Strategic Management: Formulation and Implementation

Executive Support Systems (ess)

Executive support systems (ESS) support the strategic level by providing a generalized computing and communications environment to assist senior management's decision making. The questions ESS must assist in answering include: What business should we be in? What are the competitors doing? What new acquisitions would protect us from cyclical business swings? Which units should we sell to raise cash for acquisitions? What is the impact on earnings of proposed changes in the investment tax credit?

Figure 811 illustrates a model of an ESS. It consists of workstations with menu, interactive graphics, and communications capabilities that can access historical and competitive data from internal corporate systems and external databases such as Dow Jones News/Retrieval or the Gallup Poll.

Strategic Use Of Information Technology

The role of information and information systems has changed dramatically in the past last twenty years. The adoption of computerbased information systems have strategic consequence for organizations. The information systems perform four major roles in an organization: support of business operations, support of management decision making, support of management control and support of strategic organizational advantages. Increasingly, information systems are playing even more central role in the firm a strategic role.