[IffiRASffiS HD2S .M414 no. 1596- M.I.T. 84 1984 V> Upo^'Es" APR 02 1990 A SURVEY OF CURRENT TRENDS INTHEUSEOF EXECUTIVE SUPPORT SYSTEMS David W. De Long John F. Rockart 90s: 85-004 A SURVEY OF CURRENT TRENDS INTHEUSEOF EXECUTIVE SUPPORT SYSTEMS David W. De Long John F. Rockart 90s: 85-004 November, 1984 CISRWP#121 Sloan ® WP #1596-84 Massachusetts Institute of Technology Management in the 1990s Sloan Scnool of Management Massachusetts Institute of Technology n.-:?: "'"3 APR o,:: 1390 \ Management in the 1990s is an industry and governmental agency supported research program. Its aim is to develop a better understanding of the managerial issues of the 1990s and how to deal most effectively with them, particularly as these issues revolve around anticipated advances in Information Technology. Assisting the work of the Sloan School working partners in scholars with financial support and as research are: American Express Travel Related Services Company Arthur Young and Company British Petroleum Company, p. I.e. BellSouth Corporation Equipment Corporation Eastman Kodak Company General Motors Corporation International Computers, Ltd. MCI Communications Corporation United States Internal Revenue Service Digital The conclusions or opinions expressed in this paper are those of the author(s) and do not necessarily reflect the opinion of Massachussetts Institute of Technology, Management in the 1990s Research Program, or its sponsoring organizations. - - 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 the firm" Rockart/Treacy, Levinson] 1981; Virtually all [Levinson]. 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 relatively limited companies of set that have pioneered in the development of systems to support top management. Partly because of the much argumentation exists as to limited evidence, Rockart and Treacy the efficacy and future path of executive support systems. observed [Dearden, in 1980 Naylor, that Kiechel, senior executive using that very only a few ESS the a phenomenon Mollis] have since computer terminal unusual top was suggested makes managers will that little, have however, Others, growing. if them the any, on idea of sense their a and desks. Despite these negative predictions, the management literature and the popular business press continues to report on an increasing number of 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 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? The purpose of the study reported here was to some gain 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 emerging issues and concerns that could be focus the 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 is to descriptive understanding of the systems now in existence ESS are being used, the systems. their strengths and weaknesses, In the end, we and — gain a the ways in which the users' views of hope this analysis will produce conclusions about senior management's use of computers which will be of value both in designing future ESS and in 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 a 10 percent random each case, we contacted either the computer senior executive or corporation, the in person capable of providing the best overview of the area computer-based of \nterview, telephone they would sent be Interviews were conducted between July responding and The 1 that copy a activity outset the their of the in the of each responses were final 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 told firm's At systems. were interviewees the that and confidential support executive systems information the addition, several are However, known, well and the results some interesting data emerged. qualitative themes were noted time and time again, and we believe they are worth reporting. The interviews amount of ESS activity subject talk to from ranged about in the interview took 20 minutes. but not every the 5 30 minutes to firm and respondent's applications their and depending on the the willingness of the length, in 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 as the routine use users reporting are either directly to the him outset of each interview was: executive support "For this study, we define (or or a member her). of Then, the 'executive support for any business function. of a computer terminal CEO systems?" "Does the Executive implemented at the corporate and/or divisional level." senior support management systems can team be is that One of the problems with any study of "executive support systems" there information What one computer." ways, our systems discount would another really constitutes great confusion about what still is as executive might electronic "just define as mail" such a system. "executive support", "just personal or a Because this concept is evolving so fast and in so many different objective was executives had first corporation's top simply to terminals on whether determine their desks. not or Then, we a could begin to determine the system's capabilities, 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 In 30 corporations out of executive, at either the 45 corporate the responding in our survey, or As Exhibit terminal on his or her desk. divisional I level, systems — terminals or office-wide applications. essentially status access, offer capabilities from "Office as terminal the electronic designed where number of executives systems with as have different mail, three and classifications query and of analysis. capabilities: Often, specific office systems combination of the three classifications. generally means calendaring and terminal -based word access to The processing. functions executive's usually networked to others in the company, although in four of executives were using stand-alone personal twelve firms computers a automation" is the corporation, ) are automation, computer a (Note the total — exceeds the number of corporations — 30 — because some firms have multiple There such in 39 capabilities. had shows, in most cases (29), computer terminals are appearing on the desks of "a few users" opposed to individual at least one (See to capabilities. this category in Exhibit make the II). Office executive more automation efficient, applications and do not are provide generally analytic Although unreported in previous research (e.g., Rockart/Treacy, 1981), the use of terminals for communication purposes (e.g., electronic mail) appears now to be a significant factor in the evolution of ESS. - 6 access" "Status give applications manager a predetermined and preformatted set of reports through used generate to depending the on status reports access particular system, may be access to hourly updated quarterly or thing a The data terminal. a significant the but ability the these about reports is that their formats are static and the numbers of reports available is Unlike reports generated by query-based systems, finite. the data cannot be manipulated or broken down further. "Query analysis" and ability the is to tools which access corporate or divisional are provided capabilities the not be linked to corporate data bases. in this packages. The the by ability do to ad querying hoc support systems," problems developing in mainframes, still include this for is and relatively difficulties rare for as nine of the fourteen systems in the spreadsheet using extensive discuss production effective access data corporate "executive Reasons executive level. aggregating in software the at such and which may or may microcomputers stand-alone are computers, fact, In spreadsheet packages which is what many writers have in mind when they bases, cited category unstructured Also included in this data bases. Lotus 1-2-3, which are available on personal found random and One means of doing this is through analytical "what if" and other analysis. category perform bases, data to data on ramifications of providing such access for top the political management. companies Of the 30 desks, the most common where user executives is, as have expected, computer the chief terminals financial on their officer 7 (37%), followed closely group the by chairman of the board (30%). vice presidents and (33%) company or another, one In - CEO the or terminals are found on the desks of virtually all types of functional vice presidents at the corporate level. management team, noting, worth It is at either the however, corporate ESS that 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 computer terminals use number of the only six systems get systems fell is that only in a very few cases considered "Moderate" into the of the "Low" (i.e. "High" (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. not feel Our guess is I/S managers that if key informed enough to comment on use, do then the systems probably are not very active. As might be expected, there is a very strong correlation identical except for one company) "Impact of Use" (Exhibit IV) (the figures are between the interviewer's impression of the 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 - 8 - variability in appears to be tremendous ranging from "no discernible impact" to and with comments Impact, both use "the system has changed the way he does business." Emerging Issues Although a telephone survey is issues were raised a consistently so limited research instrument, by those issue is interviewed that a series of they deserve special mention and further attention. Political The Implications first 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 books information. to operational "Our ESS reports Previously, close. has In made the it of one from 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 has and mailed it explanations for certain - 9 - numbers. VPs were taken aback at how fast the corporate level The divivional could now react to their paper asked that the formats the ESS in be — numbers Subsequently, divisions. the installed at before even sometimes their level, seen divisions the could they so were they In have anticipate questions from corporate management. This situation is typical the of kinds 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 to address 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 This person does the controller in the decided the data belongs to the company, not the function," he said. Data ownership and data actual to data "reported" access in the corporation. review data and launder it," manufacturing company. issues can have significant impact on the "Now the "The staff used to have more time said the manager of VP sees raw data." I/S planning for a In large other organizations, however, the "laundering" process has merely been speeded up because the data still moves up through the management hierarchy. 10 - Influencing Computer Use top having Once organizations. of them their on executives desks, use the computers of of or terminals, using begin benefit chief "The significantly. increases to the proliferation of terminals at the however, There is another side, by subordinates their use executives' the least at of computers is that they make it easier for subordinates to buy systems because now the boss understands the corporation, I a are said one I/S executive. another In senior executive forced his staff to get terminals saying, message, send an electronic mail systems benefits," regularly used being expect I top by a response." management to In "If cases where the performance monitor data, lower level managers are demanding access to the system so they can see their superiors are getting. the data "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 in a physical non-compatible Aggregating, available. data data accessing corporation with multiple roadblock bases to and ESS divisions development. inconsistent data and is Problems elements, n frequent with combined resistance 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 executive documented, support implementation methodologies not yet are well understood. Four reasons for implementation problems were frequently mentioned. First, ESS is scarce. relatively a Second, new concept, and literature subject is still each system must be designed to meet different needs, fit a on the unique culture, and draw from differently structured data bases. Third, system requires is shaped significant time actually learning upon I/S old implementing by the management investment to use the from that us user of user the during Finally, system. the there is and design a stage tendency and to a in draw development processes, which are actually counterproductive for ESS. Evidence of the implementation comments made during the interviews: tell style each 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 not resistance. It's just that executives don't know yet how to use use but it, wildfire." get people once developed a "We Right now they are reluctant to get out of it. the system and what they can used system, system, the to but the will it executives like spread don't use it imjch." Why? "There are some cultural problems." All exists systems. develop around I/S implementation the people, information management has evidence of the confusion or ignorance that statements are of these not for the systems most part, from thoroughly process have senior a needed previously been management what considered not support executive for 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 is needed to handle the special the lack of hardware and requirements of an ESS. software capabilities Vendors will often claim 13 - - their that software meet can the specs designed systems of management, but user experience suggests otherwise. to support top System components for an hard to find and respondents' comments illustrate the acceptable ESS are still problem: don't have "We hand and a delivery executive the the synthesize and summarize system that can information he Finding needs. software data packages that can integrate data from many data bases is the biggest barrier to ESS." "Our first project to is find a software package company to get at financial data very flexibly on "We won't have an ESS Once that software data. until is we find a a PC link to found and implemented, that allow will the or terminal." 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 very issue -- Metaphor, While much of the result, that the can suit the EIS, be so integrated, so hardware and software implement the component pieces whims needs and of individual technology utilized frequently falls far short The flurry of companies, Boeing to necessary difficult to find and system user expectations. technology been called on Pilot Software, however, etc. — now addressing this suggests the presence of a significant marketplace and a possible solution for this problem. - 14 - Management Style ultimately separates applications and of use from ESS the an executive support which system. dictates It the the is use development management non-use and that computer management-oriented other all factor the notwithstanding, "management style" plays 1n the design, role is executives, individual 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 who fear being embarrassed by the computer. several those who do not type and So will executives here who would love to Said one I/S manager, have an ESS, "There are but 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 top management said, become terminal operators. has At best they will become casual users." executive responses to At another firm, secretary," to capabilities, but It is only want "I I to have to a push new ESS ranged from: one button," to "I "Train my want the don't have time to learn the system." clear that a for many rational they be pushed, said the large number of senior executives, reasons, are not turning to terminal usage. Nor will - I/S manager at products forest a 15 company. "If think you you can sell an executive by jamming the system down his throat, you are very wrong." User Support User support is clearly factor critical a success the of for dealing with management resistance the technology because it is essential Asked about the type of support currently provided for executives, 15 to ESS. of 19 determining in 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 support will the spreadsheets on his own, as we thought he would. 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, dealt big are issue in because executive 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 arises of accessed company, — the by for Other firms are but are not sure what to do operation, there are lots of - 16 localized about concerns said security," manufacturer. the PC applications director and resulting for computing corporate of the a of questions major engine "There's lots of talk and worry, but no action as yet." The Future plans Future for executive support systems corporations the in studied range from none to extensive. According to our interviews, 23 of the 30 firms that currently have some executive support systems in place intend to provide additional ESS capabilities. In addition, 3 of the 15 firms that are currently 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 The future plans for expand where their ESS current development corporations are "charging ahead" with ESS 3 remain ESS is "in efforts. surprisingly, Not "charging and 2 companies have limbo," ahead," the in the 5 received systems early and strong top management involvement and direction. It appears that, with more than half of the respondents planning some type of additional ESS activity in the future, the use of computers executives will continue to increase in the next few years. generations of computer applications, uniform. however, the by As with earlier spread of ESS will Our understanding of these systems is primitive. senior 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 significantly tasks that effective — are most implementation appropriate for methodology, these systems, what — perhaps most and the impact of these systems on the organization. - 18 - REFERENCES David "SMR Forum: Spring 1984. Davis, Review , Computers and Top Management," the Computer Dearden, John "SMR Forum: Will 1983. Fall Management?" Sloan Management Review , Mollis, Robert "Real Executives Systems , July 1984, vol.3 no. 7. 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"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 On-Line," Harvard , Steinhart, Jim "The Computer and the Boss," Executive , April 1984, vol.26 no. 4. Whiteside, David "Computers Invade the Executive Suite," Management (European edition), August, 1983, vol.38 no. 8. International EXHIBIT I CAPABILITIESyOJSERS RANGES OF USE ENnf€ . CORPORATE/ A DIVISIONS. FS^ USERS OFICE AN irCIVIDUAL TOTALS OFICE AlTOV\TION 10 STATUS ACCESS 12 13 i ^ ^ QUERY4 /JNALYSIS 10 lU TOTALS 29 39 EXHIBIT II CAPABIUTIES/ARCHITECriJRE ARCHIT^CTlJg ^erWRJ^D* OFICE AOronATION STATUS ACCESS OfPY* ANALYSIS TOTALS 8 STAfC ALONE EXHIBIT III DEGREOFUSE DEGREE USED HIGH OFICE AUTDMATION "3 STATUS ACCESS QUERY & ANALYSIS TOTALS MDERATE LDW DON'T WOW/ DIDN'T CCmENT t * EXHIBIT IV \rPNJ OF USE ON TIE ORGANIZATION IMPACT DON;! kjow OFICE AuramTioN ^ CO EXHIBIT V SYSTEM INITIATOR/DEGREE OF USE INITIATOR I/S GENERATED HIGH oo MODERATE CO LOW TOTALS MGT-I/S COMBO MGT GENERATED EXHIBIT VI FUTURE ESS PLANS PLANS CHARGING MOVING AHEAD AHEAD~ SLOWLY IN LIMBO OFFICE AUTOMATION ^ STATUS ACCESS ca Q. QUERY & ANALYSIS CO >CO NO ESS TOTALS NO PLANS INSUFFICIENT DATA MIT LIBRARIES I'lllli Ml 3 III TOAD 00583017 b Date Due / li ^Cy- ^Oi^§ Lib-2(;-67 MM MpRARIF';; nuPi Rao^ "^sa.ff/\/73 TDflO DD5fl3D17 h