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, 1 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. 2 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. 3 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: 4 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. 5 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. 6 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 9 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 % 7 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 8 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. 9