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Center for Information Systems Research
Massachusetts
Institute of Technology
Sloan School of Management
77 Massachusetts Avenue
Cambridge, Massachusetts, 02139
22
1985
A SURVEY OF CURRENT TRENDS IN
THE USE OF EXECUTIVE SUPPORT SYSTEl^S
David
W.
De Long
John
F.
Rockart
November 1984
CISR WP #121
Sloan WP #1596-84
(c)
D.
W.
De Long.
J.
F.
Rockart
1984
Center for Information Systems Research
Sloan School of Management
Massachusetts Institute of Technology
I
FEB 2 2
-
1
Introduction
Since 1979 there has been
the
evolution
executive
of
but growing amount of research done on
small
a
support
systems
These
(ESS).
systems
have
been
defined as "terminal -based computer systems designed to aid senior executives
in the management of
Rockart/Treacy,
Levinson]
1981;
Virtually all
[Levinson].
the firm"
has
been
ESS research [e.g.,
attempt
an
develop
to
an
understanding of what executive support systems are, how they are implemented,
The authors have drawn conclusions about ESS
and how they are actually used.
from
a
limited
relatively
companies
of
set
that
pioneered
have
the
in
development of systems to support top management.
Partly
because of
the
limited evidence,
much argumentation exists as
Rockart and Treacy
the efficacy and future path of executive support systems.
observed
[Dearden,
in
1980
Naylor,
senior executive
that
only
a
few
that
very
a
phenomenon
Mollis]
Kiechel,
using
ESS
the
press
since
computer terminal
unusual
top
Despite these negative predictions,
business
have
continues
to
was
makes
managers will
that
little,
have
however,
Others,
growing.
suggested
if
them
the
any,
on
on
an
increasing
sense
their
number
of
idea
the management literature and the
report
to
of
a
and
desks.
popular
senior
executives who are making use of computer terminals [Perham, Whiteside, Nulty,
Steinhart,
Verespej,
Davis].
What has been missing up to
this
point
is
any
2 -
evidence concerning
the
actual
prevalence
and
of
use
ESS
in
organizations.
How many top executives are using computers to help manage their businesses?
And, what is the impact of ESS?
What are they using the terminals for?
purpose
The
the
of
study
reported
here
was
to
gain
some
insights
into
these questions, by providing data from which to draw rough conclusions about
A second objective was to identify some of
the proliferation and use of ESS.
the
issues
emerging
and
concerns
that
could
focus
the
be
of
future
ESS
research.
This survey is just one part of
of
executive
support systems.
a
multistage study into the current state
The objective
of
this
research
descriptive understanding of the systems now in existence
ESS
are
being used,
the systems.
In
their strengths and weaknesses,
the end, we hope this analysis will
senior management's use of computers which will
future ESS and
in
and
—
is
to
gain
a
the ways in which
the
users'
views
of
produce conclusions about
be of value both in designing
understanding the impact of the technology on the ways
in
which senior executives will manage their organizations in the future.
Methodology
The
50
corporations chosen for this
sample of the 1984 Fortune 500 list.
In
study
represent
each case,
a
10
percent
random
we contacted either
the
- 3
executive
computer
senior
or
corporation,
the
in
person capable of providing the best overview of the
area
\nterview,
telephone
that
and
confidential
they
would
sent
be
Interviews were conducted between July
responding and
The
1
copy
a
their
of
of
each
responses
were
outset
the
final
the
report.
and September 15 1984, with 45 firms
choosing not to participate.
5
problems
with
telephone
interviews
shown here must be treated with care.
In addition,
that
told
were
interviewees
the
activity in the
firm's
At
systems.
support
executive
computer-based
of
systems
information
the
several
are
known,
well
and
the
results
some interesting data emerged.
However,
qualitative themes were noted time and time again, and we
believe they are worth reporting.
The
interviews
ranged
amount of ESS activity
subject
talk
to
about
from
in
the
interview took 20 minutes.
but not every
the
5
30
to
depending
on
the
firm and the willingness
of
the
minutes
respondent's
applications
in
length,
their
and
impacts.
The
average
The questions used came from an interview outline,
question was covered
each
in
interview because of
interviewee
time constraints and reluctance to discuss particular items.
The qualifying question used at the
your
company
have
computer-based
interviewer read the following:
systems'
The
executive
support
"For this study,
are
either
directly
to
the
him
CEO
(or
or
a
member
her).
of
interview was:
systems?"
we define
"Does
Then,
the
'executive support
for any business function.
as the routine use of a computer terminal
users
reporting
outset of each
the
Executive
implemented at the corporate and/or divisional level."
senior
support
management
systems
can
team
be
One of the problems with any study of "executive support systems"
there
information
What one
computer."
our
systems
discount
would
another
ways,
great confusion about what
still
is
as
really
executive might
define
electronic
"just
constitutes
as
that
system.
a
"executive
support",
"just
personal
or
mail"
such
is
a
Because this concept is evolving so fast and in so many different
objective
was
executives
had
first
corporation's
top
simply
terminals
begin to determine the system's capabilities,
whether
determine
to
on
their
desks.
not
or
Then,
we
a
could
degree of use and impact on the
organization.
Findings
Three significant findings emerged from the interviews:
About two-thirds of the companies had some activity going on in the area
of computer-based executive support.
The type of use and expected organizational
impact varied widely.
three
as
companies
was
ESS
usage
described
"high."
Another
In
only
fourteen
reported "moderate" use.
Several
key
issues
appeared
repeatedly
throughout
the
interviews.
point the way to critical areas for further research in the ESS area.
Most
5 -
Widespread and Diverse Activity
out of the 45 responding
30 corporations
In
executive,
at
either
corporate
the
our survey,
divisional
or
As Exhibit
terminal on his or her desk.
in
I
level,
terminals are appearing on the desks of "a few users"
opposed to individual
—
systems
terminals
had
or office-wide applications.
in
— exceeds the number of corporations
— 30 ~ because some firms have multiple
computer
a
the corporation,
where
executives
with
systems
as
number of
(Note the total
39
one
(29), computer
in most cases
shows,
at least
have
different
capabilities.)
There
are
automation,
essentially
status access,
offer capabilities from
"Office
such
as
terminal
the
automation"
electronic
is
designed
(See
to
capabilities.
1981),
mail,
and
classifications
query
and
of
analysis.
in
make
the
office
specific
systems
combination of the three classifications.
generally
means
calendaring
this category
Exhibit
capabilities:
Often,
and
terminal -based
word
access
II).
functions
to
The
processing.
usually networked to others in the company,
twelve firms
computers
a
three
although
executive's
four of
in
executives were using stand-alone personal
Office
executive more
automation
efficient,
applications
and
do
Although unreported in previous research
the use of terminals for communication purposes
not
(e.g.,
(e.g.,
appears now to be a significant factor in the evolution of ESS.
are
provide
generally
analytic
Rockart/Treacy,
electronic mail)
- 6
access"
"Status
and
predetermined
used
generate
to
depending
the
on
give
applications
preformatted
status
set
particular
may
system,
but
be
ability
the
through
reports
of
reports
access
manager
a
The
terminal.
a
hourly
updated
significant
the
access
to
data
quarterly
or
about
thing
a
these
reports is that their formats are static and the numbers of reports available
is
query-based systems,
Unlike reports generated by
finite.
the data cannot
be manipulated or broken down further.
analysis"
and
"Query
ability
the
is
"what if" and other analysis.
to
are
capabilities
the
provided
not be linked to corporate data bases.
in
this
packages.
The
the
by
ability
to
ad
do
support
systems,"
this
for
problems
still
include
developing
in
mainframes,
is
and
the
unstructured
have
relatively
difficulties
rare
software
the
for
discuss
they
production
effective
ramifications of providing
political
or may
corporate
data
"executive
Reasons
executive level.
aggregating
in
as
spreadsheet
using
extensive
in
the
at
such
nine of the fourteen systems
mind when
in
packages
and which may
microcomputers
querying
hoc
spreadsheet
computers,
fact,
In
stand-alone
are
which is what many writers
bases,
cited
category
and
Also included in this
data bases.
Lotus 1-2-3, which are available on personal
found
random
One means of doing this is through analytical
tools which access corporate or divisional
category
perform
data
bases,
access
to
data
on
such
access
for
top
management.
companies
Of
the
30
desks,
the
most
common
where
user
executives
is,
as
have
expected,
computer
the
chief
terminals
financial
on
their
officer
(37%),
closely
followed
group
the
by
chairman of the board (30%).
In
vice
presidents
company or another,
one
and
(33%)
CEO
the
or
terminals are found
on the desks of virtually all types of functional vice presidents at the
corporate
It
is
team,
at
either
management
noting,
worth
level.
the
however,
corporate
that
ESS
use
divisional
or
entire
an
by
level,
is
still
relatively rare.
Limited Use
The most obvious finding in terms of the "Degree of Use"
as illustrated in Exhibit III,
the
of
use
is
that only in
computer terminals considered
number of the systems get "Moderate"
only
six
systems
fell
into the
"Low"
(i.e.
a
"High"
of the
very few cases
(daily
several
times
a
week)
(infrequent or no use)
of 39)
(3
A
use).
systems,
is
significant
use.
category,
While
it
is
also likely that a majority of the "Don't know/Didn't comment" responses would
fall
into the
"Low"
not know or do
use category.
Our guess is that if key
informed enough to comment on use,
not feel
I/S managers
do
then the systems
probably are not very active.
As might be expected,
identical
there is a very strong correlation (the figures are
except for one company) between the interviewer's impression of the
"Impact of Use"
(Exhibit IV)
and the
"Degree of Use"
(Exhibit
Exhibit IV shows that executive computer use is not yet having
direct
impact
on
the
way
most
organizations
are
managed.
III).
a
Data
in
significant
Instead,
there
tremendous
be
appears
to
ranging
from
"no
comments
with
impact,
variability
in
both
use
impact"
to
"the
system has changed the
discernible
and
way
he
does business."
Emerging Issues
Although
were
issues
a
telephone survey is
raised
a
consistently
so
limited research instrument,
by
those
issue
is
interviewed
that
a
series of
they
deserve
special mention and further attention.
Political
Implications
first
The
most
and
critical
implications
political
the
increasing access for senior managers to unfiltered operations data.
corporation,
the
divisions
taken
20
days
executives
two
to
days
get
now
after
the
on-line access
have
the
same
monthly
to
books
information.
Previously,
close.
"Our
ESS
has
made
the
one
In
reports
operational
of
from
it
had
division
The feedback
people aware that they are under far more scrutiny than before.
comes much faster," said the corporation's I/S executive.
At
this company,
on
seen data on the screen,
off
to
financial
VPs
at
several
occasions
the
run off a hard-copy,
division
level,
vice
president
red-penciled it,
demanding
of
finance
and mailed
explanations
for
has
it
certain
9 -
numbers.
VPs were taken aback at how fast the corporate level
The divivional
react to
could
now
their
paper
asked
that
formats
ESS
the
--
numbers
the
installed
be
at
even
before
Subsequently,
divisions.
the
in
sometimes
their
level,
the
they
so
were
they
seen
divisions
in
have
anticipate
could
questions from corporate management.
This
situation
typical
is
kinds
the
of
problems
of
organizations are going to face as ESS technology spreads.
more
more
and
"Who controls the
The question is who gets what data and when,"
data is the key issue in ESS.
said one I/S manager in a natural resources corporation.
To
deal
with this
issue,
the
manager of electronic office systems
telecommunications company said his firm had appointed
at the executive level
address
to
manages access to corporate data.
organization
own
the
financial
a
data?
We
a
"data base manager"
questions of data ownership.
"We had to ask:
in
person
This
does the controller in the
decided
the
data
belongs
to
the
company, not the function," he said.
Data ownership and data access issues can have
actual
data "reported"
to review data
and launder it,"
manufacturing company.
however,
still
in the corporation.
"Now
the "laundering"
the
"The
staff used to have more time
said the manager of
VP
sees
significant impact on the
raw data."
I/S planning
In
other
for
a
large
organizations,
process has merely been speeded up because the data
moves up through the management hierarchy.
10 -
Influencing Computer Use
however,
There is another side,
top
of
having
organizations.
them
on
their
Once
significantly.
increases
executives
desks,
use
the
"The
proliferation of terminals at the
the
to
begin
computers
of
benefit
chief
terminals,
using
of
by
the
or
least
at
subordinates
their
executives'
use
of
computers is that they make it easier for subordinates to buy systems because
understands the benefits,"
now the boss
corporation,
I
a
are
I/S
executive.
another
In
senior executive forced his staff to get terminals saying,
send an electronic mail
systems
said one
regularly
used
being
message,
expect
I
top
by
a
response."
management
to
In
"If
cases where the
monitor
performance
data, lower level managers are demanding access to the system so they can see
the
data their superiors are
getting.
"If you're
not
on
the
system,
you're
not in the ball game," commented one interviewee.
Data Management Difficulties
The politics of increased data access for top management are not, however,
the
managing
proving
with
barrier
only
to
production
to
be
the
aggregating
making
data
bases
biggest
available.
data
in
a
physical
non-compatible
data
corporation
roadblock
bases
accessing
Aggregating,
to
and
with
ESS
multiple
divisions
development.
inconsistent
data
and
is
Problems
elements,
-
frequent
with
combined
resistance
11
and
-
outright
refusal
make
to
data
this
available to top management, make data access a major issue that will
have to
be addressed if executive support systems are to be effective.
Implementation Problems
Another major barrier to the effective development of ESS is the lack of a
well -understood implementation process.
Unlike the processes for implementing
more traditional transaction processing or decision support systems, which are
well
well
executive
documented,
support
methodologies
implementation
not yet
are
understood.
Four reasons for implementation problems were frequently mentioned.
ESS
is
scarce.
relatively
a
Second,
unique culture,
system
is
upon old
I/S
subject
each system must be designed to meet different needs,
fit a
by
the
management
investment
to
use
the
from
that
style
user
of
on
user
the
during
Finally,
system.
the
there
is
and
design
a
Third,
each
requires
stage
tendency
and
to
a
in
draw
development processes, which are actually counterproductive for
ESS.
Evidence
of
the
implementation
comments made during the interviews:
us
the
still
time
learning
tell
literature
and draw from differently structured data bases.
actually
implementing
and
is
shaped
significant
concept,
new
First,
what they
really
need."
"The
problems
can
"We hope management will
CFO
likes
the
system we
says he wants 'more'. But he hasn't told us what 'more' means."
be
found
in
come back and
gave
him
and
12 -
-
It's just that executives don't know yet how to use
"It's not resistance.
use
but
it,
wildfire."
once
developed
"We
used
get
people
Right now they are
get out of it.
the system and what they can
the
but
system,
a
system,
the
to
executives
like
spread
will
it
reluctant to
don't
use
it
much."
Why? "There are some cultural problems."
All
exists
of
around
systems.
develop
I/S
implementation
the
people,
information
management
has
evidence of
statements are
these
not
for
the
from
systems
thoroughly
process
most part,
a
considered
needed
have
senior
confusion or
the
not
what
support
executive
for
previously
management
ignorance that
been
asked
And
top
provide
the
perspective.
information
will
to
most leverage for managing and thinking about the business.
One
implementation
(Rockart/Treacy,
Levinson)
numbers are small
by
the
Only
executives
one-third
of
hypothesis
presented
previous
in
received some backing in the
survey.
studies
Although
the
and the data subjective, 87 percent of the systems initiated
themselves
the
receive
systems
"sold"
"moderate"
to
top
to
"high"
management
by
use
I/S
(Exhibit
V).
were
the
in
"moderate" category. None received a "high" degree of use.
Hardware and Software Capabilities
Another barrier to ESS
needed to handle the special
is
the
lack
of
hardware and software capabilities
requirements of an ESS.
Vendors will
often claim
13
-
their
that
can meet
software
specs
the
designed
systems
of
support
to
top
System components for an
management, but user experience suggests otherwise.
hard to find and respondents' comments illustrate the
acceptable ESS are still
problem:
don't have
"We
hand
and
a
executive
the
system that can
delivery
the
information
he
synthesize and
Finding
needs.
summarize
software
data
packages
that can integrate data from many data bases is the biggest barrier to ESS."
"Our
first
project
find
to
is
a
software
package
company to get at financial data very flexibly on
"We
won't have an
ESS
Once that software
data.
we
until
is
find
a
allow
will
the
PC or terminal."
a
link
that
to
found and implemented,
our mainframe
financial
our executives will
begin
to use the system for decision support."
Never before
has
the
transparent and so fast.
does exist,
for
a
is
customized
executives.
of
it
As
a
a
While much of
the
result,
that
the
can
the
be
so
so
hardware and software
implement the
whims
integrated,
and
component pieces
needs
of
individual
technology utilized frequently falls far short
The flurry
Boeing
suit
to
necessary
difficult to find and
system
user expectations.
issue -- Metaphor,
of
very
technology been called on
EIS,
significant marketplace and
of companies,
Pilot Software,
a
however,
etc.
—
now addressing
suggests
the
possible solution for this problem.
this
presence
14 -
.
Management Style
ultimately
separates
use
of
executive
an
executives,
individual
support
plays
system.
dictates
which
It
the
factor
the
the
is
use
and
development
design,
the
in
management
non-use
that
computer
management-oriented
other
all
"management style"
applications is the role
and
from
ESS
notwithstanding,
problems
technical
and
access
Data
style
of
computer
of
Executives whose personal
terminals and the need for specific applications.
style calls for lots of face-to-face communication, while leaving analysis to
continue to resist ESS.
their staffs, will
So will
who fear being embarrassed by the computer.
several
executives here who would love to
those who do not type and
Said one I/S manager,
have
an
ESS,
but
"There are
they won't move
because of their sensitive egos and fear of criticism."
A respondent at one
little
interest
ESS.
in
high
They
tech corporation
see
no
need
to
"Our
said,
become
top management
terminal
operators.
has
At
best they will become casual users."
At another firm,
secretary,"
to
It
is
only
"I
capabilities, but
executive responses to
I
want
to
have
to
a
push
new ESS
one
ranged
button,"
from:
"Train my
to
want
"I
the
don't have time to learn the system."
clear that
a
large
number of senior
reasons, are not turning to terminal
usage.
for many
rational
they be pushed,
said the
executives,
Nor will
15
manager
I/S
at
products
forest
a
company.
"If
you
think
you
can
sell
an
executive by jamming the system down his throat, you are very wrong."
User Support
User support is clearly
factor in determining
critical
a
the technology because it is essential
19
of
for dealing with management resistance
Asked about the type of support currently provided for executives, 15
to ESS.
of
success
the
respondents
listed
support provided.
"one-on-one"
or
"coaching"
Sometimes this lesson is only
An I/S manager commented,
as
the
primary
type
of
learned through experience.
"We've relied on one executive vice president to use
the computer, giving him very easy software packages.
But he has just not used
the spreadsheets on his own, as we thought he would.
The support will
have to
be much more intense."
Security
executive
Once
security.
files
users.
Security
(e.g.,
Some
support
is
strategic
firms
have
a
systems
very
plans,
big
are
issue
in
because
executive
dealt with
the
place,
of
bonuses)
problem
a
problem
new
the
sensitivity
created
head
and
One
on.
example, has three to five levels of passwords for ESS users.
feeling vaguely uneasy about the security issue,
about
it.
"Because
we
have
a
centralized
DP
but are not
operation,
arises
of
accessed
company,
—
the
by
for
Other firms are
sure what to do
there
are
lots
of
-
localized
about
concerns
said
security,"
PC
applications
director
the
16
and
computing
corporate
of
questions
resulting
the
for
major
a
of
engine
"There's lots of talk and worry, but no action as yet."
manufacturer.
The Future
plans
Future
for
executive
support
systems
corporations
the
in
range from none to extensive. According to our interviews,
studied
23 of the 30 firms
that currently have some executive support systems in place intend to provide
additional ESS capabilities.
In addition,
that are currently
3 of the 15 firms
without any ESS have plans to initiate executive systems (see Exhibit VI).
Of the 30 firms that currently have some ESS activity, 18 continue to move
ahead slowly in this area, while
development.
no
plans
companies
to
5
corporations are "charging ahead" with ESS
The future plans for 3 remain
expand
where
their
ESS
current
development
ESS
is
"in
efforts.
2
companies have
surprisingly,
Not
"charging
and
limbo,"
ahead,"
in
5
received
systems
the
the
early and strong top management involvement and direction.
It appears that,
of
additional
ESS
with more than half of the respondents planning some type
activity
in
the
future,
the
use
of
computers
by
executives will continue to increase in the next few years.
As
generations of computer applications,
ESS will
uniform.
however,
the
spread of
Our understanding of these systems is primitive.
senior
with earlier
not
be
Much more needs to
-
17
be learned about issues such as the effects of senior management style on ESS,
the
managerial
comprises
an
tasks
that
effective
are
most
implementation
appropriate
for
methodology,
these
systems,
what
—
perhaps
most
and
significantly -- the impact of these systems on the organization.
-
18 -
REFERENCES
Davis, David "SMR Forum:
Review , Spring 1984.
Computers and Top Management,"
the Computer
Dearden, John "SMR Forum: Will
Fall
1983.
Management?" Sloan Management Review ,
Mollis, Robert "Real Executives
Systems July 1984, vol.3 no. 7.
Don't Use
Change
Computers,"
Sloan Management
the
Job
Business
Top
of
Computer
.
Kiechel, Walter "Why Executives Don't Compute," Fortune , November 14, 1983.
Levinson, Eliot "The Implementation of Executive Support Systems," CISR
Working Paper #119, Center for Information Systems Research, Sloan School of
Management, MIT, Cambridge, MA, October 1984.
"Decision Support Systems
Naylor, Thomas H.
M.I.S.?" Interfaces . August 1982, vol.12 no. 4.
Nulty. Peter "How
September 3, 1984.
Personal
Computers
Change
or
Whatever
Managers'
Happened
Lives."
to
Fortune
Perham, John "The Computer and the Top Honcho," Dun's Business Month
1983, vol.121 no. 5.
,
,
May,
Rockart, John F. and Treacy, Michael E. "Executive Information Support
Systems," CISR Working Paper #65, Center for Information Systems Research,
Sloan School of Management, MIT, Cambridge, MA, November 1980.
Rockart, John F. and Treacy. Michael E. "The CEO Goes On-Line." CISR
Working Paper #67, Center for Information Systems Research, Sloan School of
Management. MIT, Cambridge, MA. April 1981.
Rockart, John F, and Treacy, Michael
Business Review . January-February 1982.
E.
"The
CEO
Goes
Steinhart, Jim "The Computer and the Boss," Executive
,
On-Line,"
April
1984,
Harvard
vol.26
no. 4.
Whiteside, David "Computers Invade the Executive Suite,"
Management (European edition), August, 1983, vol, 38 no. 8.
International
EXHIBIT
I
CAPABILITIES/USEPS
RANGES OF USE
corporate/
a
division^
FEW
USEES
OFICE
OFICE
AUTOmTION
i
AN
irCIVIDUAL
TOTALS
EWIBIT
II
CAPABIUTIES/ARCHITECTURE
ARCHITECTURE
ST/VC
rCTWDRKED*
OFICE
ALfTOmTION
STATUS
ACCESS
i
Ql£RY*
CO
ANALYSIS
TOTALS
8
ALiDNE
EXHIBIT III
DEGREOFUSE
DEGREE USED
HIGH
OFICE
STATUS
ACCESS
i
C/5
QUERY S
ANALYSIS
TOTALS
MODERATE
UDW
DON'T KNOW/
DIDN'T CCrTENT
%
w
EXHIBIT IV
I^PACT OF USE ON T}€ ORGANIZATION
I^yACT
DON'T KNOW
EXTBSIVE
OFICE
AOTCmTION
-J
C/5
STATUS
ACCESS
QUERY &
ANALYSIS
TOTALS
EXHIBIT V
SYSTEM INITIATOR/DEGREE OF USE
INITIATOR
I
/S
GENERATED
HIGH
MODERATE
CO
>CO
LOW
TOTALS
MGT- I /S
COMBO
MGT
GENERATED
EXHIBIT VI
FUTURE ESS PLANS
PLANS
CHARGING MOVING AHEAD
IN LIMBO
AHEAD
SLOWLY
OFFICE
AUTOMATION
^
STATUS
ACCESS
OQ
Q_
QUERY &
ANALYSIS
GO
>-
NO ESS
TOTALS
INSUFFICIENT
NO PLANS
DATA
M!T LIBRARICS
3
'IDfiD
DDM 513 DO
Date Due
wo
JUN
7
'88
X
i^l
FEB
WAV
1
I
^'^
Lib-26-67
^"