In a company, be it small, medium or large, and of any type, it is always necessary to have a complete perspective of the status of the dependency indicators that affect them at the moment, to know if the business is doing well or badly and Thus, to be able to analyze in detail each area of it and make a more complete investigation of why the goals established in the beginning are not being met, that is why the Executive Information System (EIS) arises.
The following written work describes in detail the change that technology has had in our time, and how the new tools help the management of companies to make better decisions, making the organizations that use them more competitive in the market.
lelt_ executive-information-systemWe will also delve deeper into the Executive Information System (EIS), and how this tool has helped executives to systematize or computerize the information of their companies, allowing a better way of working in order to obtain the most relevant information, make a much summary clearer and more precise of each area, with easy access, criticism, and analysis of each of the conditions that arise.
DEVELOPING
WHAT IS AN EXECUTIVE INFORMATION SYSTEM?
(Cohen) He defines an Executive Information System (EIS) as a software tool, based on a DSS (decision support system) that provides managers with easy access to internal and external information of the company and that is relevant for key success factors.
One of the key success factors is automating the work of obtaining the most important data of an organization, and this is achieved by computerizing the information of the company, so that it is presented in a more summarized and understandable way. This type of system provides means that are very easy to use, for consulting and studying company information.
These tools are usually created so that the user or executive who manages them can obtain the data quickly and understand them in the shortest possible time to locate the errors that may occur. Another common use of the EIS is to facilitate the executive the retrieval and analysis of information through different metrics that help to know the performance of the company.
The concept in general is much easier to understand, since the executive, owner, or whoever is in charge of the organization sometimes does not have the ability, time, or knowledge to handle big data manually, That is why the EIS is in charge of carrying out this work presenting these data in a simplified, organized, consolidated and static way, doing the analysis of large volumes of data.
USES OF AN EXECUTIVE INFORMATION SYSTEM
The use of this tool has allowed many companies to compare different types of key data with that of their rivals. Mainly covering areas of information such as office, administrative, financial, accounting, and any other type that the executive wishes to collect for his report. But SIEs are built or elaborated through the integration of Software designed to operate together with the company's infrastructure, as well as with the applications that it has, its information and other relevant things in the organization, and in turn this tool will offer reports and analysis of the information to include, tables, graphs, diagrams, reports, etc. Make them easy to understand for the executive.
FEATURES
A Good SIE or EIS presents information in the form of graphs, columns and texts. The capacity for each of them is that it is required to facilitate the analysis in the case of graphs; present data in greater detail and organized in a matter of tables and for texts it is necessary that they give interpretation and detail to the data presented.
The most common and relevant characteristics are the following:
- They are created to cover specific or general needs from the top management of the company, this means that the executives, in charge of supervising each of the areas of the organization, will be empowered to say what needs have not yet been met., filter, compress and track critical business information, this refers more than anything to occupying only the information that serves to improve certain areas of the organization, or in areas where the company can improve more. Those in command of the organization can interact solely or directly with the system without the support or assistance of others who may delay or interfere in the matter. It is a highly developed system that allows an easy-to-use human-software interface. understand,aided by graphs, information in tables and text. Information can be accessed online, extracted directly from the organization's databases. The system is supported by high technology such as monitors, high-resolution videos that allow visualization information in a clearer way.
SUCCESS FACTORS
The use of SIE, in the vast majority of cases means facing a long series of barriers that can prevent or promote the success or failure of these systems depending on the case.
For most organizations, the use of SIEs is not very common, since statistics indicate that most of the companies in the world are usually small or medium-sized, so they do not handle a large amount of information that allows them apply this tool, on the contrary, it is designed more for large executives who handle large amounts of information in their databases and who need to have an organization of it.
An SIE or EIS is used with high expectations of success for companies but it does not always turn out to be this way, since in some cases it becomes a resounding failure. Therefore, the following evaluation criteria should be considered to check whether the SIE is a success or not.
SIE Success Criteria Table.
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ACCESS |
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If a system or technology is available, it means that the user or executive will be able to access it easily, therefore if the tools are not available, the application of the tool cannot be carried out. |
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USE |
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It is an important indicator, since if the system is used frequently, successful results will be obtained. |
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SATISFACTION |
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If the tool does not satisfy users, they will stop using it and therefore will not be successful. |
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POSITIVE IMPACT |
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The system turns out to be successful if it has a beneficial impact on the organization and this is reflected when decisions are made to solve a problem, since they will be the most suitable for everyone. |
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DIFFUSION |
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Another indicator of success in the system is when it begins to spread, that is, it spreads, so the number of people who use it is greater. |
Once we know the criteria that evaluate the success of an Executive Information System, it is necessary to know the factors that we must carry out to meet those criteria.
- Make it look good Make it relevant Make it fast Make the information available and up-to-date
The four previous factors must be used in the management of this tool to ensure that it is successful when implementing it.
Rockart and DeLong, Paller and Laska, Bird, Watson, and Turban define 10 critical success factors.
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DEFINE CAREFULLY THE REQUIREMENTS OF INFORMATION
Another very important factor is to carefully require what is required, since this will make it easier for the system to meet and obey only the needs that are had and therefore solve it more accurately.
FAILURE FACTORS
Few factors are considered possible for the failure of HIAs, among which the following two stand out.
- Technological. When the technology is not adequate, it is very archaic or difficult for the user to use When the system is good but not used correctly by the user or executive, therefore it does not attack the problems that need to be solved or few are provided data.
BENEFITS
- Information on time. The system allows access to information to be faster, collecting only that which is considered relevant for the company. It refers to the fact that access to information, even external information, is in the best way.Effectiveness of Executives. Explain that the executive's communication is the best, with a good presentation of the information, as well as saving time at the time of carrying out. Compliance with Strategic Objectives. This refers to adequate planning, better decision-making, better understanding of problems and developing various alternative solutions. Economy. It is carried out saving costs, with a better organization and always meeting the client's needs.
DEVELOPMENT PROCESS
It has two characteristics that make it unique.
(Cohen) Mentions that once the organization has fulfilled the two previous requirements, the following steps are continued.
- Data acquisition, modeling, presentation.
Illustration 6: Development Process.
SOFTWARE FOR EIS
Companies must be careful when choosing the type of Software they want to implement the EIS, since sometimes this turns out to be very expensive or difficult for the executive to understand and therefore one that has simple functions should be sought so that participation of all members of the company is greater.
| SOFTWARE PRODUCT. | SELLER | |
| Commander EIS | Comshare | |
| Command center | Pilot | |
| Executive Decisions | IBM | |
| Executive Edge | EXECUCOM |
EIS IN THE PROCESS OF PLANNING AND CONTROL OF AN ORGANIZATION.
The EIS, contribute in an important way to redesign and restructure the planning and control processes of an organization. The main improvements that can be achieved when using this type of system are:
- Improvements in current corporate or divisional reporting systems Redesign of current reporting systems. Through which it pays attention to the critical success factors to improve the organization Changes in the planning and forecasting processes Ability to perform specific analyzes using information that is in the database Enables communication relationships between staff.Improves program management capacity in project-oriented companies.
IMPACT
Once the steps have been followed and the Software has been implemented within the company, a series of improvements will be reflected in it that will help the development of the organization, among which the following stand out:
- Improve the planning and control process Changes in the way a company's data is collected, making a specific analysis of each one and interpreting them Increasing the speed of the data collection process Representing information in the form of graphs, histograms, drawings, Animations Redesign of the reporting systems in which the information is reflected.
EXAMPLE
(Lozano, 2009) She tells us in an Article written by her that a clear sample of an Executive Information System is the following case presented at Nestlé.
Nestlé executives analyzed several consulting companies to carry out the process improvement project through the implementation of a Business Intelligence tool. Finally, Grupo ASSA was the company chosen for being the firm that best understood Nestlé's needs.
THE OBJECTIVE:
In 1996, Nestlé had three business systems, one for each line of business. The business lines were made up of Refrigerated, Ice Cream, Food and Beverages. The management of the company needed to have instant information to make decisions, seeing the progress of the business more clearly to detect opportunities and possible deviations.
THE CHOSE:
In 1996, Nestlé executives analyzed various companies to carry out the process improvement project through the implementation of a Business Intelligence tool. Finally, Grupo ASSA was chosen for being the firm that best understood Nestlé's needs. Nestlé's tool of choice was Comshare Decision (currently Extensity MPC) for robustness, flexibility and operability.
THE PROJECT:
In 1996 Nestlé and Grupo ASSA began the Business Intelligence project to improve the decision-making process in the management of the company.
The modalities of operations and all the databases that support the business of the company were standardized. Statistics, sales information, debts and comparisons were unified, taking it to a dashboard. Then the models required for the implementation of the Business Warehouse EIS (Executive Information System) tool were developed in order to optimize the decision-making process.
Due to its size, the project was divided into stages:
- Sales Model Supply Customer Profitability Trade Debtors
With this model, Nestlé made it possible for the Management to have better tools to analyze the progress of the business and to be able to detect opportunities and possible deviations instantly.
THE BENEFITS:
- The implemented model is used today by Nestlé Management to know the complete operation of the business by comparing sales data from previous years, as well as budget data. Greater development and power in the decision-making of the sales department by having sales reports, by vendors, by supervisors, by regions and by channels Incorporation of new areas to the Business Intelligence EIS (Executive Information System) models that use and feed information to the system such as: HR, Marketing and Call Center User independence to generate their own reports in the tool according to the views you need.
CONCLUSION
The EIS is a good system for those administrators who want to keep an order in their company, since it facilitates the handling of a lot of data in it and makes them present in a more organized, simple and easy to understand way for a better analysis and taking decision making.
The world continues to change, globalization is increasingly affecting business and not only large companies, but also small and medium-sized companies. Therefore, it is time for them to update their ways of operating and processing their products, the handling they have and especially the analysis of their sales in order to improve in the various areas they have by making the correct use of a software that them help interpret the information they want.
In conclusion, we can say that EIS is a good tool, but we must also add that it must be constantly updated so that it can compete with its other rivals, since otherwise it may disappear.
BIBLIOGRAPHY
- Cohen, D. (nd). Information Systems for Decision Making. In D. Cohen, Information Systems for Decision Making. McGraw-Hill. FCCEA. (June 5, 2016). Obtained from FCCEA: http://fccea.unicauca.edu.co/old/ess.htm Gestiópolis. (June 4, 216). Obtained from Gestiópolis: http://www.gestiopolis.com/sistemasde-informacion-para-ejecutivos/Lozano, R. (May 17, 2009). Rosa Lozano. Retrieved on May 31, 2016, from Roza Lozano: http://rosalozanog.blogspot.mx/2009/05/ejemplo-de-sistema-deinformacion.html Sinnexus. (June 7, 2016). Obtained from Sinnexus:
