Decision Support and Business Intelligence Systems

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  • Edition: 8th
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  • Copyright: 2007-01-01
  • Publisher: Prentice Hall
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This completely revised and re-titled edition now incorporates an expanded coverage of Business Intelligence (BI) reflecting the emphasis that most DSS courses are now taking. New features: Five new chapters (5-9) on Business Intelligence topics. Links to Teradata University Network assignment material and other online resources provided in most chapters.

Table of Contents

Prefacep. xxiii
Decision Support Systems and Business Intelligencep. 1
Decision Support Systems and Business Intelligencep. 3
Opening Vignette: Toyota Uses Business Intelligence to Excelp. 4
Changing Business Environments and Computerized Decision Supportp. 6
Managerial Decision Makingp. 9
Computerized Support for Decision Makingp. 11
An Early Framework for Computerized Decision Supportp. 14
Intelligent Price Setting Using an ADSp. 17
Decision Support at Hallmark for Better Strategy and Performancep. 19
The Concept of Decision Support Systemsp. 20
The Houston Minerals Casep. 21
Helping Atlantic Electric Survive in the Deregulated Marketplacep. 23
A Framework for Business Intelligencep. 24
Predictive Analytics Helps Collect Taxesp. 29
A Work System View of Decision Supportp. 30
The Major Tools and Techniques of Managerial Decision Supportp. 31
United Sugars Corporation Optimizes Production, Distribution, and Inventory Capacity with Different Decision Support Toolsp. 33
Implementing Computer-Based Managerial Decision Support Systemsp. 34
Plan of the Bookp. 35
Resources, Links, and the Teradata University Network Connectionp. 37
End of Chapter Application Case Decision Support at a Digital Hospitalp. 41
Referencesp. 42
Computerized Decision Supportp. 43
Decision Making, Systems, Modeling, and Supportp. 45
Opening Vignette: Decision Making at the U.S. Federal Reservep. 46
Decision Making: Introductory and Definitionsp. 47
Modelsp. 51
Phases of the Decision-Making Processp. 53
Decision Making: The Intelligence Phasep. 55
Decision Making: The Design Phasep. 57
Decision Making Between a Rock and a Hard Place; or What Can You Do When There Are No Good or Even Feasible Alternatives?p. 60
Decision Making From the Gut: When Intuition Can Failp. 64
Too Many Alternatives Spoils the Brothp. 66
Decision Making: The Choice Phasep. 68
Decision Making: The Implementation Phasep. 69
How Decisions Are Supportedp. 70
Union Pacific Railroad: If You're Collecting Data, Use It Profitably!p. 72
Advanced Technology for Museums: RFID Makes Art Come Alivep. 75
Resources, Links, and the Teradata University Network Connectionp. 76
End of Chapter Application Case Strategic Decision Making in the Pharmaceutical Industry: How Bayer Decides Whether or Not to Develop a New Drugp. 80
Referencesp. 81
Decision Support Systems Concepts, Methodologies, and Technologies: An Overviewp. 84
Opening Vignette: Decision Support System Cures For Health Carep. 85
Decision Support Systems Configurationsp. 87
Decision Support Systems Descriptionp. 88
Web/GIS-Based DSS Aid in Disaster Relief and Identifying Food Stamp Fraudp. 89
Decision Support Systems Characteristics and Capabilitiesp. 90
Components of DSSp. 92
The Data Management Subsystemp. 97
Roadway Drives Legacy Applications onto the Webp. 98
The Model Management Subsystemp. 104
Web-Based Cluster Analysis DSS Matches Up Movies and Customersp. 107
The User Interface (Dialog) Subsystemp. 109
Clarissa: A Hands-Free Helper for Astronautsp. 111
The Knowledge-Based Management Subsystemp. 115
IAP Systems's Intelligent DSS Determines the Success of Overseas Assignments and Learns from the Experiencep. 116
The Decision Support Systems Userp. 116
Decision Support Systems Hardwarep. 117
Decision Support Systems Classificationp. 118
Database-Oriented DSS: Glaxo Wellcome Accesses Life-Saving Datap. 119
Resources, Links, and the Teradata University Network Connectionp. 124
End of Chapter Application Case FedEx Tracks Customers Along with Packagesp. 127
Referencesp. 129
Modeling and Analysisp. 131
Opening Vignette: Winning Isn't Everything...But Losing Isn't Anything: Professional Sports Modeling for Decision Makingp. 132
Management Support Systems Modelingp. 135
United Airlines Model-Based DSS Flies the Friendly Skiesp. 137
Forecasting/Predictive Analytics Boosts Sales for Cox Communicationsp. 139
Static and Dynamic Modelsp. 142
Certainty, Uncertainty, and Riskp. 143
Management Support Systems Modeling with Spreadsheetsp. 145
Decision Analysis with Decision Tables and Decision Treesp. 147
Johnson & Johnson Decides About New Pharmaceuticals by Using Treesp. 150
The Structure of Mathematical Models for Decision Supportp. 151
Mathematical Programming Optimizationp. 153
Complex Teacher Selection Is a Breeze in Flandersp. 154
Multiple Goals, Sensitivity Analysis, What-If Analysis, and Goal Seekingp. 158
Problem-Solving Search Methodsp. 162
Heuristic-Based DSS Moves Milk in New Zealandp. 164
Simulationp. 165
Pratt & Whitney Canada Gets Real Savings Through Virtual Manufacturingp. 65
Simulation Applicationsp. 170
Visual Interactive Simulationp. 171
Quantitative Software Packages and Model Base Managementp. 173
Resources, Links, and the Teradata University Network Connectionp. 174
End of Chapter Application Case Major League Baseball Scheduling: Computerized Mathematical Models Take Us Out to the Ballgamep. 180
Referencesp. 181
Business Intelligencep. 185
Special Introductory Section: The Essentials of Business Intelligencep. 187
A Preview of the Content of Chapters 5 through 9p. 187
The Origins and Drivers of Business Intelligence (BI)p. 188
The General Process of Intelligence Creation and Usep. 189
The Major Characteristics of Business Intelligencep. 192
Toward Competitive Intelligence and Advantagep. 195
The Typical Data Warehouse and Business Intelligence User Communityp. 197
Successful Business Intelligence Implementationp. 198
France Telecom Business Intelligencep. 199
Structure and Components of Business Intelligencep. 201
Conclusion: Business Intelligence Today and Tomorrowp. 203
Resources, Links and the Teradata University Network Connectionp. 203
Referencesp. 205
Data Warehousingp. 206
Opening Vignette: Continental Airlines Flies High With Its Real-Time Data Warehousep. 206
Data Warehousing Definitions and Conceptsp. 209
Data Warehousing Process Overviewp. 212
Data Warehousing Supports First American Corporation's Corporate Strategyp. 212
Data Warehousing Architecturesp. 214
Data Integration and the Extraction, Transformation, and Load (ETL) Processesp. 222
Bank of America's Award-Winning Integrated Data Warehousep. 223
Data Warehouse Developmentp. 226
Things Go Better with Coke's Data Warehousep. 227
HP Consolidates Hundreds of Data Marts into a Single EDWp. 231
Real-Time Data Warehousingp. 238
Egg Plc Fries the Competition in Near-Real-Timep. 239
Data Warehouse Administration and Security Issuesp. 243
Resources, Links, and the Teradata University Network Connectionp. 244
End of Chapter Application Case Real-Time Data Warehousing at Overstock.comp. 249
Referencesp. 250
Business Analytics and Data Visualizationp. 253
Opening Vignette: Lexmark International Improves Operations with Business Intelligencep. 254
The Business Analytics (BA) Field: An Overviewp. 256
Ben & Jerry's Excels with BAp. 257
Online Analytical Processing (OLAP)p. 261
TCF Financial Corp.: Conducting OLAP, Reporting, and Data Miningp. 266
Reports and Queriesp. 266
Multidimensionalityp. 269
Advanced Business Analyticsp. 273
Predictive Analysis Can Help You Avoid Traffic Jamsp. 274
Data Visualizationp. 276
Financial Data Visualization at Merrill Lynchp. 279
Geographic Information Systems (GIS)p. 280
GIS and GPS Track Where You Are and Help You with What You Dop. 282
Real-time Business Intelligence Automated Decision Support (ADS), and Competitive Intelligencep. 284
Business Analytics and the Web: Web Intelligence and Web Analyticsp. 289
Web Analytics Improves Performance for Online Merchantsp. 291
Usage, Benefits, and Success of Business Analyticsp. 292
Retailers Make Steady BI Progressp. 294
End of Chapter Application Case State Governments Share Geospatial Informationp. 298
Referencesp. 299
Data, Text, and Web Miningp. 302
Opening Vignette: Highmark, Inc., Employs Data Mining to Manage Insurance Costsp. 302
Data Mining Concepts and Applicationsp. 304
Data Help Foretell Customer Needsp. 306
Motor Vehicle Accidents and Driver Distractionsp. 309
Data Mining to Identify Customer Behaviorp. 310
Customizing Medicinep. 311
A Mine on Terrorist Fundingp. 312
Data Mining Techniques and Toolsp. 313
Data Mining Project Processesp. 325
DHS Data Mining Spinoffs and Advances in Law Enforcementp. 328
Text Miningp. 329
Flying Through Textp. 330
Web Miningp. 333
Caught in a Webp. 334
End of Chapter Application Case Hewlett-Packard and Text Miningp. 340
Referencesp. 341
Neural Networks for Data Miningp. 343
Opening Vignette: Using Neural Networks To Predict Beer Flavors with Chemical Analysisp. 343
Basic Concepts of Neural Networksp. 346
Neural Networks Help Reduce Telecommunications Fraudp. 349
Learning in Artificial Neural Networks (ANN)p. 355
Neural Networks Help Deliver Microsoft's Mail to the Intended Audiencep. 356
Developing Neural Network-Based Systemsp. 362
A Sample Neural Network Projectp. 367
Other Neural Network Paradigmsp. 370
Applications of Artificial Neural Networksp. 372
Neural Networks for Breast Cancer Diagnosisp. 373
A Neural Network Software Demonstrationp. 374
End of Chapter Application Case Sovereign Credit Ratings Using Neural Networksp. 380
Referencesp. 381
Business Performance Managementp. 383
Opening Vignette: Cisco and the Virtual Closep. 384
Business Performance Management (BPM) Overviewp. 386
Strategize: Where Do We Want To Go?p. 388
Plan: How Do We Get There?p. 390
Monitor; How are we Doing?p. 392
Discovery-Driven Planning: The Case of Euro Disneyp. 94
Act and Adjust: What Do We Need To Do Differentlyp. 395
Performance Measurementp. 398
International Truck and Engine Corporationp. 400
Business Performance Management Methodologiesp. 402
Business Performance Management Architecture and Applicationsp. 409
Performance Dashboardsp. 417
Dashboards for Doctorsp. 419
Business Activity Monitoring (BAM)p. 421
City of Albuquerque Goes Real-timep. 422
End of Chapter Application Case Vigilant Information Systems at Western Digitalp. 428
Referencesp. 429
Collaboration, Communication, Group Support Systems, and Knowledge Managementp. 431
Collaborative Computer-Supported Technologies and Group Support Systemsp. 433
Opening Vignette: Collaborative Design at Boeing-Rocketdynep. 434
Making Decisions in Groups: Characteristics, Process, Benefits, and Dysfunctionsp. 436
Supporting Groupwork with Computerized Systemsp. 439
How General Motors is Collaborating Onlinep. 440
Tools for Indirect Support of Decision Makingp. 443
Videoconferencing Is Ready for Prime Timep. 446
Integrated Groupware Suitesp. 448
NetMeeting Provides a Real-Time Advantagep. 449
Direct Computerized Support for Decision Making: From Group Decision Support Systems (GDSS) to Group Support Systems (GSS)p. 452
Eastman Chemical Boosts Creative Processes and Saves $500,000 with Groupwarep. 456
Products and Tools for GDSS/GSS and Successful Implementationp. 458
Emerging Collaboration Tools: From VoIP to Wikisp. 462
Collaborative in Planning, Design, and Project Managementp. 465
CPFR Initiatives at Ace Hardware and Searsp. 468
Creativity, Idea Generation, and Computerized Supportp. 469
End of Chapter Application Case Dresdner Kleinwort Wasserstein Uses Wiki for Collaborationp. 475
Referencesp. 476
Knowledge Managementp. 478
Opening Vignette: Siemens Knows What It Knows Through Knowledge Managementp. 479
Introduction to Knowledge Managementp. 481
Cingular Calls on Knowledgep. 485
Organizational Learning and Transformationp. 486
Knowledge Management Activitiesp. 488
Approaches to Knowledge Managementp. 490
Texaco Drills for Knowledgep. 492
Information Technology (IT) in Knowledge Managementp. 495
Knowledge Management System (KMS) Implementationp. 500
Portal Opens the Door to Legal Knowledgep. 502
Knowledge Management: You Can Bank on It at Commerce Bankp. 504
Roles of People in Knowledge Managementp. 507
Online Knowledge Sharing at Xeroxp. 510
Ensuring the Success of Knowledge Management Effortsp. 513
The British Broadcasting Corporation Knowledge Management Successp. 514
How the U.S. Department of Commerce Uses an Expert Location Systemp. 515
When KMS Fail, They Can Fail in a Big Wayp. 518
End of Chapter Application Case DaimlerChrysler EBOKs with Knowledge Managementp. 524
Referencesp. 526
Intelligent Systemsp. 531
Artificial Intelligence and Expert Systemsp. 533
Opening Vignette: Cigna Uses Business Rules to Support Treatment Request Approvalp. 534
Concepts and Definitions of Artificial Intelligencep. 535
Intelligent Systems Beat Chess Grand Masterp. 535
The Artificial Intelligence Fieldp. 537
Automatic Speech Recognition in Call Centersp. 542
Agents for Travel Planning at USCp. 544
Basic Concepts of Expert Systems (ES)p. 545
Applications of Expert Systemsp. 549
Sample Applications of Expert Systemsp. 549
Structure of Expert Systemsp. 552
How Expert Systems Work: Inference Mechanismsp. 555
Problem Areas Suitable for Expert Systemsp. 558
Development of Expert Systemsp. 560
Benefits, Limitations, and Success Factors of Expert Systemsp. 564
Expert Systems on the Webp. 567
Banner with Brains:Web-Based ES for Restaurant Selectionp. 568
Rule-Based System for Online Student Consulationp. 568
End of Chapter Application Case Business Rule Automation at Farm Bureau Financial Servicesp. 573
Referencesp. 574
Advanced Intelligent Systemsp. 575
Opening Vignette: Improving Urban Infrastructure Management in the City of Verdunp. 576
Machine-Learning Techniquesp. 577
Case-Based Reasoning (CBR)p. 580
CBR Improves Jet Engine Maintenance, Reduces Costsp. 585
Genetic Algorithm Fundamentalsp. 587
Developing Genetic Algorithm Applicationsp. 592
Genetic Algorithms Schedule Assembly Lines at Volvo Trucks North Americap. 593
Fuzzy Logic Fundamentalsp. 595
Natural Language Processing (NLP)p. 598
Voice Technologiesp. 601
Developing Integrated Advanced Systemsp. 605
Hybrid ES and Fuzzy Logic System Dispatches Trainsp. 607
End of Chapter Application Case Barclays Uses Voice Technology to Excelp. 611
Referencesp. 612
Intelligent Systems over the Internetp. 614
Opening Vignette: Netflix Gains High Customer Satisfaction from DVD Recommendationp. 615
Web-Based Intelligent Systemsp. 617
Intelligent Agents: An Overviewp. 629
Characteristics of Intelligent Agentsp. 622
Why Use Intelligent Agents?p. 624
Classification and Types of Intelligent Agentsp. 626
Internet-Based Software Agentsp. 629
Fujitsu(Japan) Uses Agents for Targeted Advertisingp. 635
Wyndham Uses Intelligent Agents in Its Call Centerp. 637
Agents and Multiagentsp. 637
The Semantic Web: Representing Knowledge for the Intelligent Agentsp. 641
Web-Based Recommendation Systemsp. 647
Amazon.com Uses Collaborative Filtering to Recommend Productsp. 648
Content-Based Filtering at Euro Vacations.comp. 653
Managerial Issues of Intelligent Agentsp. 654
End of Chapter Application Case Spartan Uses Intelligent Systems to Find the Right Person and Reduce Turnoverp. 659
Referencesp. 660
Implementing Decision Support Systemsp. 663
System Development and Acquisitionp. 665
Opening Vignette: Osram Sylvania Thinks Small, Strategizes Big to Develop the HR Infonet Portal Systemp. 666
What Types of Support Systems Should You Build?p. 668
The Landscape and Framework of Management Support Systems Application Developmentp. 670
Development Options for Management Support System Applicationsp. 673
Prototyping: A Practical Management Support System Development Methodologyp. 681
Criteria for Selecting an Management Support System Development Approachp. 687
Third-Party Providers of Management Support System Software Packages and Suitesp. 689
Floriculture Partnership Streamlines Real-Time Orderingp. 692
Connecting to Databases and Other Enterprise Systemsp. 693
The Rise of Web Services, XML, and the Service-Oriented Architecturep. 695
Lincoln Financial Excels by Using Web Servicesp. 696
User-Developed Management Support Systemp. 697
End-User Development Using Wikisp. 697
Management Support System Vendor and Software Selectionp. 700
Putting Together an Management Support Systemp. 701
End of Chapter Application Case A Fully Integrated MSS for Sterngold: An Old Dental Manufacturer Adopts New IT Tricksp. 705
Referencesp. 706
Integration, Impacts and the Future of Management Support Systemsp. 708
Opening Vignette: Elite Care Supported by Intelligent Systemsp. 709
Systems Integration: An Overviewp. 711
Types of Management Support System Integrationp. 715
Integration with Enterprise Systems and Knowledge Managementp. 720
The Impacts of Management Support Systems: An Overviewp. 725
Management Support Systems Impacts on Organizationsp. 726
Management Support Systems Impacts on Individualsp. 730
Automating Decision Making and the Manager's Jobp. 731
Issues of Legality, Privacy, and Ethicsp. 733
Intelligent and Automated Systems and Employment Levelsp. 737
Robotsp. 738
Other Societal Impacts of Management Support Systems and the Digital Dividep. 739
The Future of Management Support Systemsp. 742
End of Chapter Application Case An Intelligent Logistics Support Systemp. 747
Referencesp. 748
Online Material
Enterprise Systemsp. 751
Knowledge Acquisition, Representation, and Reasoningp. 752
Online Files
Representative Decision Support Tools
Decision Support Technologies and the Web
Emerging Technologies That May Benefit Decision Support
Additional References
Teradata University Network
Online Files
The MMS Running Case
Web Sources for Decision-Making Support Sampler
Further Reading
Online Files
Major Capabilities of the UIMS
Ad Hoc Visual Basic DSS Example
Further Reading on DSS
Online Files
Influence Diagrams
Links to Spreadsheet-Based DSS Excel Files in Chapter 4
Spreadsheet-Based Economic Order Quantity Simulation Model
Waiting Line Modeling (Queueing) in a Spreadsheet
Linear Programming Optimization: The Blending Problem
Lindo Example: The Product-Mix Model
Lingo Example: The Product-Mix Model
The Goal Programming MBI Model
Links to Excel Files of Section 4.9
Table of Models and Web Impacts
Model Base Management
Additional References
BI Preview Chapter Online Files
The General Process of Intelligence Creation and Use as Reflected in Continental Airline Case
BI Governance
The BI User Community
An Action Plan for the Information Systems Organization
Online Files
Capabilities of EIS
SAP Analytics
Trends in Visualization Products for Decision Support
Virtual Realty Visualization
Competitive Intelligence on the Internet
Online Files
Data Mining
Online Files
Statistica Coupon
Online Files
Portfolio of Options
Rolling Forecasts and Real-Time Data
Effective Performance Measurement
Six Sigma Roles
Problems with Dashboard Displays
Online Files
Seven Sins of Deadly Meetings and Seven Steps to Salvation
Internet Voting
GroupSystems Tools for Support of Group Processes
Collaboration in Designing Stores
Online Files
Leveraging Knowledge through Knowledge Management Systems
Online Files
Intelligent Systems
Internet-Based Intelligent Tutoring Systems
Automating the Help Desk
Assignment ES
Online Files
Steps in the CBR Process
Automating a Help Desk with Case-Based Reasoning
Automatic Translation of Web Pages
Online Files
Guidelines for a "Think Small, Strategize Big" Implementation
Project Management Software
Utility Computing
Agile Development and Extreme Programming (XP)
A Prototyping Approach to DSS Development
IBM's WebSphere Commerce Suite
XML, Web Services and Service-Oriented Architecture
The Process of Selecting a Software Vendor and an MSS Package
Online Files
An Active and Self-Evolving Model of Intelligent DSS
Cookies and Spyware
A Framework for Ethical Issues
A Hybrid Intelligent System
Online Tutorials
Text Mining Project
Statistica Software Project
Referencesp. 748
Glossaryp. 751
Indexp. 763
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