Corporate Pyramid Analogy

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Corporate Pyramid Analogy
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Resulting Information Systems
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DECISION SUPPORT SYSTEMS (DSS)

• MANAGEMENT LEVEL COMPUTER SYSTEM COMBINES DATA,
  MODELS, USER - FRIENDLY SOFTWARE FOR
  SEMISTRUCTURED UNSTRUCTURED DECISION MAKING

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DECISION SUPPORT SYSTEM

• DATA MINING technology for finding relationships
  in large data bases for prediction
• DSS SOFTWARE SYSTEM tools for data analysis
• SENSITIVITY ANALYSIS what-if questions about
  changes in model factors (p.354 definition)

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Sensitivity Analysis What if
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Optimized Feedforward ANN for the Guadagni and
Little Choice Model
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GROUP DECISION-SUPPORT SYSTEM (GDSS)

• INTERACTIVE COMPUTER-BASED SYSTEM FACILITATES
  SOLUTION OF UNSTRUCTURED PROBLEMS BY DECISION
  MAKERS WORKING AS GROUP

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GDSS Facility
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GDSS Process
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Class Exercise
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HOW GDSS ENHANCED DECISION MAKING

• IMPROVED PRE-PLANNING
• INCREASED PARTICIPATION
• OPEN, COLLABORATIVE ATMOSPHERE
• IDEA GENERATION FREE OF CRITICISM
• EVALUATION OBJECTIVITY
• IDEA ORGANIZATION EVALUATION

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HOW GDSS ENHANCED DECISION MAKING

• SETTING PRIORITIES DECISION MAKING
• DOCUMENTATION OF MEETINGS
• ACCESS TO EXTERNAL INFORMATION
• PRESERVATION OF ORGANIZATIONAL MEMORY

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EXECUTIVE SUPPORT SYSTEMS (ESS)

• STRATEGIC INFORMATION SYSTEM DESIGNED FOR
  UNSTRUCTURED DECISION MAKING THROUGH ADVANCED
  GRAPHICS AND COMMUNICATIONS

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EXECUTIVE SUPPORT SYSTEMS (ESS)

• BRIEFING BOOKS On-line data, fixed format
  reports for executives
• DRILL DOWN ability to move from summary to lower
  levels of detail
• Designed for specific needs of CEO
• Extensive support staff
• Executive has 24 hour per day ability to examine,
  control progress throughout organization

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EXECUTIVE SUPPORT SYSTEMS (ESS)

• BENEFITS
• FLEXIBILITY
• ABILITY TO ANALYZE, COMPARE, HIGHLIGHT TRENDS
• GRAPHICS HELP EXPLORE SITUATION
• MONITOR PERFORMANCE
• TIMELINESS, AVAILABILITY OF DATA ALLOWS PROMPT
  ACTION

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Digital Cockpits Balanced Scorecards

• pp. 365,366

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The Balanced-Scorecard Strategy In Operational
Terms
The Balanced Scorecard was developed in
response to managers tendency to focus too
heavily on short-term financial performance.
Financial To succeed financially, how should we
appear to our shareholders?
Customer To achieve our vision, how should we
appear to our customers?
Internal Business Process To satisfy our
shareholders and customers, what businesses must
we excel at?
VisionandStrategy
Learning and Growth To achieve our vision, how
will we sustain our ability to change and improve?
Source Robert S. Kaplan and David P. Norton,
Using the Balanced Scorecard as a Strategic
Management System, Harvard
Business Review 74 (January-February 1996) 76.
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The Balanced Scorecard Typical Measures
Financial Revenue, revenue growth, gross margins,
operating income, net margin, earnings per
share, cash flow.
Internal Business Process Innovation perceived
innovativeness, percent of sales from new
products. Operations order processing, cycle
time, delivery time, number of errors. Post-sale
service returns, warranty processing, response
time, payment processing.
Customer Market share, customer acquisition,
customer satisfaction, customer profitability.
Learning and Growth Employee selection,
training, retention, satisfaction. Information
systems timeliness, accuracy, data utility.
Motivation personal and company goal alignment.
Source Robert S. Kaplan and David P. Norton,
Using the Balanced Scorecard as a Strategic
Management System, Harvard
Business Review 74 (January-February 1996) 76.