Journal of Knowledge Management Practice, October 2005

Emerging Management Support Systems Models For Global Managers In The New Economy

Stafford S. Cuffe, Nova Southeastern University

ABSTRACT:

This researcher has investigated the current management support systems (MIS, DSS and ESS) to understand its limitations for providing real time information to managers in the new global economy. This writer has also examined current software applications and hardware components for their relevance in emerging management support systems. Environmental forces of change and the creative destructive cycle have forced many organizations to revaluate their current management support systems for their effectiveness. Some organizations have not kept pace with the rapid growth of emerging technologies thereby making their information systems obsolete. Also, new government laws and regulations have forced many organizations to seek emerging solutions from the major software and hardware providers. This writer proposes new emerging management systems models to integrate some of the current management support systems and information technology into hybrid enterprise information support systems. In addition, this researcher focused on the current changes occurring within the automotive industry and the need for an emerging management support system to assist the global managers make better decisions.


INTRODUCTION

Today’s managers are challenged in the workplace and global marketplace to add value to their organizations’ bottom-lines.  However, environmental forces of change (i.e., competition, globalization, technology) have changed the rules of the management game (Ball et al, 2004).  Also, the growth of  emerging technologies (i.e., Internet, Internet 2, Intranet, e-commerce, e-business, m-commerce, voice over Internet Protocol, wireless, and sophisticated software applications) which are fueled by the expanding information age  have forced managers to use data in the decision-making process.  It is clear that some managers with old economy experience skill sets may not fit into the new economy (Housel & Skopec, 2001). 

Organizations depend on the continuous (24/7) and seamless flow of information in order to fully participate in the new global economy.   Global companies use the virtual enterprise strategy to manage suppliers, business partners, collocated employees, and contract workers. How can these managers survive in a turbulent sea of changes while meeting their objectives?    There are several information systems and tools available to managers to meet their organizations’ business objectives.  Currently, mid-level and/or top level managers use management support systems (management information systems, decision support systems, executive support systems) to support their decision-making processes. In contrast, operations support systems (transaction processing systems, process control systems, and enterprise collaboration systems) are used by managers to support their operations and business processes. The creation of the Internet in 1969 was the driving force behind the rapid introduction of sophisticated information systems in corporate America. Also, the new high speed Internet 2 will provide the platform to launch new management support systems. This writer will examine the historical trends in the evolution of information systems as set out in Figure 1.

Figure 1

The Expanding Roles of the Business Applications of Information Systems (O’Brien, 2004)

 

Dates                          Systems Role                                     Emerging Information Systems

 

1950s -1960s               Data Processing                                    Transaction Processing Systems

 

1960s-1970s                Management Reporting             Management Information Systems

 

1970s-1980s                Decision Support                                  Decision Support Systems

 

1980s-1990s                Strategic and End User Support            Executive Support Systems

Expert Systems

Strategic Information Systems

 

1990s-2000s                E-Business and E-Commerce               Internet-worked enterprise

                                                                                                Functional Business Systems

Knowledge Management Systems

 

World Wide Web hyperlinked interface to the Internet (1992)

 

2000s and beyond       M-Business and M-Commerce Virtual Enterprise Applications

                                                                                                Web-based database systems

                                                                                                Artificial Intelligence Systems

                                                                                                Extensible Management Systems

                                                                                                Regulatory Management Systems         

                                                                       

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


It is clear that the current level of information technology and emerging technologies are not keeping up with the rapid changes occurring in the new economy.  Environmental forces of changes are forcing organizations to implement emerging technologies to remain competitive in the global marketplace. Also, the current information systems may not meet managers’ needs in a competitive global economy. This researcher will examine the current information systems to understand the need for advanced management support systems in order to assist managers in meeting their business plan objectives. 

CURRENT MANAGEMENT SUPPORT SYSTEMS

Management Information Systems

The early days of computer processing were driven mostly by hardware developments during the 1950s and 1960s.  The lack of hardware innovation impeded the development of software applications from creating greater efficiencies in business processes.  The first and second generation systems were keypunched IBM cards and paper tape based. The U.S. government funded research to network their mission-critical information systems which in turn led to the creation of the Internet in 1969.  There were no distributed computer systems during the 1960s and 1970s and most business transactions were processed as batches on mainframe computers.  This centralized processing and distribution of information led to the creation of management information systems (MIS) in 1969 (Laudon & Laudon, 2004). 

The hardware evolution continued in the 1980s as IBM invented the personal computer (PC) to allow its customers to perform business transactions independently without mainframe computers. Interestingly, this paradigm shift fueled the rapid evolution of software applications in the information technology industry that led to third, fourth and fifth generation hardware and software applications.  Software companies such as Microsoft and Oracle were the drivers of the emerging technological wave and introduced products that forced rapid changes in the hardware development process.  

Management support systems (MSS) authors have expanded the definition over the years (1970s to present) to cover a wide range of topics such as: information technology, telecommunications, networks, Internet, Intranet, Extranet, e-commerce, e-business, m-commerce, m-business, management strategies, data resource management, security, ethics, web-based systems, hardware, and software applications. In addition, most universities and colleges retain MIS as a separate course with ties to other courses in the information technology and computer information systems curriculum. It is not uncommon to have overlapping systems within the information systems’ spectrum or enterprise. Perhaps sometime in the near future, MIS will evolve into a new tool to reflect the challenges facing managers in a complex emerging technological environment.

Managers use information systems (transaction processing [TPS], knowledge work [KWS], management information [MIS], decision support [DSS] and executive support systems [ESS]) at different organizational levels. For example, MIS can be used for semi-structured decision making at the management organizational level.  In contrast, ESS can be used for unstructured (uncertainty) decision making at the strategic organizational level. Likewise, DSS can be used for semi-structured decision-making as well as at the senior management organizational level (Laudon & Laudon, 2004).

Organizations have produced specified and scheduled non-management reports to meet regulatory requirements. In contrast, organizations can produce internal management reports to assist managers in understanding the day-to-day business operations and processes.  It is clear that MIS has relationships with other management support systems (MSS) such as decision support systems (DSS) and executive support systems (ESS). However, such a wide MIS coverage can be problematic for mangers without a technical background to select the appropriate tool quickly in order to make better decisions (Laudon & Laudon, 2004). 

This writer believes that the MIS tool has outlived its useful life since many business transactions and communications are processed in real time on distributed computer systems such as microcomputers, servers, personal computers, notebooks, personal digital assists, cellular phones, and hybrid multifunction x-boxes.  Managers can download content from their mainframe computers’ database and work independently using ease-of-use software applications.  

Decision Support Systems

The growth of the software applications industry in the 1980s created an enterprise platform wherein information could be transferred seamlessly across cross-functional information systems such as manufacturing resources planning, supply chain management, accounting, and procurement.  Managers had more information than previous upon which to make decisions.  This created juxtaposition for legacy managers with disposable skill sets since making decisions were based on the effective use of data and not by many years of working experience acquired in the old economy. 

Sophisticated software applications were introduced to the marketplace in the early 1990s to assist managers in understanding the business trends in the new economy.  These applications and tools consisted of subsystems of other information systems such as web-based database management systems, groupware technologies (e.g. Lotus Notes, and Domino), intelligent software agents, enterprise resources planning (ERP), expert systems (ES), supply chain management (SCM), and customer relationship management (CRM) (Turban & Aronson,  2001). 

Decision support systems (DSS) are holistic in nature and overlap systems and/or enterprises due to the evolution of management support systems (MSS) in the late 1990s and early 2000s. The e-business model contains three software applications (elements) such as supply chain management, enterprise resources planning, and customer relationship management coupled with database management systems.  In addition, intelligent software agents are used in the word-of-mouth recommendation engines to make selections from a customer database. For example, Amazon.com uses the engine to recommend commodity products to their customers through a customized portal or exchange (Marakas, 2003). DSS are customized for specific applications and include hardware, software, databases, and computer network resources.  Other MSS contain similar elements and managers may be confused about which system or tool is best suited for a particular situation.  

Major industries (retail, automotive, food, airline, information technology) use DSS in daily activities. For example, the airline industry uses DSS to schedule flights and resources planning. The automotive industry uses DSS in production planning, resources planning, and market forecasting.   Interestingly, the current shakeout and record bankruptcies occurring in the airline industry can be attributed to the environmental forces of change that made the decision- making process more unstructured (chaotic).  Southwest Airlines and JetBlue are profitable payers in the competitive marketplace.  Most consultants and scholars agree that Southwest Airlines has invested more money in its information technology infrastructure as compared to American Airlines.  The reluctance of the large carriers (e.g., United, and American Airlines) to upgrade their DSS may have led to the entropic phase of their MSS.

One major factor that led to the demise of major airline carriers may do to the lack of integration of emerging technologies (i.e., Internet, Internet 2, Intranet, e-commerce, m-commerce, web-based database, wireless) in their DSS. The basic decision-making process (i.e., intelligence phase, design phase, choice phase and implementation phase) has not changed over the last 30 years due to the technological and environmental equilibrium conditions that exists in the old economy (Marakas, 2003).

All Decision Support Systems (DSS) have a shelf life that depends on the rate of change of emerging technologies and market conditions. Unfortunately, managers may elect not to evaluate their current DSS and make a decision (upgrade, replace or retire) during slow economic cycles and/or declining profits. For example, American Airlines’ DSS was the gold standard in the travel industry before the emergence of e-commerce technologies in the new economy.

Executive Support Systems

Today’s executives are facing many challenges in the new global economy.  The once stable pre-Cold War period was replaced with a new economy fueled by rapid introduction of computer-based information systems. Executive support systems (ESS) were introduced in the 1980s – 1990s, and were considered the next generation of management information systems (MSS).  Also, the post Y2K information technology (IT) remediation period (2000s and beyond) has reduced many organizations’ information technology budgets that left some firms in un-competitive positions.

Notably, Drucker (1999) averred that a major concern in the lack of ease-of-distribution of information within most organizations during the 1990s. Perhaps, the organizations had not upgraded or replaced their MSS due to lack of resources (funds and manpower). However, ESS has evolved over the years since its introduction twenty years ago.  Executives can access real time information using online analytical processing (OLAP) and client/server technology. The reduction of support staff members have left many executives to prepare their reports alone with minimal assistance. Sophisticated software applications filter transaction data and present information in management visualization formats (e.g., graphical representation and bullets) for executives (Martin, et al, 2002).

Most ESS extract data from various internal (MIS, DSS, financial, modeling) and external (e.g., Dow Jones, Internet news feed, and new tax laws) data streams.  Executives can now access information from any workstation or mobile device (Laudon & Laudon, 2004).  New tax laws (section 404, Sarbanes-Oxley) and government regulations (HIPAA, SEC filings) have forced many executives to upgrade their current ESS.  Some managers, however, may be confused about which type of MSS should be used in a specific decision-making scenario. 

It is clear that the current management support systems (i.e., MIS, DSS, and ESS) have limitations that are preventing managers and executives from distributing information throughout the organization.  This writer will include emerging technologies and radical management tools to enhance the current MSS into new emerging management support systems (EMSS).

THE ROLE OF GLOBAL MANAGERS IN THE CHANGE PROCESS

Environmental forces of change (e.g., globalization, competition, technology, labor, regulation, finance) have changed the rules in the market place (Ball et al, 2004). Today’s managers are facing unprecedented changes and paradigm shifts that have forced some to question their role (leader, coach or follower) in the new economy.  It is clear that operational, middle level and upper level managers have unique roles and responsibilities in the change process. For example, senior managers develop the vision and/or mission statement for the organization. The functional (middle level) managers develop business plans based on the vision or mission statement that are implemented by operations managers. It can be argued that middle mangers may not be flexible team players in executing o execute the mission statements. However, some studies have shown that middle managers are best suited to implement radical change (e.g., business process reengineering) throughout the organization. In contrast, some senior managers consider middle managers as “resistors of change” since they are viewed as “fence sitters” or “compliant children” during the organizational development and/or turnaround process (Huy, 2001).

What is the “best fit” for managers during the organizational development process? How does the organization select mangers for various positions during a turnaround process?  Some scholars argue that job placement is driven from the top down since the middle and lower managers may be reluctant to volunteer for key positions created by the change agent.  Interestingly, some global firms may reassign their top executives (i.e., global leaders) to various key positions during a strategic change program (Green, et al, 2003).  For example, DaimlerChrysler AG supervisory board transferred Dr. Dieter Zetsche from the home office (Stuttgart, Germany) to the Chrysler Group corporate office (Auburn Hills, Michigan) as the new change agent to direct the unit’s turnaround plan.  Interestingly, Dr. Zetsche (President and CEO) and his senior executives implemented a successful turnaround plan that produced significant improvements in sales, quality, and profit in 2004. The turnaround plan was driven by timely and accurate information generated by Chrysler’s Information Technology Department that was supported by many management support systems. It can be argued that Sue Unger, Senior Vice President and Chief Information Officer of Daimler Chrysler AG implemented several mission critical information systems that provided Dr. Zetsche and his team with timely, reliable data and information to execute the change strategy. Sue Unger’s Information Technology strategy may have been part of Jurgen Schrempp’s (DaimlerChrysler AG’s CEO) Management Support Systems Strategy that was presented to senior executives on the Mediterranean island of Malta during their April 2000 meeting (Rukstad et al, 2001).  Successful global firms must maintain their competitive edge by acquiring real time information across many time zones via sophisticated information systems and develop strategic business objectives to meet the challenges in the market place.

It is clear that managers must make expedient decisions based on data and information stored on management support systems (MSS).  Unfortunately, some traditional (old economy) managers may be comfortable making decisions based on tacit knowledge. Regrettable their legacy skill sets may not be helpful when faced with emerging issues and/or challenges in the workplace and/or marketplace. In contrast, global leaders are comfortable making decisions based on data and information stored in knowledge management, decision support, and management information systems. 

Some scholars and consultants agree that today’s managers must perform similar to a pilot trying to land his/her plane is a snow or rain storm thereby trusting the aircraft’s instruments and not primarily watching the outside elements. Fortunately, several management tools (e.g., balanced scorecard, six sigma metrics) are available to today’s managers so that they may make better decisions when faced with uncertainty or chaotic situations in the workplace and/or market place (Kaplan and Norton, 2000).  For example, The Chrysler Group (US unit) used the Balanced Scorecard tool to monitor its business functions and operations thereby resulting in significant profit and productivity gains in 2004. Metalcraft, a tier one automotive supplier (i.e., shipped finished parts directly to automakers) developed an information based (i.e., EDI) scorecard (green, yellow, red) to monitor the quality of their incoming parts from their suppliers (Kulp et al, 2002). Chrysler Group initiated an online (Intranet and Extranet) Supplier Cost-Reduction (SCORE) program in the 1990s to support their turnaround plan. GroupWare technologies such as Lotus Notes and Dominoes were integrated into the SCORE program that resulted in $2 billion in savings during the year 2000 (Turban, et al, 2005).

The competitive nature of the automotive industry has witnessed a significant change in the ranking of major automakers.  For example, Toyota has replaced DaimlerChrysler AG last year as the third largest North American car maker. Interestingly, Toyota had previously replaced Ford Motor Company as the world largest second automaker.  Most scholars and consultants agree that Toyota’s competitive weapon was its famous “Toyota Production System.”  In contrast, other scholars have argued that Toyota’s unpublished Book of Knowledge may be the “heart” of its significant upward movement in world auto making ranking.  Currently, General Motor Corporation is facing severe hurdles in the marketplace such as: a loss of $1.1 billion on expenditure of $3.5 billion during its first quarter 2005, a recall of 2 million vehicles, a lower (25.6%) US market share as of first quarter 2005, higher legacy costs per vehicle, a Standards & Poors (S&P) lowered debt rating to junk status for the first time in its history (Welch & Beucker, 2005). It can be argued that GM’s current hurdles and lack of any published action plan may give Toyota an opportunity to make further gains in the global marketplace.

EMERGING TECHNOLOGIES

The rapid increase in the application of emerging technologies (e.g., RFID tags, and web-based databases) into Corporate America has influenced managers’ and executives’ decision making methodologies.  Executives are more mobile in the new economy and depend upon telecommunications to conduct business away from the office. Today’s executives are more challenged than previous due to the emerging mobile economy (Kalakota & Robinson, 2002). Also, the convergences of Internet, e-business and wireless have created new opportunities for mobile economy (m-economy) companies in developing emerging management enterprise systems to meet the needs of mobile executives.  Scholars and consultants agree that the Y2K remediation programs prepared many organizations for the introduction of e-commerce and m-commerce applications. (Dickson & DeSanctis, 2001). 

Today’s workers are more mobile, and they look towards the telecommunications and information technology industries for solutions to allow them to conduct business while on the move. However, there many front-end mobile devices (e.g., personal digital assists, cellular phones, notebooks, hybrid x-boxes) that can connect to back-office information systems (e.g. web-based database) via wireless technologies (e.g., VoIP, and broadband) and standards (e.g., Bluetooth, WAP 2.0 and IEEE 802.11). Low cost telephone service via VoIP technologies will fuel the growth of the m-commerce market. Also, new security applications (e.g., encryption) will emerge to protect the data transactions and voice communications over wireless networks (Dornan, 2002). 

It can be argued that the convergence of telecommunications, Internet, Web and computer-mediated networks (post 3rd wave era) created new opportunities for information management companies (Housel & Skopec, 2001). Executives with frequent travel schedules are challenged to make decisions away from their home offices. It is clear that the current management support systems must evolve to meet the needs of these busy managers and executives. Also, the borderless new global (24/7) economy has forced many organizations to respond to the customers’ demands before competitors do.  For example, major automakers (i.e., General Motors, Ford Motor Company, and DaimlerChrsyler) are integrating emerging technologies into their business processes and manufacturing facilities to respond to customers’ demands for competitive products and faster delivery dates (Anderson, 2000).

Managers should be careful when integrating emerging technologies into their organizations. For example, the failed automotive industry’s failed portal (Covisint) could be attributed to immature (un-proven) extensible markup language (XML), web-based applications, and suppliers’ resistance to emerging technologies.  In contrast, automotive companies have implemented Radio Frequency Identification (RFID) technology in their manufacturing facilities and supply chain. In addition, Wal-Mart and the Federal Government (DoD) have mandated their suppliers to install RFID tags in shipments for ease-of-tracking and supply chain management enhancements. 

It can be argued that most organizations are implementing new e-strategies to remain competitive in the new economy. Managers are participating in new information technology projects to take advantage of Internet capabilities, For example, business-to-business (B2B), business-to-consumer (B2C), customer-to-business (C2B), and e-commerce strategies are implemented in conjunction with enhanced MSS.  This approach has streamlined the management decision process thereby improving organizational effectiveness. Customers can place their orders directly with companies via e-commerce technologies and the related information is automatically processed by the MSS.

The record number of corporate bankruptcies (e.g., Enron, WorldCom, and Global Crossing) has led to new government regulations and laws.  Interestingly, information management firms are challenged to deliver emerging MSS to assist managers and executives in remaining in compliance with government regulations and filings (Gincel, 2004).  Company directors are now required to attend a minimum number of board meetings each year and fully participate in the activities to ensure that corporate governance is maintained. Government regulations and tools such as government-to-business (G2B) and business-to-government (B2G) are forcing many organizations to upgrade their current MSS.  Also, government agencies are installing sophisticated computer-based systems to monitor the electronic filings of companies (Nyberg, 2004). 

This writer will examine tenets of the emerging management support systems (EMSS) and the new holistic model. Semi-mature subsystems (e.g., expert systems, knowledge systems, and artificial intelligence) must be integrated into the EMSS model, thereby optimizing solutions for managers and executives for specific situations. Also, enterprise intelligent systems consisting of emerging technologies (i.e., e-business tools, web-based databases, virtual enterprises, toolbox menus) can be considered as alternative EMSS (Turban et al, 2005).

EMERGING MANAGEMENT SUPPORT SYSTEMS MODELS

This writer will examine some of the current advanced support systems (e.g., expert, knowledge management, and artificial intelligence systems) and show their importance in the emerging management enterprise system model.  Key drivers (i.e., business, legislative, technological) that are forcing many organizations to evaluate their current MSS and make a decision (reengineer, replace or retire) about which information tools are best suited to compete in the new global economy will also be examined. In addition, the relationship of tenets (inputs) of the emerging management enterprise management systems and the relationship to the customize emerging management support systems (outputs) will be discussed.

Knowledge Management Systems

Unplanned workforce turnover is very challenging for most mangers and executives.  However, there is a methodology that will capture organizational learning and core competencies of the organization during day-to-day operations. This cyclic process of creation, capturing, redefining, storing, managing, and distributing is known as knowledge management.  The information is stored in a repository and is updated during an organization’s life cycle.

Some organizations may elect to hire individuals with specific knowledge management skill sets to monitor the cyclic process. However, the knowledge management sponsors (i.e., senior executives) originate the requests to develop (in-house) or purchase knowledge management systems (Turban, et al, 2005). 

Knowledge management systems (KMS) can assist companies in reducing their R & D budgets, maintain internal best-practices repositories and reduce the loss of expertise when key individuals depart.  Large accounting firms and major consulting firms have sophisticated knowledge management systems. However, recent government laws and regulations have forced many organizations to reinvent or replace their KMS, thereby ensuring compliance.

This writer proposes (Figure 2) the Advanced Management Support Systems Model that integrated many current systems to produce new enterprise MSS.

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Regulatory Management Systems

There are many non-technical environmental issues (e.g. SEC and GAAP) facing the Chief Executive Officer (CEO), Chief Information Officer (CIO) and Chief Technology Officer (CTO) in designing emerging management enterprise systems. For example, the following list of regulations (Gincel, 2004, p.34) should be considered during the reinvention process:

¨      Regulatory Compliance

o       Foreign Corrupt Practices Act                                          

¨      Information Technology Compliance

o       California SB 1386

o       SEC 17A-4

¨      Financial Compliance

o       Basel II

o       CoCo

o       Gram-Leach-Bliley

o       Sarbanes-Oxley

¨      Manufacturing Compliance

o       DOT mandates

o       FDA 21 CRF Part II

o       MSDS

o       OSHA mandates

¨      Health Records

o       Health Insurance Portability and Accountability (HIPPA) Act (Database compliance date - April 21, 2005)

Executives are facing challenges to implement section 409 of Sarbanes-Oxley and SEC rules that added eight triggers for 8-K filings. Chief Financial Officers (CFOs) and Chief Operating Officers (CEOs) are required to certify their financial reports as part of section 404 of Sarbanes-Oxley (Katz, 2004). It is clear that a real time management support system is needed to produce the SEC filings in a timely manner thereby reducing the risks of non-compliance. The existing data warehouses may not be able to keep up with the accelerated SEC filings requirements in order to meet internal due diligence controls before releasing 8-K filings.

The Sabanes-Oxly (SOX) laws were passed by Congress to provide more corporate oversight because of the record number of bankruptcies (e.g., Enron and WorldCom).  Some organizations file audited or best practices reports electronically to receive faster compliance feedback from the SEC.

Gincel (2004) explains: Section 404 of Sarb[anes]-Ox[ley] will put a huge burden of IT by requiring companies with valuations of more than $75 million to prove that their internal controls and audit trail are sound and that their processes are capable of producing correct data. And, ready or not, Sarb-Ox’s infamous Section 409 – which mandates that ‘material events’ such as the acquisition of a big customer, or anything that could affect a company’s perceived market value, must be reported within 48 hours – is upon us, taking effect August 23, [2004] (p.34)

Large organizations depend on major software companies (e.g. Microsoft, Oracle, IBM, SAP, SAS, PeopleSoft) to provide sophisticated compliance solutions to meet their specific needs. The CIO, CTO, CEO, corporate affairs (CA) and office of general counsel (OGC) must work together with real time data via EMSS to ensure compliance with government laws and regulations. Business ethics and best practices should be included in compliance solutions to model a new corporate culture in a post Enron and WorldCom era (Beauchamp & Bowie, 2001).

 Corporate Performance Management Systems

Chief Executive Officers (CEOs) are pressured by Wall Street analysts and investors to meet their business plans’ projected earnings targets.  However, they have minimal influences on the external environmental forces (e.g. interest rate, GNP, globalization, technological, government laws, and regulations) facing their organizations. In contrast, CEOs have control over internal forces (e.g. labor, financial, production) within their organizations and can achieve budgetary targets. Global corporations with many divisions and operations operate continuously (24/7) and require synergy to meet corporate targets.  It is clear that a sophisticated database management system is required to process real time information with connectivity and portability to cross-functional business systems (e.g., accounting, finance, human resource management, marketing, and production operations).

The CIO is challenged to ensure that there is a seamless transfer of information between the various MSS. However, information silos may exist within organizations and successful reengineering will be needed to transform stand alone MSS.    .

The emerging management support systems (EMSS) model crosses many emerging technologies’ platforms. For example, the e-business strategy consists of three main software applications such as supply chain management (SCM), enterprise resources management (ERP), and customer relationship management (CRM). M-commerce applications should be considered to afford mobile executives the opportunity of staying in touch with their offices any time and any place via wireless mobile devices (e.g., PDA, cellular phone, notebook, and hybrid x-box).

Executives should consider risk management tools in the decision-making process when considering business opportunities. High risks are associated with higher rates of return in emerging markets (e.g., China, India, Eastern Europe, and Latin America) in order to meet  investors’ expectations. CIOs should work with an office of legal counsel before purchasing new MSS from outside software companies and systems integrators (Baumer and Poindexter, 2002).   

Corporate headquarters pressure the business units, divisions, and manufacturing facilities to meet budgeted performance objectives (numbers). However, without a credible and certified advanced management support system in place, some organizations may not be able to report production, staffing, quality, and earnings data to public and private monitoring agencies in a timely manner. Unfortunately, some organizations may be tempted to inflate production and profit earnings to meet Wall Street analysts’ projections and investors’ expectations (McCafferty, 2004). 

Business Process Management Systems

Systems integrators are faced with the challenging task of integrating business processes and emerging technologies into enterprise management support systems (EMSS) to meet new government laws and regulations.  There are many opportunities for enterprise application integrators (e.g., Tibco and Vitra) and major platform vendors (e.g., BEA, IBM, and Microsoft) that are willing to take the risks (Knorr, 2004). 

It is clear that the big software players such as Oracle, PeopleSoft, and SAP may be taking a wait-and see or conservative approach before entering the BPM market. For example, Microsoft used a similar strategy before entering the CRM market last year.  Consultants and scholars agree that most organizations may not have in-house IT staff members to develop business process management (BPM) tools and big software players may be waiting to capitalize on the increased demand for BPMs in the near future.

Extensible Management Systems

The new economy which is fueled by environmental forces (government regulations, customers’ demands, and lack of resources) has forced many organizations to integrate web enabled technologies in their management support systems to monitor their business processes and operations any where and any time (24/7).  It is clear that most current MSS are not web enabled thereby limiting their abilities to transmit and receive real time data via the Internet.  Some of these MSS operate with different software applications and domain specific brands.  The lack of a common software tool could be the major impediment for integrating leading edge technologies (e.g. RFID, VoIP and web-based database) into MSS (Kroenke, 2002). 

XML can help many organizations to integrate daily transactions (data flow) with back-office information systems.  Major databases management systems (DBMS) players such as IBM, Oracle, Microsoft, and Sybase are marketing XML-enabled databases (e.g. DB2, 10g release1, SQL server 2000 and ASE 12.5.1) to the public and private sectors. (McCown, 2004). Adequate inventory control, logistics with supply chains is a major concern for most executives.  Profit margins are closely related to the accurate and timely flow of information from the business units and manufacturing facilities into various MSS (e.g., CPM and MIS) to meet compressed reporting dates.

This writer has proposed (Figure 3) an integrated extensible management support system to assist managers determine select the best tenets for their customized models.

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The integrated extensible management support systems (EMSS) will include: data marts (DM), data warehouses (DW);operational databases (ODB); encryption tools; existing client/server applications; new Internet 2  (ultra high speed, gigapops); emerging technologies,  mobile (wireless) devices (e.g., personal digital assistant; fat clients; cell phones; notebooks; lap top PCs, and x-boxes); government regulations and guidelines (SOX); financial information systems (FIS), accounting information systems (AIS), best business practices, ethical practices, and legal guidelines.  The mobile economy (m-economy) fueled by the convergence of the Internet 2, e-business, web-centric servers, protocols, routers and wireless networks (e.g., Wi-Fi) will allow end users to access the EKMS anytime, anywhere and use any device.

Most organizations have standardized on the Microsoft suite (e.g. Word, Excel, PowerPoint, CRM, Access 2002, Project Management, SQL server 2000 and Office 2003 [XML ready]).  There are other brand applications that are part of the front-office systems that should be considered for integration into the emerging extensible management system (EEMS).  Preparing the data for the web-enabled MSS can be problematic if the organization has legacy information systems. XML wrapping software (e.g., Epicor Software Corp.) may be required to covert legacy data into web-enabled XML format. Also, XML-based content management software (e.g., Lotus Domino) can also prepare the front-office data flow for import into the back-office EEMS. (LaMonica, 2004). 

The Chief Information Officer must customize the EEMS with some of the components described in the aforementioned figure to meet their organizations’ specific requirements.  The e-business platform (i.e., supply chain management [SCM], enterprise resource planning [ERP], and customer relationship management [CRM]) should be integrated into the EEMS.  Emerging technologies (e.g., voice over internet protocol, wireless, m-commerce, and m-business) and artificial intelligence tools should be evaluated for the best fit into the EEMS.

CONCLUSION

Many organizations’ management support systems (MSS) may not have kept pace with the growth of the emerging technologies over the last several years. It can be argued that there are external factors that may have contributed to the delinquency situations. Lack of in-house staff members with new economy skill sets and/or contracted information technology budgets. Unfortunately, new government laws and regulations are forcing most organizations to evaluate their existing MSS, and make rapid decisions (i.e., upgrade, outsource or retire) regarding their systems’ effectiveness. 

There will be many opportunities for educators, consultants, developers, systems integrators, software firms and hardware firms furnishing goods and services to these information technology delinquent organizations. The mobile economy has created new opportunities for major players marketing XML web-enabled management support systems to Global Organizations (e.g., automotive industry).

Finally, this writer believes that the environmental forces of change will continue at a faster rate over the new decade. The new global economy will continue to challenge Chief Executive Officers to keep up with the growth of emerging technologies. In a virtuous society, the creative destructive cycle will create many new opportunities for those organizations and individuals with the best goods and services (McKnight et al, 2001).

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About the Author:

Stafford S. Cuffe, Ph.D., Adjunct Professor: Nova Southeastern University, School of Business and Entrepreneurship, Doctoral Program, Ft. Lauderdale, FL, Regis University, Denver, School of Professional Studies, MBA program, Denver, CO.