Executive Information Systems EIS Subt

JOHNNY MAHECHA

7 Nov 201705:09

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

👨‍💼 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.

Outlines

00:00

🛠️ 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.

05:02

📊 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

💡Executive Information System (EIS)

An EIS is a specialized information system designed to support senior-level decision-making by providing a comprehensive overview of an organization. It integrates critical information from various units within the company, enabling executives to make strategic decisions. In the script, the EIS is highlighted as a tool for CEOs and senior managers to maintain oversight without getting bogged down by detailed reports.

💡Key Performance Indicators (KPIs)

KPIs are specific metrics used to measure the success or progress of particular activities towards achieving objectives. They are crucial components of an executive dashboard, offering quick insights into the organization's performance. In the context of the script, KPIs such as a company's safety record are used to monitor the effectiveness of the safety inspection program.

💡Executive Dashboard

An executive dashboard is a visual interface that displays summarized information from various sources, helping executives quickly grasp the company's status. It includes critical data such as KPIs, which support strategic decision-making. The script compares it to a vehicle dashboard, providing necessary information at a glance without overwhelming the user.

💡Decision Support System (DSS)

A DSS is a computerized system used to support decision-making processes. Unlike an EIS, which offers a strategic overview, a DSS typically aids in making specific, detailed decisions. The script uses the example of an airplane maintenance DSS that assists safety inspectors with individual inspections, contrasting it with the broader scope of an EIS.

💡Strategic Planning

Strategic planning involves defining an organization's direction and making decisions on allocating resources to pursue this strategy. It is one of the key responsibilities of senior management supported by an EIS. The script emphasizes how an EIS aids in strategic planning by providing a holistic view of the organization's operations and performance.

💡Crisis Management

Crisis management refers to the processes by which an organization deals with a disruptive and unexpected event that threatens to harm the entity or its stakeholders. The script mentions this as a critical function supported by an EIS, helping executives manage and mitigate crises effectively through timely and comprehensive information.

💡Summarized Information

Summarized information is the condensed version of detailed data, presented in a way that highlights key points and trends. An EIS relies on summarized information to provide executives with an overview that is both comprehensive and digestible, enabling quick decision-making. The script notes that this approach is essential for maintaining focus on strategic issues without getting lost in minutiae.

💡Management Style

Management style refers to the way in which a manager makes decisions, relates to employees, and handles responsibilities. The script acknowledges that the content and detail of an executive dashboard may vary depending on the executive's management style, whether they prefer detailed operational data or high-level performance indicators.

💡Safety Inspection Program

A safety inspection program is a systematic approach to ensuring that all safety protocols and procedures are followed within an organization. In the script, this program is used as an example of how an EIS can integrate various units' information, such as the outcomes of individual plane inspections, to ensure overall safety performance is up to standard.

💡Critical Information

Critical information refers to the most important data that executives need to make informed decisions. In the script, critical information is what an executive dashboard aims to display, ensuring that senior management has access to the essential insights required for strategic planning and crisis management without unnecessary details.

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.