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If those questions can be posed immediately, and the next answer retrieved, the learning cycle continues unbroken. When a manager obtains the answer to a question, that answer typically sparks other related questions in the manager's mind. Often, by the time a useful report can be compiled, the strategic issues facing the manager have changed, and the report is never fully utilized. However, the resources and time required to manually compile information in a wide variety of formats, and in response to ever changing and ever more specific questions usually inhibit managers from obtaining this information. All of the information contained in an EIS can typically be obtained by a manager through traditional methods. Learning more about system behaviour and how various system inputs and actions interrelate will allow managers to make more proactive changes to create long-term improvement.Ī secondary purpose for an EIS is to allow timely access to information. Typically these reactions feed into the underlying system behaviour and contribute to a downward spiral. Learning more about the state of a system leads to reactive management fixes. He illustrates the benefits of learning about the behaviour of systems versus simply learning more about their states. This distinction is supported by Peter Senge in The Fifth Dimension. Firms with an EIS designed to maintain managers' "mental models" were less effective than firms with an EIS designed to build or enhance managers' knowledge. Vandenbosch and Huff (1992) from the University of Western Ontario found that Canadian firms using an EIS achieved better business results if their EIS promoted managerial learning. Informed managers can ask better questions and make better decisions. The primary purpose of an Executive Information System is to support managerial learning about an organization, its work processes, and its interaction with the external environment. present information in a graphical form.are used directly by executives without assistance.are particularly easy to use (typically mouse or touchscreen driven).access a broad range of internal and external data.
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provide extensive on-line analysis tools including trend analysis, exception reporting & "drill-down" capability.are able to access data about specific issues and problems as well as aggregate reports.are specifically tailored to executive's information needs.An EIS is easy to navigate so that managers can identify broad strategic issues, and then explore the information to find the root causes of those issues.Įxecutive Information Systems differ from traditional information systems in the following ways: The useful and navigable format of the system means that it is specifically designed to be used by individuals with limited time, limited keyboarding skills, and little direct experience with computers. Relevant information is timely, accurate, and actionable information about aspects of a business that are of particular interest to the senior manager. However, senior managers rarely use these systems directly, and often find the aggregate information to be of little use without the ability to explore underlying details (Watson & Rainer, 1991, Crockett, 1992).Īn Executive Information System (EIS) is a tool that provides direct on-line access to relevant information in a useful and navigable format. Information systems have long been used to gather and store information, to produce specific reports for workers, and to produce aggregate reports for managers. Robert Kidder, CEO of Duracell, found that productivity problems were due to salespeople in Germany wasting time calling on small stores and took corrective action (Main, 1989). For example, Paul Frech, president of Lockheed-Georgia, monitored employee contributions to company-sponsored programs (United Way, blood drives) as a surrogate measure of employee morale (Houdeshel and Watson, 1987). Many senior managers find that direct on-line access to organizational data is helpful. Implementing an Executive Information System (EIS) by Floyd KellyĪn EIS is a tool that provides direct on-line access to relevant information about aspects of a business that are of particular interest to the senior manager. Implementing an EIS (Executive Information System)