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 MITS
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 USERFRIENDLY, 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
EXECUTIVES 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
DISPLAY

EIS

ANALYSIS
CAPABILITIES
CERTAIN PAST

DIAGNOSIS AND
EXPLANATION

 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
REPORT AND
DISPLAY

ANALYSIS AND

EIS

DIAGNOSIS

ANALYSIS
CAPABILITIES
CERTAIN PAST

EIS/ESS/DSS DIMENSIONS

EXECUTIVE INFORMATION NEEDS

EXECUTIVE NEED DATA AND INFORMATION TO HELP
THEM ASSESS THEIR ORGANIZATIONS 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
THAT HAPPENS UNEXPECTEDLY AND DEMANDS IMMEDIATE
ATTENTION, BUT IT MIGHT TAKE WEEKS OR MONTH TO SOLVE.

42

ENTREPRENEURAL ACTIVITY. SUCH AN ACTIVITY IS INTENDED TO

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

32

RESOURCE ALLOCATION. MANAGERS ALLOCATE RESOURCES WITHIN

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

17

NEGOTIATIONS. THE MANAGER ATTEMPTS TO RESOLVE CONFLICTS AND

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

OTHER

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

0
-5

-10

Jan

Feb

Mar

Actual

Budget

$ Var

% Var

2385

2330

55

2.4

2450

2360

90

3.8

2540

2360

180

7.6

N/A

2385

N/A

N/A

N/A

2400

N/A

N/A

N/A

2450

N/A

N/A

Apr

Salaried Headcount
Compensation % of

Variance versus Budget

Total Operating Cost

60

16

40

15

20

14

Jan

Feb

Mar

Jan

Feb
85

Mar

- 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 ORGANIZATIONS
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
SOFTWARE ON
MAINFRAME
LANGUAGE ROCESSOR

EXTERNAL
DATA

Smart Communications :
Provides error-correcting communications
with the users PC in a protocol that produces
rapid and accurate response. Also allows
transfer of data from EIS database to1-2-3
readable PC files.

INTERNAL
DATA

DATA IMPORT
DATA BASE
MENU SYSTEM
COMMUNICATIONS

COMMAND CENTER
SOFTWARE ON PC
COMMUNICATIONS
GRAPHICS
MENU SYSTEM
USER INTERFACE

EIS Database : A retrieval oriented relational

database that handles both numbers and text,
optimized for time-series data. Its smart
enough to continually re-organize itself based
on patterns of usage.
Menu Systems : Gives mouse or touch-screen
driven operation, controlled from the host.
Provides the user with the ease of use of a PC
with the database power of a mainframe.
Graphics : The PC graphics module create
bar, line, scatter, cross-sectional charts, and
missed text, and graphics from data and
commands sent from the mainframe.
Local Menu Storage : Menu screen can be
stored on the PC so that they dont have to be
re-transmitted from the host.
User Interface : Non-keyboard pointing
devices such as a mouse or touch screen are
used for menu selection. Keyboard access is
an option.

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
DEVELOP PLAN

MONITOR PERFORMANCE
(WHAT IF)

ANALYZE DYNAMICS
(WHY)

REVISE PLAN

REVIEW HISTORY
WHAT IS

DSS
DEVELOP PROJECTIONS
WHAT IF ALTERNATIVES
FINALIZE PLANS

TRACK PERFORMANCE
AGAINST PLAN
STRUCTURED ANALYSIS
- CONTINUOUS
- AUTOMATED
COMPOSITE SUMMARIES
INTERNAL AND EXTERNAL
SIMPLE ANALYSIS
EXECUTIVE-DRIVEN
LOGICAL ACCESS
(FROM SUMMARIES
TIME-SERIES VIEW
STANDARD FORMAT)

COMPLEX ANALYSIS
ANALYST-DRIVEN
TECHNICAL ACCESS
RAW DATA
UNSTRUCTURED
NEW PROJECTIONS
NEW ALTERNATIVES
NEW OPERATING PLANS