MBA 7020 Business Analysis Foundations Decision Support System July 18, 2005

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MBA 7020Business Analysis Foundations
Decision Support System July 18, 2005
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Agenda
Executive Information System
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Decision Support Systems
There are many definitions of a DSS, but all have
three themes
1) Applied to unstructured problems
Structured Semi-structured Unstructured

1. Supports but does not replace the decision process

3) Is under the users control
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Characteristics of DSS

• Employed in semi-structured or unstructured
  decision contexts
• Intended to support decision makers rather than
  replace them
• Supports all phrases of the decision-making
  process
• Focuses on effectiveness of the process rather
  than efficiency
• Is under control of the DSS user
• Uses underlying data and models
• Facilitates learning on the part of the decision
  maker
• Is interactive and user-friendly
• Is generally developed using an evolutionary,
  iterative process
• Can support multiple independent or
  interdependent decisions
• Supports individual, group or team-based
  decision-making

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Ingredients of a DSS
The basic components of a DSS 1. The data
management system 2. The model management
system 3. The knowledge engine 4. The user
interface 5. The users
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Sample Executive Information System
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Sample Executive Information System
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Sample Executive Information System
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DSS Vendors

• Business Objects
• Cognos
• Microstrategy
• IBM
• Microsoft
• NCR / Teradata
• SAS

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Agenda
Executive Information System
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Executive Information System Environment
Internal Source Systems
Data Warehouse Data Mart
Extract, Transformation and Load
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What is an Executive Information System

• A special type of DSS that support Senior
  Management
• Provides a Big Picture view of the business
• Analysis of overall operations
• Covers a broad range of business areas
• Supports strategic decision-making
• Current picture of operations and performance
• Internal External Views
• Highlights exceptions and allows for further
  analysis

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Executive Information System Interface

• Must be easy and intuitive to use
• Likely to include KPIs Key Performance
  Indicators
• Graphs and Trends
• Single screen summary
• Exception Highlighting (arrows, colors, etc.)
• Drill-Down capabilities
• . . .allows for further structured
  investigation.

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Sources of Executive Information System

• Cost Accounting Systems (Revenue and Expenses)
• External Information (markets, customers,
  suppliers, competitors)
• Spread across organizations and systems
• Objective and Subjective assessments
• Current results and short-term performance
  levels
• Highly volatile information

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Executive Information System Requirements

• Key Indicators
• Health of organization determined by comparison
  to a set of key financial
• indicators
• Organizations can be managed by exceptions
• Technology can display in easy to understand
  formats
• Critical Success Factors
• Related to goals and objectives of the
  organization
• Gathered through interviews with Executives

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Sample Executive Information SystemSource
Business Objects Dashboard
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Sample Executive Information SystemSource
Business Objects Dashboard
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Sample Executive Information SystemSource
Business Objects Dashboard
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Common Features of an Executive Information
System

• Status access, drill down, exception reporting,
  trend analysis and ad hoc
• queries/reports
• Widespread access to external databases and
  information repositories
• Multidimensional data mining and visualization
• Multilevel access control security
• Usage monitoring

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EIS Interface Success Issues Limitations

• Success Issues
• Easy, Intuitive Interface
• Response Time
• EIS Limitations and Pitfalls
• Cost
• Technology Limitations
• Organizational Limitations
• Ongoing Support

• Factors Contributing to EIS Failures
• Management Failures
• Political Problems
• Developer Failures
• Technology Failures
• Costs
• Time

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The Future of Executive Information System

• Executives Increased comfort with technology
• Availability of Data (Internal and External)
• Connectivity via the Internet (broadband)
• Globalization of business