Mis Dss Part1

8/3/2019 Mis Dss Part1

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Information Systems MIS/DSS


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Ameriking Burger king franchisee & others:

Business Value of Enterprise Portals.

How a variety of information technologies have become keycomponents of successful decision support systems.

When CIO arrived 3 yrs ago technology was not exactly on the frontburner for the Westchester, Illinois based Burger King Franchisee.

Larger Burger king franchisee in country with 376 stores & 13,000employees, scattered across US.

Financial reports & human resource policies were manuallyphotocopied & distributed via monthly or bimonthly mailings & fax.

Technology side was definitely underdeveloped

Hernando Manrique CIO- teamed with Business Data & Intelligence &Business Applns and solutions co.


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June 2001 launched Aklnet as portal to 180 district mgrs, mktg directors& mktg mgrs. & a rollout to all the mgrs of all 376 stores began during2002.

Field personal could now web browse to access daily & monthly financialreports & over 71,000 corporate documents - use email account &order supplies from Boise cascade online via the portal.

Just accessing these reports online is saving Ameriking about $ 5 lacper yearin reduced printing & distribution costs. Those savings aloneenabled us tojustify the entire project - & we see it as Just thebeginning.

It wasnt easy to sell


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Ameriking is in

1. Sector low profit margins - each penny spent had to be justified &payback had to be almost immediate.

2. Additional hurdle of aversion to technology within the co

3. There was little understanding that IS technology can be at the verycenter of a sound strategy not simply an after thought.

Aklnet portal has several communities of applns. HR community ofemployee profiles. & emp. contact info personalized emp. info, a finance

& accounting community with access to sales & inventory data, P&L,payroll & DSS. Amarketing community with regional calendar & timelypromotional info.


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We see 8 leading Cos have already done so:

1. Merrill Lynch enterprise portal because Co could no longer afford tofinance all websites & portals sites being built across the Co.

2. Guess Because it became too expensive to train its retail associates &Partners on how to use all the appnls it wanted to roll out fromheadquarters.

3. Chevron Texaco - Because it wanted an integrated web environment butcould not afford to convert every system from the newly merged units ofChevron & Texaco into common web applns.

4. Boeing Because Security & content changes that poured in its intranet

every day overwhelmed the web produces & developers that built the site.


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5. Starbucks Because it was most comprehensive way to eliminate all sortof paperwork required to keep its retail outlets humming.

6. Beringer - wine estates estimates that its sales people spend hours morein the field each week - meeting wine retailers they easily find everythingthey need from headquarters in their portal.

7. First Energy plans to eliminate millions from its training budget for HRself service by delivering the key HR functions in a portal.

8. Washington Mutual - implemented a portal so that every business unit could draw on a common set of foundation services for building web

applns within the portal at lower cost.T

his centralized knowledge mgt. &context mgt. created consistent business process that can span differentdepts..


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Thus we see benefits.

Instantly access financial & mktg reports over 71,000 corporate documents.

Employees can also email, online training, ordering supplies, & corporatenews.

Resulted in major cost saving & greatly improved information access.

Reduce no of development projects & their cost, reduce no. of applns & their

training costs.

Other co. focused on ease & time saved in accessing business info.


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Pre-specified

Scheduled

Frequent

detailed

Strategic

Mgt

Executive

&

Director

Tactical Mgt.

Business Unit Mgrs &

Self Directed Teams

Operational Mgt

Operating mgrs. & self directed team

Adhoc

unscheduled

summarized

Infrequent

Forward Looking

External wide

scope

Historical

Internal

Narrow Focus

Information CharacteristicsDecision Structure

Unstructured

Semi Structured

Structured

Frame work of classic Managerial pyramid


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1. Strategic Management

Typically board of directors & executive committee of the CEO & top

executives.

Develop overall organizational goals, strategies, policies &

objectives as part of a strategic planning process.

They monitor the strategic Performances


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2. Tactical Management

Increasingly business professionals in self directed teams & business unit

mgrs.

Develop short & medium range plans, schedules & budgets

They also allocate resources & monitorthe performance of their

organizational sub units, including depts., divisions, process teams, project

teams & other workgroups.


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3. Operational Management

Operating mgrs develop short range plans such as weekly production

schedules.

What is covered in operational, tactical & strategic system earlierStructured, adhoc etc.


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Decision

Structure

Operational

Mgt

Tactical

Mgt

Strategic

Mgt

Unstructured Cash Mgt

Business Process

Reengineering,

work group

performance

analysis

New e-business

initiative,

company

reorganization

Semi-

structured

Credit Mgt,

Production

scheduling,Daily work

assignment

Employee

performance,

capital BudgetAppraisal

Program,

Budgeting

Product Planning

Mergers &

A

cquisitions,site location

Structured Inventory

Control

Program Control

Egs. Of Decisions by the type of decision structure &

by level of Mgt


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Decision Support Trends

During 1990s traditional managerial focus originating in classic mgt infosystems (MIS) (1960s). DSS(1970s) & EIS (1980s) was expanding

PC hardware & software suites, clients/server networks, networked PCversions of DSS/EIS software made DSS available to lower levels of mgtas well as non-managerial individuals

Trend accelerated with dramatic growth on Internet & Intranet &extranets

Expect easy & instant access to info & web enabled self service, dataanalysis.

Use of Business Intelligence BI tools by suppliers, customers, & otherbusiness stakeholders for CRM, SCM & other e-business applns.


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Management Information Systems

original types of info system - developed to support managerial

decision making.

support day-to-day decision making needs of mgrs

specified information in advance

Predefined info products-satisfied needs at operational & tactical levels.

structured types of decision situation


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Eg. Sales mgr sales analysis reports to evaluate differences in

performance among sales people.

Periodic, exception & demand reports & immediate responses to

inquiries.

Web browsers, appln programs & database mgt software provide access

to info

Operational databases are maintained by transaction processing systems.

Data about business environment - obtained from Internet or extranet

databases


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Management Reporting Alternatives

a. Periodic Scheduled Report

Eg daily or weekly sales analysis reports & monthly financial statements

b. Exception Reports

Eg customers who exceed their credit limits

Exception reporting reduces information overload.


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c. Demand Reports & Responses

Info is available whenever the managers demands it.

DBMS query languages. & report generators - enable mgrs at PCworkstations to get immediate responses or

Obtain customized reports as a result of their requests

Thus mgrs do not have to wait for periodic reports to arrive as scheduled

d. Push Reporting

Pushed to mgrs networked workstation.

Many Cos. Use web casting software to selectively broadcast reports &other info to networked PCs of mgrs. Over their corporate intranet.


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Online Analytical Processing (OLAP)

At a recent stockholder meeting, the CEO of Pepsi Co. D. Wayne

Calloway said: Ten years ago I could have told you how Doritos were

selling west of the Mississipi. Today, not only can I tell you how well they

are selling in California, in Orange county in the town of Irvine in the local

vans super market, in the special promotion, at the end ofAisle 4 on

Thursdays.


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Competitive & dynamic nature of demands by mgrs can provide fast

answers to complex business queries.

Developments like analytical databases, data marts, data warehouses,

data mining techniques & multi dimensional database & with web enabled

software products support online analytical processing OLAP.


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Enables to interactively examine & manipulate large amount of detailed &consolidated data from many perspectives.

OLAP also involves complex relationships among thousands or evenmillions of data items. Stored in multidimensional databases

To discover patterns, trends & exception conditions

OLAP session takes place online in real time with rapid responses to amanagers or analysis queries so that their analytical or decision makingprocess is undisturbed.

OLAP involves several basic analytical operations includingconsolidation, drill down & slicing & dicing


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a. Consolidation

Involves aggregation of data

Can involve simple roll-ups or complex groupings involving interrelateddata

Eg. Sales offices can be rolled up to districts & districts rolled up toregions.


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b. Drill down

OLAP can go in reverse direction - & automatically display detail data

that comprise consolidated data

This called drill down

Eg sales by individual products or sales reps that make up a regions

sales totals could be easily accessed


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c. Slicing & Dicing

Ability to look at the database from different view points

One slice of sales database might show all sales of product type withinregions. Region wise /product wise

Another slice might show sales by sales channel within each product

type. Product wise / Sales channel wise

Slicing & Dicing is often performed along a time axis in order to analyze

trends & find time-based patterns in the data


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Decision Support Systems

Computer based info system that provide interactive info support tomanagers during the decision making process.

DSS Use :

1. Analytical models

2. Specialized databases

3. computer based modeling process to support the making ofsemi-structured & un-structured business decision.

Example

Sales reports contain sales performance figures by product line, salesperson, sales region & so on.


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DSS would also interactively show the effects on sales performance of

changes in a variety of factors such as

a. Promotion expense &

b. Sales person compensation.

DSS could use several criteria (Such as expected gross margin &

market share) to evaluate & rank several alternative combinations of

sales performance factors.


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So DSS are designed to be adhoc, quick response system that are

initiated & controlled by business decision makers.

So they able to directly support the specific types of decisions & personaldecision making styles.

Comparing DSS & MIS - Notes the major differences in the info & decision

support they provide


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1. Decision support

Provided

Provide info about

the performance of

the org

Provide info & decision support

techniques to analyze specific

problems & opportunities

2. Info form &

Frequency

Periodic, exception,

demand & push

reports & responses.

Interactive inquiries & responses

3. Information

format

Pre specified, fixed

format

Adhoc, Flexible & adaptable

format

4. Info Processing

methodology

Info produced by

extraction &

manipulation of

business data

Info produced by analytical

modeling of business data

MIS DSS


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DSS Components

Unlike MIS, DSS rely on model bases as well as databases as vitalsystems resources.

A DSS model base is a software component that consists of models usedin computational & analytical routines that mathematically express

relationships among variables.

Spreadsheet program may have simple accounting relationship such asRevenue - Expenses = Profit

Or can have much more complex relationships. Eg. Might contain linear

programming models, multiple regression, forecasting models & capitalbudgeting present value models.


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Such models may be stored in the form of spreadsheet models ortemplates or statistical & mathematical program & Program modules.

DSS software packages can combine model components to createintegrated models that support specific types of decisions.

Contains built in analytical modeling routines & also enables you to buildyour own models

Many DSS packages-now available on micro-computer & web enabledversions.

Of course electronic spreadsheet packages also provide some of themodel building (spreadsheet models) & analytical modeling (what if & goalseeking analysis) offered by more powerful DSS software.


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Components of a web enabled marketing decision support system

Note the hardware, software, model data & network resources involved.

Legacy

Software

Web

browser

Other

Software

User Interface Functions

Hyperlinked Multimedia, 3-D Visualization

Model Management Functions

Analytical Modeling, Statistical Analysis

Data Management Functions

Data Extraction, Validation, Sanitation, Integration & Replication

Operational

Data

Market

Data

Sales

Data

Customer

Account

Data

Data Marts & Other Databases


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Geographical Information (GIS) & Data

Visualization Systems (DVS)

GIS Geographical Information Systems

GIS & DVS are special categories of DSS that integrate computergraphics & other DSS features.

Uses geographic databases to construct & display maps & othergraphic displays that support decision affecting geographic distribution ofpeople & other resources

Many Cos. are using GIS technology-along with global positioning system(GPS) to help them choose new retail store locations optimizedistribution routes oranalyze the demo graphics of their targetaudiences.

For eg. Cos. Like Levi strauss, Arbys, Consolidated Rail & FederalExpress use GIS packages to integrate maps, graphics & othergeographic data with business data from spreadsheet & statisticalpackages.

Mis Dss Part1

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