SYNERGY
The success on organization largely depends on the quality of the decisions that its managers make. When decision making involves large amounts of information and a lot of processing, computer-based systems can make process effective and efficient. There are several types of information systems that support decision making: decision support systems (DSS), executive information system (EIS), and expert system (ES). As figure 1 has shown, DSS, EIS, and ES are used in middle and top management within organization嚙踝蕭s hierarchy. Therefore, optimize these system will enable organizations to decide the right decision which bring them to better result and performance.
The definition of DSS, which has evolved since 1970, are stated as follow:
DSS are computer-based information systems designed to help managers select one of many alternate solutions to a problem, and to help corporations increase market share, reduce costs, increase profitability, and enhance product quality. By automating some of the decision-making process, the systems actually give managers access to some analyses that were previously completely unavailable. As a result, DSS will provide sophisticated and fast analysis.
1.1.1. DSS Component
In order to help the user search vast amounts of relevant data and present them in sophisticated result, DSS are divided of three major components:
Is a database that allows the decision maker to conduct the intelligence phase of decision making. The database maybe created only for particular system, but DSS are usually linked to external databases used for other purpose as well, such as purchasing, shipping, billing, and other daily transactions.
Is a collection of models the DSS draws upon to assist in decision making. It provides the analysis capability for a DSS. Models are used to predict the output based on different input or different conditions, or to estimate what combination of conditions and input might lead to a desired output.
Is the part of DSS that allows the user to interact with. It prompts the user to select a model, such as how to access database, select data, or show the result. The dialog may be in the form of commands, pull-down menus, icons, dialog boxes, or any other approach.
1.1.2. Types of DSS
DSS differ in their degree of sophistication and the manner in which they are used.
is built for the use of the individual knowledge worker in his or her daily work. It can be run on desktop or mainframe computers, and often contain a single model for data processing.
a personal DSS that includes a special selection module to help the user select the right model based on the type of problem being analyzed.
are usually installed in conference-room settings or through a group of networked computers. They are designed specifically to take input from multiple users interacting with the program at the same time and converging on a decision as a group.
1.1.3. Cost and Benefits of DSS
The costs and benefits of a DSS are difficult to asses, because the systems are aimed at effectiveness rather than efficiency. Below are some benefits of DSS:
Spreadsheet tools is possible to analyze alternative ways of allocating resources and visualize the impact of these options.
A DSS is possible to foresee possible pitfalls and to avoid future problems.
With DSS, business models can be constructed and quickly adapted to changes in
business policy and market share, and new results can be generated in days, not weeks.
Many managers can obtain existing databases and pull out only data relevant to current business operations.
Information from energy expenses for example, are broken d own by division,
enables managers to spot deviations from prior years more quickly and to take remedial action to conserve resources.
Several functions such as 嚙踝蕭what if嚙踝蕭 analyses improves the quality of a budget forecast.
DSS systems make it possible to consider issues and alternatives that may not have been explored.
1.1.4. Examples of DSS Applications
Decision support systems are used for a variety of applications in both business and government. Below are example of DSS applications:
It is a pharmaceutical DSS that manages a wide range of health matters, from creation of the first prescription card program, to disease management, and to have online connectivity with pharmacists and physicians. Recently, it is used by more than 54000 pharmacies, which linked electronically to PCS.
One of the best utilization is its vast storehouse of data; which covers the past 25 months of patient prescription records. From this records, patients嚙踝蕭 health plan could be evaluated, and receives disease management programs covering chronic afflictions such as diabetes, asthma, heart failure, and ulcers. For further information, please visit http://www.pine-cone.com/http://www.pine-cone.com
It is banking DSS to make financial planning, budgeting, costing, and pricing of bank products.
Analytica brings clarity and power to business modeling. Analytica is a visual software tool for creating, analyzing, and communicating quantitative business models. Analytica takes user beyond the spreadsheet and helps:
Because Analytica uses a graphical interface and a small number of standard diagram symbols, it's easy to learn and use. A senior executive or team can conceptualize a problem, and the qualitative aspects of a problem can be mapped out without diving into formulas. Creating becomes easy jobs to do and saving time compare to conventional spreadsheet modeling. For more information, please visit http://www.lumina.com
EIS are defined as follows:
EIS is a type of decision support system especially designed for high-ranking managers, to provide them with the most essential information for running their organizations. EIS is useful to executives, who almost always suffer from information overload, the phenomenon of having so much information that the very volume creates the additional work of having to decide what is important, rather than helping to solve problems and make decisions.
1.2.1. Components of EIS
Executive workstations typically use mainframe or minicomputer systems for access to EIS software. The EIS package works with database management and telecommunications software to provide easy access to internal, external, and special databases. Executive information systems provide information about the current status and projected trends in a company嚙踝蕭s critical success factors, as determined by its top executives. A modeling capability to evaluate alternatives for decision support may also be provided by some EIS. See figure.
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1.2.2. Reasons for EIS
There are some motivations why organizations have installed EIS.
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1.2.3. Failure of EIS
EIS design and implementation require top management support, active user involvement, and an appropriate technology. Watson and Satzinger identified several specific factors that lead to the failure of an EIS. Among these factors are the following:
Many of them missed the computer revolution. They may feel uncomfortable using computers. Ongoing education and increasing computer awareness should resolve this issue.
A busy schedules are limiting executives to have long training. A user-friendly interface should encourage executives to use the EIS more extensively.
EIS contained too little information of value to senior executives, which is related to a lack of understanding of the executive嚙踝蕭s work. Delivering systems that are tailored to the specific needs of the decision maker will develop a successful EIS.
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a. Executive Information Support System
Applied Media Resources Inc develops an Executive Information Support System software (嚙踝蕭EISS嚙踝蕭) which is a computer based tool to support management's need to receive and disseminate information required for decision making. It is a Windows-based software which makes it easy to quickly access operating and financial information to executives who needs who needs access to multiple sources of data and needs to communicate effectively. Major functions of EISS include manufacturing, purchasing, customer service, accounting, which generate production schedules, inventory usage, income statements, balance sheets, are connected to provide immediate access and dissemination of critical information. Details of the analysis and information of EISS, please refer to the website www.amrinc.com.
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b. Rapid Executive Information System
Rapid Executive Information System develops a Data Warehouse/Executive Information System (EIS) called 嚙踝蕭RAPID嚙踝蕭. It captures massive volumes of corporate data from many different sources, consolidating and manipulating it into revenue generating information. RAPID consists of the four key features of EIS. Rapid嚙踝蕭s standard Windows user-friendly interface enables easy navigation and allows you to define the way you want to see the information through business models, hierarchies and filters. Also, RAPID is an open database, thus you to use your favourite reporting tool to create professional presentations. For details of the software, please visit the website www.accelbus.com
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