Running Head: DECISION SUPPORT SYSTEM PLAN
1
DECISION SUPPORT SYSTEM PLAN
19
Decision Support System Plan - Computer Systems Analysis & Design I
First Name, Last Name
University
IS315
Table of Contents
1.The Scenario
4
2.System Description
4
3.The Process of the Implementation
6
4.Resolution Central Decision Support System
6
4.1Organization’s Information System
6
4.2Key System Benefits
7
5.Feasibility
8
6.Importance of an Information System in the Organization
10
7.Interdependences
11
128.
Feasibility analysis
9.
Project Size………………………………………………………………………………….14
10.
Cost Analysis………………………………………………………………………………..15
18References
List of Figures
Figure 1: The Conceptual Framework
5
Figure 2: The Proposed Model of the System
5
List of Tables
Table 1: The Cost of the Implementation
9
Table 2: The Benefits of the Implementation
9
Decision Support System Plan – Computer Systems Analysis & Design I1. The Scenario
Home Depot is seeking to cut on costs. Some of the areas which have been identified tend to be hot topical issues every time changes are attempted. These include the decision to source products domestically or having them imported. Others include the reduction of the number of employees as well as streamlining service delivery by redefining chores, job assignments, as well as supervision. The business also purposes to put up an information system that will increase positive output and reduce on cost. Even though the choice of the system has been inspired by the kind of challenges which firms like Home Depot experience while attempting trade-offs, it is important to appreciate that this is something that happens with every other organization. Therefore, there is the need for a ‘what if’ scenario so as to analyze situations and come-up with all the possible management outcomes. The issue, therefore, is facilitating the prediction of the behavior of the stakeholders on the basis of certain managerial decisions.2. System Description
The proposed system is called the Resolution Central Decision Support System. This is a Decision Support System, or DSS, that can be exploited by any organization to achieve its streamlining activities. In this case, the dependent variable is enhanced performance. This is defined by increased productivity, enhanced competitive advantage of the organization in question, as well as improvement in customer service. The customers should, actually, be in a position to report that this is the case, i.e. they have seen improvements with respect to how they are treated and their concerns are addressed. Figure I below indicates the conceptual framework. This is the relationship between the ultimate goal and the issues which define this goal.
Figure 1: The Conceptual Framework
The achievement of the goal at hand requires a number of procedures to be accomplished. Planning is the first among them, and then there is the development of the system capability. Ultimately, there is the maturity of the system, and it is at ...
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Running Head DECISION SUPPORT SYSTEM PLAN 1DECISION SUPPORT.docx
1. Running Head: DECISION SUPPORT SYSTEM PLAN
1
DECISION SUPPORT SYSTEM PLAN
19
Decision Support System Plan - Computer Systems Analysis &
Design I
First Name, Last Name
University
IS315
Table of Contents
1.The Scenario
4
2.System Description
4
3.The Process of the Implementation
6
4.Resolution Central Decision Support System
6
4.1Organization’s Information System
6
4.2Key System Benefits
7
5.Feasibility
8
6.Importance of an Information System in the Organization
10
7.Interdependences
11
128.
Feasibility analysis
9.
2. Project
Size……………………………………………………………………
…………….14
10.
Cost
Analysis………………………………………………………………
………………..15
18References
List of Figures
Figure 1: The Conceptual Framework
5
Figure 2: The Proposed Model of the System
5
List of Tables
Table 1: The Cost of the Implementation
9
Table 2: The Benefits of the Implementation
9
Decision Support System Plan – Computer Systems Analysis &
Design I1. The Scenario
Home Depot is seeking to cut on costs. Some of the areas
which have been identified tend to be hot topical issues every
time changes are attempted. These include the decision to
source products domestically or having them imported. Others
include the reduction of the number of employees as well as
streamlining service delivery by redefining chores, job
assignments, as well as supervision. The business also purposes
to put up an information system that will increase positive
output and reduce on cost. Even though the choice of the
system has been inspired by the kind of challenges which firms
like Home Depot experience while attempting trade-offs, it is
important to appreciate that this is something that happens with
3. every other organization. Therefore, there is the need for a
‘what if’ scenario so as to analyze situations and come-up with
all the possible management outcomes. The issue, therefore, is
facilitating the prediction of the behavior of the stakeholders on
the basis of certain managerial decisions.2. System Description
The proposed system is called the Resolution Central Decision
Support System. This is a Decision Support System, or DSS,
that can be exploited by any organization to achieve its
streamlining activities. In this case, the dependent variable is
enhanced performance. This is defined by increased
productivity, enhanced competitive advantage of the
organization in question, as well as improvement in customer
service. The customers should, actually, be in a position to
report that this is the case, i.e. they have seen improvements
with respect to how they are treated and their concerns are
addressed. Figure I below indicates the conceptual framework.
This is the relationship between the ultimate goal and the issues
which define this goal.
Figure 1: The Conceptual Framework
The achievement of the goal at hand requires a number of
procedures to be accomplished. Planning is the first among
them, and then there is the development of the system
capability. Ultimately, there is the maturity of the system, and it
is at this point that access to the market is assessed, together
with a couple of related competencies. A system of this nature
is meant to ensure that the organization has the best
performance, and this is the only way the value for money can
be realized.
Figure 2: The Proposed Model of the System
3. The Process of the Implementation
4. The process commences with the identification of the issues or
the need. Then there is the setting of the objectives, which is to
have a system that facilitate quick responses to unforeseen
circumstances, save costs, communicate in an effective manner,
and even save time. Then there is the identification of options,
the analysis of the options, choosing the policy instruments,
consulting about the methods, and the coordination of other
policies. The idea in this case is to decide on the most
appropriate methods at hand. Once this has been achieved, there
is the development of the implementation strategy and the
resources are then allocated. Eventually, there is the monitoring
of the results, and the finally evaluations to determine if the
system works as it had been anticipated.
4. Resolution Central Decision Support System
The Resolution Central Decision Support System is a platform
that has the capacity to transform operations in a significant
manner. This is based on a couple of factors, and some of them
are considered in this paper. The rest of the paper addresses the
key benefits, the interdependencies, as well as replacements and
upgrades.
4.1 Organization’s Information System
Information technology infrastructure impacts the business
operations positively. Being a critical factor in determining the
success of a business, our organization proposes to adopt this
plan. As this information system is being put in place, the
business has made sure that there exists the necessary link of
the information technology planning with the specific business
plans. It has selected these techniques on the basis of the
information system developer’s persuasive power rather than on
how logical the idea sounds (Pokorný, 2011). Presently, the
organization is in the strategic planning stage after which there
will be requirement analysis, allocation of resources as well as
project planning. Strategic planning stage involves comparing
5. objectives, strategies and goals of the information system with
the goals, objectives as strategies of the organization
(International Conference on Information Systems
Development, & Linger, 2013).
If there exists a reliable connection between the two, then the
system is deemed necessary for the organization to procure. As
a result, in the next stage organization will carry out an
information requirements analysis. In the analysis the current as
well as future needs for information system will be dealt with
ensuring that operations and decision-making in the
organization is supported. After this, resources to purchase and
support the system will be allocated. Lastly, an overall
framework is provided in a project planning for development,
scheduling plus controlling of the system.4.2 Key System
Benefits
All categories of decision support systems are substantiated and
demonstrated as crucial schemes in regards to time saving. This
is because there is reduced time taken in decision cycle, timely
information for decision making and increased worker
productivity. The system also enhances effectiveness in
decision making thus enabling businesses to have better and
informed decisions (Holsapple & Whinston, 2013). Businesses
with decision support systems enjoy the benefit of improved
interpersonal communication as well as improved collaboration
among individuals involved in decision making. Additionally,
an important benefit in the marketing industry is made possible
by possessing this system since having competitive advantage is
every business’ target (Ray, 2012).
Decision support system helps in saving costs. Studies have
shown that through this effective business system, firms are
able to make savings on labor in decision making as well as
lower technology and infrastructure costs. Notably, decision
makers’ increase their satisfaction due to the perceptions
created on the reliability of information being used thus, they
6. face less frustrations in regards to their decisions (Ray, 2012).
The system also promotes learning and increases organizational
control. It makes it possible for employees to learn new
concepts and have a better understanding of the business
environment. Correspondingly, the system provides business
transaction data for monitoring performance as well as ad hoc
querying (Sauter, 2011).
5. Feasibility
The solution requires the availability of expertise and technical
resources. These are available since several of the targeted
organizations have been using computer systems for various
purposes. Indeed, even the stakeholders are computer literate,
and they can handle the job. All that is required is proper
strategizing and following through with the plans. The fact that
this is a new project means that there are also the financial
considerations. Organizations go into business to make profits,
and this means that they would be unwilling to spend their
resources unless this translates into gains.
In case the expected benefits end up being more or equal to the
costs, then the system may be considered economically viable.
In this case, the decision support system is viable or feasible
since the cost of $154,000 is enough to cater for all hardware,
software, and training requirements. It is a worth investment
since it will streamline operations and also save time. It is
anticipated that the savings resulting to this investment would
be about 35% of the figures wish would have been spent without
it. It means that the entire cost will be covered in less than three
years, yet the system will continue to be in use for another 3-4
years. The cost benefit analysis is as indicated in the tables 1
and 2 below:
Yrs
Year 1
Year 2
7. Year 3
Year 4
Year 5
Hardware
30
0
0
0
0
Software
30
0
0
0
0
Personnel
10,000
12,000
14,000
16,000
18,000
Maintenance
0
2,000
3,000
4,000
5,000
Cost at Year End
70,000
24,000
17,000
20,000
23,000
Cumulative Costs
70,000
94,000
8. 111,000
131,000
154,000
Table 1: The Cost of the Implementation
Yrs
Year 1
Year 2
Year 3
Year 4
Year 5
Hardware
15,000
15,000
15,000
15,000
15,000
Software
25,000
35,000
45,000
55,000
65,000
Personnel
40,000
50,000
60,000
70,000
80,000
Maintenance
40,000
90,000
150,000
220,000
300,000
Table 2: The Benefits of the Implementation
9. Profit = Benefits – Costs
=$300,000 - $154,000
So, the profit in this case is $146,000 over the course of the five
years
6. Importance of an Information System in the Organization
A feasibility study on the information system has been done
carried out to assess the risks plus resources available in the
organization. The results show that the system can well fit
within the organization’s budget. The cost of the system is fair
comparing it with other developer’s prices and the technology
needed is available. The organization is in need of maximizing
its benefits from the information system through exploitation of
all its capacities. Additionally, organization’s data input will be
processed by the system for the purpose of generating useful
knowledge for operations management. Notably, more data is to
be added to make information more accurate and consequently
increasing the effectiveness of the information system
(Pokorný, 2011).
Managers in the organization will be able to communicate
rapidly through the usage of the system because it makes the
process of information gathering and distribution more
efficient. Not only will the system make managers’ email
communications quick and effective but, will also use it to store
documents in folders that can easily be shared to employees in
need of information. Employees can also utilize the system
through communicating any additional information as well as
making changes to the system tracks. Additionally, operations
in the organization will improve because the system will offer
more recent and complete information allowing the management
to do their operations more efficiently. Record keeping also will
be enhanced for financial and regulatory purposes which will
enable the organization to identify causes of any problem that
may arise and take timely corrective action (International
10. Conference on Information Systems Development, & Linger,
2013).7. Interdependences
There exists a close connection between decision support
system and a planning support system. The two systems make
interactions between decisions and plans where alternatives are
considered in decision situations. Plans on the other hand,
evaluate actions based on interdependences with other while
considering uncertainty. Therefore, decision making and
planning are interconnected intimately as reflected on their
support system dichotomy (Sauter, 2011). Decision support
system also interdependently works with executive information
system. It is a crucial interrelation which enables decision
makers to keep abreast with the internal and external
happenings in the marketing business. The executive
information system provides easy access to immediate
information which reflects company’s key success factors as
well as that of its units (Sauter, 2014).
Technological advancement that is presently unfolding may in
one way or the other make it necessary for a business to replace
or upgrade its systems to remain competitive in the market. To
be ready for this, a firm makes budget provisions for system
replacements and upgrades. The firm can also make use of asset
management tools to determine the computers and systems in
need of replacement. It is important for the management to
communicate with the staff in advance on installation of new
software and upgrades (Sauter, 2014). Additionally, the staffs
need to be trained on new software and upgrades of the existing
software. Most importantly, the business will decide on when to
upgrade or replace the system based on their budget, warranty
time span, vendor support, upgrades delays, and the magnitude
of impacts on outdated systems.
Feasibility analysis for the information system plan Introduction
Feasibility analysis is the study of the viability of an idea and is
an analytical tool which is used during the project planning
11. phase. In our case we are going to check on feasibility analysis
for the information system plan. Investing in information
technology is one of the ways a firm can use to improve the
quality of their products and services or even get new ideas of
having a different product in the market. There has been growth
in businesses due to increase in firm/individuals investing in
information technology. Putting in cash to improve IT/IS is
important in each production and all industries should view this
as one of the ways of assisting them to achieve their objectives.
There are a lot of information technology projects such as new
software development; e-commerce and ERP system that firm
could invest in. The choice of a project a firm or any business
owner makes should be in line with their business and economic
goals. Therefore, feasibility analysis is an important element
during the panning phase.
System Objectives
Some of the objectives in information technology (decision
support system) are: -
· To improve effectiveness in decision making for firm directors
· To support managers’ decision making processes but should
not replace his/her functions
· Managers’ decision making processes are increased
effectively.
Organization Objectives
· Growth in company revenues
· Growth in earnings
· Sales and marketing improvement
· Human resource
12. · Customer service
Operational Feasibility
In operational feasibility one is able to understand whether the
proposed system will to be expected to work out the business
problems, take advantage of the opportunities or not. Also in
this case it is important to understand on how the new system
will fit into the day-to-day operations. For example, in HOME
DEPORT instead of reducing the number of employees, they
should train the existing employees to be able to use the new
system, and in that case the organization will be able to produce
more or even improve on their services by far. Otherwise during
recruitment of new employees’ Home Depot should employ
computer literate individuals who can be flexible with merging
issues and this will save cost a lot in term of training other
person.
It will be easier to train existing work force in the new
technology than to bring in a technology which is low in
standards but understood by the employees.
Technical Feasibility
Adequate performance of the system is considered and also the
ability of the organization to construct the proposed system.
Things such as technology need for the system existence, how
easy it is to build and whether the business will be able to use
the system. Also on developing new system, there should be
comparison of other providers, check reliability,
competitiveness and also limitations. Some of the technical
feasibility that one has to look into is:
Project size
Project size
13. people
time
Success rate
less than $750k
5
7
57%
$750k-$1.6m
13
11
32%
$1.6-$4m
44
16
22%
$4m-$10m
220
27
10%
The size of the project can be determined by the time that will
be taken to implement the project, number of members, effort
that is put in the program me or even the number of departments
involved in the project. It is also important to know that the
bigger the project the unsuccessful it is.
Project structure
When a project depends on an individual judgment it is likely to
have high risk than a highly structured well defined project
Application area
Those who develop system should use standard development
tools and also environments. To the user side, they should
familiarize with the system development processes so as to
understand the need for evolvement.
14. One thing to remember is that even the high risk projects can be
implemented, and therefore what one needs to do is to put
projects in categories of high, medium and low risk projects.
Economical Feasibility
Economical evaluation is an important part of any business and
mostly when dealing with things that can be quantified or those
that can be compared in monetary term. A project involves the
expenditure of funds and resources to generate profit or social
benefits and for a project to be worthwhile the inputs should be
compared with the outputs and in any case output should be
higher than input. Below are some of the economic feasibility:
Cost analysis
The organization has to check the cost and benefits associated
with the proposed project and the outcome of the same project
in terms of the future capital expenditure. The cost of
information technology is not only the tangible cost such as
labor, hardware and software but also there are other costs such
as operational inefficiency. There some of the statements on
financial impacts on deploying information technology and
these are –
· Software licensing cost
· Insurance cost
· Audit cost
· Migration cost
· Testing cost
· Cost for electricity and cooling
· Network hardware and software cost
15. · Infrastructure cost
· Hardware and software deployment cost
· End user computer hardware purchase cost
· Cost to upgrade
Time value of money
PV= FV/ (1+r) n
Where
PV
=
PRESET VALUE OF THE AMMOUNT
FV
=
FUTURE VALUE OF THE AMMOUNT AND PERIOD FROM
NOW
r
=
DISCOUNTED RATE
n
=
YEAR THAT THE AMOUNT ACCUR
Feasibility
In case of new project there are financial consideration. below
is an analysis for cost of implementation
17. Feasibility Conclusion
Advancement in technology forces firms to train their workers
on new soft wares and upgrade of the existing software’s and
hardware. Also for a firm to meet the market demand it need to
upgrade their systems or even replace. This can only be
achieved by allocating finances for specifically upgrades of the
system Investing in new technology brings more benefits to firm
than harm therefore embracing new technology is what all
businesses should do.
References
Holsapple, C., & Whinston, A.B. (2013). Recent developments
in decision support systems. Berlin, Germany: Springer Science
& Business Media
International Conference on Information Systems Development,
& Linger, H. (2013). Building sustainable information systems:
Proceedings of the 2012 International Conference on
Information Systems Development. New York: Springer.
Pokorný, J. (2011). Information systems development: Business
systems and services: modeling and development. New York:
Springer.
Ray, A. (2012). A brief introduction to decision support
systems. Munich, Germany: GRIN Verlag
Sauter, V.L. (2011). Decision support systems for business
intelligence. Hoboken, New Jersey: Wiley
Sauter, V.L. (2014). Decision support systems for business
intelligence. Hoboken, New Jersey: John Wiley & Sons
Ray, A. (2012). A brief introduction to decision support
systems. Munich,
18. Germane: GRIN Verlag
THE CHAOS report (1999), The Standish group international
Inc.
THE CHAOS report (2004), The Standish group international
Inc.
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