BIS DSS Ch_2_2 PDF

Chapter 2 Cont. Gaining Competitive Advantage with Decision Support Systems  Some Examples of Strategic DSS ◼ If a company is trying to develop a DSS that provides a competitive advantage, managers and DSS analysts should ask about the uniqueness of the project,...

Chapter 2 Cont. Gaining Competitive Advantage with Decision Support Systems  Some Examples of Strategic DSS ◼ If a company is trying to develop a DSS that provides a competitive advantage, managers and DSS analysts should ask about the uniqueness of the project, IS/IT capabilities, impacts on costs, customer and supplier relations, managerial effectiveness. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-2  Some Examples of Strategic DSS ◼ Frito-Lay ◼ The development of a handheld computer enabled this strategic transition to occur. Route sales people collected data on every sales transaction for every customer on a route. ◼ This data is used in a data-driven DSS. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-3  Some Examples of Strategic DSS ◼ Lockheed-Georgia ◼ An on-line reporting system that could provide top executives with concise, timely, relevant information that could be shared within the organization to aid with decision making. ◼ After 12 years of successful operation, in 1990, purchased a commercial Executive Information System (EIS) called Commander EIS. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-4  Some Examples of Strategic DSS ◼ Mrs. Field’s Cookies ◼ The information system was designed to serve two purposes for the company. The first was control and the other was better management decision making for store managers. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-5  Some Examples of Strategic DSS ◼ Wal-Mart ◼ Wal-Mart implemented a number of Strategic DSS including Retail Link and a Sales data warehouse. ◼ This system used electronic data interchange and satellite technologies to create a competitive advantage. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-6  Identifying Opportunities and IS Planning ◼ The Information Systems planning process should provide a systematic method of searching for and evaluating opportunities. ◼ IS planning must be linked to business strategic planning, and the process should be ongoing and open-ended. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-7  Identifying Opportunities and IS Planning ◼ Information systems planning needs to examine the technical infrastructure to determine what is currently possible and examine enhancements that would facilitate or enable new capabilities. ◼ IS planning should involve broad consultation and both problem oriented and opportunistic search. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-8  Identifying Opportunities and IS Planning ◼ DSS do not always solve specific problems; rather DSS may create new capabilities. ◼ DSS projects have various levels of risk associated with them. ◼ The project scope in terms of the number of users served and the size of databases developed also impacts the risk of the assessed projects. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-9  Identifying Opportunities and IS Planning ◼ The sophistication of the technology and the experience of the developers using the technology influences the overall project risk. ◼ If managers want to develop effective IS plans and evaluate DSS projects, it is important that they attend IS, industry, and vendor conferences. ◼ Gain knowledge and search for opportunities Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-10  DSS Benefits, Limitations, and Risks ◼ Development and implementation of DSS has risks. Gaining any advantage may require a large financial investment. ◼ Sometimes the development of a strategic information system can shift power away from a specific company or an entire industry. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-11  DSS Benefits, Limitations, and Risks ◼ Development and implementation of DSS has risks. Gaining any advantage may require a large financial investment. ◼ Sometimes the development of a strategic information system can shift power away from a specific company or an entire industry. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-12  DSS Benefits, Limitations, and Risks ◼ Technology risks include picking the wrong vendor, using a new technology too early in the technology life cycle, or using a technology that soon becomes obsolete. ◼ To gain an advantage a new DSS must work as planned and a company’s stakeholders must perceive its strategic significance for the firm. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-13  DSS Benefits, Limitations, and Risks ◼ All categories and types of DSS focus on improving the effectiveness of decision-makers rather than on increasing the efficiency of data storage and retrieval. ◼ In what ways do any type of computerized support system increase managerial effectiveness? Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-14  Individual and Organizational Benefits Of DSS 1. Improve individual productivity. 2. Improve decision quality and speed up problem solving. 3. Improve interpersonal communications. 4. Improve decision making skills. 5. Increase organizational control. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-15  Other Benefits for DSS 1. Extending a decision maker’s ability to process information and analyze it; 2. Helping a decision maker deal with complex, large-scale problems that would otherwise involve time-consuming data analysis; 3. Shortening or decreasing the amount of time needed to make a decision; 4. Improving the reliability and enforcing the structure of a decision process; Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-16  Other Benefits for DSS 1. Encouraging exploration and discovery by the decision maker in less structured or more novel decision situations related to the domain or scope of the DSS; 2. Helping decision makers restructure or reconceptualize a problem space or decision context; Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-17  Other Benefits for DSS 1. Confirming assumptions or generating new “facts” to support one’s reasoning or decision; 2. Creating a competitive or strategic advantage for an organization. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-18  Other Benefits for DSS 1. Confirming assumptions or generating new “facts” to support one’s reasoning or decision; 2. Creating a competitive or strategic advantage for an organization. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-19  Other Benefits for DSS DSS are a form of behavioral engineering, and many managers resist such interventions. “technology for the sake of technology.” Using IS/IT to gain competitive advantage definitely has risks. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-20 Resistance To Using Decision Support Systems 1. Managers may have insufficient computer training. 2. Some managers argue that using a DSS will diminish their status and force them to do a secretary’s work. 3. Using a DSS may not fit a manager’s problem- solving style. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-21 Resistance To Using Decision Support Systems 1. Using a DSS does not fit with the manager’s work habits of verbal and nonverbal problem solving in face-to-face meetings. 2. DSS models, interfaces, and systems are usually poorly designed. 3. Some managers argue that building and using a DSS is expensive and time consuming. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-22 Resistance To Using Decision Support Systems 1. Information overload is a major problem for people, managers already receive too much information, and many DSS increase the overload. ◼ To gain competitive advantage, project champions and DSS developers need to overcome the problems caused by managers who resist the use of DSS. Business Information Systems (BIS), Faculty of Commerce, Assiut University Slide 1-23