Executive Information Systems
ON LINE
SUMMARIZED CURRENT DATA
ELECTRONIC COMMUNICATION
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What makes an EIS
 Used
by Executives
 Features
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On-line, easy access, windows, hot spots
tailored focus on key variables (briefing book)
exception reporting and summarized data
drill-down to details, queries
external data
e-mail
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Trends in Executive Computer Use
 Alter
[1976] very limited
 Rockart & Treacy [1982] great potential
 Fersko-Weiss [1985] 59/500
 Brody [1988] many
 Frenkel [1990] growing
 Matthews & Shoebridge [1993] widespread
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How to Get an EIS
 Products
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Comshare Commander
Pilot
OpenEIS/Visual Basic
Execumate II
EIS-Epic
EIS II
Focus-EIS
EXPRESS IRI
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 Applications
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Cadet Georgia Power
CIW Frito-Lay, Motorola
HuRBIE Westinghouse
Lightship Texas
Instruments
Power Play Dr. Pepper
Forest & Trees Heidelberg
Harris
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Who Uses an EIS?
 INLAND
STEEL used down to
operational level
 FROLICK [1994] middle managers
being replaced by EIS
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Types of EIS Functions
 OFFICE
SUPPORT e-mail, spreadsheets,
calendars, word processing
 PLANNING & CONTROL monitor
performance, strategic planning
 QUERY & ANALYSIS enhance executive
mental model of the business
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FISHER-PRICE
(p 219)
 BUILT
EIS IN-HOUSE
 Extensive system development & design
 to provide ALL LEVELS of management &
sales appropriate & current information
 Modules - Sales Information Link,
Distribution, Historical Plan/Planning
 External links
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General Dynamics (p 221)
 new
manufacturing plant in California
 contacted professor - Manufacturing EIS
 PILOT Executive Software
 four primary dynamic menus
 STATUS actual vs. plan
 TRACKING follow a part
 EVENTS monitor processes
 COSTS
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Critical Success Factors
Chief Executives Define Their Own
Data Needs
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Definition
 ...
the limited number of areas in which
results must be satsifactory for the
organization to compete sucessfully and
flourish.
 perhaps 7 - 9 factors
 useful in EIS design
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Approaches to EIS Design
 Null Approach
– Do nothing
 By-Product Approach
– By-Product of MIS
 Total
Study Process
– IBM’s life-cycle approach
 Key
Indicators
– Key variables, target values, flexible dispays
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– Most financial variable
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CSF Characteristcs
 Primary
factors to focus upon
 Aligned with organizational goals
 Quantitative measures
 Four sources:
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Industry
Strategy
Environment
Temporal (Internal)
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Automotive Industry
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Styling
Dealer system
Cost control
Meeting environmental standards
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Supermarkets
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Product mix
Inventory control
Price
Promotion
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Microwave Associates
CFS
Measure
Image in financial markets
Technological reputation
P/E ratio
Orders/Bids
Interviews
Market share
Growth rate
Product experience
Customer experience
Profit margin
Turnover, absenteeism
Budget to actual
Market success
Risk management
Profit margin
Morale
Cost management
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Strategic Options Generator
Wiseman and MacMillan
Journal of Business Strategy, 1984
Gain Competitive Advantage through
Information Systems
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Five Key Factors
 Target
 Thrust
 Mode
 Direction
 IS
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Skills
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Target
 Suppliers
– Equitable’s purchasing system
 Customers
– Wetterau’s POS, customer base
– American Hospital Supply
 Competitors
– AA Sabre
 Combination
– Most combinations of the above
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Thrust
 Differentiation: AA Sabre
 Innovation:
Merrill Lynch Cash Mgt Acct.
 Cost: Equitable cut cost of supplies
 Growth: Walmart inventory control
 Alliance: Microsoft - Intel
Apple - Motorola
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Mode
 Offensive
– AA, Merrill Lynch
 Defensive
– Already in poor position
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Direction
 Internal
usage
– Equitable
 Provision
– Provide access to external users
– AA, AHS, Merrill Lynch
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IS Skills
 Processing:
DSS (VALIC)
 Storage: Databases (AA)
 Transmission: Networks (AOL)
 Combination
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Summary
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Executive Information Systems
– Executive users, corporate wide, data oriented
– Key variables, trends, drill down, graphic, e-mail
Critical Success Factors for EIS Design
– 5 - 9 aspects on which to focus
– look at industry, strategy, environment, internal state
Strategic Options Generator
– Target, Thrust, Mode, Direction, Skills
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