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Chapter 2 Global E-business and Collaboration 81

An interesting, small, but powerful DSS is the voyage-estimating system of
a large global shipping company that transports bulk cargoes of coal, oil, ores,
and finished products. The firm owns some vessels, charters others, and bids
for shipping contracts in the open market to carry general cargo. A voyage-
estimating system calculates financial and technical voyage details. Financial
calculations include ship/time costs (fuel, labor, capital), freight rates for
various types of cargo, and port expenses. Technical details include a myriad
of factors, such as ship cargo capacity, speed, port distances, fuel and water
consumption, and loading patterns (location of cargo for different ports).
The system can answer questions such as the following: Given a customer
delivery schedule and an offered freight rate, which vessel should be assigned
at what rate to maximize profits? What is the optimal speed at which a particu-
lar vessel can optimize its profit and still meet its delivery schedule? What is the
optimal loading pattern for a ship bound for the U.S. West Coast from Malaysia?
Figure 2.5 illustrates the DSS built for this company. The system operates on a
powerful desktop personal computer, providing a system of menus that makes
it easy for users to enter data or obtain information.
The voyage-estimating DSS we have just described draws heavily on models.
Other business intelligence systems are more data-driven, focusing instead
on extracting useful information from massive quantities of data. For exam-
ple, Intrawest—the largest ski operator in North America—collects and stores
large amounts of customer data from its Web site, call center, lodging reserva-
tions, ski schools, and ski equipment rental stores. It uses special software to
analyze these data to determine the value, revenue potential, and loyalty of
each customer so managers can make better decisions on how to target their
marketing programs. The system segments customers into seven categories
based on needs, attitudes, and behaviors, ranging from “passionate experts” to
“value-minded family vacationers.” The company then e-mails video clips that
would appeal to each segment to encourage more visits to its resorts.

FIGURE 2.5 VOYAGE-ESTIMATING DECISION-SUPPORT SYSTEM

This DSS operates on a powerful PC. It is used daily by managers who must develop bids on shipping
contracts.

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