Decision Support and Business Intelligence Systems

Preface     xxiiiDecision Support Systems and Business Intelligence     1Decision Support Systems and Business Intelligence     3Opening Vignette: Toyota Uses Business Intelligence to Excel     4Changing Business Environments and Computerized Decision Support     6Managerial Decision Making     9Computerized Support for Decision Making     11An Early Framework for Computerized Decision Support     14Intelligent Price Setting Using an ADS     17Decision Support at Hallmark for Better Strategy and Performance     19The Concept of Decision Support Systems     20The Houston Minerals Case     21Helping Atlantic Electric Survive in the Deregulated Marketplace     23A Framework for Business Intelligence     24Predictive Analytics Helps Collect Taxes     29A Work System View of Decision Support     30The Major Tools and Techniques of Managerial Decision Support     31United Sugars Corporation Optimizes Production, Distribution, and Inventory Capacity with Different Decision Support Tools     33Implementing Computer-Based Managerial Decision Support Systems     34Plan of the Book     35Resources, Links, and the TeradataUniversity Network Connection     37End of Chapter Application Case Decision Support at a Digital Hospital     41References     42Computerized Decision Support     43Decision Making, Systems, Modeling, and Support     45Opening Vignette: Decision Making at the U.S. Federal Reserve     46Decision Making: Introductory and Definitions     47Models     51Phases of the Decision-Making Process     53Decision Making: The Intelligence Phase     55Decision Making: The Design Phase     57Decision Making Between a Rock and a Hard Place; or What Can You Do When There Are No Good or Even Feasible Alternatives?     60Decision Making From the Gut: When Intuition Can Fail     64Too Many Alternatives Spoils the Broth     66Decision Making: The Choice Phase     68Decision Making: The Implementation Phase     69How Decisions Are Supported     70Union Pacific Railroad: If You're Collecting Data, Use It Profitably!     72Advanced Technology for Museums: RFID Makes Art Come Alive     75Resources, Links, and the Teradata University Network Connection     76End of Chapter Application Case Strategic Decision Making in the Pharmaceutical Industry: How Bayer Decides Whether or Not to Develop a New Drug     80References     81Decision Support Systems Concepts, Methodologies, and Technologies: An Overview     84Opening Vignette: Decision Support System Cures For Health Care     85Decision Support Systems Configurations     87Decision Support Systems Description     88Web/GIS-Based DSS Aid in Disaster Relief and Identifying Food Stamp Fraud     89Decision Support Systems Characteristics and Capabilities     90Components of DSS     92The Data Management Subsystem     97Roadway Drives Legacy Applications onto the Web     98The Model Management Subsystem     104Web-Based Cluster Analysis DSS Matches Up Movies and Customers     107The User Interface (Dialog) Subsystem     109Clarissa: A Hands-Free Helper for Astronauts     111The Knowledge-Based Management Subsystem     115IAP Systems's Intelligent DSS Determines the Success of Overseas Assignments and Learns from the Experience     116The Decision Support Systems User     116Decision Support Systems Hardware     117Decision Support Systems Classification     118Database-Oriented DSS: Glaxo Wellcome Accesses Life-Saving Data     119Resources, Links, and the Teradata University Network Connection     124End of Chapter Application Case FedEx Tracks Customers Along with Packages     127References     129Modeling and Analysis     131Opening Vignette: Winning Isn't Everything...But Losing Isn't Anything: Professional Sports Modeling for Decision Making     132Management Support Systems Modeling     135United Airlines Model-Based DSS Flies the Friendly Skies     137Forecasting/Predictive Analytics Boosts Sales for Cox Communications     139Static and Dynamic Models     142Certainty, Uncertainty, and Risk     143Management Support Systems Modeling with Spreadsheets     145Decision Analysis with Decision Tables and Decision Trees     147Johnson & Johnson Decides About New Pharmaceuticals by Using Trees     150The Structure of Mathematical Models for Decision Support     151Mathematical Programming Optimization     153Complex Teacher Selection Is a Breeze in Flanders     154Multiple Goals, Sensitivity Analysis, What-If Analysis, and Goal Seeking     158Problem-Solving Search Methods     162Heuristic-Based DSS Moves Milk in New Zealand     164Simulation     165Pratt & Whitney Canada Gets Real Savings Through Virtual Manufacturing     65Simulation Applications     170Visual Interactive Simulation     171Quantitative Software Packages and Model Base Management     173Resources, Links, and the Teradata University Network Connection     174End of Chapter Application Case Major League Baseball Scheduling: Computerized Mathematical Models Take Us Out to the Ballgame     180References     181Business Intelligence     185Special Introductory Section: The Essentials of Business Intelligence     187A Preview of the Content of Chapters 5 through 9     187The Origins and Drivers of Business Intelligence (BI)     188The General Process of Intelligence Creation and Use     189The Major Characteristics of Business Intelligence     192Toward Competitive Intelligence and Advantage     195The Typical Data Warehouse and Business Intelligence User Community     197Successful Business Intelligence Implementation     198France Telecom Business Intelligence     199Structure and Components of Business Intelligence     201Conclusion: Business Intelligence Today and Tomorrow     203Resources, Links and the Teradata University Network Connection     203References     205Data Warehousing     206Opening Vignette: Continental Airlines Flies High With Its Real-Time Data Warehouse     206Data Warehousing Definitions and Concepts     209Data Warehousing Process Overview     212Data Warehousing Supports First American Corporation's Corporate Strategy     212Data Warehousing Architectures     214Data Integration and the Extraction, Transformation, and Load (ETL) Processes     222Bank of America's Award-Winning Integrated Data Warehouse     223Data Warehouse Development     226Things Go Better with Coke's Data Warehouse     227HP Consolidates Hundreds of Data Marts into a Single EDW     231Real-Time Data Warehousing     238Egg Plc Fries the Competition in Near-Real-Time     239Data Warehouse Administration and Security Issues     243Resources, Links, and the Teradata University Network Connection     244End of Chapter Application Case Real-Time Data Warehousing at Overstock.com     249References     250Business Analytics and Data Visualization     253Opening Vignette: Lexmark International Improves Operations with Business Intelligence     254The Business Analytics (BA) Field: An Overview     256Ben & Jerry's Excels with BA     257Online Analytical Processing (OLAP)     261TCF Financial Corp.: Conducting OLAP, Reporting, and Data Mining     266Reports and Queries     266Multidimensionality     269Advanced Business Analytics     273Predictive Analysis Can Help You Avoid Traffic Jams     274Data Visualization     276Financial Data Visualization at Merrill Lynch     279Geographic Information Systems (GIS)     280GIS and GPS Track Where You Are and Help You with What You Do     282Real-time Business Intelligence Automated Decision Support (ADS), and Competitive Intelligence     284Business Analytics and the Web: Web Intelligence and Web Analytics     289Web Analytics Improves Performance for Online Merchants     291Usage, Benefits, and Success of Business Analytics     292Retailers Make Steady BI Progress     294End of Chapter Application Case State Governments Share Geospatial Information     298References     299Data, Text, and Web Mining      302Opening Vignette: Highmark, Inc., Employs Data Mining to Manage Insurance Costs     302Data Mining Concepts and Applications     304Data Help Foretell Customer Needs     306Motor Vehicle Accidents and Driver Distractions     309Data Mining to Identify Customer Behavior     310Customizing Medicine     311A Mine on Terrorist Funding     312Data Mining Techniques and Tools     313Data Mining Project Processes     325DHS Data Mining Spinoffs and Advances in Law Enforcement     328Text Mining     329Flying Through Text     330Web Mining     333Caught in a Web     334End of Chapter Application Case Hewlett-Packard and Text Mining     340References     341Neural Networks for Data Mining     343Opening Vignette: Using Neural Networks To Predict Beer Flavors with Chemical Analysis     343Basic Concepts of Neural Networks     346Neural Networks Help Reduce Telecommunications Fraud     349Learning in Artificial Neural Networks (ANN)     355Neural Networks Help Deliver Microsoft's Mail to the Intended Audience     356Developing Neural Network-Based Systems      362A Sample Neural Network Project     367Other Neural Network Paradigms     370Applications of Artificial Neural Networks     372Neural Networks for Breast Cancer Diagnosis     373A Neural Network Software Demonstration     374End of Chapter Application Case Sovereign Credit Ratings Using Neural Networks     380References     381Business Performance Management     383Opening Vignette: Cisco and the Virtual Close     384Business Performance Management (BPM) Overview     386Strategize: Where Do We Want To Go?     388Plan: How Do We Get There?     390Monitor; How are we Doing?     392Discovery-Driven Planning: The Case of Euro Disney     94Act and Adjust: What Do We Need To Do Differently     395Performance Measurement     398International Truck and Engine Corporation     400Business Performance Management Methodologies     402Business Performance Management Architecture and Applications     409Performance Dashboards     417Dashboards for Doctors     419Business Activity Monitoring (BAM)     421City of Albuquerque Goes Real-time      422End of Chapter Application Case Vigilant Information Systems at Western Digital     428References     429Collaboration, Communication, Group Support Systems, and Knowledge Management     431Collaborative Computer-Supported Technologies and Group Support Systems     433Opening Vignette: Collaborative Design at Boeing-Rocketdyne     434Making Decisions in Groups: Characteristics, Process, Benefits, and Dysfunctions     436Supporting Groupwork with Computerized Systems     439How General Motors is Collaborating Online     440Tools for Indirect Support of Decision Making     443Videoconferencing Is Ready for Prime Time     446Integrated Groupware Suites     448NetMeeting Provides a Real-Time Advantage     449Direct Computerized Support for Decision Making: From Group Decision Support Systems (GDSS) to Group Support Systems (GSS)     452Eastman Chemical Boosts Creative Processes and Saves {dollar}500,000 with Groupware     456Products and Tools for GDSS/GSS and Successful Implementation     458Emerging Collaboration Tools: From VoIP to Wikis     462Collaborative in Planning, Design, and Project Management     465CPFR Initiatives at Ace Hardware and Sears      468Creativity, Idea Generation, and Computerized Support     469End of Chapter Application Case Dresdner Kleinwort Wasserstein Uses Wiki for Collaboration     475References     476Knowledge Management     478Opening Vignette: Siemens Knows What It Knows Through Knowledge Management     479Introduction to Knowledge Management     481Cingular Calls on Knowledge     485Organizational Learning and Transformation     486Knowledge Management Activities     488Approaches to Knowledge Management     490Texaco Drills for Knowledge     492Information Technology (IT) in Knowledge Management     495Knowledge Management System (KMS) Implementation     500Portal Opens the Door to Legal Knowledge     502Knowledge Management: You Can Bank on It at Commerce Bank     504Roles of People in Knowledge Management     507Online Knowledge Sharing at Xerox     510Ensuring the Success of Knowledge Management Efforts     513The British Broadcasting Corporation Knowledge Management Success     514How the U.S. Department of Commerce Uses an Expert Location System     515When KMS Fail, They Can Fail in a Big Way      518End of Chapter Application Case DaimlerChrysler EBOKs with Knowledge Management     524References     526Intelligent Systems     531Artificial Intelligence and Expert Systems     533Opening Vignette: Cigna Uses Business Rules to Support Treatment Request Approval     534Concepts and Definitions of Artificial Intelligence     535Intelligent Systems Beat Chess Grand Master     535The Artificial Intelligence Field     537Automatic Speech Recognition in Call Centers     542Agents for Travel Planning at USC     544Basic Concepts of Expert Systems (ES)     545Applications of Expert Systems     549Sample Applications of Expert Systems     549Structure of Expert Systems     552How Expert Systems Work: Inference Mechanisms     555Problem Areas Suitable for Expert Systems     558Development of Expert Systems     560Benefits, Limitations, and Success Factors of Expert Systems     564Expert Systems on the Web     567Banner with Brains:Web-Based ES for Restaurant Selection     568Rule-Based System for Online Student Consulation     568End of Chapter Application Case Business Rule Automation at Farm Bureau Financial Services     573References     574Advanced Intelligent Systems     575Opening Vignette: Improving Urban Infrastructure Management in the City of Verdun     576Machine-Learning Techniques     577Case-Based Reasoning (CBR)     580CBR Improves Jet Engine Maintenance, Reduces Costs     585Genetic Algorithm Fundamentals     587Developing Genetic Algorithm Applications     592Genetic Algorithms Schedule Assembly Lines at Volvo Trucks North America     593Fuzzy Logic Fundamentals     595Natural Language Processing (NLP)     598Voice Technologies     601Developing Integrated Advanced Systems     605Hybrid ES and Fuzzy Logic System Dispatches Trains     607End of Chapter Application Case Barclays Uses Voice Technology to Excel     611References     612Intelligent Systems over the Internet     614Opening Vignette: Netflix Gains High Customer Satisfaction from DVD Recommendation     615Web-Based Intelligent Systems     617Intelligent Agents: An Overview     629Characteristics of Intelligent Agents     622Why Use Intelligent Agents?      624Classification and Types of Intelligent Agents     626Internet-Based Software Agents     629Fujitsu(Japan) Uses Agents for Targeted Advertising     635Wyndham Uses Intelligent Agents in Its Call Center     637Agents and Multiagents     637The Semantic Web: Representing Knowledge for the Intelligent Agents     641Web-Based Recommendation Systems     647Amazon.com Uses Collaborative Filtering to Recommend Products     648Content-Based Filtering at Euro Vacations.com     653Managerial Issues of Intelligent Agents     654End of Chapter Application Case Spartan Uses Intelligent Systems to Find the Right Person and Reduce Turnover     659References     660Implementing Decision Support Systems     663System Development and Acquisition     665Opening Vignette: Osram Sylvania Thinks Small, Strategizes Big to Develop the HR Infonet Portal System     666What Types of Support Systems Should You Build?     668The Landscape and Framework of Management Support Systems Application Development     670Development Options for Management Support System Applications     673Prototyping: A Practical Management Support System Development Methodology      681Criteria for Selecting an Management Support System Development Approach     687Third-Party Providers of Management Support System Software Packages and Suites     689Floriculture Partnership Streamlines Real-Time Ordering     692Connecting to Databases and Other Enterprise Systems     693The Rise of Web Services, XML, and the Service-Oriented Architecture     695Lincoln Financial Excels by Using Web Services     696User-Developed Management Support System     697End-User Development Using Wikis     697Management Support System Vendor and Software Selection     700Putting Together an Management Support System     701End of Chapter Application Case A Fully Integrated MSS for Sterngold: An Old Dental Manufacturer Adopts New IT Tricks     705References     706Integration, Impacts and the Future of Management Support Systems     708Opening Vignette: Elite Care Supported by Intelligent Systems     709Systems Integration: An Overview     711Types of Management Support System Integration     715Integration with Enterprise Systems and Knowledge Management     720The Impacts of Management Support Systems: An Overview     725Management Support Systems Impacts on Organizations     726Management Support Systems Impacts on Individuals     730Automating Decision Making and the Manager's Job     731Issues of Legality, Privacy, and Ethics     733Intelligent and Automated Systems and Employment Levels     737Robots     738Other Societal Impacts of Management Support Systems and the Digital Divide     739The Future of Management Support Systems     742End of Chapter Application Case An Intelligent Logistics Support System     747References     748Online MaterialEnterprise Systems     751Knowledge Acquisition, Representation, and Reasoning     752Online FilesRepresentative Decision Support ToolsDecision Support Technologies and the WebEmerging Technologies That May Benefit Decision SupportAdditional ReferencesTeradata University NetworkOnline FilesThe MMS Running CaseWeb Sources for Decision-Making Support SamplerFurther ReadingOnline FilesDatabasesMajor Capabilities of the UIMSAd Hoc Visual Basic DSS ExampleFurther Reading on DSSOnline FilesInfluence DiagramsLinks to Spreadsheet-Based DSS Excel Files in Chapter 4Spreadsheet-Based Economic Order Quantity Simulation ModelWaiting Line Modeling (Queueing) in a SpreadsheetLinear Programming Optimization: The Blending ProblemLindo Example: The Product-Mix ModelLingo Example: The Product-Mix ModelThe Goal Programming MBI ModelLinks to Excel Files of Section 4.9Table of Models and Web ImpactsModel Base ManagementAdditional ReferencesBI Preview Chapter Online FilesThe General Process of Intelligence Creation and Use as Reflected in Continental Airline CaseBI GovernanceThe BI User CommunityAn Action Plan for the Information Systems OrganizationOnline FilesCapabilities of EISSAP AnalyticsTrends in Visualization Products for Decision SupportVirtual Realty VisualizationCompetitive Intelligence on the InternetCabela'sOnline FilesData MiningOnline FilesHeartdisease.staCreditrisk.xlsMovietrain.xlsMovietest.xlsStatistica CouponOnline FilesPortfolio of OptionsRolling Forecasts and Real-Time DataEffective Performance MeasurementSix Sigma RolesProblems with Dashboard DisplaysOnline FilesSeven Sins of Deadly Meetings and Seven Steps to SalvationWhiteboardsInternet VotingGroupSystems Tools for Support of Group ProcessesCollaboration in Designing StoresOnline FilesLeveraging Knowledge through Knowledge Management SystemsOnline FilesIntelligent SystemsInternet-Based Intelligent Tutoring SystemsAutomating the Help DeskAssignment ESOnline FilesSteps in the CBR ProcessAutomating a Help Desk with Case-Based ReasoningAutomatic Translation of Web PagesOnline FilesGuidelines for a "Think Small, Strategize Big" ImplementationProject Management SoftwareUtility ComputingAgile Development and Extreme Programming (XP)A Prototyping Approach to DSS DevelopmentIBM's WebSphere Commerce SuiteXML, Web Services and Service-Oriented ArchitectureThe Process of Selecting a Software Vendor and an MSS PackageOnline FilesAn Active and Self-Evolving Model of Intelligent DSSCookies and SpywareA Framework for Ethical IssuesA Hybrid Intelligent SystemOnline TutorialsSystemsForecastingText Mining ProjectStatistica Software ProjectReferences     748Glossary     751Index     763