BANA 436 EIS1 Executive Information Systems ON LINE SUMMARIZED CURRENT DATA ELECTRONIC COMMUNICATION

BANA 436 EIS2 What makes an EIS u Used by Executives u 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 –

BANA 436 EIS3 Trends in Executive Computer Use u Alter [1976] very limited u Rockart & Treacy [1982] great potential u Fersko-Weiss [1985] 59/500 u Brody [1988] many u Frenkel [1990] growing u Matthews & Shoebridge [1993] widespread

BANA 436 EIS4 How to Get an EIS u Products u Comshare Commander u Pilot u OpenEIS/Visual Basic u Execumate II u EIS-Epic u EIS II u Focus-EIS u EXPRESS IRI u Applications u Cadet Georgia Power u CIW Frito-Lay, Motorola u HuRBIE Westinghouse u Lightship Texas Instruments u Power Play Dr. Pepper u Forest & Trees Heidelberg Harris

BANA 436 EIS5 Who Uses an EIS? u INLAND STEEL - used down to operational level u FROLICK [1994] - middle managers being replaced by EIS

BANA 436 EIS6 Types of EIS Functions u OFFICE SUPPORT , spreadsheets, calendars, word processing u PLANNING & CONTROL monitor performance, strategic planning u QUERY & ANALYSIS enhance executive mental model of the business

BANA 436 EIS7 FISHER-PRICE (p 219) u BUILT EIS IN-HOUSE u Extensive system development & design u to provide ALL LEVELS of management & sales appropriate & current information u Modules - Sales Information Link, Distribution, Historical Plan/Planning u External links

BANA 436 EIS8 General Dynamics (p 221) u new manufacturing plant in California u contacted professor - Manufacturing EIS u PILOT Executive Software u four primary dynamic menus u STATUS actual vs. plan u TRACKING follow a part u EVENTS monitor processes u COSTS

BANA 436 EIS9 Critical Success Factors Chief Executives Define Their Own Data Needs

BANA 436 EIS10 Definition u... the limited number of areas in which results must be satsifactory for the organization to compete sucessfully and flourish. u perhaps factors u useful in EIS design

BANA 436 EIS11 Approaches to EIS Design u Null Approach –Do nothing u By-Product Approach –By-Product of MIS u Total Study Process –IBM’s life-cycle approach u Key Indicators –Key variables, target values, flexible dispays –Most financial variable

BANA 436 EIS12 CSF Characteristcs u Primary factors to focus upon u Aligned with organizational goals u Quantitative measures u Four sources: –Industry –Strategy –Environment –Temporal (Internal)

BANA 436 EIS13 Automotive Industry –Styling –Dealer system –Cost control –Meeting environmental standards

BANA 436 EIS14 Supermarkets –Product mix –Inventory control –Price –Promotion

BANA 436 EIS15 Microwave Associates CFS Measure Image in financial markets P/E ratio Technological reputation Orders/Bids Interviews Market success Market share Growth rate Risk managementProduct experience Customer experienceProfit margin MoraleTurnover, absenteeism Cost managementBudget to actual

BANA 436 EIS16 Strategic Options Generator Wiseman and MacMillan Journal of Business Strategy, 1984 Gain Competitive Advantage through Information Systems

BANA 436 EIS17 Five Key Factors u Target u Thrust u Mode u Direction u IS Skills

BANA 436 EIS18 Target u Suppliers –Equitable’s purchasing system u Customers –Wetterau’s POS, customer base –American Hospital Supply u Competitors –AA Sabre u Combination –Most combinations of the above

BANA 436 EIS19 Thrust u Differentiation: AA Sabre u Innovation: Merrill Lynch Cash Mgt Acct. u Cost: Equitable cut cost of supplies u Growth: Walmart inventory control u Alliance: Microsoft - Intel Apple - Motorola

BANA 436 EIS20 Mode u Offensive –AA, Merrill Lynch u Defensive –Already in poor position

BANA 436 EIS21 Direction u Internal usage –Equitable u Provision –Provide access to external users –AA, AHS, Merrill Lynch

BANA 436 EIS22 IS Skills u Processing: DSS (VALIC) u Storage: Databases (AA) u Transmission: Networks (AOL) u Combination

BANA 436 EIS23 Summary u Executive Information Systems –Executive users, corporate wide, data oriented –Key variables, trends, drill down, graphic, u Critical Success Factors for EIS Design –5 - 9 aspects on which to focus –look at industry, strategy, environment, internal state u Strategic Options Generator –Target, Thrust, Mode, Direction, Skills