From 1990 through 1998, First American Corporation (FAC) changed its corporate strategy from a traditional banking approach to a customer relationship-oriented strategy that placed FAC's customers at the center of all aspects of the company s operations. The transformation made FAC an innovative leader in the financial services industry This case study describes FAC's transformation and the way in which a data warehouse called VISION helped make it happen. FAC's experiences suggest lessons for managers who plan to use technology to support changes that are designed to significantly improve organizational performance. In addition, they raise interesting questions about the means by which information technology can be used to gain competitive advantage.
Managers who specialize in reviving failing businesses were surveyed to determine the information, the characteristics of the information, and the availability of the information they require during the first stage of a turnaround assignment, when the financial crisis must be addressed. One hundred turnaround managers rated the importance and availability of seven types of reports (financial, working capital, cost, expense, personnel, asset, and market analyses) at the onset of their engagements. For each type of report, the turnaround managers also specified which levels of reporting, time horizons, reporting intervals, and sources of the information they consider important. Finally, they specified how each type of report is used during financial crises. Results indicate that not all information considered important by turnaround managers in financial crises is available when it is needed. The second major finding was that, for all seven types of analyses, turnaround managers prefer current information that is either by cost/profit centers or detailed, and for all but asset reports, a monthly reporting interval is preferred. Although they consider financial and working capital analyses most important, all seven types of reports are either directly or indirectly used to improve cash flows while a company is in a financial crisis. Because these analyses are not available, it appears that the former CEOs did not use the information that turnaround managers require.
Executive information systems (EIS) are high-risk/high-return systems, largely because the clientele these systems serve are not only influential in the firm, but have information needs that are very difficult to provide through computer-based information systems. As a result, it is important to understand the keys to successful EN development and ongoing operation. This two-phase study first interviewed executives, EIS professionals, and vendors and consultants to elicit keys to success. The findings of the first phase rank-ordered the keys to successful EIS development and the keys to successful ongoing EIS operation. The first phase also indicated differences among the constituencies regarding the relative importance of the keys. The second phase of the research surveyed a large sample of EIS professionals to further examine the keys obtained from the interviews. These findings showed underlying dimensions of the two sets of keys, which in turn were used to produce a model of successful EIS development and operation. These factors also provided evidence to support and integrate the existing literature on information systems success.
Executive information systems (EISs) are challenging applications to develop, and many organizations are unsuccessful in their efforts. A major problem is determining the information requirements for the system. A multi-stage study was conducted to explore (1) methods used to determine the information requirements for the initial and ongoing versions of an EIS; (2) how frequently the methods are used; (3) how useful the methods are; and (4) in what situations the methods are useful or not useful. Telephone interviews identified 16 methods used to determine information requirements and provided insights into what makes the methods useful or not useful. Survey questionnaires revealed how frequently the methods are used and how useful they are. The use of the 16 methods for the initial and ongoing versions of an EIS are discussed as are suggestions for further research.
The role of information technology (IT) has changed from being merely a tool for processing transactions to a weapon that can affect an organization's competitive position. Because of this change, previous organizational structures for IT groups may no longer be adequate. Organizational theorists have shown that the appropriate structure is influenced by the organization's external environment and strategy. This study contributes toward a better understanding of IT organization by exploring the relationship between the organizational structure of IT groups and the effectiveness of IT support in two companies with similar IT environments. Specifically, the study uses: (1) qualitative analysis to examine IT organizational structure in two very similar companies; (2) quantitative analysis to determine which company has more effective IT support; and (3) an expert panel to identify those differences in IT organizational structure that appear to facilitate effective IT support. Several propositions from these findings are presented and discussed.
Executive information systems (EIS) are now successfully providing computer support for senior executives in a growing number of organizations. Previous attempts to support senior executives are discussed with a focus on why these attempts failed and what was learned that should be incorporated in future efforts. An EIS development framework is presented that includes a structural perspective of the elements and their interaction, the development process, and the dialog between the user and the system. Survey data from 50 firms having an EIS are presented and discussed in the context of the development framework. While most of the findings confirm conventional EIS wisdom, others are somewhat surprising, such as the significant role that in formation systems management often plays in initiating the development of an EIS or serving as its operational sponsor. The findings lead to additional suggestions for EIS research opportunities, as well as predictions about the future nature of EIS.
Many organizations are moving forward with the development of an executive information system (EIS). Based on the experiences of other organizations, there are guidelines that can be followed when creating an EIS. The strategic business objectives methodology corresponds with these guidelines and involves a six-step process: (1) the organization's strategic business objectives are identified; (2) the business processes that are critical to the strategic business objectives are identified; (3) priorities are assigned to the strategic business objectives, and as a consequence, to the critical business processes; (4) information needed to support the critical business processes is defined; (5) information linkages among business processes are identified; and (6) a plan for a modular EIS development, implementation, and evolution is developed. Fisher-Price used a similar methodology when developing its EIS, and this has helped Fisher-Price become more market oriented.
A stage hypothesis for information centers (ICs) is proposed and 26 critical success factors (CSFs) for IC managers are investigated. Based on 311 responses from IC managers, support is found for the proposed stages and information is provided about the importance of the CSFs. A principal components analysis is performed on the 26 CSFs which identifies five composite CSFs: (1) commitment to the IC concept; (2) quality of IC support services; (3) facilitation of end-user computing; (4) role clarity; and (5) coordination of end-user computing. Statistical tests show that the importance of these composite CSFs tend to vary among themselves but is relatively constant individually across the IC stages.
There are a number of organization structure alternatives for supporting decision support systems, and each alternative has its advantages and disadvantages. One emerging alternative, that of providing support through an end-user services group, is being successfully used by the Oglethorpe Power Corporation.
The Management Information and Decision Support System (MIDS) has been supporting senior executives at Lockheed-Georgia for the past eight years. MIDS combines off-the-shelf hardware with in-house developed software to provide a system with unique capabilities. MIDS' benefits include better information, improved communications, an evolving understanding of information requirements, a test-bed for system evolution, and cost reductions. It is a success as measured by an assessment of benefits, frequency of use, and user satisfaction. Factors contributing to the success of MIDS include a committed senior executive sponsor, carefully defined systems requirements, carefully defined information requirements, a team approach to systems development, an evolutionary development approach, and careful computer hardware and software selection.
Decision support systems (DSS) have become an increasingly important type of computer-based information system. However, there has been limited research on management's role, in DSS approval and administration. Because of this, the authors recently investigated eighteen decision support systems and report the findings here. The specific areas explored include motivations for developing a DSS, methods for evaluating the desirability of creating a DSS, planning and organizing for building a DSS, techniques for reviewing and controlling DSS projects, and managing a DSS as an organizational entity.