Decision support and BI systems ch14

The Web 2.0 Revolution Web 2.0: a popular term for describing advanced Web technologies and applications, including blogs, wikis, RSS, mashups, user- generated content, and social netwo

Decision Support and Business

Intelligence Systems (9th Ed., Prentice Hall)

Chapter 14:

Management Support Systems: Emerging Trends and Impacts

Learning Objectives

impact MSS

supply-chain management and other operations

can enable reality mining

for decision support

additional data for BI applications

intelligence

Learning Objectives

relate to MSS

applications, and their relationship to BI

MSS implementation

RFID and BI

 RFID is a generic technology that refers

to the use of radio frequency waves to identify objects

identification technologies family, which

and magnetic strips

How does RFID work?

Data Representation for RFID

 RFID tags contain 96 bits of data in the form

of serialized global trade identification numbers (SGTIN) [see epcglobalinc.org]

RFID for Supply Chain BI

 Functions in a distribution center

 Sequence of operations at a receiving duck

expected delivery (purchase order)

RFID for Supply Chain BI

RFID Data Sample

RFID for BI in Supply Chain

 Better SC visibility with RFID systems

 Timing/duration of movements between different locations – especially important for products with limited shelf life

 Better management of out-of-stock items (optimal restocking of store shelves)

 Help streamline the backroom operations: eliminate unnecessary case cycles, reorders

 Better analysis of movement timings for more effective and efficient logistics

RFID + Sensors for Better BI

 Knowing the location and health of goods (i.e., exception) during transportation

Reality Mining

 Identifying aggregate patterns of human activity trends (see sensenetworks.com by MIT and Columbia University)

 Many devices send location information

personal navigation devices

tower triangulation

 Enables tracking of assets, finding nearby services, locating friends/family members, …

A map of an area of San

Francisco with density

designation at place of

interests

Virtual Worlds

 Virtual worlds have existed for a long time in various forms - stereoscopes, Cinerama,

simulators, computer games, …

 They are artificial worlds created by computer systems in which the user has the impression

of being immersed

 Examples:

Avatars ?

Second Life as a DSS

 Advantages:

decision support (DecisionSupportWorld.com)

learning

Second Life as a DSS

 Disadvantages:

requires downloading of a "plug-in"

Virtual Tradeshows

See iTradeFair.com

The Web 2.0 Revolution

 Web 2.0: a popular term for describing advanced Web technologies and applications, including blogs, wikis, RSS, mashups, user-

generated content, and social networks

 Objective: enhance creativity, information sharing, and collaboration

 Difference between Web 2.0 and Web 1.x

Use of Web for collaboration among Internet users and other users, content providers, and enterprises

The Web 2.0 Revolution

 Web 2.0: a umbrella term for new technologies for both content as well as how the Web works

 Web 2.0 have led to the evolution of based virtual communities and their hosting services, such as social networking sites,

Web-video-sharing sites, …

 Companies that understand these new applications and technologies—and apply the capabilities early on—stand to greatly improve internal business processes and marketing

The Web 2.0 Revolution Characteristics of the Web 2.0

users The more users contribute, the better…

ways Web 2.0 data can be remixed or "mashed up”

content and data (enhanced collaboration)

nearly anyone act as a Web site developer

makes everything a perpetual beta or progress and allows rapid prototyping, using the Web as an application development platform

work-in-The Web 2.0 Revolution Characteristics of the Web 2.0

 Users can access and manage applications entirely through a browser

 An architecture of participation and digital democracy

encourages users to add value to the application as they use it

 A major emphasis on social networks and computing

 Strong support of information sharing and collaboration

 Rapid and continuous creation of new business models

“dynamic content, rich user experience, metadata, scalability, open source, and freedom (net neutrality)”

The Web 2.0 Revolution

 Ajax (Asynchronous JavaScript and XML)

rich, interactive, fast-response, user-friendly GUIs

exchanging small amounts of data with the server behind the scenes (eliminated the need for

reloading the complete Web page)

speed, and usability

 Many companies and new business models have emerged based on Web 2.0

Virtual (Internet) Communities

 A group of people with common interests who interact with one another over a computer

network, mainly the Internet

 Similar to typical physical communities, such as neighborhoods, clubs, or associations, but

people do not meet face-to-face

 It is a social network organized around a common interest, idea, task, or goal

 Members interact across time, geographic location, and organizational boundaries

Virtual (Internet) Communities Elements of Interaction

Virtual (Internet) Communities Interesting Characteristics

 Many thousands of communities exist on the Internet, and the number is growing rapidly

thousands, or even hundreds of millions, of members

in just 1 year

 Two major difference from traditional purely physical communities:

Virtual (Internet) Communities Types of Virtual Communities

 Transaction and other business activities

 Purpose or interest

 Relations or practices

 Fantasy (e.g., espn.com)

 Social networks (e.g., myspace.com)

 Virtual worlds (e.g., Secondlife.com)

Virtual (Internet) Communities Types of Virtual Communities

 Public Versus Private Communities

 Membership being open or close others

 Public: MySpace and Facebook

 Private: IBM's Virtual Universe Community

 Internal and External Private Communities

 Internal: limited to employees, retirees, suppliers, and customers (e.g., Pfizer, FedEx, IBM, …)

 External: also include business partners (e.g., Sony PlayStation 3 videogame network)

 There are other classifications of based on the classification of members

Online Social Networking – Basics and Examples

 A social network is a place where people create their own space, or homepage, on which they write blogs; post pictures, videos,

or music; share ideas; and link to other Web locations they find interesting

points to an evolution in human social interaction

 The size of social network sites are growing rapidly, with some having over 100 million members – growth for successful ones 40 to 50 %

in the first few years and 15 to 25 % thereafter

Online Social Networking – Social Network Analysis Software

 It is used to identify, represent, analyze, visualize, or simulate networks with

of input data (relational and non-relational)

 Various input and output file formats exist

 SNA software tools include

InFlow and NetMiner

Linux-based open source package

Mobile Social Networking

connect with one another using cell phones or other mobile devices

1 Partnership with mobile carriers (use of MySpace over

AT&T network)

2 Without a partnership (“off deck”) (e.g., MocoSpace and

Mobikade)

Major Social Network Services

Harvard student)

 It is the 2nd largest social network service in the world with more than 200 million active users worldwide (as of April 2009)

students to connected to other students at the same school

enabling Facebook to compete directly with MySpace

Major Social Network Services

 Orkut : Exploring the Very Nature of Social Networking Sites

MySpace and Facebook

users can display every facet of their personal life they desire using various multimedia applications

communities and assign authority to control

Implications of Business and Enterprise Social Networks

 Business oriented social networks can go beyond “advertising and sales”

 Emerging enterprise social networking apps:

 See Application Case 14.2 for a representative example

 e.g., innocentive.com; awareness.com; Caterpillar

Implications of Business and Enterprise Social Networks

 Survey shows that best-in-class companies use blogs and wikis for the following

applications:

terminology (38%)Collaboration with customers (24%)

Cloud Computing and BI

 Cloud Computing

and often virtualized resources are provided over the Internet

or control over the technology infrastructures in the cloud that supports them

service provider grid computing, on-demand computing, software as a service (SaaS)

Cloud Computing and BI

 Fragments of cloud computing

 Example: Web-based e-mail and Google Docs

 Cloud-computing service providers

(Azure), Google, and Yahoo!

 Different service compensation models exist

Cloud Computing and BI

 Cloud computing, like many other IT trends, has resulted in new offerings in business

intelligence

LogiXML, Lucid Era)

tools (by Elastra, Rightscale)

 Advantage: rapid diffusion, cutting-edge technology, less investment,…

 Concerns: loss of control and privacy, legal liabilities, cross-border political issues, …

which most people are only now coming to terms

 This revolution is taking place very quickly

 According to Garner Group a 37.5 percent compound annual growth rate is expected

 Separating the impact of MSS from that of other computerized systems is a difficult

The Impacts of MSS –

An Overview

Organization structure and the corporate culture

Management process (planning, budgeting, rewards)

Individuals and roles

Technology (DSS, EIS, ES)

The organization’s strategy

 The Impacts of ADS Systems

 Other Organizational Impacts

satisfaction, quality, and supply-chain efficiency

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall

Saving accounts

Installment loans

Mortgage loans Trusts Etc.

Customer data

Customer data

Customer data

Customer data

Customer data

Customer data

Statement Statement Statement Statement Statement Statement

Customer

Customer

Account Manager Supported by

Expert system

Checking expert

Loan expert Etc.

Customer demographics

Checking accounts

Saving accounts

Trusts

Installment loans

Mortgage loans

Etc.

Backed up by

Without Expert System

With Expert System

MSS Impacts on Individuals

 Job Satisfaction

 Inflexibility, Dehumanization, Stress, Anxiety

computers as well as others

available on the Web

of information

better informed or being informed too late

Cooperation of Experts

Automating Decision Making and The Manager’s Job

 Less expertise (experience) is required

 Faster decision making is possible

 Less reliance on experts and analysts

 Power is being redistributed among managers

 Support for complex decisions: faster/better

 Information needed for high-level decision making is expedited or even self-generated

 Automation of routine decisions or phases in the decision-making process by using ADS may

eliminate some managers (?)

Automating Decision Making and The Manager’s Job

 Can managers' jobs be fully automated?

 Can business analysts' jobs be fully automated?

Issues of Legality, Privacy and Ethics

unreasonable personal intrusions

Issues of Legality, Privacy and Ethics

 Ethics in Decision Making and Support

purposes (personal use of Internet while working)

…more…

Issues of Legality, Privacy and Ethics

Typical problem formulation (T.O.P perspective)

Integration of moral intensity components

Problem formulation expansion Conversation

Typical problem

formulation

(T.O.P perspective)

Stakeholder expansion

Problem definition

“Unfolding” to control expansion

S

S

S S

= Stakeholder

S

A Model of Ethical Problem Formulation

End of the Chapter

All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Printed in the United States of America.

Copyright © 2011 Pearson Education, Inc

Publishing as Prentice Hall