1Existence of Executive Information Systems (EISs) in Johannesburg Stock Exchange companies. http://sajim.co.za/index.php/SAJIM/article/downloadSuppFile/448/220
Of the 13 respondents who planned to implement an EIS in the future (in Table 2), 38.5% of respondents planned to implement an EIS within one to two years, whilst both groups of 23.1% of the respondents planned to implement an EIS in 1 to 6 months and 6 to 12 months respectively. One respondent indicated that they wanted to implement an EIS in under 1 month.
2Implementation time of Executive Information Systems (EISs) in the near future. http://sajim.co.za/index.php/SAJIM/article/downloadSuppFile/448/221
3Software for existing Executive Information Systems (EISs). http://sajim.co.za/index.php/SAJIM/article/downloadSuppFile/448/222
Fifty two percent (52.1%) of the respondent’s software formed part of the standard package, which included EIS. Table 4 indicates that the number of users that access EISs is higher for larger companies.
4Number of users accessing the complete Executive Information Systems (EISs). http://sajim.co.za/index.php/SAJIM/article/downloadSuppFile/448/223
Purposes for using Executive Information Systems Respondents could select more than one purpose for using EISs. Potentially an EIS fulfils a wide range of purposes but as per Table 5 only the main purposes were listed.
5Purposes for using Executive Information Systems (EISs). http://sajim.co.za/index.php/SAJIM/article/downloadSuppFile/448/224
The respondents could select more than one person as main users of EISs as per Table 6.
6Main users of Executive Information Systems (EISs). http://sajim.co.za/index.php/SAJIM/article/downloadSuppFile/448/225
There was definitely a significant relationship evident between decision-making and problem solving in Table 6 versus quality and integrity of information in Table 7.
7Criteria for the success of Executive Information Systems (EISs). http://sajim.co.za/index.php/SAJIM/article/downloadSuppFile/448/226
Decision-making and problem solving scored the highest as the most important purposes of EISs as per Table 5 and therefore executives rated the quality (35.4%) and integrity (32.3%) of information as the most important criteria for the success of EISs. There is definitely a significant relationship visible between the challenges of EISs and the criteria for success of EISs regarding the decision-making and problem solving versus quality and integrity of information. The third most important criterion for the success of EISs is user-friendliness (24.6%), followed by quick response time (23.1%). The criterion ‘cost’ was not a major factor for the success of EISs and the criterion ‘interest of staff’ was not even considered important by respondents. Surprisingly the criterion ‘better communication amongst management’ (15.4%) was added as a last criterion to test the diversity of staff in current South African companies as well as the relationship of information technology developers versus users. Qualitative results: Interviews Seven executives from the respondents of the questionnaire were interviewed to determine how EISs or other information systems were used by executives and management and how the systems influenced the decision making process as per Group A and B. Six EIS-users were interviewed, as per Group C, in all levels of management. Interviews were conducted as follows: Group A: Companies with EISs – Interviews with management of five companies. Group B: Companies who plan to implement EISs – Interviews with management of two companies. Group C: Company with an EIS with extended availability to all levels of management – Interviews with six EIS-users. Companies with Executive Information Systems: Results of Group A A successful EIS provides the executive with the necessary real-time information that is needed in decision-making and solving problems under time pressure. An EIS is a trusted source of information to be used as a management information tool for the companies. Companies had different software options for their EISs, the stand-alone off the shelf package was the most popular; EISs have been used for five years plus. The number of users accessing EISs varied from 26 to over 500 users. The accountant was the most prolific user. The three most ranked motivation factors were: to improve the effectiveness and efficiency of executives, to provide easier and faster access to information, and finally, to interface with other software.The five top-ranked purposes of EISs were: trend analysis drill down facility critical success factors exception reporting quick and immediate access. The following five factors of EISs were the most crucial to add strategic value within companies: quality of information response time availability of regularly required information availability of market indicators virusesCompanies identified the following areas to improve EISs: to handle volume of data faster accessing relevant information automated systems. The EIS, the Internet and e-mail were the most popular media executives used to source information. All companies confirmed that EISs assisted in decision-making. Companies planning to implement Executive Information Systems: Results of Group B One company planned to implement an EIS over a six-month period as phase one and the other company had already implemented an EIS in six of its 13 operations. Both companies felt that the EIS would: improve the immediate availability of information and the drill down to transaction level provide a system that is user-friendly decrease the working days substantially to produce consolidated Group results increase the strategic value for decision making and immediate problem solving. The EIS is supported and empowered by the Chief Executive Officers (CEOs), Financial Directors (FDs) and Company Secretary (CS). Both the interviewees seek quicker, better and more efficient ways to do their day-to-day activities and produce timeous reports. Both companies use software that is part of a standard package. The implementation of an EIS is seen as being able to enhance the communication capabilities and improve the existing database of the company. Company with an Executive Information Systems with extended availability to all levels of management: Results of Group C All staff at all levels use the EIS on a daily basis, except for Junior Management staff who use the EIS monthly. The EIS enhances the positions of all staff members to add strategic value to the company by making decisions and solving problems much quicker, by identifying which business unit is performing or not, by extracting relevant trend analysis, by reducing the amount of paper-based reports, by managing the business effectively and by allowing quick and immediate access to up-to-date information. Different kinds of information are extracted from the EIS and vary from each management level. All the staff, at all levels of management, agreed that the EIS supports their day-to-day activities.Extracted information from the EIS is used differently in each category and varied from, amongst others: reporting to the Executive Committee and the Board running and managing the business answering queries confirming data and/or information making decisions sharing information and planning for future developments. All staff members confirmed that there were areas to improve their EIS; for example, to be able to slice and dice information, to create a ‘what if’ analysis, to provide timeous provision of results, to improve the accuracy of information, to view a single customer, to centralise data, to navigate data, and to locate data logically. Limitations of the study The most crucial part of the empirical study was that questionnaires were limited to the top management and executives. The following issues had an impact on the response rate of the questionnaires: Executives were out of office for a long period of time and reminders were sent out more than once. The mailing list with e-mail addresses was obtained from McGregor BFA. A few e-mail addresses were not included; therefore e-mail addresses were obtained from websites and telephonically. The Internet only provides general contact information e-mail addresses and not the e-mail addresses of CEOs, FDs, Managing Directors (MDs), directors and executives; therefore questionnaires were only e-mailed to the general information contact e-mailed addresses. Recipients of these e-mails were asked to forward the questionnaires to the addressed CEOs, FDs, MDs, directors or executives as per the mailing list. Nonrespondents that had no websites were contacted telephonically, but in some cases the telephone numbers were incorrect. Some listed JSE companies obtained from McGregor BFA were delisted or suspended. Some addressees e-mailed the sender directly without completing the questionnaire. Some listed JSE companies were contacted telephonically and phone calls were forwarded to the personal assistants (PAs) of the CEOs, FDs, MDs, directors or executives as they informed the author that their superiors do not participate in surveys or were unable to complete the survey as a result of time constrictions. A few JSE companies were not in the position to disclose the name or e-mail address of the CEOs, FDs, MDs, directors and executives telephonically. The McGregor mailing list did not include the most recent executives, as the annual reports of firms were only made available after the firm’s financial year-end. Executives listed in the annual report at year-end already left the firm although the information needed by McGregor for their mailing list was obtained from the annual reports. In addition, the research is limited to listed JSE companies in South Africa. The results are therefore only applicable to South Africa, but can be applied to other businesses that are not listed in South Africa. Conclusion From the findings of the study it was evident that companies view an EIS as an excellent management information tool which makes use of standard tools and built-in features that is critical for real-time decision-making, solving problems, creating a competitive edge and adding strategic value to companies. The speed of the decision-making process definitely increases the rapidity of problem identification since EISs are used by executives, top management and managers. Companies all confirmed that EISs could be of assistance in the decision-making process.The main reasons motivating companies to plan implementing an EIS include the following: major expansions in the company to improve the immediate availability of information a drill down facility to transaction level user-friendliness to decrease working days substantially to produce consolidated group results quicker and better ways to improve their daily routine and/or reduce or eliminate paper-based reports. Companies confirmed that using an EIS as a management information tool, added value to their business, which contributed to the objectives of the study to understand the challenges presented by EISs in listed JSE companies. Recommendations for future research The research provides guidance for future research, as this study was to establish the existence of and challenges implicit in EISs in listed JSE companies. Furthermore the study also intended to explore the reasons why listed JSE companies do not have an EIS. Several respondents to the questionnaires and interviewees requested a report on the outcome of the results. 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