Cross-Enterprise Data Analysis
Methodologies, Challenges, Opportunities
James Ding
Michael G. DeGroote School of Business
McMaster University
May 23, 2003
QPRC 2003
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Presentation Agenda
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Enterprise Decision-Making
After-ERP Solutions
Modeling and Analysis Tools
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Case Studies
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Adaptive System Design (ASD)
Global Development Modeling (GDM)
Differential Integration System (DIS)
Quality-related Information Sharing under JIT Operation
DW/DM Integration for Massive Data Processing
Cross-Enterprise BPR for Supply Chain Design
Concluding Remarks
QPRC 2003
Slide 1
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Enterprise Decision-Making: Framework
MANAGEMENT
INFORMATION
SYSTEM
Strategy
EIS
Planning
DSS
Operation
ERP
QPRC 2003
Slide 2
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Enterprise Decision-Making: Contents
MANAGEMENT
- Time Horizon
- Life Cycle
Global Strategy
Competitive Priorities
Process, Quality, Technology
Capacity, Location, Layout
Strategy
Planning
SOP, MRP, CRP, DRP, IM/WM
Transaction-based Decision
Operation
QPRC 2003
Slide 3
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
After-ERP Solutions: Extension View
Strategy
(Organization)
- Cross-Enterprise BPR
- Out-Sourcing
- Virtual Firm
- Learning Organization
Prior-ERP Solutions
After-ERP Solutions
Operation
(Function)
- SCM
- CRM/SFA
- APS
- LIS
- WMS
ERP Solutions
Technology
- Data Warehouse/Data Mining
- Intelligent Portal
- Integration (BOB, Plug-in/Add-on)
- E-Business
QPRC 2003
Slide 4
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
After-ERP Solutions: Value Chain View
After-ERP Solutions
Strategy
Catalogue
Management
Planning
Supply Chain Management
APS
LIS
ERP
Operation
MES
Demand
Management
CRM
WMS
Supplier Manufacturer Distributor
Retailer
SFA
Customer
Chopra (2001), Porter (1985)
QPRC 2003
Slide 5
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
After-ERP Solutions: Wave View
- Intelligent ERP
- ERP II
- XRP
Technology:
ERP
System:
SRP
- Mental Data
- Relationship
Prior-ERP
Solutions
After-ERP
Solutions
Transactional
Data:
Analytic
Inferential
SAP AG (2003)
QPRC 2003
Slide 6
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Modeling and Analysis: Framework
MANAGEMENT
MODELING
TOOLS
Strategy
DIS
Planning
GDM
Operation
ASD
QPRC 2003
Slide 7
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Modeling and Analysis: ASD
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Tools for decision-making under complex systems
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Bayesian Statistics (Thomas Bayes, 1821)
Information Theory (Shannon, 1948)
Cybernetics (Wiener, 1950)
System Dynamics (Forrester, 1961)
Game Theory
…………
Adaptive System Design (ASD) Approach
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Simulation is a useful tool for complex systems but can not
explore values of latent variables
Prediction with updated training data can lead to graduate
exploration of values of latent variables
QPRC 2003
Slide 8
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Modeling and Analysis: GDM
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Global Development Modeling (GDM) is all about Optimization
under Different Decision Spaces with Different Information
Define A, B, C as decision spaces, FxX ( x), X   as the decision function
under the decision space X. A, B  C , A  B  
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Step I, Generalization: Derive the optimal function from A to C.
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Step II, Specialization: Derive the optimal function from C to B.
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Managerial Interpretation and Pitfalls in the Implementation
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Approach I, Strategic Solution
A
A
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B
C
B
Approach II, Myopic Solution
A
B
A
QPRC 2003
Slide 9
C
B
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Modeling and Analysis: DIS
Differential Integration System (DIS) is all about Effective Integration
PI: Process Integration
II: Information Integration
OI: Organization Integration
KI: Knowledge Integration
BI: Business Integration
SI: System Integration
Strategy
KI
PI
QPRC 2003
II
Planning
BI
Operation
SI
Slide 10
OI
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Modeling and Analysis: DIS
DIS is a Powerful Tool to Achieve Strategic Fit under Complex Systems
KI
Strategic Fit
BI
SI
Certainty
Information
Uncertainty
Chopra (2001)
QPRC 2003
Slide 11
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Case Study: Information Sharing
Bullwhip Effect: Good Thing or Bad Thing
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Information Sharing in Practice
Data
Model
Truncated Quality Data
Censored Quality Data
Complete Quality Data
Mixed Distribution Model
PH Regression Model
Log-Linear Regression Model
Integration
Case Study: Intl. Pump Mfg. Company
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Pull for
Implementation
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Academic Research Focuses on Evaluations of Information Sharing
Practitioners are in need of Methodologies to Guide Practices
Push for
Complete Data
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Scrap-Processing for the Optimal Order Quantity under ATO
Global JIT/SCM/TQM Strategy in Emerging Economy Area
QPRC 2003
Slide 12
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Case Study: DW/DM Integration
Utilization of the Accounting Transaction Data for Standard Costing
Classification
Entry
ERP
F/S
COA
Algorithms
Entry
COA
DW
DM
Consolidated
Entry
ERP
COA
Entry
Actual Costing System
Standard Costing System
QPRC 2003
Slide 13
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Case Study: DW/DM Integration
Automatic BOM Generation System with Finite Experiment Design
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Business Scenario
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DW/DM Integration Solution
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Semi-mechanical, semi-chemical industry, Bill of Materials (Recipe) is
decided by latent variables, eg. temperature, location, hardness, etc.
Repeated experiments are needed for each individual order to decide
the BOM, hence generate massive technical data in the computer.
Utilization of the existing experimental data in the Data Warehouse to
construct the function curve for each known product series
Utilization of the existing function curves to construct the critical
points of the finite experiment design for unknown product series
Utilization of the DM algorithm to predict the function curve for
unknown product series based on results from the finite experiment
design
What is the Advantage of DW for DM ?
QPRC 2003
Slide 14
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Case Study: Cross-Enterprise BPR
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Strategic Planning is Important for the Supply Chain
Design, even before the ERP Implementation
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SWOT Analysis helps to leverage Priorities of SCM during the ERP
Implementation
Cross-Enterprise Business Process Re-engineering (BPR) helps to
smooth the move to SCM and E-Business after the ERP
Implementation
Comparison of Three Companies in Asia
Company
BASF
Kodak
GM
QPRC 2003
ERP
R/2, R/3
R/3
R/3
SCM Focus
Resource
DC Network
Supply Network
Slide 15
Integration
COSMOS System
Sales/Mfg.
Supply/Mfg.
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Concluding Remarks: Conclusion
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Challenges in Cross-Enterprise Data Analysis
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Approaches for Cross-Enterprise Data Analysis
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Increasing Qualitative Data
Increasing Uncertainty in Data Resource
Involvement of Relationships
Involvement of Mental Data and Latent Variables
Utilization of the Dynamic/Adaptive Mechanism
Utilization of the Power of Integration for the Existing Methods
Utilization of the Differential Strategy for the Integration
Challenges are just Opportunities
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New Tools to Quantify the Qualitative Data
New Methodologies to Make Prediction under Latent Variables
QPRC 2003
Slide 16
IBM TWRC
Cross-Enterprise Data Analysis
James Ding
Concluding Remarks: Further Information
To request working papers or further information,
contact:
James Ding
MGD A210, School of Business, McMaster University
Hamilton, Ontario, Canada
Tel.:
(905) 525-9140 X 26181 (Voice)
Fax:
(905) 521-8995
E-Mail: dingt@mcmaster.ca
QPRC 2003
Slide 17
IBM TWRC