Information Technology Reference
In-Depth Information
Because top-level executives often require specialized support when making strategic deci-
sions, many companies have developed systems to assist executive decision making. This type
of system, called an
executive support system (ESS)
, is a specialized DSS that includes all
hardware, software, data, procedures, and people used to assist senior-level executives within
the organization. In some cases, an ESS, also called an
executive information system (EIS)
,
supports decision making of members of the board of directors, who are responsible to
stockholders. These top-level decision-making strata are shown in Figure 10.20.
executive support system
(ESS)
Specialized DSS that includes
all hardware, software, data,
procedures, and people used to
assist senior-level executives
within the organization.
Figure 10.20
Board of
directors
The Layers of Executive
Decision Making
President
Functional area
vice presidents
Functional area
managers
An ESS can also be used by individuals at middle levels in the organizational structure.
Once targeted at the top-level executive decision makers, ESSs are now marketed to—and
used by—employees at other levels in the organization. In the traditional view, ESSs give top
executives a means of tracking critical success factors. Today, all levels of the organization
share information from the same databases. However, for our discussion, assume ESSs remain
in the upper-management levels, where they highlight important corporate issues, indicate
new directions the company might take, and help executives monitor the company's progress.
Executive Support Systems in Perspective
An ESS is a special type of DSS and, like a DSS, is designed to support higher-level decision
making in the organization. The two systems are, however, different in important ways. DSSs
provide a variety of modeling and analysis tools to enable users to thoroughly analyze
problems—that is, they allow users to
answer
questions. ESSs present structured information
about aspects of the organization that executives consider important. The characteristics of
an ESS are summarized in the following list.
•
Are tailored to individual executives
•
Are easy to use
•
Have drill-down abilities
•
Support the need for external data
•
Can help with situations that have a high degree of uncertainty
•
Have a future orientation
•
Are linked with value-added business processes
