Fig 1. is a useful way of considering the issue but it should be remembered that decision-making is an iterative process and few decisions are taken in this neat, logical sequence. There is feedback, inter-relationships between decisions, flair, judgement and creativity - all affecting the decision to be made.
From the type of strategic decision to be made, the adoption of technology to help in analyzing and making decisions will reduce the risk and uncertainty during decision-making. This will move towards our goals of improving operational efficiency and functional effectiveness. With a sophisticated system set-up, we can also improve customers’ services and identifying new opportunities which can be exploited quickly as part of the many benefits that we can obtain.
1. Decision Support System (DSS)
One of the most useful systems to implement would be the Decision Support System (DSS) which give direct computer support to managers during the decision-making process. DSS are interactive computer-based systems and subsystems intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems and make decisions. (Goonatilake & Treleaven, 1995)
There are 3 types of DSS applications that would be useful for us:
- Market Planning and Research.
DSS applications include pricing decision for each customer. This would include customers spending pattern recognized by statistical tools used to analyze data collected data. This provides a competitive advantage as a better package can be tailored for valuable customers, yet realizing huge profit. One of the examples is the introduction of the black card by DBS to target the top 10% of Singapore’s elite population or the travel card by OUB for occasion travelers; with the DSS we can have better market targeting. Another DSS application is forecasting. Each products and services growth pattern is analyzed using forecasting method. The appropriate decisions about termination or expansion of each product and service can then be made. Customer satisfaction levels are also be analyzed using DSS model from the number of complaints or compliments received and categorized to find out what is the general trend of complaints and thus improvement can be made. The DSS can also answer some of these questions like who are our best customers and where are they located? Which segment respond positively to our marketing campaign?
- Operation and Strategic Planning
DSS can be used to support short-term and strategic planning for monitoring, analyzing and reporting on the subtle market trends that determine where the computer hub satellite network needs to expand to take advantage of growing market.
- Sales Support
For sales support, DSS has to work in conjunction with another system. An Executive Information System (EIS) provides support for top management by generating daily sales summaries and details by the region, division, salesperson, and product. The report identifies lost business, rescued business, and new business, and they can be generated on demand in addition to periodic reports. The special reports are customized, and comparisons and trend analysis can be provided to managers. It is thus useful in identifying problems and opportunities (Turban & Arson, 2001). The EIS system will be elaborate further in latter part of the report.
1.1 Hardware and OS for DSS
There is a need to set-up an intranet, extranet as well as internet so as to facilitate data transfer management and to gain effectiveness and efficiency. This could be done by the purchase of an IBM intranet server “zSeries 990” as it allows multiple integration with our existing transaction processing system (TPS) systems as well as the ability to provide flexibility and responsiveness to on demand business load. The z990 system also provides the latest level of security and furthermore, with the bundling in of z/OS, it relieves us of the need to source for a separate compatible operating system since the z/OS is able to integrate with our existing system as well as other cross-platforms technologies which includes Java and SOAP. The entire hardware package can be outsourced to IBM as they would also have the other hardware requirements that we need as in the router system as well as transmitter for the intranet and also the expertise to meet our requirements. Full specification of the system is available at http://www.ibm.com (IBM, online).
1.2 Software for DSS
For the database mining and warehousing, as well as database management of existing and future clients, CoSORT would be engaged for this project (http://www.cosort.com, online). CoSORT’s main advantage in this set-up is it is user-friendly and easy to navigate. Other application-orientated (dedicated to a specific application domain) software could be tailored to our needs like “Customer Predict” for data-mining applications, “Data Builder” for marketing and sales forecasting, and “Time Series Predictor” for forecasting financial time services (Fisher & Marinos, 2001).
Most data needed for the DSS/EIS can be interconnected and “mined” from our corporate data warehouse and also extracted from our current TPS. With the use of automated tellers and visa machines, data can be collected rapidly and effectively.
Other then the data management software, we also need a model management software which would includes financial, statistical, management science or other quantitative model that provides the system’s analytical capabilities and appropriate software management.
A knowledge-based subsystem can be connected to out organization knowledge base to provide intelligent to augment the decision maker’s own.
DSS system can access data from a variety of sources and facilitates the development and evaluation of a model of the choice process. The DSS system should also provides good user interface.
The information generated by DSS and EIS is not only helpful to corporate managers but also to customers as they would be able to have direct access online to some corporate information which they can download on demand (Sauter, 1997). An example of the DSS is illustrated below. (Fig 2)
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1.3 User Interface for DSS
The user interface used in DSS is very important as it allows ease of using the system. Knowledge-based system can greatly improved the user interface through the use of natural language processors and voice technologies. The DSS is to be set up using web browser interface made accessible through the internet and email clients. The interface should provide explanations and use terms familiar to user. Sophiscated firewall protections are to be set up and more security issues are to be discussed with the I.T department and our network security provider CISCO since we holds millions of personal details of our clients.
The DSS can be further integrated with enterprise resource planning (ERP) system which integrates all the routine transaction processing in the organization and able to extend to business partners. This would lead us to the EIS which would assist greatly in the identification of problems and opportunities.
2. Executive Information System (EIS)
EIS provide critical information from a wide variety of internal and external sources in easy to use displays to executive and managers. EIS also support analytic capabilities, allowing executives to do analysis on their own. For the EIS, information comes from internal functional units like marketing, accounting, personnel etc. and also external sources like the internet and other online database, newspapers, publication and government reports etc.. Environment scanning is carried out due to the large amount of information needed to identify problems and opportunities and also what to do about them. EIS can be set with the critical success factors (CSFs) or strategic business objective (SBO) are to be identified and thereafter, a corporate portal set-up. A corporate portal integrates internal applications such as database management, document management, and email with external applications such as news services and customer Web site. Access can thus be granted through existing desktop personal computers.
The EIS would be integrated with the DSS and IBM z990 server is able to support it. The software short listed is Command Center (or Pilot Decision Support Suite) and Commander EIS from Congnizant Corp. and Comshare respectively. The first system allows editing, debugging and hypertext linking etc. whereas the second system is designed for non-computers orientation executives (Sauter, 1997).
3. Group Decision Support System (GDSS)
Since most decision is made by group rather then by individuals. A GDSS is a specially designed system that integrates DSS and groupware technologies. It is used to improve group dynamics since group dynamics can inappropriate influence the process of making decision if there are substantial differences in the rank or temperament of the members. GDSS is usually created to solve particularly poorly structured questions, often with strategic or long-term implications. The GDSS would include excess to models and model management tools, data and database management tools, and mail and mail management tools and using that information gained, can provide the distinctive feature of parallel communications eliminating time waste and thoughts interruptions. GDSS can also provide electronic records of meeting for review if necessary. Digital video cams are to be linked to our intranet for the recording of the meetings; furthermore, video conference to our global branches can be carried out using the GDSS. Some of the groupware softwares used are Lotus Notes and Oracle Office which our server can support.
4. Global Positioning System (GPS)
The other system to engage is the GPS, which can help choose new service centers and automated tellers locations, optimize distribution routes, or analyse the demographics of target audiences. This is done through a mapping system in which the locations of all the tellers and branches are highlighted. Thereafter, a distance calculation can be done to ensure that services would be made reachable to customers within a radius of 1 kilometer etc. When integrated with the DSS, this system would prove very valuable in strategic positioning of our outlets and reach to the customers.
5. Expert System (ES)
ES is a knowledge based systems (serve as consultants by providing expert advice) provide expert advice for operational chores like equipment diagnostics, or managerial decisions such as loan portfolio management. It is problem-solving software that can reach a level of performance comparable to or even exceeding that of a human expert in some specialized and usually narrow problem area (Turban & Arson, 2001). Merger and acquisition ES provides expert guidance to complex merger and acquisition decisions. They can provide an appropriate framework and ensure systematic and detailed evaluation of the merger or acquisition. They assess the management strengths, the organization’s current strategic focus, the most suitable acquisition partner, the price range with which to begin negotiations, and the current merger and acquisition climate (Beeral, 1993).
The implementation of the ES systems would enable increased output and productivity since ES can worker faster then humans. ES also decreased decision making time since using the system recommendation, the management can make decision faster. The capture of scarce expertise make the ES an even more valuable system bundled with its’ flexibility, The ability of the system to work with incomplete or uncertain information just like a human expert, this would enhance problem solving and decision making, at the same time improving decision quality. The knowledge base in ES which exceed that of any individual would allow decision makers to gain control over complicated situations and improve the operation of complex system.
III. CONCLUSION
All managers want the right information, in the right format, at the right time, and at the right cost. The old system lacks of forecasting abilities and did not maximize the use of our existing systems. In order to facilitate strategic planning and decision making, DSS, EIS, GPS and ES are to be adopted with the purchase of hardwares like the IBM server z990 and the tailoring of necessary softwares like coSORT. These systems can be integrated with our current TPS system for better efficiency and also data-collecting. Keeping in mind the goals is to improve operational efficiency and functional effectiveness. Identification of problems and opportunities would allow management to plan early and information is made available through the DSS and EIS.
