DECISION MODELLING AND INFORMATION SYSTEMS OPERATIONS RESEARCH/COMPUTER SCIENCE INTERFACES SERIES SeriesEditors ProfessorRamesh Sharda Prof. Dr. StefanVoB OklahomaState University UniversitiitHamburg Otherpublishedtitlesintheseries: Greenberg, HarveyJ./AComputer-AssistedAnalysisSystemforMathematicalProgramming ModelsandSolutions:AUser'sGuideforANALYZE Greenberg, HarveyJ. /ModelingbyObject-DrivenLinearElementalRelations:AUsersGuidefor MODLER Brown,Donald/Scherer,WilliamT. / IntelligentSchedulingSystems Nash,StephenG./Sofer,Ariela / TheImpactofEmergingTechnologiesonComputer Science& OperationsResearch Barth,Peter / Logic-Based0-1ConstraintProgramming Jones,ChristopherV. / VisualizationandOptimization Barr,RichardS./Helgason,RichardV./Kennington,JefferyL./ InterfacesinComputer Science& OperationsResearch:AdvancesinMetaheuristics, Optimization, &StochasticModeling Technologies Ellacott, StephenW./Mason,JohnC./Anderson,lainJ./ MathematicsofNeuralNetworks: Models,Algorithms&Applications Woodruff,DavidL./ AdvancesinComputational&StochasticOptimization, LogicProgramming, andHeuristicSearch Klein,Robert / SchedulingofResource-ConstrainedProjects Bierwirth,Christian / AdaptiveSearchandtheManagementofLogisticsSystems Laguna,Manuel/Gonzalez-Velarde,JoseLuis /ComputingToolsforModeling, Optimization andSimulation Stilman,Boris/ LinguisticGeometry:FromSearchtoConstruction Sakawa,Masatoshi / GeneticAlgorithmsandFuzzyMultiobjectiveOptimization Ribeiro,CelsoC./Hansen,Pierre / EssaysandSurveysinMetaheuristics Holsapple,Clyde/Jacob, Varghese/ Rao, H. R./BUSINESSMODELUNG: Multidisciplinary Approaches- Economics, OperationalandInformationSystemsPerspectives Sleezer, Catherine M./ Wentling, Tim L./Cude, Roger L. / HUMANRESOURCE DEVELOPMENTANDINFORMATIONTECHNOLOGY:MakingGlobalConnections VoB,Stefan,Woodruff, David/OptimizationSoftware ClassLibraries UpadhyayaetallMOBILECOMPUTING:ImplementingPervasiveInformationand CommunicationsTechnologies Reeves,Colin& Rowe,Jonathan!GENETICALGORITHMS-PrinciplesandPerspectives:A GuidetoGATheory Bhargava,HemantK. & Ye,Nong/COMPUTATIONALMODEUNGANDPROBLEM SOLVINGINTHENETWORKEDWORLD:InterfacesinComputerScience& Operations Research Woodruff, DavidL.INETWORKINTERDICTIONANDSTOCHASTICINTEGERPRO GRAMMING Anandalingam,G. & Raghavan,S./ TELECOMMUNICATIONSNETWORKDESIGN ANDMANAGEMENT Laguna,M.& Marti,R./SCATTERSEARCH:MethodologyandImplementationsinC Gosavi,AbhijiVSIMULATION-BASEDOPTIMI7ATION:ParametricOptimizationTechniques andReinforcementLearning DECISION MODELLING AND INFORMATION SYSTEMS The lnformation Value Chain by Nikitas-Spiros Koutsoukis Gautam Mitra Brunel University SPRINGER SCIENCE+BUSINESS MEDIA, LLC Library of Congress Cataloging-in-Publication Data A C.I.P. Catalogue record for this book is available from the Library of Congress. DECISION MODELLING AND INFORMATION SYSTEMS: The information value chain, by Nikitas-Spiros Koutsoukis and Gautam Mitra ISBN 978-1-4613-5110-8 ISBN 978-1-4615-0505-1 (eBook) DOI 10.1007/978-1-4615-0505-1 Copyright © 2003 Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 2003 Softcover reprint of the hardcover 1s t edition 2003 AU rights reserved. No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording, or otherwise, without the written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Permission for books published in Europe: [email protected] Permissions for books published in the United States of America: [email protected] Printed on acid-free paper. MTTm: ~HTm: APETm: OY~m:,Tm:MEN ~IANOHTIKm: Tm: ~EH81Km:, HMEN ~IANOHTIKH TOIIAEION EK ~I~A~KAAIA~EXEIKAI THN rENE~IN KAI THN AYSm:IN, ~IOIlEPEMIIEIPIA~ ~EITAIKAI XPONOY, H~' H81KHES E80Y~IlEPlrINETAI, 08EN KAI TOYNOMA E~XHKEMIKPONIIAPEKKAINON AIIO TOY E80Y~. [...] OYTn~HKAI TA MEN ~IKAIA IIPATTONTE~ MKAIOI rINOME8A, TA ~E ~n<I>PONA ~n<I>PONE~, TA~' AN~PEIA AN~PEIOI. - APIl:TOTEAOYI:,BelKANIKOMAXEIA Virtue, then, beingoftwo kinds, intellectual and moral, intellectual virtue inthe main owes both its birth and its growth to teaching for which reason itrequiresexperience and time, while moral virtue comes aboutas aresult ofhabit, whence also its name (ethike) is onethat is formed by a slightvariation from the word ethos (habit). [...] sotoo we becomejustbydoingjustacts, temperate by doing temperate acts, brave bydoing brave acts. - Aristotle: Nicomachean Ethics. Translated byW. D. Ross, Oxford, ClarendonPress, 1908. Contents Contributors IX Acknowledgements Xl Preface xv Part 1Decisionsupportin perspective Introduction 3 Models for DecisionMaking 17 Information Systems for Decision Support 27 DSS Constituents 45 Part2 Thelearningorganisation Knowledge-enabled Decision Support 59 Knowledge Elicitation and Attainment 75 DataModelling 'Technology' 87 Information Modelling 101 VIll Contents DataMartDevelopment and Dynamic Model Instantiation 125 Decision Modelling 149 Part3Invitedcontributions The DSS and IS interactionrevisited 165 RestoringTransparency to Computational Solutions 175 ARTGEOFFRION Thecorporateinformation factory 205 BILLINMON Strategic Information Systems for CompetitiveAdvantage 217 LOUISMA ANDEFRAIMTURBAN InformationValue 253 ERIKTHOMSEN Part4 New directions Embedded decision support 283 Decision SupportServiceProvision (DSSP) 305 Imminentdecision support 327 Epilogue 349 Index 355 Contributors ArtGeoffrion James A. Collins ProfessorofManagementDecisions, Operations, and Technology Management, John E. Anderson Graduate School ofManagement Box 951481, UCLA, Los Angeles, CA90095-1481, USA. Tel. (310) 825-1113 (office) (310) 825-1581 (fax) [email protected] Bill Inmon Inmon Associates, Inc. www.billinmon.com LouisMa Associate Head & Associate Professor DepartmentofInformation Systems, City University ofHong Kong, 83 TatChee Avenue, Kowloon Tong, Hong Kong Tel: (852) 27887541 Fax: (852) 27888694 [email protected] ErikThomsen DistinguishedScientist Hyperion Solutions Corporation Cambridge, MA [email protected] x Introduction Efraim Turban VisitingProfessor Department ofInformation Systems City University ofHong Kong 83 TatChee Avenue, Kowloon Tong, Hong Kong Tel (852) 2788 9689 Fax (852) 2788 8694 [email protected] Acknowledgements The commitment and endeavour to write 'Decision Modelling and Information Systems' began a long time ago, in the faraway land of authoring. Uninterrupted, on a green mountain slope, with an aspiring view ofprosperous land andclearseaalong the horizon, Ibegan writing; favourite music blendingelegantly with natural sounds through my ears. The sun was shining beyond a cloudless sky during the day; in the night the stars shone like millions of cosmic candles and I kept on writing until decision modellingand information systems was complete. It follows that the truth is far from this authoring land. Decision modellingand information systems started underacloudy London sky in the midst ofa number ofstressful professional engagements and was completed in Greece, a number ofyears afterit started. For the duration ofmy national service, I spent most ofmy free time allowance behind the notes, references and computer screens of decision modelling and information systems chapters. Instead of the faraway authoring haven, it was the multifaceted support offamily, friends, colleagues and the editorthat kept me going from start to finish -literally an understatement. My appreciation goes wholeheartedly to all these people who bear with me throughout this effort, even if, Icannotexplicitly stateall their names. My most heartfelt gratitude goes to my parents Clemens and Emily, who have endured and supported me the most in this project, but they are not the only ones. I am equally grateful to my closest friends Alexandros Karlos, Cristos Sarris, Dimitris Markou, Emmanuela Georgakopoulou, Giannis Salihos, Giorgos Bebekos, Lefteris Daflos, Maria Kerasta, Mina Georgakopoulou, Panagiotis Veinoglou, and Silvia Veinoglou. If I must blame these friends for one thing only, then this would be their occasional