Proceedings of 10th Asian Business Research Conference

Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
The Applications of Executive Support System (ESS) Among the
Top Corporations in Metro Manila, Philippines and Its Perceived
Advantages and Disadvantages
Harvey T. Ong
“Executive Information System is a branch of DSSs, are interactive information systems that give
executives easy access to internal and external data and typically include “drill-down” features and a
digital dashboard for examining and analyzing information…”
– Hossein Bidgoli (Bidgoli, 2012)
The application of the Information System (IS) in different corporations is to provide timely and
accurate business transaction processes. There are many types of Information System, one of them is
Executive Support System (ESS) or Executive Information System (EIS). ESS or EIS supports top
management and senior executives to mak e strategic plan and competitive decisions. ESS or EIS
provides them a quick snapshot of the company's progress, for them to spot their problems, identifying
opportunities, analyze, compare, highlight and forecasting trends. Majority of companies in Metro
Manila are now using ESS or EIS.
The research design used was descriptive. The data gathered from the respondent companies thru
survey was used for content analysis. The application of the Executive Support System (ESS) in
different organization is to support their business transaction, it support senior managers to analyze
important data in able to come up with a good strategic decision mak ing and long term plan. Based on
the finding results, only 29 companies or 33.72 % (out of 86 companies) claimed that they are using
Executive Support System (ESS). They used ESS in able to let the senior executives accessible to
updated and timely information about a company's success factor that they consider i mportant in
running their company. Many respondents using ESS to provide them management comparative sales
and projected revenue figures (12.79%), to improve decisions and performance (10. 47%), to provide
revenue information (8.14%), to understand critical information (6.98%), for competitor's analysis
(5.81%), and accounting and finance forecast (4.65%). The proponent also found out that there’s more
perceived advantages compared to disadvantages of using ESS by the top corporations in Metro
Manila.
Keywords: Information System, Executive Support System, Executive Information System
I. Introduction
1.1 Background of the Study
An information system is a particular type of work system that uses information
technology to capture, transmit, store, retrieve, manipulate, or display information, thereby
supporting one or more other work systems (Alter, 2003). Information Systems are developed
for different purposes, depending on the needs of human users and the business. Transaction
processing system (TPS) function at the operational level of the organization; Office automation
___________________________________________________________________________
Harvey T. Ong, Professor, De La Salle University – Manila, Decision Sciences and Innovation Department, 2041
Taft Ave., Manila, PHILIPPINES. Email: Harvey.Ong@dlsu.edu.ph, Harvs_Ong@yahoo.com,
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
system (OAS) and Knowledge work system (KWS) support work at the knowledge level. Higherlevel systems include Management information system (MIS) and Decision support system (DSS). Expert
Systems apply the expertise of decision makers to solve specific and structures problems. On the strategic
level of management, they used Executive Information System (EIS) or Executive Information System
(ESS) (Kendall & Kendall, 2005).
When executives turn to the computer, they are often looking for ways to help them make
decisions on the strategic level. Executive Information System (EIS) or Executive Support System (ESS)
help executives organize their interactions with the external environment by providing graphics and
communication technologies in accessible places such as boardrooms or personal corporate offices.
Although ESS reply on the information generated by TPS or MIS, executive support system help their
users address unstructured decision problems, which are not application specific, by creating an
environment that helps them think about strategic problems in an informed way. ESS extend and support
the capabilities of executives, permitting them to make sense of their environments. (Kendall & Kendall,
2005)
Nowadays, top management used ESS to combine past and present information easily from
some main information resources : external sources (competitive and general market data from research
firms, government databases, financial market databases and etc), traditional internal sources (suppliers,
sales, production, human resource, research and etc) and non-traditional internal sources (customer
satisfaction, customer survey, HR memos and etc). And according to Hossein Bidgoli (2012), “An EIS or
ESS can put a wealth of analytical and decision-making tools at manager’s fingertips and includes
graphical representations of data that helps them make critical decisions. In additional, executives can use
EISs to share information with others more quickly and easily. Managers can use these tools to improve
the efficiency and effectiveness of decision making in the following ways : An EIS increases managers’
productivity fast, easy to relevant information. An EIS can convert information into other formats, such as
bar charts or graphs, to help managers analyze different business scenarios and see the effect of certain
decisions on the organizations. An EIS can spot trends and report exceptions. A manager might use an EIS
to gather data on profitability and production costs at a manufacturing plant and determine whether
closing the plant is more beneficial than keeping it open, for instance.”
1.2
Rationale of the Study
The proponent’s interest on the topic of Information System specifically Executive Support System (ESS)
began when the proponent started teaching Computer Application for Business Management Students,
Management Information System for Business Students, System Analysis and Design, and IS Planning for
undergraduate of the Decision Sciences and Innovation Department – De La Salle University Manila. In
addition, the undergraduate degree of proponent was Computer Science specialized in Software
Technology. The proponent has the interest to know how ESS was being used in different companies in
Metro Manila, Philippines, and what are their perceived advantages and disadvantages of using ESS. It is
worth knowing because uses of ESS helped company to achieve their goal and objectives, and it also
improve their business processes, this will enable them to make strategic and competitive decisions by
identifying problems, determining opportunities and forecasting trends.
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
1.3
Statement of the Problem
What are the applications of using Executive Support System (ESS) or Executive Information
System (EIS) by the selected top corporations in Metro Manila, Philippines ? And what are the perceived
advantages and disadvantages of using ESS / EIS ?
1.4 Objectives of the Study
The general objective of the study is to enumerate the applications of Executive Support System
(ESS) or Executive Information System (EIS), and to describe the perceived advantages and
disadvantages of using ESS or EIS among the top corporations in Metro Manila, Philippines based on the
definition of IS by Reynolds and Stair (2009) which ESS is an organized collection of people, procedures,
software, databases, and device used to support problem specific decision making.
1.5 Significance of the Study
The result of the study will benefits different corporations in Metro Manila, Philippines and
academic community. The company will receive some feedback on how other companies use the
Executive Support System. They can benchmark the best practices from other companies on how to apply
ESS. The companies can also have idea on how to further improve in the utilization of their ESS which
can help them streamlined their business processes and enhanced their strategic decision making
processes.
This research paper will also benefit the academic community. Computer and MIS faculty
members can share the actual application of ESS and other useful information from this research paper to
their students, and they would also have idea on what specific topics need to be discuss in their class
lecture. On the other hand, students would be able to apply it in the real business application when they
graduate.
1.6 Scope and Limitation
The uses of Executive Support System (ESS) focused on this study will be limited to 100 top
corporations in Metro Manila, Philippines. The data gathering was assisted by proponent’ students in
Management Information System (BUSIMIS) class during 1st term AY 2009-2010, and it was limited to
100 top corporations based on their gross revenue in Metro Manila, Philippines which was stated in
Business World Magazines (Volume 22) published early 2009. Business World Top 1000 Corporations in
the Philippines is published annually by Business World Publishing Corporation, with editorial offices at
95 Balete Drive Extension, New Manila, Quezon City, Metro Manila, Philippines.
At first, the limitation of the study was limited to top 100 corporations based on their gross
revenue which was stated in Business World magazines, but unfortunately, not all the 100 corporations
responded. Some of them are not willing to be surveyed nor interviewed. Out of 100, only 86 corporations
responded. In addition, only these 86 companies were accessible and located in Metro Manila. And these
are composed of 38 service companies, 12 manufacturing companies and 36 merchandising companies.
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
The respondent also had a hard time to assess the data gathered from the companies. The data gathered
was presented in narrative explanation format, this give the proponent a hard time in coding the data.
Another limitation of the study was that there are some uses, perceived advantages and
disadvantages of using Executive Support System and other important details and information were not
mentioned or discussed clearly by the interviewee respondent of the corporation. And many companies
also claimed that these information are kept confidential by their companies.
II. FRAMEWORK
2.1 Conceptual Framework
The conceptual framework of the study is based on (or adopted from) R. Kelly Rainer Jr. and
Efraim Turban (2009) which states the following :
"An Information System (IS) is an organized collection of people, procedures, software, databases, and
device used to record completed business transactions " : (please see figure 1)
Figure 1 : Schematic Diagram of the Conceptual Framework
USES of
IS
(ESS / EIS)
ADVANTAGES &
DISADVANTAGES
Turban, Rainer and Potter (2001) states that : “An Executive Information System (EIS), also
known as an Executive Support System (ESS), is a technology emerging in response to the information
needs of top executives. It provides rapid access to timely information and direct access to management
reports. EIS is very user friendly, is supported by graphics, and provides "exception reporting" and "drill
down" capabilities. It is also easily connected with online information services and electronic mail. These
systems may include modules for analysis support, communications, office automation, and intelligence.”
2.2 Operational Framework
Adopted from the Conceptual Framework of Reynolds and Stairs (2009), the uses of ESS or EIS, and the
perceived advantages by selected top corporations in Metro Manila of using it will serve as the variables
of this study in terms of:
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
Figure 2 : Variables of the study
USES of ESS / EIS






provide revenue
information
provides mgmt
comparative sales and
projected revenue
figure
understand critical
information
competitor's analysis
accounting and
finance forecasting
improves business
decisions and
performance
 ADVANTAGES
 provides management info
for decision making
 very interactive
 very reliable
 easier reporting
 use of chaining
 strategic options
 ADVANTAGES
 makes the process slower
 use of EIS not fully
maximized
2.3 Operational Definition of Terms
The following operational definition of terms were adapted from (Turban, Rainer and Potter, 2001)

Drill down - The capability of an information system to provide, upon request specific, additional
details on any given information.

EIS - Executive Information System - Information system that provides top executives and managers
with rapid access to timely information and direct access to management reports, especially exception
reports and drill down reports.

ESS – Executive Support System – Comprehensive executive information system that may also include
analytical, communication, and intelligent capabilities.

Exception Reports - Management reports that alert managers to performance that exceeds certain
threshold standards.

Information System – A set of interrelated components that collect, manipulate, store, and disseminate
data and information and provide a feedback mechanism to meet an objective.
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
III. RESEARCH METHODOLOGY
The research methodology and research design of this research study was adapted from the
proponent’s former research paper “Uses of Information System Among the Top Corporations in Metro
Manila” (Ong, 2009). A different set of variables (DSS) was chosen in this study.
3.1 Research Design
The research design used was descriptive. The data gathered (survey and interview results) from the
respondent companies will used to discussed and described the uses of Office Automation System by 86
corporations in Metro Manila namely in the following sectors : Service, Manufacturing and
Merchandising.
Among the 100 list of top corporations, only 86 companies responded. 38 companies (or 44.19
%) were Service companies which includes oil refineries, electric distribution, wireless service, banking,
power service, port management, media, financial institution, utility, real estate, telecommunications,
transportation, infrastructure, water, call center, and insurance companies. 12 companies (or 13.95 %)
responded were Manufacturing companies which includes food, automotive, agriculture, beverage and
beers, pharmaceutical, pediatric nutrition, cement, packaging companies. And 36 companies (or 41.86 %)
were Merchandising companies which includes shopping and retail, supermarket, warehousing, beauty
products, LPG and Petroleum companies.
3.2 Sampling Plan
The secondary data collected during 1st term Academic Year 2008-2009 from the corporation interviewed
by BUSIMIS (Management Information System Class) students as the basis of data for this research
study.
3.3 Method of Data Analysis
Primary data was tabulated in a data set, and the data was analyzed using the frequency and percentage
distribution. Since the data gathered presented in narrative paragraph form, content analysis will be used
by the proponent in coding the data. And the data was presented also in frequency distribution table
format and context narrative discussion.
IV. RESEARCH FINDINGS
Based from the Conceptual Framework adapted by the proponents :
The purpose of using the conceptual framework cited in the previous section is to enumerate the
applications of ESS / EIS, as well as the perceived advantages and disadvantages of using ESS / EIS
by different top companies in Metro Manila. This would also narrate some the information given or
stated by the respondents during the data collection.
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
Table 1 : Frequency and percentage distribution results with regards to the uses of
ESS / EIS
Frequency
%
(n = 86)
8.14 %
 provide revenue information
7
 provides management comparative
12.79 %
sales and projected revenue figures
11
6.98 %
 understand critical information
6
5.81 %
 competitor's analysis
5
4.65 %
 accounting and finance forecasting
4
 improves business decisions and
10.47 %
performance
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Based on the result findings, only 29 companies or 33.72 % (out of 86 companies) claimed that
they are using Executive Support System (ESS). They used ESS to make strategic plan and competitive
decisions. ESS provides them a quick snapshot of the company's progress, for them to spot their problems,
identifying opportunities, analyze, compare, highlight and forecasting trends. Many companies were
using ESS to provide them management comparative sales and projected revenue figures (11 out of 86
respondents or 12.79%), to improve decisions and performance (9 out of 86 companies or 10.47%), to
provide revenue information (7 out of 86 respondents or 8.14%), to understand critical information (6 out
of 86 respondents or 6.98%), for competitor's analysis (5 out of 86 respondents or 5.81%), and accounting
and finance forecast (4 out of 86 respondents or 4.65%).
Based of the survey results, some company respondents mentioned that they use ESS in able to let
the executives accessible to updated and timely information about a company's success factor that they
consider important in running their company. They used ESS to access information from competitors,
consultants, trade groups, and news-gathering agencies like stock market news and etc. They also used
ESS to analyze industry trending for their long-term planning. They make used of Excel as trends analysis
tools. Many companies also mentioned ESS allow the executive to go through the process of "drilling
down", that is to move from a summary data down to more detailed and additional data.
Table 2 : Frequency and percentage distribution results with regards to perceived
advantages of using ESS / EIS
Frequency
%
(n = 29)
 provides management information
6
20.69 %
for decision making
 very interactive
1
3.45 %
 very reliable
8
27.59 %
 easier reporting
7
24.14 %
 use of chaining
4
13.79 %
 strategic options
6
20.69 %
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
In table 2, among the 29 companies who were using ESS, it shows that 8 out of 29 companies
(or 27.59%) stated that ESS is very reliable and accurate. Next highest, 7 out of 29 companies (or
24.14%) mentioned using ESS, they can have easier reporting, thus it saves a lot of time and effort.
Rank number three, 6 out of 29 respondents (or 20.69%) mentioned that by using ESS, it suggest
strategic options and provides management information for decision making. 4 companies (or 13.79%)
mentioned that they used ESS for chaining. Lastly, 1 out of 29 respondents (or 3.45%) mentioned that
ESS is very interactive.
Table 3 :
using ESS


Frequency and percentage distribution results with regards to perceived disadvantages of
makes the process slower
use of EIS not fully maximized
Frequency
(n = 29)
5
5
%
17.24 %
17.24 %
With regards to the perceived disadvantages of using ESS by the top corporations in Metro
Manila, proponent found out that there's not much disadvantages mentioned by the respondents. In
table 3, it displays that 5 out of 29 companies (or 17.25 %) mentioned that sometimes it makes their
process slower when they were using ESS. On the other hand, also 5 out of 29 respondents (or 17.24
%) mentioned that the use of EIS is not fully maximized by their companies.
V. CONCLUSION / OBSERVATION
The objectives of writing this research paper is to enumerate some application of ESS / EIS that
was adapted by the top corporations in Metro Manila, and mentioned their perceived advantages and
disadvantages based on the surveyed from 86 companies, and to disseminate them both in academic and
business community.
The proponent also found out that there’s more perceived advantages compared to disadvantages of
using ESS by the top corporations in Metro Manila. Based on proponent’s observation, ESS helps the
senior-level executive companies make strategic plan and competitive decision. ESS provides them a
quick snapshot of the company's progress, for them to spot their problems, identifying opportunities,
analyze, compare, highlight and forecasting trends. It is flexible to puts data and tools in the hands of
senior executive without addressing specific problems or imposing solutions; the top management are free
to shape the problems as they need to, using the ESS as an extension of their own thinking processes.
The proponent would like to quote the statement of Reynold and Stairs (2009) that : “ ESSs take
full advantage of data mining, the Internet, blogs, podcasts, executive dashboards, and many other
technological innovations. An effective ESS should have the capability to support executive decisions
with components such as strategic planning and organizing, crisis management and more. One of the key
roles of senior executives is to provide a broad vision for the entire organization. The vision includes the
organization’s major product lines and services, the types of businesses it supports today, and in the
future, and its overriding goals. ESSs also support strategic planning. Strategic planning involves
determining long-term objectives by analyzing the strengths and weaknesses of the organization,
predicting future trends, and protecting the development of new product lines. It also involves planning
the acquisition of new equipment, analyzing merger possibilities, and making difficult decisions
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Proceedings of 10th Asian Business Research Conference
6 - 7 October 2014, Novotel Bangkok on Siam Square, Bangkok, Thailand, ISBN: 978-1-922069-62-7
concerning downsizing and the sale of assets if required by unfavorable economic condition. Another type
of executive decision relates to strategic control, which involves monitoring and managing the overall
operation of the organization. Goal Seeking can be done for each major area to determine what
performance these areas need to achieve to reach corporate expectations. Effective ESS approaches can
help top-level managers make the most of their existing resources and control all aspects of the
organization.” (Reynold and Stairs, 2009)
In able to achieve the vision and mission of the company, nowadays, many companies are using
Executive Information System (EIS) or Executive Support System (ESS). It's a big help for them to come
up with a strategic plan for the company and make all their business processes "world class".
VI.
REFERENCES
Alter, Steven (2003), “Information Ststems : A Management Perspective”, Paerson
Education Asia
Bidgoli, Hossein (2012) “Management Information System” Cengage Learning
Kendall, Kenneth and Kendall Julie (2005) “Systems Analysis and Design” Pearson
Prentice Hall
Ong, Harvey (2009) “Uses of Information System Among the Top Corporations in Metro
Manila” S & T 2009, De La Salle University, in cooperation with Osaka
University
Rainer and Turban (2009) “Introduction to Information Systems : Enabling and
Transforming Business” John Wiley & Sons, Inc.
Reynolds and Stair (2009) "Introduction to Information Systems" Cengage Learning
Turban, Rainer and Potter (2001) "Introduction to Information Technology" John Wiley
& Sons Ltd.
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