Executive Information Systems EIS Subt

Summary

The 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

• 👨‍💼 The role of an Executive Information System (EIS) is crucial for senior management to make strategic decisions and improve long-term organizational performance.
• 📈 EIS is not just for CEOs but also for any senior manager or executive involved in strategic decision-making processes.
• 🔍 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.
• 🌟 EIS supports strategic and long-term decisions, which differentiates it from a typical DSS designed for specific, one-time decisions.
• 🛠 The information presented in an EIS needs to be summarized and easily understandable, often through the use of an executive dashboard.
• 🚗 An executive dashboard is likened to a car's dashboard, providing critical information at a glance for quick decision-making.
• 📊 The dashboard should display Key Performance Indicators (KPIs) that are relevant to the strategic objectives of the organization.
• 🔑 KPIs on an executive dashboard are carefully selected to measure progress towards specific goals or the success of particular activities.
• 🛑 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.
• 🔄 EIS typically extracts and summarizes information from various information systems within an organization to avoid information overload for senior executives.
• 🎨 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.