BANA 436 EIS 1

Executive Information Systems

ON LINE

SUMMARIZED CURRENT DATA

ELECTRONIC COMMUNICATION

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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

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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 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

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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– Most financial variable

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CSF Characteristcs

Primary factors to focus upon Aligned with organizational goals Quantitative measures Four sources:

– Industry

– Strategy

– Environment

– Temporal (Internal)

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Automotive Industry

– Styling– Dealer system– Cost control– Meeting environmental standards

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Supermarkets

– Product mix– Inventory control– Price– Promotion

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Microwave AssociatesCFS 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

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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 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 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