized across SC
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- SC inventory is jointly managed
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- Suppliers and logistics partners deliver products and material
JIT
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- Distribution networks are configured to minimize total SC-wide
inventory costs
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- Products are assembled when orders are received
51. IT and SCM
- Financial Flow Integration
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- A/R processes are automatically triggered when products are
shipped to our customers
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- A/P processes are automatically triggered when supplies are
received from suppliers
52. The Bullwhip Effect
- Slight changes in actual demand create large variations in
upstream partners
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- Rationing and shortage gaming
53. Bullwhip Effect and Information Sharing
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- Distorted information leads to:
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- Missed production schedules
54. Avoiding the Sting of the Bullwhip
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- Information sharing is a must and is facilitated by EDI,
extranets, and groupware technologies
- Trust and agreements in regard to:
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- Ordering and inventory decisions
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- Placing supply chain ahead of individual entities within the
corporation
- Sharing information could save $30 Billion/year just in the
grocery industry
55. Preliminary Activities
- Understand the supply chain (flow charts)
- Study internal and external parts
- Performance measurement are a must (Benchmarking)
- Multidimension performance analysis
- Peoples relationships are a must
56. Software Support
- Salesperson productivity tools
Downstream activities
- Purchasing order management
- Human resource information
Internal supply chain activities
Upstream activities Type of Software SCM Activities