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C. Executive Information Systems
Introduction
An Executive Information Systems (EIS) is a type o management
inormation system inten!e! to a"ilitate an! support t#e inormation an!
!e"ision ma$ing nee!s o senior e%e"utives &y provi!ing easy a""ess to &ot#
internal an! e%ternal inormation relevant to meeting t#e strategi" goals o
t#e organi'ation( It is "ommonly "onsi!ere! as a spe"iali'e! orm o a
)e"ision Support System ()SS) an! ot#er*ise reerre! to as an Executive
Support System (ESS)(
EIS are targete! at management nee!s to +ui"$ly assess t#e status o a
&usiness or se"tion o &usiness( ,#ese pa"$ages are aime! irmly at t#e type
o &usiness user *#o nee!s instant an! up to !ate un!erstan!ing o "riti"al
&usiness inormation to ai! !e"ision ma$ing(
,#e i!ea &e#in! an EIS is t#at inormation "an &e "ollate! an! !isplaye! to
t#e user *it#out manipulation or urt#er pro"essing( ,#e user "an t#en
+ui"$ly see t#e status o #is "#osen !epartment or un"tion- ena&ling t#em to
"on"entrate on !e"ision ma$ing( .enerally an EIS is "onigure! to !isplay
!ata su"# as or!er &a"$logs- open sales- pur"#ase or!er &a"$logs- s#ipments-
re"eipts an! pen!ing or!ers( ,#is inormation "an t#en &e use! to ma$e
e%e"utive !e"isions at a strategi" level(
,#e emp#asis o t#e system as a *#ole is t#e easy to use intera"e an! t#e
integration *it# a variety o !ata sour"es( It oers strong reporting an! !ata
mining "apa&ilities *#i"# "an provi!e all t#e !ata t#e e%e"utive is li$ely to
nee!( ,ra!itionally t#e intera"e *as menu !riven *it# eit#er reports- or te%t
presentation( Ne*er systems- an! espe"ially t#e ne*er /usiness Intelligen"e
systems- *#i"# are repla"ing EIS- #ave a !as#&oar! or s"ore"ar! type
!isplay(
The Role of ESS in the Organization
E%e"utives oten a"e inormation overloa! an! must &e a&le to separate t#e
"#a rom t#e *#eat in or!er to ma$e t#e rig#t !e"ision( 0n t#e ot#er #an!-
i t#e inormation t#ey #ave is not !etaile! enoug# t#ey may not &e a&le to
ma$e t#e &est !e"ision( An ESS "an supply t#e summari'e! inormation
e%e"utives nee! an! yet provi!e t#e opportunity to !rill !o*n to more !etail
i ne"essary(
As te"#nology a!van"es- ESS are a&le to lin$ !ata rom various sour"es &ot#
internal an! e%ternal to provi!e t#e amount an! $in! o inormation
e%e"utives in! useul( As "ommon sot*are programs in"lu!e more options
an! e%e"utives gain e%perien"e using t#ese programs- t#ey1re turning to
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t#em as an easy *ay to manipulate inormation( Many e%e"utives are also
turning to t#e 4e& to provi!e t#e le%i&ility t#ey nee!(
Rationale
,#ey provi!e e%e"utive inormation in a rea!ily a""essi&le- intera"tive ormat
using grap#i"s &ase! +ueries on summari'e! an! !etaile! !ata( ,#ey are also
use! to analyse- "ompare an! #ig#lig#t tren!s to #elp govern t#e strategi"
!ire"tion o a "ompany( ,#ey are "ommonly integrate! *it# operational
systems- giving managers t#e a"ility to !rill !o*n to in! out urt#er
inormation on a pro&lem( It usually allo*s summary over t#e entire
organisation an! also allo*s !rilling !o*n to spe"ii" levels o !etail( ,#us
t#ey !es"ri&e! as an MIS or e%e"utive use(
,#ey are !esigne! to t#e in!ivi!ual to let "#ie e%e"utive oi"ers o
organisations tie in to all levels o t#e organisation( ,#ey are very e%pensive
to run an! re+uire e%tensive sta support to operate(
In re"ent years an! in t#e USA- t#e term EIS #as lost popularity in an! t#e
terms 5&usiness intelligen"e6 an! 5online analyti"al pro"essing6 are oten
use! or t#ese types o appli"ations(
Types of Executive Information System
Corporate Management 7 responsi&le or &usiness an! is"al planning-
&u!getary "ontrol- as *ell as or ensuring t#e "orporate inormation
te"#nology nee!s are met in a "o7or!inate! an! "ost ee"tive manner(
E(g(- Management un"tions- #uman resour"es- inan"ial !ata-
"orrespon!en"e- perorman"e measures- et"( (*#atever is interesting to
e%e"utives)
Technical Information Dissemination 8 or t#e purpose o
!isseminating t#e latest inormation on relevant te"#nologies- pro!u"ts-
pro"esses an! mar$ets E(g(- Energy- environment- aerospa"e- *eat#er-
et"(
Executive Information System Components
,#e "omponents o an EIS "an typi"ally &e "lassiie! as9
Hardware: 4#en tal$ing a&out #ar!*are or an EIS environment- *e s#oul!
o"us on t#e #ar!*are t#at meet e%e"utive:s nee!s( ,#e e%e"utive must &e
put t#e irst an! t#e e%e"utive:s nee!s must &e !eine! &eore t#e #ar!*are
"an &e sele"te!( ,#e &asi" "omputer #ar!*are nee!e! or a typi"al EIS
in"lu!es our "omponents9
(1) Input data-entry devices. ,#ese !evi"es allo* t#e e%e"utive to enter-
veriy- an! up!ate !ata imme!iately;
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(<) The central processing unit (C2U)- *#i"# is t#e $ernel &e"ause it "ontrols
t#e ot#er "omputer system "omponents;
(3) Data storage files( ,#e e%e"utive "an use t#is part to save useul &usiness
inormation- an! t#is part also #elp t#e e%e"utive to sear"# #istori"al
&usiness inormation easily;
(=) Output devices *#i"# provi!e a visual or permanent re"or! or t#e
e%e"utive to save or rea!( ,#is !evi"e reers to t#e visual output !evi"e or
printer( In a!!ition- *it# t#e a!vent o lo"al area net*or$s (LAN)- several
e%e"utive inormation system pro!u"ts or net*or$e! *or$stations &e"ame
availa&le( ,#ese systems re+uire less support an! less e%pensive "omputer
#ar!*are( ,#ey also in"rease a""ess o t#e EIS inormation to many more
users *it#in a "ompany(
Software: C#oosing t#e appropriate sot*are is vital to !esign an ee"tive
EIS( ,#ereore- t#e sot*are "omponents an! #o* t#ey integrate t#e !ata
into one system are very important( ,#e &asi" sot*are nee!e! or a typi"al
e%e"utive inormation system in"lu!es our "omponents9
1. Text base software( ,#e most "ommon orm o te%t is pro&a&ly
!o"uments;
2. Database( >eterogeneous !ata&ases resi!ing on a range o ven!or7
spe"ii" an! open "omputer platorms #elp e%e"utives a""ess &ot#
internal an! e%ternal !ata;
3. raphic base( .rap#i"s "an turn volumes o te%t an! statisti"s into visual
inormation or e%e"utives( ,ypi"al grap#i" types are9 time series "#arts-
s"atter !iagrams- maps- motion grap#i"s- se+uen"e "#arts- an!
"omparison7oriente! grap#s (i(e(- &ar "#arts);
4. !odel base( ,#e e%e"utive inormation system mo!els "ontain routine
an! spe"ial statisti"al- inan"ial- an! ot#er +uantitative analysis(
2er#aps a more !ii"ult pro&lem or e%e"utives is "#oosing rom a range o
#ig#ly te"#ni"al sot*are pa"$ages( Ease o use- responsiveness to
e%e"utives1 re+uests- an! pri"e are all reasona&le "onsi!erations( Furt#er- it
s#oul! &e "onsi!ere! *#et#er t#e pa"$age "an run on e%isting #ar!*are(
Interface: An EIS nee!s to &e ei"ient to retrieve relevant !ata or !e"ision
ma$ers- so t#e intera"e is very important( Several types o intera"es "an &e
availa&le to t#e EIS stru"ture- su"# as s"#e!ule! reports- +uestions ?
ans*ers- menu !riven- "omman! language- natural language- an! input ?
output(
It is "ru"ial t#at t#e intera"e must it t#e !e"ision ma$er:s !e"ision7ma$ing
style( I t#e e%e"utive is not "omorta&le *it# t#e inormation +uestions ?
ans*ers style- t#e EIS *ill not &e ully utili'e!( ,#e i!eal intera"e or an
e%e"utive support system *oul! &e simple to use an! #ig#ly le%i&le-
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provi!ing "onsistent perorman"e- rele"ting t#e e%e"utive:s *orl!- an!
"ontaining #elp inormation an! error messages(
Telecommunication: As !e"entrali'ing is &e"oming t#e "urrent tren! in
"ompanies- tele"ommuni"ations *ill play a pivotal role in net*or$e!
inormation systems( ,ransmitting !ata rom one pla"e to anot#er #as
&e"ome "ru"ial or esta&lis#ing a relia&le net*or$( In a!!ition-
tele"ommuni"ations *it#in an EIS "an a""elerate t#e nee! or a""ess to
!istri&ute! !ata(
Executive Support Systems Characteristics.
A num&er o !einitions #ave &een put or*ar! to !es"ri&e EISs( 4#ile a
!einition is useul- in a "omple% area su"# as EISs a &etter un!erstan!ing is
o&taine! &y loo$ing at t#eir "#ara"teristi"s( Some o t#ese are given &elo*9
E%e"utive support systems are en!7user "omputerise! inormation
systems operate! !ire"tly &y e%e"utive managers( ,#ey utilise ne*er
"omputer te"#nology in t#e orm o !ata sour"es- #ar!*are an!
programs- to pla"e !ata in a "ommon ormat- an! provi!e ast an! easy
a""ess to inormation(
,#ey integrate !ata rom a variety o sour"es &ot# internal an! e%ternal
to t#e organisation(
,#ey o"us on #elping e%e"utives assimilate inormation +ui"$ly to
i!entiy pro&lems an! opportunities( In ot#er *or!s- EISs #elp e%e"utives
tra"$ t#eir "riti"al su""ess a"tors(
Ea"# system is tailore! to t#e nee!s an! preeren"es o an in!ivi!ual
user- an! inormation is presente! in a ormat *#i"# "an most rea!ily &e
interprete!(
Alt#oug# t#ese "#ara"teristi"s apply to all EISs- ea"# in!ivi!ual system "an
potentially !ier in s"ope- nature- purpose an! "ontent- !epen!ing on t#e
environment in *#i"# it is implemente!(
Capabilities of Executive Support Systems
Most e%e"utive support systems oer t#e ollo*ing "apa&ilities9
"onsolidation 8 involves t#e aggregation o inormation an! eatures simple
roll7ups to "omple% groupings o interrelate! inormation
Drill-down 8 ena&les users to get !etails- an! !etails o !etails- o inormation
Slice-and-dice 8 loo$s at inormation rom !ierent perspe"tives
Digital dashboard 8 integrates inormation rom multiple "omponents an!
presents it in a uniie! !isplay(
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#ig $.% Examples of Digital dashboard
dvantages of Executive Information System
As more e%e"utives "ome up t#roug# t#e ran$s- t#ey are more amiliar
*it# an! rely more on te"#nology to assist t#em *it# t#eir @o&s( E%e"utive
Support Systems !on1t provi!e e%e"utives *it# rea!y7 ma!e !e"isions(
,#ey provi!e t#e inormation t#at #elps t#em ma$e t#eir !e"isions(
E%e"utives use t#at inormation- along *it# t#eir e%perien"e- $no*le!ge-
e!u"ation- an! un!erstan!ing o t#e "orporation an! t#e &usiness
environment as a *#ole- to ma$e t#eir !e"isions(
E%e"utives are more in"line! to *ant summari'e! !ata rat#er t#an
!etaile! !ata (even t#oug# t#e !etails must &e availa&le)( ESS rely on
grap#i" presentation o inormation &e"ause it1s a mu"# +ui"$er *ay or
&usy e%e"utives to grasp summari'e! inormation
It provi!es timely !elivery o "ompany summary inormation(
It provi!es &etter un!erstan!ing o inormation
It ilters !ata or management(
It provi!es system or improvement in inormation tra"$ing
It oers ei"ien"y to !e"ision ma$ers(
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!isadvantages of Executive Information System
Fun"tions are limite!- "annot perorm "omple% "al"ulations(
>ar! to +uantiy &eneits an! to @ustiy implementation o an EIS(
E%e"utives may en"ounter inormation overloa!(
System may &e"ome slo*- large- an! #ar! to manage(
)ii"ult to $eep "urrent !ata(
May lea! to less relia&le an! inse"ure !ata(
Small "ompanies may en"ounter e%"essive "osts or implementation(
>ig#ly s$ille! personnel re+uirement "an not &e ulille! &y t#e small
&usiness(
Executive Information System "eatures
EIS are inten!e! as !e"ision support tools or senior managers( Sin"e t#ese
strategi" !e"isions are &ase! on a *i!e range o input inormation- t#ey
al*ays nee! to &e *ell integrate! *it# operational systems in a &usiness(
Some important eatures o e%e"utive support system in"lu!e t#e a"t t#at9
,#ey provi!e summary inormation to monitoring o &usiness
perorman"e( ,#is is oten a"#ieve! t#roug# measures $no*n as B"riti"al
su""ess a"tors: or B$ey perorman"e in!i"ators: (C2Is)( ,#ese *ill &e
!isplaye! in an easy7to7interpret orm su"# as a grap# s#o*ing t#eir
variation t#roug# time( I a C2I alls &elo* a "riti"al preset value- t#e
system *ill notiy t#e manager t#roug# a visi&le or au!i&le *arning(
,#ey are use! mainly or strategi" !e"ision ma$ing- &ut may also provi!e
eatures t#at relate to ta"ti"al !e"ision ma$ing(
,#ey provi!e a !rill7!o*n eature *#i"# gives a manager t#e opportunity
to in! out more inormation ne"essary to ta$e a !e"ision or !is"over t#e
sour"e o a pro&lem( E(g( a manager *it# multinational manua"turing
pro&lem mig#t in! rom t#e EIS t#at a parti"ular "ountry is
un!erperorming in pro!u"tion( >e "oul! !rill !o*n to see *#i"#
parti"ular a"tory *as responsi&le or t#is(
,#ey provi!e analysis tools(
,#ey must &e integrate! *it# ot#er a"ilities to #elp manage t#e solving
o pro&lems an! t#e !aily running o t#e &usiness( ,#ese in"lu!e
ele"troni" mail an! s"#e!uling an! "alen!ar a"ilities(
,#ey integrate !ata rom a *i!e range o inormation sour"es- in"lu!ing
"ompany an! e%ternal sour"es su"# as mar$et an! "ompetitor(
,#ey #ave to &e !esigne! a""or!ing to t#e nee!s o managers *#o !o
not use "omputers re+uently( ,#ey s#oul! &e intuitive an! easy to learn(
All t#ese a"ilities re+uire integration *it# operational !ata( Sin"e t#is
inormation is "ommonly store! in t#e ED2 systems- t#ese are oten
integrate! *it# EIS or #ave EIS un"tions &uilt in(
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EIS #ro$ect Team
,#e pro"ess o esta&lis#ing organi'ational o&@e"tives an! measures is
intimately lin$e! *it# t#e tas$ o lo"ating relevant !ata in e%isting "omputer
systems to support t#ose measures( 0&@e"tives must &e spe"ii" an!
measura&le- an! !ata availa&ility is "riti"al to measuring progress against
o&@e"tives(
Sin"e t#ere is little use in !eining measures or *#i"# !ata is not availa&le- it
is re"ommen!e! t#at an EIS pro@e"t team in"lu!ing te"#ni"al sta &e
esta&lis#e! at t#e outset( ,#is "ross7un"tional team "an provi!e early
*arning i !ata is not availa&le to support o&@e"tives or i senior manager1s
e%pe"tations or t#e system are impra"ti"al(
A preliminary EIS pro@e"t team mig#t "onsist o as e* as t#ree people( An EIS
2ro@e"t Lea!er organi'es an! !ire"ts t#e pro@e"t( An E%e"utive Sponsor
promotes t#e pro@e"t in t#e organi'ation- "ontri&utes senior management
re+uirements on &e#al o t#e senior management team- an! revie*s pro@e"t
progress regularly( A ,e"#ni"al Lea!er parti"ipates in re+uirements
gat#ering- revie*ing plans- an! ensuring te"#ni"al easi&ility o all proposals
!uring EIS !einition(
As t#e o"us o t#e pro@e"t &e"omes more te"#ni"al- t#e EIS pro@e"t team may
&e "omplemente! &y a!!itional te"#ni"al sta *#o *ill &e !ire"tly involve! in
e%tra"ting !ata rom lega"y systems an! "onstru"ting t#e EIS !ata repository
an! user intera"e(
"actors influencing the functioning of Executive information systems
Organizational setup
,#e poli"ies an! pro"e!ures ollo*e! in an organi'ation #ave a great impa"t
in t#e manner management inormation systems are implemente! in an
organi'ation( For e(g( I a "ompany &elieves in "entrali'ation o aut#ority an!
#esitates to !elegate aut#ority t#en EIS *ill &e provi!e! or t#e top most
managers in t#e organi'ation( 0n t#e "ontrary i t#e "ompany is o t#e
opinion t#at !e"entrali'ation o aut#ority *ill #elp in &etter governan"e t#en
EIS *ill &e intro!u"e! in a separate manner( ,#ey *ill &e given to a "ouple o
managers even at t#e @unior level i it is &elieve! t#at it *ill ai! t#em in one
*ay or t#e ot#er(
Other factors
,#e internal an! e%ternal a"tors "onne"te! !ire"tly or in!ire"tly *it# t#e
organi'ation *ill #ave t#eir o*n say in esta&lis#ing e%e"utive inormation
systems in an organi'ation( For e(g( i matters relating to "omplian"e o ta%-
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au!it an! ot#er statutory matters are #an!le! &y t#e senior mangers only
t#en EIS *ill &e targete! to t#em alone(
0n t#e ot#er #an! i "leri"al la&our is also involve! in t#e same pro"e!ures
EIS t#ey *ill also &e a&le to a""ess EIS an! ren!er t#e ne"essary supporting
un"tions to t#e senior managers( 4#atever &e t#e "ase t#e role o men in an
organi'ation plays a "ru"ial part in implementation an! un"tioning o
e%e"utive inormation systems(
,#e su""ess o e%e"utive inormation systems lies in t*o issues( Firstly t#e
inormation s#oul! properly rea"# t#e "on"erne! e%e"utives( Se"on!ly t#ey
s#oul! a""or! importan"e an! a"t upon it( A&ove all *#atever t#ey say must
&e given !ue "onsi!eration &y t#e !e"ision ma$ing aut#ority( ,#e system
must &e a ool proo one( 0nly t#en t#e results *ill reveal t#e true pi"ture(
Characteristics of Successful EIS Implementations
"ind an ppropriate Executive Champion 7 EIS pro@e"ts t#at su""ee! !o
so &e"ause at least one mem&er o t#e senior management team agrees to
"#ampion t#e pro@e"t( ,#e e%e"utive "#ampion nee! not ully un!erstan! t#e
te"#ni"al issues- &ut must &e a person *#o *or$s "losely *it# all o t#e
senior management team an! un!erstan!s t#eir nee!s- *or$ styles an! t#eir
"urrent met#o!s o o&taining organi'ational inormation( ,#e "#ampion1s
"ommitment must in"lu!e a *illingness to set asi!e time or revie*ing
prototypes an! implementation plans- inluen"ing an! "oa"#ing ot#er
mem&ers o t#e senior management team- an! suggesting mo!ii"ations an!
en#an"ements to t#e system(
!eliver a Simple #rototype %uic&ly 7 E%e"utives @u!ge a ne* EIS on t#e
&asis o #o* easy it is to use an! #o* relevant t#e inormation in t#e system
is to t#e "urrent strategi" issues in t#e organi'ation( As a result- t#e &est EIS
pro@e"ts &egin as a simple prototype- !elivere! +ui"$ly- t#at provi!es !ata
a&out at least one "riti"al issue( I t#e inormation !elivere! is *ort# t#e
#assle o learning t#e system- a lurry o re+uirements *ill s#ortly &e
generate! &y e%e"utives *#o li$e *#at t#ey see- &ut *ant more( ,#ese
re+uests are t#e &est *ay to plan an EIS t#at truly supports t#e organi'ation-
an! are more valua&le t#an mont#s o planning &y a "onsultant or analyst(
0ne "aveat "on"erning t#e simple prototype approa"# is t#at e%e"utive
re+uests *ill +ui"$ly s"atter to +uestions o "uriosity rat#er t#an strategy in
an organi'ation *#ere strategi" !ire"tion an! o&@e"tives are not "learly
!eine!( A num&er o met#o!s are availa&le to support e%e"utives in !eining
&usiness o&@e"tives an! lin$ing t#em to perorman"e monitors in an EIS(
,#ese are !is"usse! urt#er in t#e se"tion on EIS an! 0rgani'ational
0&@e"tives &elo*(
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Involve 'our Information Systems !epartment 7 In some organi'ations-
t#e motivation or an EIS pro@e"t arises in t#e &usiness units +uite apart rom
t#e tra!itional inormation systems (IS) organi'ation( Consultants may &e
"alle! in- or managers an! analysts in t#e &usiness units may ta$e t#e
pro@e"t on *it#out "onsulting or involving IS( ,#is is a serious mista$e(
E%e"utive Inormation Systems rely entirely on t#e inormation "ontaine! in
t#e systems "reate! an! maintaine! &y t#is !epartment( IS proessionals
$no* &est *#at inormation is availa&le in an organi'ation1s systems an! #o*
to get it( ,#ey must &e involve! in t#e team( Involvement in su"# a pro@e"t
"an also &e &enei"ial to IS &y giving t#em a more strategi" perspe"tive on
#o* t#eir *or$ inluen"es t#e organi'ation(
Communicate ( Train to Overcome Resistance 7 A inal "#ara"teristi" o
su""essul EIS implementations is t#at o "ommuni"ation( E%e"utive
Inormation Systems #ave t#e potential to !rasti"ally alter t#e prevailing
patterns o organi'ational "ommuni"ation an! t#us *ill typi"ally &e met *it#
resistan"e( Some o t#is resistan"e is simply a matter o a la"$ o $no*le!ge(
,raining on #o* to use statisti"s an! perorman"e measures "an #elp(
>o*ever- resistan"e "an also &e roote! in t#e eelings o ear- inse"urity an!
"yni"ism e%perien"e! &y in!ivi!uals t#roug#out t#e organi'ation( ,#ese
attitu!es "an only &e inluen"e! &y a strong an! vo"al e%e"utive "#ampion
*#o "onsistently reinor"es t#e purpose o t#e system an! !ire"ts t#e
attention o t#e e%e"utive group a*ay rom unpro!u"tive an! punitive
&e#aviours(
Executive Support System pplications
EIS ena&les e%e"utives to in! t#ose !ata a""or!ing to user7!eine! "riteria
an! promote inormation7&ase! insig#t an! un!erstan!ing( Unli$e a
tra!itional management inormation system presentation- EIS "an !istinguis#
&et*een vital an! sel!om7use! !ata- an! tra"$ !ierent $ey "riti"al a"tivities
or e%e"utives- &ot# *#i"# are #elpul in evaluate i t#e "ompany is meeting
its "orporate o&@e"tives( Ater reali'ing its a!vantages- people #ave applie!
EIS in many areas- espe"ially- in manua"turing- mar$eting- an! inan"e
areas(
Manufacturing - /asi"ally- manua"turing is t#e transormation o ra*
materials into inis#e! goo!s or sale- or interme!iate pro"esses involving t#e
pro!u"tion or inis#ing o semi7manua"tures( It is a large &ran"# o in!ustry
an! o se"on!ary pro!u"tion( Manua"turing operational "ontrol o"uses on
!ay7to7!ay operations- an! t#e "entral i!ea o t#is pro"ess is ee"tiveness
an! ei"ien"y( ,o pro!u"e meaningul managerial an! operational
inormation or "ontrolling manua"turing operations- t#e e%e"utive #as to
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ma$e "#anges in t#e !e"ision pro"esses( EIS provi!es t#e evaluation o
ven!ors an! &uyers- t#e evaluation o pur"#ase! materials an! parts- an!
analysis o "riti"al pur"#asing areas( ,#ereore- t#e e%e"utive "an oversee
an! revie* pur"#asing operations ee"tively *it# EIS( In a!!ition- &e"ause
pro!u"tion planning an! "ontrol !epen!s #eavily on t#e plant:s !ata &ase
an! its "ommuni"ations *it# all manua"turing *or$ "entres- EIS also
provi!es an approa"# to improve pro!u"tion planning an! "ontrol(
Marketing - In an organi'ation- mar$eting e%e"utives: role is to "reate t#e
uture( ,#eir main !uty is managing availa&le mar$eting resour"es to "reate
a more ee"tive uture( For t#is- t#ey nee! ma$e @u!gments a&out ris$ an!
un"ertainty o a pro@e"t an! its impa"t on "ompany in s#ort term an! long
term( ,o assist mar$eting e%e"utives in ma$ing ee"tive mar$eting !e"isions-
an EIS "an &e applie!( EIS provi!es an approa"# to sales ore"asting- *#i"#
"an allo* t#e mar$et e%e"utive to "ompare sales ore"ast *it# past sales( EIS
also oers an approa"# to pro!u"t pri"e- *#i"# is oun! in venture analysis(
,#e mar$et e%e"utive "an evaluate pri"ing as relate! to "ompetition along
*it# t#e relations#ip o pro!u"t +uality *it# pri"e "#arge!( In summary- EIS
sot*are pa"$age ena&les mar$eting e%e"utives to manipulate t#e !ata &y
loo$ing or tren!s- perorming au!its o t#e sales !ata- an! "al"ulating totals-
averages- "#anges- varian"es- or ratios( All o t#ese sales analysis un"tions
#elp mar$eting e%e"utives to ma$e inal !e"isions(
Medical 7 E%e"utive inormation systems are "oming to #ospitals a little later
t#an t#ey !i! to ot#er in!ustries- &ut t#ere appears to &e tremen!ous
interest at t#e e%e"utive level( ,#ese systems provi!e inormation t#at is
more timely- relevant- an! "on"ise t#an paper7&ase! systems( 4it# t#e
"#anging environment in #ealt#"are- t#e a&ility to monitor $ey areas o t#e
operation in near real time is "riti"al(
>ospitals are unusually inormation7ri"# environments( In a"t- managements
"onsi!er #ospitals to &e pere"t mo!els o inormation7&ase! organi'ations(
4it#in t#e #ospital environment- EIS "an gat#er up7to7t#e7minute inormation
rom all verti"al areas o t#e enterprise77inan"e- nursing- "lini"al areas-
me!i"al sta77to provi!e e%e"utives *it# a #ig#7level- real7time perspe"tive
on in!i"ators an! tren!s t#at ae"t &usiness su""ess(
In trut#- all #ospitals alrea!y #ave some type o e%e"utive inormation
system; every paper report- pro"e!ural up!ate- telep#one message- a%- or
memo t#at e%e"utives re"eive serves as part o an inormation system( At
*orst- t#e system may provi!e inormation t#at is out!ate!- ina""urate- or
open to misinterpretation( At &est- it oers a temporary- stati" analysis o
!ata t#at "annot meet t#e nee!s o t#e ast7moving- #ig#ly "ompetitive
atmosp#ere o to!ay1s #ealt#"are operation(
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inancial - A inan"ial analysis is one o t#e most important steps to
"ompanies to!ay( ,#e e%e"utive (E!!ie Frame) nee!s to use inan"ial ratios
an! "as# lo* analysis to estimate t#e tren!s an! ma$e "apital investment
!e"isions( An EIS is a responsi&ility7oriente! approa"# t#at integrate!
planning or &u!geting *it# "ontrol o perorman"e reporting- an! it "an &e
e%tremely #elpul to inan"e e%e"utives( /asi"ally- EIS o"uses on
a""ounta&ility o inan"ial perorman"e an! it re"ogni'es t#e importan"e o
"ost stan!ar!s an! le%i&le &u!geting in !eveloping t#e +uality o inormation
provi!e! or all e%e"utive levels( EIS ena&les e%e"utives to o"us more on t#e
long7term &asis o "urrent year an! &eyon!- *#i"# means t#at t#e e%e"utive
not only "an manage a sui"ient lo* to maintain "urrent operations &ut also
"an igure out #o* to e%pan! operations t#at are "ontemplate! over t#e
"oming years( Also- t#e "om&ination o EIS an! E)I environment "an #elp
"as# managers to revie* t#e "ompany:s inan"ial stru"ture so t#at t#e &est
met#o! o inan"ing or an a""epte! "apital pro@e"t "an &e "on"lu!e!( In
a!!ition- t#e EIS is a goo! tool to #elp t#e e%e"utive to revie* inan"ial ratios-
#ig#lig#t inan"ial tren!s an! analy'e a "ompany:s perorman"e an! its
"ompetitors(
!o"ernment 7 E%e"utive Inormation Systems in government #ave &een
"onstru"te! to tra"$ !ata a&out Ministerial "orrespon!en"e- "ase
management- *or$er pro!u"tivity- inan"es- an! #uman resour"es to name
only a e*( 0t#er se"tors use EIS implementations to monitor inormation
a&out "ompetitors in t#e ne*s me!ia an! !ata&ases o pu&li" inormation in
a!!ition to t#e tra!itional revenue- "ost- volume- sales- mar$et s#are an!
+uality appli"ations(
"uture Trends in Executive Information System
,#e uture o e%e"utive ino systems *ill not &e &oun! &y mainrame
"omputer systems( ,#is tren! allo*s e%e"utives es"aping rom learning
!ierent "omputer operating systems an! su&stantially !e"reases t#e
implementation "osts or "ompanies( /e"ause utili'ing e%isting sot*are
appli"ations lies in t#is tren!- e%e"utives *ill also eliminate t#e nee! to learn
a ne* or spe"ial language or t#e EIS pa"$age( Future e%e"utive inormation
systems *ill not only provi!e a system t#at supports senior e%e"utives- &ut
also "ontain t#e inormation nee!s or mi!!le managers( ,#e uture
e%e"utive inormation systems *ill &e"ome !iverse &e"ause o integrating
potential ne* appli"ations an! te"#nology into t#e systems- su"# as
in"orporating artii"ial intelligen"e (AI) an! integrating multime!ia
"#ara"teristi"s an! IS)N te"#nology into an EIS(
Examples of ESS
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,#e Sutter >ome 4inery uses mostly e%ternal !ata- in"lu!ing inormation
rom t#e Internet- in its ESS( It organi'es t#e inormation in or!er to #elp
e%e"utives ma$e !e"isions &ase! on tren!s in t#e mar$etpla"e( ,#e
inormation in"lu!es !ata on "ompetitors an! inormation rom mar$et
resear"#( Sutter uses its system output to !etermine sales ore"asts-
mar$eting "ampaigns- an! investment plans(
Managers at t#e Doyal /an$ o Cana!a are a&le to "#oose t#eir o*n
"riteria (rom among 1A "#oi"es) to !rill !o*n an! navigate !ata t#roug#
easy7to7use intera"es( ,#ey !on1t #ave to a""ept !ata in ormats "#osen
&y someone else *#o may not un!erstan! in!ivi!ual manager1s nee!s(
)ata analysis is more timely &e"ause t#e inormation is +ui"$er to o&tain
an! more "onvenient t#an &eore(
Summary
E%e"utive Support Systems meet t#e nee!s o "orporate e%e"utives &y
provi!ing t#em *it# vast amounts o inormation +ui"$ly an! in grap#i"al
orm to #elp t#em ma$e ee"tive !e"isions(
ESS must &e le%i&le- easy to use- an! "ontain &ot# internal an! e%ternal
sour"es o inormation(
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