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82 Part One Organizations, Management, and the Networked Enterprise

Business intelligence systems also address the decision-making needs of
senior management. Senior managers need systems that focus on strategic
issues and long-term trends, both in the firm and in the external environment.
They are concerned with questions such as: What will employment levels be in
five years? What are the long-term industry cost trends? What products should
we be making in five years?
Executive support systems (ESS) help senior management make these
decisions. They address non-routine decisions requiring judgment, evaluation,
and insight because there is no agreed-on procedure for arriving at a solution.
ESS present graphs and data from many sources through an interface that is
easy for senior managers to use. Often the information is delivered to senior
executives through a portal, which uses a Web interface to present integrated
personalized business content.
ESS are designed to incorporate data about external events, such as new tax
laws or competitors, but they also draw summarized information from internal
MIS and DSS. They filter, compress, and track critical data, displaying the data
of greatest importance to senior managers. Increasingly, such systems include
business intelligence analytics for analyzing trends, forecasting, and “drilling
down” to data at greater levels of detail.
For example, the CEO of Leiner Health Products, the largest manufacturer
of private-label vitamins and supplements in the United States, has an ESS
that provides on his desktop a minute-to-minute view of the firm’s financial
performance as measured by working capital, accounts receivable, accounts
payable, cash flow, and inventory. The information is presented in the form of
a digital dashboard, which displays on a single screen graphs and charts of
key performance indicators for managing a company. Digital dashboards are
becoming an increasingly popular tool for management decision makers.

A digital dashboard delivers
comprehensive and accurate
information for decision
making often using a single
screen. The graphical over-
view of key performance
indicators helps managers
quickly spot areas that need
attention.

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