Organizations should implement a Decision Support System (DSS) while using return on invest (ROI) analysis to gain favorable financial outcomes, customer satisfaction and allow for streamlined processes to guide the future of an organization. DSS is a collection of interdependent software programs and hardware that aids analysts, organizations, and managers make decisions. Organizations can use decision support tools, technologies, and models to assess and resolve everyday business problems. DSS that use a variety of models to help managers perform what-if analysis and making decisions. DSS is used in many industries including banking, insurance, real estate, and other sectors. These systems provide information about the current state of an organization’s finances, customer satisfaction, and market trends. The following are some examples of how DSS can be used: Data mining and analytics: This type of system uses statistical techniques to analyze data from various sources such as databases, web pages or databases.
It is also used for analyzing the financial statements of companies and their shareholders. DSS helps in identifying potential risks and opportunities. It provides information on the company’s financial position, its growth prospects, and its future plans. It also helps in determining the level of risk management by using the information gathered from the analysis. It is a good way to identify potential threats and opportunities for improvement and improve the performance of an organization. It is also used for monitoring and controlling business processes, which can be done through the use of computer-aided design.
The entire process is based on the collection of data and available data, the decision support system is data-driven. Business intelligence (BI) reporting tools, processes, and methods are key components of decision support systems and provide end users with rich reporting, monitoring, and data analysis. To resolve the Dilemma, funding and management mechanisms to support quantitative changes are needed. In addition, there are many other applications of this technology in the financial services industry.
Calculating the ROI is an important business tool for determining important capital and operational expenditures, but as it becomes a high-level strategy and long-term decision making it is possible that it will become an organization’s barrier. ROI analysis deals with decision-making and the relationships between financial and digital models in these processes (Sawyer, 2015). Leaders who believe that companies can be too cautious about digital reform should rethink themselves.
These tools can be used to identify potential risks and opportunities for improvement. The ROI analysis is often used by large organizations to manage their own profit and loss information and all business needs to judge the cost in relation to the compensation. ROI analysis resolves and challenges this fact. Many analyzes are modeling and calculating ROI, opportunity cost and efficiency. These methods are useful when analyzing the impact of change on organizational performance.
They are also helpful when evaluating the effectiveness of a new technology or process. These tools are used to evaluate the effectiveness of an organization’s current processes and strategies. The ROI analysis is also used to analyze the impact of changes in its operations and how it affects its bottom line by using data from the past. There are several types of ROI analysis: 1. Cost-benefit analysis 2. Payback period 3. Return on investment 4. Payback period 5. Payback time 6. Risk assessment 7. Return on equity 8. Risk management. The purpose of this study is to examine the benefits and risks associated with implementing a DSS system and ROI analysis to identify the benefits and potential pitfalls. McDonald’s Story McDonald’s is a world-famous brand in the fast food industry. McDonald’s was founded in 1940 after years as a hot dog stands in Santa Anita. Ray Kroc, a traveling salesman sold the McDonald brothers multimixers to make milkshakes.
Ray envisioned the possibilities and joined as a franchise owner then purchased the enterprise in 1961 from the McDonald brothers (Dunlap, 2017). The clown was introduced in 1963 for the purpose is to attract children and creating long-life customers. This is the beginning of McDonald’s to bring brand loyalty. McDonald’s Information Systems McDonald’s uses many systems including Transaction Processing System (TPS), Decision Support System (DSS), MIS, Made for You System and POS System Point System and Bob’s Hyperactive System (R9) to process all digital information.
These transactional systems are very important to answer a regular question and help manage items such as salaries, employee accounting or employee salaries (‘McDonald’s Information Systems,’ 2019). These systems help in managing the transactions between different departments. It is also useful for tracking the sales volume and customer satisfaction allowing McDonald’s to analyze profitability through ROI analysis and branding image. McDonald’s – Organizational Communication The suitability of organizational communication depends on several factors. For example, the employees do self-evaluations and the extent to which personal and professional development is needed to achieve one’s goals (Boss, 2015).
Information technology changes the way in which the organization communicates. The nature of globalization in everyday organizational work requires managers to regularly link their organizations with their regular customers, to order, to purchase components from suppliers, to order manufacturers and to finalize their products. This process gives McDonald’s dominance in the fast food market space within the United Kingdom. The company’s internal communication culture thrives on nurturing and developing employees into management. It takes pride in hiring mostly internally for such positions at a rate of 80%, the restaurant managers started their career from the ground floor (Lloyd, 2008).
McDonald’s uses multi-channel methods to deliver communication; print, online forums such as Facebook and video conferencing. In addition, the UK stores publish an internal magazine to deliver the mission, values, and cohesiveness of the unique environment. McDonald’s Success Driven by Ethics McDonald’s is one of the world’s largest and most popular food networks It has perfected the art of fattening consumers and the principle of selling the diet. It is important to know that the organization is successful and big in ethical principles. McDonald ‘s is committed to doing business in an ethical manner and according to the letters and spirit of the law. This commitment is reflected in McDonald’s values.
The company has been able to achieve its goals by using the principles of moral leadership. It is also known as the ‘ golden rule’. The Ronald McDonald House is a corporate social responsibility initiative to assist families with sick children to access to specialized treatment and a place to stay (‘RONALD MCDONALD HOUSE,’ 2019). The golden arches are a fast food chain scarred by bad press for its fattening offering but has since added healthier items and gives to many causes. Social responsibility helps with branding is as important to McDonald’s as its offering of fast convenient foods.
McDonald’s Approach to Decision Making Due to the high level of challenges, the golden arches must make the best decisions. This is essential for companies to succeed in the market. Analyzing competitors, market needs, trends, etc., and using the generated reports to make the most appropriate decisions for business and service/product consumers. Chief Executive McDonald’s Andrew McCain and the company managing the next decision: ‘The Scouting slogan is’ ready, ‘You must be ready, at the time you do not want it’ (Sellers, 2011). This strategy is a good way to get your head around the idea of having an effective sales/customer centric team.
The main purpose for McDonald’s to use of these systems, DSS and ROI analysis, is to provide a more accurate picture of the customer’s needs and preferences as well as to improve the efficiency of business processes. The benefits of using these systems include 1. Improved performance 2. Improved productivity 3. Reduced costs 4. Increased customer satisfaction 5. Reduced operational cost 6. Better customer service 7. Improved quality. ROI is a good way to compare investment opportunities, but ROI does not incorporate risk into the equation, especially if the ROI is based on predicted returns rather than actual returns. The use of DSS and ROI analysis gives McDonald’s an edge over their competitor when making a decision at all their worldwide locations. Wells Fargo Wells Fargo has a history of litigation unlike McDonald’s. One such lawsuit involves providing African-American and Hispanic borrowers with racist mortgage processes. While Wells Fargo’s bankers are incorporating colored people into higher prime subprime mortgages throughout the country, similar white borrowers receive term loans. Payday loans are also common in Wells Fargo: banks provide short-term loans to low-income households, and their huge fees and interest rates put them into the debt cycle.
A federal investigation found that the financial giant charged minorities higher mortgage rates and fees than none minority customer with similar credit profiles (Rothacker & Ingram, 2012). Wells Fargo guided minority borrowers to subprime when they qualified for lower rates and fees. On 9th October 2012, the US federal government sued the bank under the ‘False Proceedings Act’ in the Manhattan federal court in New York. In this case, Wells Fargo frauded the Federal Housing Administration (FHA) in the past 10 years and has undertaken loans supported by over 100,000 FHAs, more than half of which have not been eligible to participate in the program (Raymond & Shankar, 2016). This lawsuit is the third allegation imposed on Wells Fargo in 2012 and is riddled with lawsuits throughout its history. Has Wells Fargo learned its lessons and implemented safeguards such as decision support systems to make ethical decisions?
Wells Fargo – Decision Making In July 2018, CEO Timothy Sloan laid out the changes needed to overcome Well Fargo’s ethical violations that have cost the organizations billions in lawsuits in a wide array of mismanaged practices. One of the many changes will use decision support systems along with reform to transform the company for employees, customer, the communities it serves and shareholders (Kuehner-Hebert, 2018). Wells Fargo is committed to change and exceed regulatory requirements thus managing risk leveraging technology to safeguard the services it offers. In late 2018, Wells Fargo released a digitalized mortgage application tool that allows customers to make decisions at every step of the process.
The system meets and exceeds regulatory processes to eliminate human interaction that may cause biases and eliminate further lawsuits. The mobilized app process gives the client choices when applying for a home mortgage. These choices include doing so over the phone, in person at a bank location and most importantly completing the entire process online through any device (‘Apply,’ 2019). The online application system also provides customers with a video to guide them through the process. The newly created decision support system gives a customer the freedom they want when applying for a mortgage but most importantly holds Wells Fargo to the high standards set within the industry when offering mortgages. A second change implemented in late 2018 by Wells Fargo is the Control Tower. This new customer decision support system gives clients the ability to make changes and analyze their spending (Hudson, 2018). Control Tower allows clients to compile all their accounts from any institution onto one app thus allowing them to control all payments, spending and saving on one app.
Other benefits include; turning on and off Wells Fargo credit and debit cards, view recurring payments and history going back 12 months and allowing clients to share account and statement history with third-party financial services. Wells Fargo – Communication Another safeguard in place whether viewed good or bad is Wells Fargo’s electronic communication system. The policies are designed to promote business and help team members communicate with customers, business partners and internally. The company relies on individual team members and their managers to ensure that the use of these communication systems will function for business purposes. When doing business using communication systems, team members must represent Wells Fargo in a professional way. Team members should remember that the majority of the information electronically transmitted and received is confidential information of companies and consumers (‘Wells Fargo Team Member Handbook,’ 2019).
Therefore, team members need to take appropriate steps to prevent unauthorized disclosure of such information and restrict the transmission of information only to those who need to know the business. This includes not disclosing in-house issues in general or to the press without the express written consent of the company. Chatbots are rising in popularity across industries which uses artificial intelligence to communicate with clients and provide account information and answer questions. Wells Fargo Chatbot is another innovative tool introduced to polish its image and attract new customers. Wells Fargo Chatbot is an interactive application that communicates with a Facebook message platform (Irrera, 2017). Clients can access account information and update passwords. Wells Fargo’s messenger app allows users to send messages directly from their mobile device. Users can also use a chat feature to ask questions and receive answers. Wells Fargo is committed to how it communicates with customers and goes further with creating technology to streamline the processes. Wells Fargo – Ethics Wells Fargo is a prime example of ignoring ethics and compliance.
The damage to that reputation is staggering and the ability of the bank to recover depends on the continued commitment to ethics and compliance and the careful management of their business practices. The company’s failure to do so has been a major factor in its downfall. It was not only unethical but also illegal for the bank to conduct such activities that include mortgage discriminatory practices. The company did have the proper procedures in place to ensure that they were doing what was right but did not have decision support systems safeguards in place to ensure it meets the standards for financial institutions. Wells Fargo’s commitment to change in how it conducts business in an ethical way is apparent with creating a hotline for employees to report unethical behavior. Well, not so fast. A federal judge ordered Wells Fargo to re-hire a whistleblower who was dismissed after calling the ethics hotline to report fraud.
The judge also decided that the employee is paid 5.4 million dollars (Egan, 2018). Wells Fargo faces several other similar lawsuits, and these employees state that they protested against sale fraud that management ignored. It seems that Wells Fargo is in a perpetual merry-go-round of ethics violations. According to CEO, Tim Sloan changes are coming. In the 2017 Annual Report, entitled ‘Building Trust,’ publicly issued by Wells Fargo outlines changes that the financial institution is committing to make for its future. Some of the ethical changes include; eliminating commissions for sales, implementing incentives driven by customer service and teamwork, revamping risk and compliance controls, creating a conduct management office and create a mystery shopper program to ensure practices are meeting ethical processes (Frankel, 2018).
Wells Fargo may achieve its goals of becoming an ethical financial institution, only time will tell. Conclusion Decision support systems allow corporations like McDonald’s and Wells Fargo to streamline processes for the institution and the clients it serves. ROI analysis gives them data to ensure processes in place are profitable for all involved including its investors and stakeholders. They assist with communications, ethics and decision making enabling streamlined processes to be effective and fast to deliver data that guides the prospective organization.