EXECUTIVE INFORMATION AND SUPPORT SYSTEM

• EIS - A NEW TECHNOLOGY EMERGING IN RESPONSE TO

THE SITUATION FOR JUST THE NEED OF TOP MANAGERS.
EIS EMERGED STARTING 1982 - FROM INITIATIVE BY MIT’S
CIR.

• INITIALLY, EIS WAS USED BY MORE THAN 50% IN 1989 BY

PEOPLE WITH TITLES LIKE : CEO, CFO, COO, etc.

• THE TERMS EIS AND THE EXECUTIVE SUPPORT SYSTEM

(ESS) MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE.

• IN MANY CASES, THE TERMS ARE USED

INTERCHANGEABLY.

• THE FOLLOWING ARE SOME DEFINITIONS TO DISTIGUISH

BETWEEN THE TWO :
 EXECUTIVE INFORMATION SYSTEM

• EIS IS A COMPUTER-BASED SYSTEM THAT SERVES THE

INFORMATION NEEDS OF TOP EXECUTIVES. IT PROVIDES
RAPID ACCESS TO TIMELY INFORMATION AND DIRECT
ACCESS TO MANAGEMENT REPORT. IT IS USER-
FRIENDLY, SUPPORTED BY GRAPHICS, AND PROVIDES
EXCEPTIONS’ REPORTING AND DRILL-DOWN
CAPABILITIES. IT IS ALSO EASILY CONNECTED WITH
ON-LINE INFORMATION SERVICES AND E-MAIL.
 EXECUTIVE SUPPORT SYSTEM (ESS)

• ESS IS A COMPREHENSIVE SUPPORT SYSTEM THAT

GIVES BEYOND EIS TO INCLUDE COMMUNICATION,
OFFICE AUTOMATION, ANALYSIS SUPPORT AND
INTELLIGENCE.

• EIS SERVES ONLY THE TOP EXECUTIVES, IT DOES

LITTLE TO IMPROVE COORDINATION AND CONTROL
EXCEPT THROUGH THE INDIRECT EFFECT OF FOCUSING
ATTENTION THROUGHOUT THE ORGANIZATION ON THE
EXECUTIVE’S “CRITICAL SUCCESS FACTORS”. IT IS
ONLY MENT TO MAKE THE EXECUTIVE UNDERSTAND
WHERE THE ORGANIZATION IS TODAY.
 EXECUTIVE SUPPORT SYSTEM (ESS)

• IT DOES VERY LITTLE TO HELP THEM VISUALIZE

WHERE IT CAN BE IN THE FUTURE.

• IT DELIVERS INFORMATION, BUT NOT INTELLIGENCE.

• ESS SUPPORTS THE EXECUTIVES’ PLANNING,

ANALYSIS, AND COMMUNICATION NEEDS IN ADDITION
TO THEIR INFORMATION NEEDS.
 UNCERTAIN
EIS DIMENSIONS
FUTURE

DATA AND
RELATIONSHIPS

REPORT AND DIAGNOSIS AND

DISPLAY
EIS EXPLANATION

ANALYSIS
CAPABILITIES

CERTAIN PAST
• DSS SOFTWARE IS DESIGNED TO ADDRESS APPLICATIONS
SUCH AS STRATEGIC PLANNING AND OTHER ISSUES
WHICH DEAL WITH THE FUTURE OF THE ORGANIZATION.

• DSS OFFERS SOPHISTICATED MODELING LANGUAGES AND

EXTENSIVE ANALYSIS FEATURES FOR FORECASTING AND
UNDERSTANDING THE EFFECTS OF CHANGES (WHAT IF
ANALYSIS).

• AN ESS BASED ON DSS TECHNOLOGY CAN SUPPORT THE

EXECUTIVES’ INVESTIGATIONS OF THE FUTURE AND
OFFER A GREATER ABILITY TO ANALYZE AND TRULY
UNDERSTAND THE INFORMATION PRESENTED TO THEM.
 UNCERTAIN
FUTURE

DATA AND
RELATIONSHIPS
DSS
ESS
ANALYSIS AND
REPORT AND
EIS DIAGNOSIS
DISPLAY

ANALYSIS
CAPABILITIES

CERTAIN PAST

EIS/ESS/DSS DIMENSIONS
 EXECUTIVE INFORMATION NEEDS
• EXECUTIVE NEED DATA AND INFORMATION TO HELP
THEM ASSESS THEIR ORGANIZATION’S SUCCESS AND
THE PERFORMANCE OF INDIVIDUALS CRITICAL TO THE
SUCCESS. THEY ALSO NEED INFORMATION TO SUPPORT
TOP-LEVEL DECISIONS SUCH AS:
- SHOULD WE SPIN-OFF A MARGINALLY PROFITABLE
SUBSIDIARY?
- SHOULD WE OPEN ANOTHER MANUFACTURING PLANT?
- HOW MUCH LONG TERM DEBT CAN WE AFFORD TO
RISK?

• INFORMATION IS COLLECTED FROM TWO MAJOR

SOURCES: INTERNAL AND EXTERNAL
 EXTERNAL SOURCES

• ON-LINE DATABASES, NEWSPAPERS

• INDUSTRY NEWSLETTERS, GOVERNMENT
REPORTS
• OTHER PERSONAL CONTACTS
INTERNAL SOURCES

• FINANCIAL
• ACCOUNTING
• PERSONNEL
• OTHER INTERNAL REPORTS
• SUCH INFORMATION DEALS WITH NEW
TECHNOLOGIES
- CUSTOMERS
- MARKETS
- COMPETITORS
- LEGISLATION AND THE LIKE

• ALL ARE ESSENTIAL COMPETITIVE TOOLS. THE

COLLECTION OF EXTERNAL DATA IS CALLED
ENVIRONMENTAL SCANNING.
 EXECUTIVE ACTIVITIES AND INFORMATION SUPPORT
________________________________________________________
_
NATURE OF ACTIVITY (DECISION ROLE) PERCENTAGE OF SUPPORT
____________________________________________________________________________________
_

HANDLING DISTUBANCES. A DISTURBANCE IS SOMETHNG 42

THAT HAPPENS UNEXPECTEDLY AND DEMANDS IMMEDIATE
ATTENTION, BUT IT MIGHT TAKE WEEKS OR MONTH TO SOLVE.

ENTREPRENEURAL ACTIVITY. SUCH AN ACTIVITY IS INTENDED TO 32

MAKE IMPROVEMENTS THAT WILL INCREASE PERFORMANCE LEVELS.
THEY ARE STRATEGIC AND LONG-TERM IN NATURE.

RESOURCE ALLOCATION. MANAGERS ALLOCATE RESOURCES WITHIN 17

THE FRAMEWORK OF THE ANNUAL AND MONTHLY BUDGETS.
RESOURCE ALLOCATION IS TIED WITH BUDGET AND ACTVITY PLANNING
TASKS.

NEGOTIATIONS. THE MANAGER ATTEMPTS TO RESOLVE CONFLICTS AND 3

DISPUTES, EITHER INTERNAL OR EXTERNAL TO THE ORGANIZATION.
SUCH ATTEMPTS USUALLY INVOLVE COME NEGOTIATIONS

OTHER 6
 HOW TO FIND EXECUTIVES’ INFORMATION NEEDS
__________________________________________________________

1. ASKING SENIOR EXECUTIVES WHAT QUESTIONS THEY WOULD ASK WHEN THEY GO
BACK FROM A THREE-WEEK VACATION.

2. USE THE CRITICAL SUCCESS FACTOR METHODOLOGY (DISCUSSED IN CHAPTER 2)

3. INTERVIEWING ALL SENIOR MANAGERS TO ASK WHAT DATA THEY THINK IS MOST
IMPORTANT.

4. LIST THE MAJOR OBJCETIVES IN THE SHORT AND LONG TERM PLANS AND IDENTIFY
THEIR INFORMATION REQUIREMENTS.

5. ASK THE EXECUTIVES THAT INFORMATION THEY WOULD LEAST LIKE FOR THEIR
COMPETITION TO SEE.

6. EITHER THROUGH AN INTERVIEW OR THROUGH OBSERVATION, DETERMINE WHAT

INFORMATION FROM CURRENT MANAGEMENT REPORTS ARE ACTUALLY BEING USED
BY THE EXECUTIVE.

7. SIMPLY PROVIDE THEM MORE IMMEDIATE, ON-LINE ACCESS TO THEIR CURRENT

MANAGEMENT REPORTS, AND THEN ASK THEM HOW YOU CAN BETTER TAILOR THE
SYSTEM TO THEIR NEEDS. (EXECUTIVES ARE BETTER AT TELLING YOU WHAT IS
WRONG WITH THAT YOU HAVE GIVEN THEM THAN TELLING YOU WHAT THEY NEED).
 CHARACTERISTICS
• DESIRED CHARACTERISTICS OF A SUPPORT SYSTEM
FOR EXECUTIVES:

- DESIGNED TO MEET THE INFORMATION NEEDS OF

TOP EXECUTIVES
- PRINCIPALLY USED FOR TRACKING AND CONTROL
- TAILORED TO THE MANAGEMENT STYLE OF THE
INDIVIDUAL MANAGER (EXTENSIVE)
- CONTAINS EXTENSIVE GRAHPICS CAPABILITIES SO
THAT INFORMATION CAN BE PRESENTED IN
SEVERAL WAYS (AND HIGHLIGHTS OF THE
IMPLICATIONS OF THE DATA PRESENTED ARE
GENERATED)
 Exception Report
Compensation Monthly

Percent Variance vs Budget

10 Actual Budget $ Var % Var
+
2385 2330 55 2.4
5
2450 2360 90 3.8
% + +
2540 2360 180 7.6
0
N/A 2385 N/A N/A
-5 N/A 2400 N/A N/A
N/A 2450 N/A N/A
-10
Jan Feb Mar Apr
Salaried Headcount
Compensation % of Variance versus Budget
Total Operating Cost 60

40
16
%
20
15

14 0
Jan Feb Mar Jan Feb Mar
85
 - DESIGNED TO RAPIDLY PROVIDE INFORMATION FOR
DECISION MADE UNDER PRESSURE, THAT IS, TIMELY
INFORMATION IS A CRITICAL ATTRIBUTE.
- TEXT AND TIME-SERIES INFORMATION HANDLING
CAPABILITIES.
- DESIGNED TO FIT THE CORPORATE CULTURE AND
MANAGEMENT STYLE.
- PROVIDED STATUS ACCESS -- RAPID ACCESS TO
CURRENT INFORMATION.
- PROVIDES “DRILL-DOWN” FOR QUICK ACCESS TO
DETAILED INFORMATION BEHIND THE TEXT,
NUMBERS OR GRAPHS.
- INFORMATION IS ORGANIZED SO THAT MULTIPLE
VIEWS OF THE DATA ARE POSSIBLE.
- FILTERS, COMPRESSED AND TRACKS CRITICAL DATA.
- EASE-OF-USE IS CRITICAL FOR REDUCING INITIAL
TRAINING.
- SUPPORTS OPEN-ENDED PROBLEM EXPLANATION
SINCE IT IS POSSIBLE TO ANTICIPATE MANY
POSSIBLE CONTINGENCIES.
- EXTENSIVE USE OF DATA ON THE ORGANIZATION’S
ENVIRONMENT (COMPETITORS, CUSTOMERS,
INDUSTRY, MARKETS, GOVERNMENT,
INTERNATIONAL).
- LINKAGE TO EXTERNAL DATABASES.
• MOST OF THE CURRENT EIS REQUIRE A
DISTRIBUTED SYSTEM THAT INVOLVES AT LEAST
A PC WITH SPECIALIZED SOFTWARE.
• THE COMMAND CENTER
- INCLUDES SOPHISTICATED COMMUNICATIONS
SOFTWARE ON BOTH MAINFRAME AND PCs.
- DOES NOT GENERALLY HAVE A MODEL BASE
- GOOD EIS PACKAGE WILL HAVE AN
INTERFACE THAT ALLOWS IT TO RECEIVE
AND TRANSMIT DATA TO AND FROM DSS,
FREE STANDING MODELS OR OTHER CBI.
• EXECUTIVE EDGE IS AN ADVENCED EIS WHICH
INCLUDES EXTENSIVE MODELING CAPABILITIES.
HARDWARE
• MAINFRAME -- GENERALLY INFLEXIBLE
• PCs AND MAINFRAME OR PC AND
MINICOMPUTER
• PCs ONLY, WITH INFORMATION DOWNLOADED
ONTO STAND ALONE LANs AND THEN
DELIVERED TO THE PCs
• WORKSTATIONS, MORE TO COME IN THE FUTURE

ALL FOUR OPTIONS HAVE EXTENSIVE GRAPHICS

CAPABILITY
 Data Bridge brings data from widely varying
systems together into one executive database. It
integrates commercial databases, on-line public
databases and in house systems [including DSS
models or4GL DBMS]

COMMAND CENTER
EXTERNAL SOFTWARE ON INTERNAL
DATA MAINFRAME DATA

LANGUAGE ROCESSOR
DATA IMPORT
EIS Database : A retrieval oriented relational
database that handles both numbers and text,
DATA BASE optimized for time-series data. It’s smart
enough to continually re-organize itself based
on patterns of usage.
MENU SYSTEM Menu Systems : Gives mouse or touch-screen
driven operation, controlled from the host.
Provides the user with the ease of use of a PC
COMMUNICATIONS with the database power of a mainframe.
Smart Communications :
Graphics : The PC graphics module create
Provides error-correcting communications bar, line, scatter, cross-sectional charts, and
with the user’s PC in a protocol that produces missed text, and graphics from data and
rapid and accurate response. Also allows commands sent from the mainframe.
transfer of data from EIS database to1-2-3 COMMAND CENTER
readable PC files. SOFTWARE ON PC Local Menu Storage : Menu screen can be
stored on the PC so that they don’t have to be
COMMUNICATIONS re-transmitted from the host.
GRAPHICS User Interface : Non-keyboard pointing
devices such as a mouse or touch screen are
MENU SYSTEM used for menu selection. Keyboard access is
an option.
USER INTERFACE
INTEGRATION EIS AND DSS
• IN A GENERAL SENSE, EIS IS REALLY PART OF THE
THE DECISION SUPPORT FIELD.
• EIS AND DSS ARE TWO DIFFERENT BUT
COMPLEMENTARY APPLICATIONS AND INDEED
COMPLEMENT EACH OTHER.
• EIS FOR CONTINUOUS TRACKING OF
INFORMATION TO KEEP TOP MANAGER ABREAST
WITH WHAT IS HAPPENING.
• EIS IS STRUCTURED. ITS MAJOR ROLE IS TO
PROVIDE INFORMATION - COMMUNICATION
DEVICE.
• DSS IS SEMI OR UNSTRUCTURED. IT PROVIDES
ANALYSIS CAPABILITIES, CAN PROVIDE ANSWERS
TO “WHAT IF”, “WHY”.
• AN EIS CAN BE INTEGRATED WITH A DSS.
• EIS AND DSS CAN ALSO BE INTEGRATED WITH
AN EXPERT SYSTEM TO CONDUCT EVEN MORE
SOPHISTICATED ANALYSIS
 EIS DSS

DEVELOP PLAN REVIEW HISTORY DEVELOP PROJECTIONS

“WHAT IS” “WHAT IF” ALTERNATIVES
FINALIZE PLANS

MONITOR PERFORMANCE TRACK PERFORMANCE

(“WHAT IF”) AGAINST PLAN
STRUCTURED ANALYSIS
- CONTINUOUS
- AUTOMATED
COMPOSITE SUMMARIES
INTERNAL AND EXTERNAL

ANALYZE DYNAMICS SIMPLE ANALYSIS COMPLEX ANALYSIS

(“WHY”) EXECUTIVE-DRIVEN ANALYST-DRIVEN
LOGICAL ACCESS TECHNICAL ACCESS
(FROM SUMMARIES RAW DATA
TIME-SERIES VIEW UNSTRUCTURED
STANDARD FORMAT)

REVISE PLAN NEW PROJECTIONS

NEW ALTERNATIVES
NEW OPERATING PLANS