EXECUTIVE

INFORMATION
SYSTEMS
TEAM MEMBERS

The Executive Position
An executive is not just a lower-level manager on a
higher level!
Executives require unique information processing.
More concerned with process than solution
Executive manager on the upper level of the
organizational hierarchy who exerts a strong
influence on the firm
Long term planning horizon

16-3

Marketing
information
system
Manufacturing
information
system
Financial
informatio
n
system
Human
resource
information
system
Environmental information and data
Environmental information and data
Top-level
managers
A Firm Without
An EIS
16-5
Environmental Information and data
Environmental Information and data
Marketing
information
system
Manufacturing
information
system
Financial
information
system
Human
resource
information
system

Executive
information
system
A Firm With
An EIS
16-6
HIGH HIGH
HIGH
HIGH
HIGH
AVG
LOW
AVG
LOW
AVG
LOW
AVG
LOW
Bank
CEO
Vice
President
of Tax
The Volume of Information Reaching the Executives
0
10
20
30
40
50
60
Retail Chain
CEO
Insurance
President
Vice
President of
Finance
AVG
LOW
N
u
m
b
e
r

o
f

T
r
a
n
s
a
c
t
i
o
n
s

16-7
EIS CHARACTERISTICS
Tracking and Control Tool
Excellent Graphics
Very User-Friendly
Provides Rapid Access to Current
Information
Problem Solving vs. Opportunity Assessment
Tailored to executives information needs
Reports
Drill-down process


PURPOSE OF AN EIS
Gives managers access to the data
Promotes managerial learning
Provides timely information
Looking at the data leads to questions
Identifies trends
Measures performance
Personal
computer
Make
corporate
information
available

Information
requests

Executive
database
Corporate
database
Electronic
mailboxes
Software
library
Current news,
explanations
External
data and
information
Information
displays
Executive workstation
Corporate mainframe
To other
executive
workstation
To other
executive
workstation
An EIS Model
16-10
Make
corporate
information
available

Information
requests

Executive
database
Corporate
database
Electronic
mailboxes
Software
library
Current news,
explanations
External
data and
information
Information
displays
Executive workstation
Corporate mainframe
To other
executive
workstation
To other
executive
workstation
An EIS Model
16-11
Deliver timely information
Improve efficiency
Provide accurate information
Provide relevant information
Ease of use
Provide access to the status of the organization
Provide improved communications

An EIS for upper management must fit with their
decision styles

EIS OPERATIONAL SUCCESS FACTORS
Technology-related factors
Support-related factors
User-related factors

Most EIS fail because they do not provide value for
their high cost though EIS benefits are difficult to
measure

FACTORS CONTRIBUTING TO
EIS FAILURES
SOME EIS LIMITATIONS AND
PITFALLS TO AVOID
Cost: a 1991 survey showed an average development
cost of $365,000 with annual operating costs of
$200,000.
Technological limitations: the EIS needs to be
seamlessly integrated into the companys current IT
architecture, so it is a formidable challenge to the
designer.
Organizational limitations: the organizational
structure might not be right.
THE FUTURE OF EIS
Several conditions will merge to transform the
technology. Some are easy to predict, some not.

Two that we can foresee are:
Increased comfort with computing technology in the
executive suite will make innovations more readily
accepted.
Broadening of executive responsibilities will broaden
the demand for information.
THANK YOU