This document discusses PepsiCo's use of information systems and decision support systems. It states that currently, decision support focuses only on managers and knowledge workers, rather than more operational decision making. It also notes the separation between operational and analytical/reporting systems leads to data duplication and latency issues. Better integration of these systems is needed. The document then discusses how information systems provide benefits to PepsiCo like coordination, data access, and time savings. Finally, it outlines the four stages of decision support systems applied at PepsiCo: contribution, development, evaluation, and implementation. It provides details on the procedural steps involved in each stage.

1. For PEPSI the only way information technology has been applied to decisions is in the form of
business intelligence analyzing of data to help someone make a decision. Decision support as a
discipline has always been aimed at the small segment of the population that uses data to make
important decisions in the organization: managers and knowledge workers. It hasn't been
effective at more fine-tuned, operational decision making that's just as crucial to the
organization's well-being, if not more so. In addition, current enterprise data architectures are
cleanly divided between operational systems and those that support the analytical and
reporting processes behind decision support. This division leads to excessive duplication of data,
latency in its accessibility, and usually a high degree of mismatch between analytical and
operational data. Coupled with the rapidly increasing volumes of data being generated and the
increasing rate of disparity as data arrives from external sources, the situation needs a better
solution.
Information Systems provides several benefits to the business in PEPSI: the means of effective
and efficient coordination between Departments; quick and reliable referencing; access to
relevant data and documents; use of less labor; improvement in organi zational and
departmental techniques; management of day-to-day activities (as accounts, stock control,
payroll, etc.); day-to-day assistance in a Department and closer contact with the rest of the
world. MIS provides a valuable time-saving benefit to the workforce. Employees do not have to
collect data manually for filing and analysis. Instead, that information can be entered quickly
and easily into a computer program. As the amount of raw data grows too large for employees’
to analyze, business analysts can build programs to access the data and information in response
to queries by management. With faster access to needed information, managers can make
better decisions about procedures, future di rections, and developments.
The Four effective stages of DSS that has been applied in Pepsi co.
The Procedural Stage
The group must actively develop, evaluate, and select alternatives and solutions to solve
the identified problem.
Step One: Development
It is important to create alternatives over the entire range of acceptable options outlined in
the contribution stage. At this stage the process needs to be free, open, and unconcerned
with feasibility. This activity should ensure that nonstandard and creative alternatives are
generated. Once again, the brainstorming technique can be used effectively, allowing
participants to quickly record and share results without partiality and to use the input to
develop additional alternatives.
A number of brainstorming methods such as “challenging assumptions,” the “random
word technique,” and “taking another’s perspective” can be used to generate more

2. creative alternatives. Alternatives that appear unworthy of further consideration need to
be eliminated.
It is possible to categorize or classify alternatives and consider them as a group, but care
should be taken not to create categories that are too complex, unmanageable or
cumbersome. If the group shows dissatisfaction with the quantity or quality of
alternatives under consideration, a break may be beneficial in order to renew the group
and inject more objectivity and fresh insight into the process.
Step Two: Evaluate
A list of specific advantages, disadvantages, and interesting aspects for each alternative
should be shared, discussed and recorded. After eliminating alternatives that are clearly
outside the bounds and parameters of the stated criteria, these advantages and
disadvantages should be considered in more detail.
An analysis of existing relationships among alternatives should also be completed, which
can be done by asking, “Is an advantage of one a disadvantage for another?” At this
point, serious consideration should be given to the relative importance of advantages and
disadvantages.
Only those alternatives that the majority of the group considers to be relevant and correct
should be given further consideration.
Step Three: Developing a Solution
For relatively simple problems, one alternative may clearly be the “best choice” solution.
However, in more complex situations, combining several alternatives may be more
effective. A distinct advantage of this process is that—if previous steps have been
completed thoroughly and with attention to detail—selecting a solution becomes far less
complicated.
Before completing this stage it is important to diagnose possible problems with the
selected solution and determine the implications of these potential problems. This means
asking the question, “What could go wrong and why?” When developing a solution, it is
important to discuss the worst-case scenario that could come about if the solution is
implemented.

3. The Implementation Stage
During this stage, a plan with which to put the selected solution into action is created.
The plan must be highly detailed to allow for successful implementation.
Methods of evaluation must also be considered and developed. When developing a plan,
the major phases of implementation are considered first, with steps necessary for each
phase outlined. It is often helpful to construct a timeline and diagram the most important
steps in the implementation process. “Backward planning” and task analysis techniques
can be useful during this stage.
The plan should be implemented as carefully and completely as possible, with minor
modifications often needed.