Decision Support Systems Analysis - Research Paper Example

Running Head: Decision Support Systems Conduct research into application of Enterprise Modelling as a Decision Support Systems framework within the context of SUSTAINABLE AEROSPACE DEVELOPMENT FOCUSI [Name of the writer] [Name of the institution] Conduct research into application of Enterprise Modelling as a Decision Support Systems framework within the context of SUSTAINABLE AEROSPACE DEVELOPMENT FOCUSI There are several types f information systems which is possible to concentrate on the type f support the systems provide (for communication and decision-making). These systems include OAS (office automation systems), collaborative systems, MIS (management information systems), and DSS (decision support systems), executive support systems (ESS), SCM (supply chain management; used in procurement), and CRM (customer relationship management; used in sales). Enterprise systems can actually be included in both categories because they encompass both several functions and types f support. MANAGEMENT INFORMATION SUSTEMS (MISs) Some f the earliest applications for supporting management decision making were management information systems (MIS). MIS primarily provide information on the firm's performance to help mangers in monitoring and controlling the business. They typically produce fixed, regularly scheduled reports based on data extracted and summarized from these reports is often specified in advance. A typical MIS report (Laudon & Laudon 2002) might show a summary from the organization's underlying transaction processing systems (TPS). The format from these reports is often specified in advance. A typical MIS report might show a summary f monthly sales for each f the major sales territories f a company. Sometimes MIS reports are exception reports, highlighting only exceptional conditions, such as when the sales quotas for a specific territory fall below an anticipated level or employees who have exceeded their spending limit in a dental care plan. Traditional MIS produced primarily hard copy reports. Today these reports might be available on-line through an intranet, and more MIS reports can be generated on-demand. Examples f MIS Application (Morgan 1998): California Pizza Kitchen - Inventory Express application "remembers" each restaurant's ordering patterns and compares the amount f ingredients used per menu item to predefined portion measurements established by management. The system identifies restaurants with out-of-line portions and notifies their management so that corrective action can be taken. DECISION SUPPORT SYSTEMS (DSSs) An extension f management reports and dealing with exceptions is decision support systems (DSSs). The goal f a DSS (Clifton, Ince & Sutcliffe 2000) is to support the decision-making process although not necessarily to provide sufficient information to make the decision a fait accompli. In fact, by the nature f many business decision situations, it is unlikely that the DSS could do that in any case. DSSs enable managers to retrieve information ad hoc and as straight forwardly as possible in order to facilitate current decision-making. DSSs are most effective in risk, for example (Marakas 1998): probability, situations where the manager is faced with a number f alternative actions. Ideally the DSS, if given estimates f relevant costs, times, workloads and so on, is capable f assessing all or some f the outcomes f the alternatives. If, for instance, the situation was such that OR techniques could be applied, this would be done automatically by the DSS and the optimum result presented to the manager. In a straightforward case, which would be unusual, the need for management decision might be eliminated as the OR technique had made the decision for him or her. A DSS is interactive to a much greater extent than most management information systems. This is a vital characteristic owing to the wide nature f user's requirements. The usual arrangement is for the DSS to record the user's requirements and subsequently to analyse the problem with an algorithm or model-based technique and then possible measure the degree f success in prediction. The DSS could then be adapted manually to improve the efficacy. DSS come in a variety f different types, and function at a variety f levels in the management f a business. The first is the operational level: these systems help junior managers and clerical staffs make decisions about control f the day-to-day running f the business, such as inventory control f stock levels. Display layout in supermarket. In the second level - tactical: these DSSs help decision-making with a longer time horizon, i.e. decisions which effect the running and direction f the business for weeks or months ahead. Tactical decision-making, however, still refers to changing a business within the limitations f some plan and this level is generally the responsibility f middle management. Typical tactical DSSs might be changing a pricing policy, selecting suppliers, or planning a manpower allocation schedule. The third level is strategic: this level refers to decision-making which alters the course f the business. Strategic DSSs rarely model the business as it is, furthermore, because their main use is in planning the future business direction: they contain models f the business as it was, the competition, and the business as it may be in the future. These systems are used by middle and senior managers to model the business and its environment and to take decisions on policy and future direction. Examples f business scenarios calling for the employment f DSSs include: the allocation f sales offices and representatives to areas taking into account the market potentials f the areas, the representatives' past performances (track records), predicted changes in markets and products, costs f premises and staff redeployment costs; Production planning taking into account factors such as existent factory/plant loads, new orders, availabilities f raw materials, and machine capabilities and reliabilities; Stock (inventory) planning f expensive goods giving consideration to present stocks, likely future demands, availability f space in the stores, capital tied up, price history f the goods and restocking lead times. EXECUTIVE INFORMATION SYSTEMS (EISs) "An executive information system (EIS) is a highly interactive system providing managers and executives' flexible access to information for monitoring operating results and general business conditions" (Kumar 1999). These systems are sometimes called executive support systems (ESS). EIS attempts to take over where the traditional MIS approach falls short. Although sometimes acceptable for monitoring the same indicators over time, the traditional MIS approach f providing specified reports on a schedule basis is too inflexible for many questions executives really care about, such as understanding problems and new situations. EISs provide executives with internal and competitive information through user-friendly interfaces that can be used by someone with almost no computer-related knowledge. EISs are designed to help executives find the information they need whenever they need it and in whatever form is most useful. Typically, users can choose among numerous tabular or graphical formats. They can also control the level f detail, the triggers for exception conditions, and other aspects f the information displayed. Most EISs (Gray 1994) focus on providing executives with the background information they need, as well as help in understanding the causes f exceptions and surprises. This leaves executives better prepared to discuss issues with their subordinates. For an EIS to operate, technical staff members must ensure that the right data are available and are downloaded to the EIS from other systems in a timely manner. The data in EISs are usually replenished periodically from internal company databases and external databases. Although technical advances in data display and networking capabilities have made EISs much easier to maintain, EISs continually modified to keep up with current business issues still require major efforts and substantial technical maintenance. Although EIS users are executives and managers, ideally anyone in a business should be able to get the right information in the right format. Even when commercial EIS software is used, the time and effort to customize and maintain an EIS limits use to high-level managers. Ideally, the flexibility and ease f access built into EIS should also be built into other information systems. CUSTOMER RELATIONSHIP MANAGEMENT (CRM) DSS for customer relationship management use datamining to guide decisions about pricing, customer retention, market share, and new revenue streams. These systems typically consolidate customer information from a variety f systems into massive data warehouses and use various analytical tools to slice it into tiny segments for one-to-one marketing. In addition, common shared database f customer data also make better division. SUPPLY CHAIN MANAGEMENT (SCM) DSS can help manager examine this complex chain comprehensively and search among a huge number f alternatives for the combinations that are most efficient and cost effective. The prime management goal might be to reduce overall costs while increasing the speed and accuracy f filling customer orders. The Window on Technology illustrates how IBM uses DSS for supply chain management. For example (Laudon & Laudon 2002): San Miguel Corporation uses DSS for supply chain management to help it distribute more than 300 products, such as beer, liquor, dairy products, and feed-grains to every corner f the Philippine archipelago. The DSS can generate optimal production allocation plans based on either minimizing cost or maximizing profit. Managers used information from the system to move more f San Miguel's delivery business to third-party logistics providers so that its own delivery trucks could be used more efficiently. There is also use in government organizations by Information Systems (IS). Usually, the executive's job may be affected by IS. For example, one f the most important tasks f executives is making decisions. IS can change the manner in which many decisions are made and consequently change executives' jobs. The use f computer-assisted communication technologies such as groupware has been found to lead to the changes: A larger number and variety f employees participating in decision making; A decrease in the number and variety f employees participating in traditional face-to-face communication; Fewer organizational levels involved in authorizing actions; More rapid and accurate identification f problems and opportunities, which leads to better decisions; Organizational intelligence (scanning, monitoring), done more accurately, comprehensively, and in a timely manner; Shorter time required to authorize actions and make decisions. Many executive/managers have reported that information technology has finally given them time to get out f the office and into the field. They also have found that they can spend more time planning activities instead f putting out fires. Information gathering for decision making can now be done much more quickly with the intranets. Most executives/managers currently work on a large number f problems simultaneously, moving from one to another as they wait for more information on their current problem or until some external event interrupts them. IS tends to reduce the time necessary to complete any step in the decision making process. Therefore, executives/managers may work on fewer tasks during each day but complete more f them. References Bray, J 2001, Key to tomorrow's Business, viewed 26 July 2004, Clifton, HD, Ince, DC, & Sutcliffe, AG 2000, Business Information Systems, 6th edn, London, UK. Gates, B 1999, Business @ the Speed f Thought, viewed 23 July 2004, Gray, P 1994, Decision Support and Executive Information Systems (Prentice Hall Series in Information Management), Prentice Hall, America. Kumar, A 1999, Global Executive Information Systems: Key Issues and Trends (Transnational Business and Corporate Culture: Problems and Opportunities), Garland Publishing, America. Laudon, KC & Laudon, JP 2002, Management Information Systems, 7th edn, Prentice-Hall, Inc., New Jersey, America. Marakas, GM 1998, Decision Support Systems in the 21st Century, 1st edn, Prentice Hall, America. Morgan, JN 1998, Application Cases in Management Information Systems with Data Disk Package, 3rd Bk&Dsk edn, McGraw Hill College Div, New York, America. Read More