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Solution Systems:
Beyond Data Warehouse and
Management Information System
presented by
PhDr. Dipl.-Bw. (FH) Thomas H. Lenhard, PhD.
University teacher at Kaiserslautern University of
Applied Science, Campus Pirmasens, Germany
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
Common Systems
Data Warehouse
Management Information System
Decision Support System
Data Mining System
Data Marts
…
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
The intention of using analytical systems
Analysing large amounts of data
Support a decision making process
Generating information out of data
Getting code / ratio numbers
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
Problems of classical / common systems
Do we really know, what we know?
A lack of analysts.
Who will interpret the information?
The nice-to-have-problem?
Can we generate a benefit by analysing data / information?
What kind of decision is based on information or data
analysis?
Is the result of an analysis usable?
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
The main source of error by using analytical
systems:
Human decision maker
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
Basic question to initiate “the next step” of business
intelligence:
If a computer based analytical system delivers the
information which is needed by humans to make
decisions then why can a computer system not
make the decision by itself?
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
Classification of decisions
The decision is based on the printed information and at the
same time on other information, e.g.: someone’s experience,
different influences or parameters which are not available in
the computer system.
The decision is based only on the information which is
available in the computer system.
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
Decisions which might be based only on the information
which is available in the computer system.
Amount of an order (e.g. using Andler, Groff or other formulas)
Generating a production plan
Choosing one of two alternatives by using a weighed point
system
Planning a delivery tour
Calculating the amount of a kanban or the number of kanbans
in a feedback loop
Generating a shift plan
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
If the computer makes the decision by itself, who
is responsible (acting and responsibility) ?
Only a human decision maker can be responsible
for any activity.
How can we get out of this trap?
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
The solution: Predefinition of values / ranges as
an act of human will and his overall control
0
minimal secure value
Human decision is
needed
maximal secure value
Range of Security
Human decision is needed
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
The kind of range of security depends on the
kind of problem:
crisp border (e.g. breakeven-point)
0
VALUE
crisp border (e.g. breakeven-point)
Human decision is
needed
NO
YES
VALUE
crisp border (e.g. breakeven-point)
0
Alternative 1
Human decision is
needed
Alternative 2
VALUE
Generating decision
Human decision is needed
E-Leader Conference, Krakow, 8th June 2008
Solution Systems:
Question / Problem /
Information / Data
Univalent
problem?
YES
Calculation
possible?
N
O
The generic algorithm
for solving univalent
problems (only one
possible mathematical result) which
uses the
YES
NO
Predefined Range
Value inside
the range?
NO
Human Decision Maker
Range of Security
YES
Solution
E-Leader Conference, Krakow, 8th June 2008
Solution Systems: Conclusion
Not every problem can be solved by a
solution system
but
Under certain premises it is possible to
build a solution system
E-Leader Conference, Krakow, 8th June 2008
Solution Systems: Conclusion
Some items have always to be taken
under consideration when running a
solution system:
– The kind of problem
– The relation between cost and benefit
– The abilities of managers and / or users
E-Leader Conference, Krakow, 8th June 2008
Thank you for your attention
Thomas H. Lenhard
E-Leader Conference, Krakow, 8th June 2008
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