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Executive Information Systems

Executive Information Systems. ON LINE SUMMARIZED CURRENT DATA ELECTRONIC COMMUNICATION. What makes an EIS. Used by Executives Features On-line, easy access, windows, hot spots tailored focus on key variables (briefing book) exception reporting and summarized data

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Executive Information Systems

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  1. Executive Information Systems ON LINE SUMMARIZED CURRENT DATA ELECTRONIC COMMUNICATION

  2. What makes an EIS • Used by Executives • Features • 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

  3. 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

  4. Products Comshare Commander Pilot OpenEIS/Visual Basic Execumate II EIS-Epic EIS II Focus-EIS EXPRESS IRI Applications Cadet Georgia Power CIW Frito-Lay, Motorola HuRBIE Westinghouse Lightship Texas Instruments Power Play Dr. Pepper Forest & Trees Heidelberg Harris How to Get an EIS

  5. Who Uses an EIS? • INLAND STEEL - used down to operational level • FROLICK [1994] - middle managers being replaced by EIS

  6. 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

  7. 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

  8. 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

  9. Critical Success Factors Chief Executives Define Their Own Data Needs

  10. 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

  11. 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 • Most financial variable

  12. CSF Characteristcs • Primary factors to focus upon • Aligned with organizational goals • Quantitative measures • Four sources: • Industry • Strategy • Environment • Temporal (Internal)

  13. Automotive Industry • Styling • Dealer system • Cost control • Meeting environmental standards

  14. Supermarkets • Product mix • Inventory control • Price • Promotion

  15. Microwave Associates CFS Measure Image in financial markets P/E ratio Technological reputation Orders/Bids Interviews Market success Market share Growth rate Risk management Product experience Customer experience Profit margin Profit margin Morale Turnover, absenteeism Cost management Budget to actual

  16. Strategic Options Generator Wiseman and MacMillan Journal of Business Strategy, 1984 Gain Competitive Advantage through Information Systems

  17. Five Key Factors • Target • Thrust • Mode • Direction • IS Skills

  18. Target • Suppliers • Equitable’s purchasing system • Customers • Wetterau’s POS, customer base • American Hospital Supply • Competitors • AA Sabre • Combination • Most combinations of the above

  19. 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

  20. Mode • Offensive • AA, Merrill Lynch • Defensive • Already in poor position

  21. Direction • Internal usage • Equitable • Provision • Provide access to external users • AA, AHS, Merrill Lynch

  22. IS Skills • Processing: DSS (VALIC) • Storage: Databases (AA) • Transmission: Networks (AOL) • Combination

  23. Summary • 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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