Executive Information Systems: Decision Support Technology

David Hodgson and Steven S. Mezzio

David Hodgson is a partner in the Price Waterhouse Audit Re- search and Technology group, which is responsible fir the de- velopment of technological appli- cations for the f i n ’ s audit prac- tice. Steven SMezzio is an audit manager at Price Waterhowe.

Availability and usability of strategic management information continues to challenge even the most technologically sophisticated organizations. This challenge has spurredmany companies toenhance their distributed database technology in order to place greater computing power into their hands of the decision makers.

Strategic informationis often storedin a form with which corporate executives cannot work efficiently. Executive teams with little or no computer expertise have neither the ability nor the interest to develop or decipher reports and databases. Conversely, readily available information may not be relevant or presented in the detail required for the issues currently a t hand.

For example, assume that sales in a region dropped by 10 percent in June and that an executive wants to determine why this happened. Existing reports typically provide overviews of performance, without the ability to easily delve into supporting details. Consequently, the executive must rely on other, less efficient methods of capturing meaningful information-i.e., scheduled and unscheduled meetings, memos, etc.

THE C-NGE When executives needinformation, they want information-not a

series of problems on how to get the information and how to use it. Therefore, the challenge is to provide the executive team with an intuitive information system, with a visually attractive interface, which deals with a broad spectrum of relevant strategic information. In addition to providing sophisticated analysis, manipulation and display of strategic information from both inside and outside the organization, this decision-support tool should require minimal user training.

An ideal system allows the user to:

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David Hodgson and Steven S. Mezzio

Access standard reports quickly and easily. Access data, so nonstandard reports can be generated-on the spot-quickly and easily. Generate reports that are displayed in formats that are conducive to quick and complete analysis.

E X E C U T INFORMATION SYSTEMS The goal ofanExecutive Information System (EIS) is the seamless

introduction of technology into the day to day activities of the executive. An EIS presents information customized for executives decision-making needs. The applications are personal and flexible, while providing relevant data and practical functionality. In short, these systems have the potential to transform an executive's personal computer into a more powerful decision-support tool.

EIS assumes no computer literacy on the part of the end user. An EIS provides information in a format defined by the user, delivers ad hoc query capabilities to strategic databases and allows the executive to perform "what if" analyses "on the fly."

An example of an EIS application might be a display showing a map of the United States. Using a mouse, the user can click on a state and launch the weekly sales figures for that state; click on one of those sales figures and obtain the data-driven details that generated the figures--quickly and easily.

BENEFITS Potential benefits of an effective EIS include:

Productivity - Greater resource utilization - Reduced proliferation of noncritical reports - Fewer meetingdmemos - More effedivdefficient analysis

- Better understanding of the businesdcompetitors - Focuses prioritiedaligns goals - Improves communications

Leadership

Features EIS features include:

Ad-hoc personal views of key strategic data A seamless communication package--electronic mail An external link to important data sources Effective visuals Keyboard alternatives-mouse, touch screen On-screen display of multiple documents On-line text retrieval Hypertext capabilities

Several software packages are available to develop an EIS. Prices and features can vary significantly, based on user requirements and the

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organization's existing computer system. EIS vendors wil l provide price quotes based on the organization's requirements. Exhibit 1 provides a listing of some EIS products and vendors.

CONCLUSION Decentralized global operations, fadory automation, accelerated

business operations, and mounting economicandcompetitive pressures have created the need for fast, reliable, and intuitive information. An EIS can be the ultimate technology tool because it places key corporate informationin the hands ofthe executivein a format designed by the executiveand no computer experience is required to use it.

An EIS provides critical information on-line, a t the touch of a mouse or screen. EIS based information offers more value because executives can navigate, focus, analyze, graph, annotate and mail without assistance. EIS concepts and technology link the corporate mission and vision of the current business environment with a new way tomanage thebusiness whichis naturalintermsofaccommodating the way executives operate. +

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Exhibit 1 Selected Executive Information Systemflendors

Product Vendor

Pilot EIS Pilot Executive Software (617) 350-7035

Commander EI Comshare, Inc. (313) 994-4800

Executive Edge Execucom Systems Corp. (512) 346-4980

Executive Decisions IBM Contact local IBM representative

pcExpress

Resolve

Information Resources, Inc. (617) 890-1100

Metapraxis, Inc. (212) 935-4322

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