Executive Information Systems EIS Subt
Summary
TLDRThe video script discusses the importance of an Executive Information System (EIS) for senior management in large organizations. An EIS supports strategic decision-making by providing a comprehensive overview of critical information from various units, unlike specific Decision Support Systems (DSS). It emphasizes the use of executive dashboards to display key performance indicators (KPIs), allowing CEOs to quickly assess company performance and make strategic adjustments. The script illustrates the concept with an example of an airline's safety inspection program, highlighting the need for a strategic overview rather than details on individual inspections.
Takeaways
- đšâđŒ The role of an Executive Information System (EIS) is crucial for senior management to make strategic decisions and improve long-term organizational performance.
- đ EIS is not just for CEOs but also for any senior manager or executive involved in strategic decision-making processes.
- đ EIS is a type of Decision Support System (DSS) that is unique in its ability to provide a comprehensive overview by combining critical information from all areas within the organization.
- đ EIS supports strategic and long-term decisions, which differentiates it from a typical DSS designed for specific, one-time decisions.
- đ The information presented in an EIS needs to be summarized and easily understandable, often through the use of an executive dashboard.
- đ An executive dashboard is likened to a car's dashboard, providing critical information at a glance for quick decision-making.
- đ The dashboard should display Key Performance Indicators (KPIs) that are relevant to the strategic objectives of the organization.
- đ KPIs on an executive dashboard are carefully selected to measure progress towards specific goals or the success of particular activities.
- đ The example of an airline company's safety record illustrates how KPIs can be used to ensure the effectiveness of a company's inspection program.
- đ EIS typically extracts and summarizes information from various information systems within an organization to avoid information overload for senior executives.
- đš The content of an executive dashboard can vary greatly between organizations and is influenced by the management style and strategic focus of the executives.
Q & A
What is an Executive Information System (EIS)?
-An Executive Information System (EIS) is a specialized information system designed to support senior-level decision making by providing strategic overviews and summaries of critical information from various units within an organization.
Why is an EIS different from other Decision Support Systems (DSS)?
-An EIS is different from other DSS because it combines critical information from all areas within the organization to provide a complete overview, whereas a typical DSS is designed for one specific decision by individual units.
What are the key responsibilities of senior management in an organization?
-Senior management is responsible for defining an overall vision, strategic planning, strategic organizing and staffing, strategic control, and crisis management within an organization.
How does an EIS support strategic decision-making?
-An EIS supports strategic decision-making by providing information that is more strategic in nature and long-term, influencing what information is being used and how it is presented.
What is an executive dashboard and how does it relate to an EIS?
-An executive dashboard is a tool that summarizes information in an easily understandable manner, often presenting key performance indicators (KPIs). It is an effective way to present summarized information as part of an EIS, allowing executives to quickly assess the company's status.
What is the purpose of a key performance indicator (KPI) on an executive dashboard?
-The purpose of a KPI on an executive dashboard is to measure achievement towards a specific objective or the level of success of specific activities, providing executives with critical information for decision-making.
How can an executive dashboard help a CEO manage a large company with multiple locations?
-An executive dashboard helps a CEO manage a large company by providing a quick glance at the company's performance through KPIs, allowing for timely adjustments and strategic focus without getting bogged down in details.
What is an example of how an EIS might be used in the context of an airline company?
-In the context of an airline company, an EIS might be used to ensure the company has an outstanding safety record by monitoring the effectiveness of the safety inspection program, rather than focusing on the details of individual plane inspections.
How does the information from various information systems within an organization get integrated into an EIS?
-The information from various information systems is extracted and then summarized in a meaningful manner within an EIS, often using an executive dashboard to present the data in an easily digestible format.
What considerations should be taken into account when selecting KPIs for an executive dashboard?
-When selecting KPIs for an executive dashboard, it's important to choose indicators that are relevant to the organization's strategic objectives, easily understood, not overly detailed, and free from distractions to facilitate clear decision-making.
How does the management style of executives influence the design of an executive dashboard?
-The management style of executives influences the design of an executive dashboard by determining the level of detail and the specific KPIs included. Some executives may prefer more detailed daily operations information, while others may focus on a few selected indicators.
Outlines
đ ïž Executive Information Systems: Enhancing Leadership Efficiency
The first paragraph introduces the concept of an Executive Information System (EIS) as a vital tool for CEOs and senior executives in large organizations. It highlights the challenges of managing a vast company with numerous locations and employees, emphasizing the need for an efficient system to track and process information. The EIS is described as a specialized decision support system that consolidates critical data from across the organization, offering a comprehensive overview for strategic decision-making. It is distinguished from other decision support systems by its focus on long-term strategic decisions and its ability to synthesize information into a coherent whole. The paragraph also introduces the executive dashboard as a user-friendly way to present summarized information through key performance indicators (KPIs), allowing leaders to quickly assess the company's status and make informed adjustments.
đ Key Performance Indicators: Driving Strategic Insights
The second paragraph builds upon the concept of an executive dashboard by focusing on the use of key performance indicators (KPIs) to convey summarized information effectively. It underscores the importance of selecting relevant KPIs that align with the organization's objectives and activities. The paragraph uses the example of an airline company, where a KPI could be the company's safety record or the effectiveness of its safety inspection program. It also notes that the content of an executive dashboard should be tailored to the needs and preferences of the executive, with some preferring detailed daily operational insights, while others may focus on a few key indicators. The paragraph concludes by reiterating the role of an EIS in supporting senior-level decision-making by providing a strategic overview through a well-designed executive dashboard.
Mindmap
Keywords
đĄExecutive Information System (EIS)
đĄKey Performance Indicators (KPIs)
đĄExecutive Dashboard
đĄDecision Support System (DSS)
đĄStrategic Planning
đĄCrisis Management
đĄSummarized Information
đĄManagement Style
đĄSafety Inspection Program
đĄCritical Information
Highlights
An executive information system (EIS) is essential for effective leadership in a large company with multiple locations and employees.
EIS supports senior-level decision making and strategic planning.
EIS is also known as executive support systems (ESS).
EIS is designed to support various activities such as strategic planning, organizing, staffing, control, and crisis management.
EIS is a type of decision support system (DSS) with unique characteristics.
EIS combines critical information from all areas within the organization for a complete overview.
EIS supports strategic and long-term decisions, unlike typical DSS designed for specific decisions.
The information used in EIS is presented in a summarized manner for quick understanding.
An executive dashboard is a popular approach to present summarized information in EIS.
A dashboard provides critical information at a glance, similar to a vehicle's dashboard.
The executive dashboard should contain key performance indicators (KPIs) for strategic decision-making.
KPIs in an executive dashboard are selected to measure achievement towards specific objectives.
The content of an executive dashboard varies between organizations and depends on management style.
EIS extracts and summarizes information from various information systems within an organization.
EIS is not for managing daily operations but for ensuring the company's strategic direction and performance.
The executive dashboard should be free of distractions to focus on strategic decisions.
An example of a KPI for an airline company could be the company's safety record.
EIS helps senior management to monitor the effectiveness of programs like safety inspections.
Transcripts
let's say you are the chief executive
officer of a large company you have 35
locations in 12 countries with 20,000
employees how do you keep track of
everything that is going on in the
company in order for you to be an
effective leader what information are
you going to need you don't have the
whole day to read through dozens of
reports or listen to a series of
presentations what you need is an
executive information system an
executive information system or EIS is a
specialized information system used to
support senior level decision making an
EIS is not only for the CEO but for any
senior manager or executive making
strategic decisions to improve the
long-term performance of the
organization he is is also referred to
as executive support systems or ESS
senior management is responsible for a
number of different tasks within an
organization including defining an
overall vision strategic planning
strategic organizing and staffing
strategic control and crisis management
an EIS is designed to support these
various activities an EIS is a type of
decision support system or DSS but is
unique in a number of ways first in many
organizations there may be a number of
different DSS's in place to support
specific decisions by individual units
an EIS on the other hand combines
critical information from all areas
within the organization so senior
management gets a complete overview
second a typical DSS is designed for one
specific decision an EIS supports
decisions that are more strategic in
nature and long-term these differences
influence what information is being used
and how it is presented consider the
example of maintaining an airplane there
are numerous critical parts to an
airplane that have to be carefully
inspected after a certain number of
flight hours a DSS could be used to
assist safety inspectors and making sure
no critical parts get missed and that
any issues that come up are dealt with
appropriately senior management
not specifically interested in the
one-time inspection of a single plane
they are interested however in making
sure the company has an outstanding
safety record and they need to know that
the inspection program is working
effectively so the safety inspection
program as one unit would be part of an
EIS but the details on individual plane
inspections would not Annie is typically
extracts information from the various
information systems used in an
organization this information needs to
be summarized in a meaningful manner one
popular approach to do this is to use an
executive dashboard the term dashboard
is used to indicate the various panels
inside a vehicle while you're driving
you need to keep your eyes on the road
but your dashboard provides critical
information you can see with a quick
glance driving speed gear information
fuel level oil temperature things like
that
depending on your vehicle the dashboard
may also include a navigation system
audio system and more detailed
Diagnostics for your vehicle now instead
of you driving a vehicle you are CEO
running a company you need to keep your
eyes on the road which means you need to
focus most of your time on actually
running your company but once in a while
you glance at your executive dashboard
to see how the company is doing and you
make adjustments accordingly
you probably get the idea of a dashboard
it should contain the critical
information needed to make decisions and
it needs to be easily understood it
should also not be too detailed you
don't want to spend too much time trying
to figure out what all the information
on your dashboard means the dashboard
should also be free of distractions so
you can focus on strategic decisions an
executive dashboard typically shows key
performance indicators or KPIs these
indicators are carefully selected to
measure achievement towards a specific
objective or to measure the level of
success of specific activities in the
case of the airline company one of these
key performance indicators could be the
company's safety record or some measure
of its safety inspection program there
is no one-size-fits-all for what should
go on an executive dashboard
this will vary between organizations and
will also depend on the management style
some executives may want quite a bit of
detail on the daily operations while
others want to focus primarily on a few
selected indicators an executive
information system is a specialized
information system used to support
senior level decision making an EIS
combines information from various units
in the organization to provide a
strategic overview an executive
dashboard is an effective way to present
summarized information in the form of
key performance indicators
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