Information Technology Reference
In-Depth Information
Capabilities of Executive Support Systems
The responsibility given to top-level executives and decision makers brings unique problems
and pressures to their jobs. This section discusses some of the characteristics of executive
decision making that are supported through the ESS approach. ESSs take full advantage of
data mining, the Internet, blogs, podcasts, executive dashboards, and many other techno-
logical innovations. As you will note, most of these decisions are related to an organization's
overall profitability and direction. An effective ESS should have the capability to support
executive decisions with components such as strategic planning and organizing, crisis man-
agement, and more.
Support for Defining an Overall Vision
One of the key roles of senior executives is to provide a broad vision for the entire organiza-
tion. This vision includes the organization's major product lines and services, the types of
businesses it supports today and in the future, and its overriding goals.
Support for Strategic Planning
ESSs also support strategic planning.
Strategic planning
involves determining long-term
objectives by analyzing the strengths and weaknesses of the organization, predicting future
trends, and projecting the development of new product lines. It also involves planning the
acquisition of new equipment, analyzing merger possibilities, and making difficult decisions
concerning downsizing and the sale of assets if required by unfavorable economic conditions.
strategic planning
Determining long-term objectives
by analyzing the strengths and
weaknesses of the organization,
predicting future trends, and pro-
jecting the development of new
product lines.
Support for Strategic Organizing and Staffing
Top-level executives are concerned with organizational structure. For example, decisions
concerning the creation of new departments or downsizing the labor force are made by top-
level managers. Overall direction for staffing decisions and effective communication with
labor unions are also major decision areas for top-level executives. ESSs can be employed to
help analyze the impact of staffing decisions, potential pay raises, changes in employee ben-
efits, and new work rules.
Support for Strategic Control
Another type of executive decision relates to strategic control, which involves monitoring
and managing the overall operation of the organization. Goal seeking can be done for each
major area to determine what performance these areas need to achieve to reach corporate
expectations. Effective ESS approaches can help top-level managers make the most of their
existing resources and control all aspects of the organization.
Support for Crisis Management
Even with careful strategic planning, a crisis can occur. Major incidents, including natural
disasters, fires, and terrorist activities, can totally shut down major parts of the organization.
Handling these emergencies is another responsibility for top-level executives. In many cases,
strategic emergency plans can be put into place with the help of an ESS. These contingency
plans help organizations recover quickly if an emergency or crisis occurs.
Decision making is a vital part of managing businesses strategically. IS systems such as
information and decision support, group support, and executive support systems help
employees by tapping existing databases and providing them with current, accurate infor-
mation. The increasing integration of all business information systems—from TPSs to MISs
to DSSs—can help organizations monitor their competitive environment and make better-
informed decisions. Organizations can also use specialized business information systems,
discussed in the next chapter, to achieve their goals.
