Solution Systems:Solution Systems:

Beyond Data Warehouse and Beyond Data Warehouse and Management Information SystemManagement Information System

presented by

PhDr. Dipl.-Bw. (FH) Thomas H. Lenhard, PhD.PhDr. Dipl.-Bw. (FH) Thomas H. Lenhard, PhD.

University teacher at Kaiserslautern University of Applied Science, Campus Pirmasens, Germany

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

Common SystemsCommon Systems

Data WarehouseData WarehouseManagement Information SystemManagement Information SystemDecision Support SystemDecision Support SystemData Mining SystemData Mining SystemData MartsData Marts … …

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

The intention of using analytical systems The intention of using analytical systems

Analysing large amounts of dataAnalysing large amounts of dataSupport a decision making process Support a decision making process Generating information out of dataGenerating information out of dataGetting code / ratio numbersGetting code / ratio numbers

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

Problems of classical / common systemsProblems of classical / common systems

Do we really know, what we know?Do we really know, what we know?A lack of analysts. A lack of analysts. Who will interpret the information?Who will interpret the information?The nice-to-have-problem?The nice-to-have-problem?Can we generate a benefit by analysing data / information?Can we generate a benefit by analysing data / information?What kind of decision is based on information or data What kind of decision is based on information or data analysis?analysis?Is the result of an analysis usable?Is the result of an analysis usable?

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

The main source of error by using analytical The main source of error by using analytical systems:systems:

Human decision makerHuman decision maker

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

Basic question to initiate “the next step” of business Basic question to initiate “the next step” of business intelligence:intelligence:

If a computer based analytical system delivers the If a computer based analytical system delivers the information which is needed by humans to make information which is needed by humans to make decisions then why can a computer system not decisions then why can a computer system not make the decision by itself? make the decision by itself?

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

Classification of decisionsClassification of decisions

The decision is based on the printed information and at the The decision is based on the printed information and at the same time on other information, e.g.: someone’s experience, same time on other information, e.g.: someone’s experience, different influences or parameters which are not available in different influences or parameters which are not available in the computer system.the computer system.

The decision is based only on the information which is The decision is based only on the information which is available in the computer system.available in the computer system.

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

Decisions which might be based only on the information Decisions which might be based only on the information which is available in the computer system.which is available in the computer system.

Amount of an order (e.g. using Andler, Groff or other formulas)Amount of an order (e.g. using Andler, Groff or other formulas)Generating a production plan Generating a production plan Choosing one of two alternatives by using a weighed point Choosing one of two alternatives by using a weighed point systemsystemPlanning a delivery tourPlanning a delivery tourCalculating the amount of a kanban or the number of kanbans Calculating the amount of a kanban or the number of kanbans in a feedback loopin a feedback loopGenerating a shift planGenerating a shift plan

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

If the computer makes the decision by itself, who If the computer makes the decision by itself, who is responsible (acting and responsibility) ?is responsible (acting and responsibility) ?

Only a human decision maker can be responsible Only a human decision maker can be responsible for any activity.for any activity.

How can we get out of this trap?How can we get out of this trap?

E-Leader Conference, Krakow, 8th June 2008

Solution Systems:Solution Systems:

The solution: Predefinition of values / ranges as The solution: Predefinition of values / ranges as an act of human will and his overall controlan act of human will and his overall control

E-Leader Conference, Krakow, 8th June 2008

Human decision is needed

0

Human decision isneeded Range of Security

minimal secure value maximal secure value

Solution Systems:Solution Systems:

The kind of range of security depends on the The kind of range of security depends on the kind of problem:kind of problem:

VALUE

crisp border (e.g. break-even-point)

Alternative 2Alternative 1 Human decision isneeded

E-Leader Conference, Krakow, 8th June 2008

VALUE

0

crisp border (e.g. break-even-point)

YESNO Human decision isneeded

crisp border (e.g. break-even-point)

VALUE

0

Human decision is neededGenerating decision

Solution Systems:Solution Systems:The generic algorithm The generic algorithm for solving univalent for solving univalent problems (only one problems (only one possible mathe-possible mathe-matical result) which matical result) which uses the uses the

Range of SecurityRange of Security

E-Leader Conference, Krakow, 8th June 2008

Univalentproblem?

Calculationpossible?

Predefined Range

Value insidethe range?

Human Decision Maker

Question / Problem /Information / Data

NO

YES

YESYES

NO

Solution

Not every problem can be solved by a Not every problem can be solved by a solution systemsolution system

butbut

Under certain premises it is possible to Under certain premises it is possible to build a solution systembuild a solution system

E-Leader Conference, Krakow, 8th June 2008

Solution Systems: Solution Systems: ConclusionConclusion

Some items have always to be taken Some items have always to be taken under consideration when running a under consideration when running a solution system:solution system:

– The kind of problemThe kind of problem– The relation between cost and benefitThe relation between cost and benefit– The abilities of managers and / or usersThe abilities of managers and / or users

E-Leader Conference, Krakow, 8th June 2008

Solution Systems: Solution Systems: ConclusionConclusion

Thank you for your attentionThank you for your attention

Thomas H. Lenhard

E-Leader Conference, Krakow, 8th June 2008