1 Introduction
Investment in Information Systems (IS) by
organizations requires justification in terms that can be understood and
accepted by the organization's management. Like any other capital
expenditure, the justification of IS has traditionally been seen in
terms of cost savings. These so-called tangible benefits have been
applied to operational systems in which aspects of the organization or
business are in some way automated. In such systems, rigorous
accounting methods such as cost/revenue analysis, return on investment
and cost-benefit analysis can be applied with varying degrees of success
and the benefits can be stated in 'bottom-line' monetary terms.
Increasingly, Information Technology (IT) projects
within organizations are moving beyond mandatory operational systems
involved with automation of business function to non-operational
systems. Management Information Systems (MIS) are procured to provide
information about past performance, Decision Support Systems (DSS) are
implemented to support organizational strategy and Executive Information
Systems (EIS) are provided to enable strategic thinking and to provide
information about the environment in which the organization is
operating. Such systems, which are not directly concerned with the
everyday operation of the organization, are difficult to analyse,
implement and justify. IT managers and users find applications further
up the projects ladder (Farbey et al., 1993) difficult to
understand. Without careful introduction into the organization, these
systems fail to fulfil their potential. Indeed, users will attempt to
reduce these systems to the level of operational systems without
strategic impact. Hackney and McBride (1993) found a reluctance of IT
practitioners within the public sector to use IS to tackle strategic
issues. MIS, DSS and EIS are dismissed by managers as unimportant in the
face of pressing needs for operational systems which are easier to
justify in simple cost-saving terms.
Such strategic support systems pose significant
problems for the IS evaluator who is seeking to justify the
implementation of this technology to executive management. How can the
success of the system be estimated when the outcomes of the system's use
will not necessarily be directly attributable to the system itself? How
can apparently non-measurable attributes be presented in such a way that
changes can be observed? On what basis can a system whose use is not
essential to the everyday operation of an organization be accepted?
The inability to evaluate effectively the benefits of
IS before its implementation forms a significant barrier to the take-up
of strategic support systems. Not only is evaluation deficient before
the delivery of the system, it is also deficient, or even absent, after
the implementation. Where formal evaluations are carried out, they often
have a ritual function in justifying decisions or viewpoints about the
suitability of a system which have already been determined (Walsham,
1993). The artificial application of numbers, scores and cost benefits
may lend credence to the selection decision but hides the real reasons
behind the procurement of a system and fails to expose the actual
benefits.
Attitudes to IS within the organization, the
relations between subgroups, the expectations of the users as to what
the system will achieve (both negatively and positively), and ethical
considerations are important in the acceptance and delivery of benefits
by an IS system. Their importance rises above functional considerations
and yet they are given scant attention in the formalist, functional
approaches to IS benefits assessment.
This paper uses the evaluation and implementation of
EIS as a vehicle for exploring the issues associated with strategic
systems evaluation. The nature of EIS is discussed and the problems of
their evaluation outlined. Two approaches to EIS evaluation are
contrasted. It is argued that a formal rationalistic approach, while
necessary and valuable, is not sufficient for the effective evaluation
of EIS. An alternative, interpretive approach is required which
addresses the social and organizational context in which the EIS will
operate. The use of an interpretive approach is illustrated through a
case study and, finally, its general applicability is briefly
discussed.
2 The nature of EIS
EIS was first identified in terms of the potential
user population. Top executives who remained IT naive were seen as a
fruitful ground for the spread of IS. This user culture, which prefers
oral communication, did not see the direct relevance of IT and turned to
other staff to provide them with information. Rockart and Treacy (1982)
cited examples of forward-looking executives who made use of computers
to access stores of data relevant to their decision making. EIS had to
be easy to use and intuitive, providing easy access to a wide range of
internal and external data sources. Information needed to be well
presented, with options for graphical displays as well as reports. EIS
has been characterised by the ability to 'drill down' from high-level
summary data to detailed operational data. Beyond the definition of the
user populations there has been little agreement on the nature of EIS.
Edwards and Peppard (1993) identified four types of EIS. Conglomerate
EIS systems enable subsidiaries of a company to be monitored by the
parent company. Control EIS allows the monitoring of the success of a
business unit. Competitive EIS allows executives to monitor external
variables. Communication and Personal Support EIS includes diverse
technologies such as electronic mail, word processors and spreadsheets.
Such a wide-ranging classification indicates the difficulty in defining
EIS.
A simple definition of an EIS is that it is an
information bridge. It provides a connection between widely varying
sources of data and the interconnected information that is needed in a
particular business situation. EIS is not limited to so-called
executives (Friend, 1990; Wheeler et al., 1993), nor it is it a
generic term for IT infrastructure such as electronic mail. Commercial
products such as Forest and Trees (Channel Computing Inc), Commander EIS
(Comshare Inc) and Command Centre EIS (Pilot Executive Software) have
similar properties in that they provide access to corporate databases as
well as public databases, they enable data to be summarised or examined
in detail, they provide facilities for report design and graphical
presentation and they will automatically refresh views from the data
sources.
An information bridge such as EIS is required where
the data is badly organised, locked into several systems and not
timely. Such organizations as, for example, the NHS, are data rich but
lack the ability to turn this into information. Often this leads to a
proliferation of paper-based reports which distance the user further
from the data source (Stone, 1992; Houndeshel, 1992; Watson & Frolick,
1992).
EIS has also been pursued as a means to monitor an
organization at a high level. The use of aggregated and focused data
enables the executive to monitor identified Critical Success Factors (CSFs).
EIS can be designed on the basis of analysing the CSFs for an
organization and collating the data required for the monitoring of
these. This results in user-friendly reports systems for monitoring
trends but misses the need to look ahead and to relate the EIS to the
business strategy (Holohan, 1992).
However, the purpose of an EIS is not just to
facilitate easy access to data or to act as a high-level control system.
By enabling managers at all levels to access data relevant to the
decisions they are making, the EIS becomes an agent for organizational
change. Information is gathered, hypotheses formed and action taken to
change organizational activities or direction. Indeed, an EIS will be
of little value if the resources and the will to implement the changes
suggested are not present.
In tandem with the role of EIS as a catalyst for
organizational change is its role in organizational learning. An EIS
should promote the competitive ability of an organization. It should
enable the organization to look forward as well as backward, externally
as well as internally. To this end, the EIS will access external
sources of data from stock information to medical abstracts. These
sources will support the process of external scanning of the
environment. EIS can be used as a means of analysing the environment in
which an organization operates in order to respond more effectively to
volatile and hostile change (Kaye, 1993).
3 The problem of EIS evaluation
EIS does not fit easily into the application
portfolio (Ward, 1990). While addressing strategic objectives, it is not
in itself necessarily a critical application; while providing support to
executives and higher management, it will not directly improve
organizational efficiency; while being seen as an R&D application it
will not necessarily lead to innovation. Since it is difficult to
categorise, it is difficult to identify an evaluation approach which is
clearly suited to EIS.
Tangible benefits of EIS can be identified. Savings
in information distribution costs can be estimated. The costs of memos
and documents in terms of paper, copying, binding and mailing can be
estimated. Staff time saved that would otherwise be used manually
seeking information can be estimated. The cost of using an EIS can be
compared with the cost of using other sources for obtaining specific
data (Belcher & Watson, 1993). However, all this is peripheral to the
core benefits of EIS, which lie in the extent to which it supports more
informed decision making and the extent to which it promotes
organizational learning and organizational change. These benefits will
be neither technical or operational. They will be embedded in the
culture of the organization and only indirectly visible through the
changing nature of the organization.
The nature of such benefits depends on the context of
the organization, both internally and externally, and on the processes
occurring within the organization at many levels. Response to change is
dependent on those who make the response. Good information provided by
EIS can still result in bad decisions by inadequate executives, which
could then be blamed on the EIS. Organizational learning is affected by
the nature of the organization. Indeed the value of learning to the
organization, while recognised as being extremely important, is
notoriously difficult to measure. While methods of assessing learning
could be applied to the organization and particular participants in
post-implementation evaluation, the assessment of possible
organizational learning is more difficult.
The potential for organizational change will depend
on the current state of the organization and on its culture and ethos.
Since EIS both encourages and supports organizational change, an
organization which is not ready to change will obtain less value from an
EIS than an organization which is seeking change in response to internal
of external factors. In order for the potential of EIS to be realised,
there must be good organizational fit. This is a key issue in the
evaluation of IS. The alignment of IS to the objectives of an
organization has long been recognised as being poor and research has
been directed towards this problem (Baets, 1992; Iivari,1992; Burn,
1993). This lack of fit frequently applies to the individual systems as
well as to the entire strategy.
The success of EIS will be more likely if there is
a match between the organizational function of EIS and the state of the
organization in which it is embedded. EIS will only be suitable for a
small subset of organizations. Even for organizations where a match does
exist, the suitability of EIS is dynamic and may be reduced as the state
of the organization changes. The organization must be ready to receive
an EIS system. Indeed, it may be more appropriate to ask, 'Is the
organization good enough for an EIS system?', rather than 'Is the EIS
system good enough for the organization?'. A readiness survey would be
a useful element of any evaluation in which the organization's context
and culture are examined to see whether an EIS would be an appropriate
application for the organization and the organization's resources and
management approach are studied to assure that any changes suggested
through the use of an EIS could in fact be implemented. Such an 'EIS
driving test' would reduce the risk of failure through an inadequate
match between EIS and the organizational culture.
The fact that EIS benefits are linked to the social
and political nature of the organization increases the difficulty
participants have in justifying its procurement. EIS justification in
organizations is based on intuition, perceived strategic necessity or
fashion. Most EIS investment is made on an act of faith by senior
personnel (Bird, 1991). In one survey, 95% of respondents indicated that
the justification of EIS was intuitive (Watson et al, 1991). This arises
from a perception that there is no real alternative to a hard,
formalistic cost-based justification. In the absence of a formal,
numeric approach to evaluation, it is reduced to a matter of gut feel.
Reliance on gut feel for the justification of IT is a
general problem (Symons, 1990). This reliance is more likely in the case
of EIS evaluation because of the presence of an executive sponsor. EIS
implementation is dependent on top management support. Usually, a senior
executive, aware of an organizational problem, alights on EIS as the
solution. The executive champions the use of EIS and, with the help of
an implementation sponsor, drives the investment in EIS. The need for an
executive sponsor has been so prevalent in EIS uptake, that it has been
identified as key to successful EIS (Houdeshel & Watson, 1987). However,
this reliance on an executive sponsor is a barrier to both effective
evaluation and organizational acceptance. The forcefulness of the
sponsor leads to implementation of EIS without due attention to its
benefits and, most importantly, its organizational fit. Frequently, the
departure of the executive sponsor leads to the demise of the EIS
(Wheeler et al., 1993) because it has not been embedded in the
organization. There has to be organizational take-up of a system such as
an EIS, and not just individual take-up. This has arisen partly from the
perception of an EIS as a system targeted at a few individuals, or even
one individual within an organization.
Faced with the diverse and soft nature of EIS
benefits and the reliance of organizations on the gut-feel of one or two
key participants, an alternative approach to EIS evaluation must be
found. Current approaches to the evaluation of systems such as EIS and
DSS are basically functionalist. It may be that a more radical approach
to the evaluation of EIS is required since an EIS can be seen as a
complex social object (Symons, 1991) which cannot be evaluated solely
functionally. The functionalist approach will now be considered in
contrast with an alternative, interpretive approach.
4 Approaches to IS evaluation
4.1 Functionalist
Traditional approaches to IS evaluation employ
cost/benefit analysis or scoring techniques. The former are
inappropriate to systems such as EIS with value-based benefits. Ranking
and scoring based methodologies such as information economics (Parker
et al., 1988) can tend to give subjective views a pseudo-scientific
veneer. Scoring systems may allow the cancellation of the impact of some
factors within the overall assessment (Willcocks & Lester, 1993). The
application of mathematical strategies to counteract any bias within the
evaluation (see, for example, Anderson, 1990) can result in an
evaluation whose technical value is over-emphasised. Indeed, such a
technical approach can be manipulated to justify what is actually a
political decision. An appropriate method for EIS evaluation should
address political, social and technical issues.
Information Economics has been extensively reviewed
elsewhere (Ward, 1990; Wiseman,1992; Willcocks & Lester, 1993; Farbey et
al.,1993). Its importance lies in the emphasis on addressing
intangibles and risks through value linking, value acceleration and
value restructuring. However, while attempting to overcome the limits of
simple cost-benefit analysis, it carries the same risk of a
technically-based method in being open to misinterpretation and abuse by
the stakeholders.
The search for formalistic approaches to evaluation
can be carried to extremes where mathematical and theoretical frameworks
are provided that are divorced from managerial and organizational
reality (see, for example, Marsden & Pingry, 1993).
A more pragmatic method of evaluation which has been
applied to DSS is value analysis (Keen, 1981). This evaluation is
carried out in the context of iterative prototyping. DSS are treated as
research and development tools. A view is taken on the risk of initially
investing in a prototype, based on some simple questions about what will
be obtained from the system and what is seen as an acceptable cost for
this research-based activity. Keen's approach, in which value is first
established and then an acceptable cost threshold agreed, recognises
that innovative applications involve uncertainty and risk. The analogy
with the procurement of training courses within a company is
appropriate. The procurement of a training course is based on perceived
need and long-term value rather than any formal evaluation method.
However, while Keen's approach highlights process, it does not address
contextual issues.
Formal rationalistic approaches are limited by their
narrow focus on the system itself and on the quantification of benefits,
omitting consideration of the wider organizational issues. The
evaluation of IS must extend beyond prescriptive management frameworks.
The social and political contexts within which the system will be
utilised are as important as the system's technical features. (Waema &
Walsham, 1990). The emphasis within functional approaches on
quantifiable data obscures the subjective aspects of information system
evaluation. IS benefit evaluation cannot be made completely objective.
Indeed, the acceptance of a system is ultimately
dependent on the perceptions of those who use it. Objective measures of
the value of a system may well be set aside if the system does not fit
the organizational culture. The system must be perceived as a success.
An understanding of the user's perception of the needs and benefits of a
system are important for effective evaluation and are not addressed in
quantitative approaches.
4.2 Interpretivist
The interpretive approach addresses qualitative
issues and is aimed at producing an understanding of the social contexts
and the social processes of the organization into which the IS is to be
introduced. The interpretive paradigm seeks to understand the
perceptions of the people who are to be involved with the system. Within
the organization, subgroups will have shared meanings or perceptions
that are more subjective in nature than objective.
The success or failure of an information system and
the delivery of benefits are dependent on the people who are using it. A
successful evaluation approach will seek to understand the users'
perception of the proposed system.
Interpretivism is concerned with approaches to the
users' understanding of reality. It asserts that such knowledge, within
the domain of human action, is necessarily a social construction and
inevitably subjective (Walsham, 1993). The interpretive approach is
based on examination of content, context, process and context/process
linkage. A broad interpretive framework is outlined in table 1.
In analysing the content, the problem requiring an IS
solution must be understood. The products, processes and systems of the
organization must be investigated. Also the nature of the proposed IS
must be analysed. The second strand is an understanding of the social
context into which the information system will be placed. This comprises
a static view of the organization.Thirdly the social process by which
the information system will influence the organization is examined. This
dynamic view encompasses both a cultural and a political perspective.
The final element in the interpretive framework
concerns the linkage between social context and social process. It is
here that structuration theory provides the key conceptual approach (Walsham
& Han, 1991). Structuration theory addresses the link between human
actions - the action of participants in the EIS - with social structure
- the developing organizational structures within which the EIS are
situated. Human participants who work within the norms, rules and
conventions of an organization are not behaving passively, rather they
are reinforcing the organizational structures. There is therefore a
circle of influence: the participants are influenced by the social
structures and in turn, through their interactions, they influence the
social structures, either reproducing them or changing them.
Giddens (1984) breaks down social structure into
three dimensions. Firstly, there are structures of meaning. These are
the organizational structures as understood by the participants, which
are mediated through interpretive schemes. We produce a shared
understanding of the organization through communication. Secondly,
there are structures of domination, social power structures mediated by
control of resources. For example, executives have power within the
organization because of their ability to allocate materials and
resources. Use of that power can reinforce organizational structures or
change them. Thirdly, there are structures of legitimation, the social
and legal rules, which are mediated by the norms and standards of the
organization and enforced by sanctions applied within the organization.
These ideas have a powerful role in making the researcher aware of
possible political and cultural issues that should be considered in the
evaluation of EIS.
The primary vehicle for interpretive research in IS
is the case study. Longitudinal case studies, carried out over a
reasonable period of time, enable an understanding of the processes
involved. However, detailed historical reconstruction, together with a
picture of the current situation within the organization, can provide a
reasonable basis for making some judgement concerning the intangible
benefits of procuring an EIS system. Furthermore, case studies from
other similar organizations, when presented to senior management, can
offer as convincing justification for procurement as any hard, financial
study.
The use of an interpretive framework to examine an
organization's history and culture will support the identification of
the intangible benefits which may arise from the use of the IS. The
remainder of this paper will look briefly at a case study where EIS was
successfully applied and propose the use of an interpretive framework as
a means of justifying investment in an EIS.
Content
Problem to be
addressed.
Nature of
products and processes the organization is involved in.
Nature of
information system to be procured. |
|
Context
History of
previous approaches to the problem and the causes of the problem.
History of IS
usage.
History of
external forces applied to the organization.
Nature of
social relations between participants: cooperation and
non-cooperation.
Barriers
between subgroups.
Nature of
management structure which supports IS.
Nature of
social infrastructure |
Process
Culture: nature
of subgroups.
Response of
different subgroups to the prospect of an IS.
Extent of
management support for the procurement process.
Attitude of
subgroups to organizational change expected from IS.
Meanings
attached by subgroups to the IS.
Political
effect IS will have on autonomy/control balance within the
organization.
Potential of IS
to bring conflict.
Ethical issues
associated with procurement of system.
Effect on
quality of work environment. |
Context/Process Linkage
Extent to which
IS appeals to organizational norms.
Key meaning
attached to IS.
Key themes
highlighted by subgroups.
Intended use of
system to be procured for control or delegation.
Power of
subgroups to enforce IS acceptance. |
Table 1:
Interpretive framework for benefits evaluation.
5 Outline Case History
The Contracting Company is a major defence
contractor, internationally active within the marketplace. In 1987, a
need to improve IS was recognised. IS were centrally based around a
mainframe and the production of inflexible reports. A need was
identified for data to be provided quickly and flexibly. Initially, a
relational database was procured which met some of the needs. However,
after 12 months, there was an increasing awareness of the importance of
PCs and a requirement to move away from keyboard-based applications.
This led to EIS being reviewed.
The directors believed that they wanted an EIS but
could not define their exact needs. They appointed consultants to report
on the provision of better data. Their proposal, for a complete office
system, was rejected as being too expensive and the project was
restricted in scope. The company's data processing function, known as
Corporate Computer Services (CCS), was invited to prototype an EIS using
a spreadsheet-like front end to the relational database.
However, the culture of CCS, centred on producing
fixed format reports, produced a prototype which the head of finance,
acting as sponsor, did not think suitable for his purposes. As a result,
in 1990 a separate group, Management Systems, was set up to produce a
more flexible prototype.
The setting-up of this group was an act of faith by
the head of finance. There was no formal evaluation of the benefits of
EIS, since knowledge as to the nature of EIS was limited. Staff were
sent on training courses to learn to use Holos, a tool for developing
multi-dimensional spreadsheets. Time was invested in studying the
requirements for the system. A year was spent experimenting on possible
designs, particularly addressing problems of data navigation and
intuitive interfaces. At the end of 1991, the group began developing a
simple financial system. This budget model was followed up by the
development of a manpower system and a marketing system.
Take-up of the system was encouraged by the active
support of higher management. In marketing, the marketing manager used
the system online in meetings to demonstrate its effectiveness as an
alternative to reams of paper-based reports. In finance, the director
demanded that budgets be produced using the new EIS system in preference
to old spreadsheets.
It took longer to enter data in the new EIS system
than in the old spreadsheets. This acted as a disincentive to
conversion. While staff were not stopped from using the old method, it
was made clear that results were required from the new system. However
managers could obtain information much more quickly from the new system.
It was the speed of retrieval of data, rather than of data entry, that
encouraged its take-up.
The overall success of this system has been
demonstrated by its spread through the organization and the increasing
resources allocated to it by the directors. The Contracting Company EIS
system now has 120 users, of which up to 20 may be connected at any one
time. Two years on, the Management Systems team has grown from two to 11
staff. The EIS supports a range of meetings and has catalysed a culture
change. Managers now take responsibility for the data entered into the
EIS system. Actual project data are retrieved directly from a mainframe
and forecast data are entered manually. The fact that the data are now
trusted reduce the amount of meeting time taken up in arguments about
figures. Also flexible reports can be obtained and managers have
information at their fingertips.
However, the success of the EIS system within the
Contracting Company has not depended on tangible benefits. There is a
user perception that it is delivering what they want and is improving
their ability to respond to the changing business environment. The
system has still not been formally justified although it now represents
a substantial investment.
It was felt that overheads were being reduced. Less
overtime was being spent in gathering together figures. At budget time,
corridors no longer filled with boxes of photocopied reports. If a
correction was required, it was no longer necessary to replace one sheet
in every set of photocopied reports. The EIS was perceived to save time
because it was no longer necessary to walk down to Accounts to get
figures, with the usual delays and impromptu meetings that followed.
Even these apparent tangible benefits - saved managerial time, reduced
overtime, saved photocopying - could not be proved in cost-saving terms.
For the Contracting Company, the EIS was the right
system at the right time. The company's operating environment was
changing radically. The defence market was shrinking with the end of the
Cold War. The advent of competitive bidding for Government contracts
brought an end to the days of cost-plus work. The company had to be
more responsive and more lean. Projects had to be managed properly and
unproductive manpower removed. The increasing influence of global
communication, EDI (Electronic Data Interchange) and new technologies
demanded a response from the company.
Table 2 identifies some themes, within an
interpretive framework, of importance to the success of EIS within the
Contracting Company. Attempts to measure the benefit of EIS to the
Contracting Company formally would produce some feeble figures as to
hours of staff time saved and paper saved. The actual evaluation of the
EIS involves addressing the social and political issues. Ultimately, the
benefit of EIS to the Contracting Company may be seen in its survival as
an organization, but it will not be possible to attribute its survival,
or its increased profitability, to the EIS.
Content
Inadequate use
of data.
Company
involved in management of a range of projects, from small to very
large.
EIS: front-end
to data, providing flexible access to information.
Aimed at
executives and higher management. |
Context
Started off
with a RDBMS.
Mainframe
approach proved inadequate.
Reporting
procedures inflexible.
A mainframe
site. DP was centralised. Reports could be requested, but needed
to be programmed by an expert and then were of fixed format.
Inability of
centralised DP to support rapidly changing user requirements.
Introduction of
competitive bidding.
End of
cost-plus.
Shrinking
defence market due to end of Cold War.
More small
projects.
Increasing
electronic communication requirements.
Changing
emphasis of technology away from mainframes.
Organization
faced with very changeable environment.
Commitment of
Managing Director to 'modern technology'.
Significant
cooperation amongst managers. |
Process
Senior
management aware of value of responsive IS.
Managers were
aware of value of EIS and demonstrated that by adoption of EIS in
meetings.
Finance manager
provided resources and space to develop EIS. Accepted EIS as a
significant investment.
Rapid answers
were not demanded by management: room to experiment was provided.
Staff initially
saw EIS as a slower system.
Use of EIS as a
vehicle for organizational change promoted by management.
Sponsors of EIS
appointed across the organization, became 'prophets' for the
system.
Reduced
paperwork and more easily available data helped managerial
acceptance of EIS.
Supportive
attitude of Management Systems promoted participation. |
Context/Process Linkage
EIS supported
organizational response to changing context.
New norms
established partly through use of EIS.
Management
ownership of data.
Increased trust
in data. EIS more responsive than fixed reporting.
Participation
in use of EIS by staff within finance forced by finance manager.
EIS seen as
providing the flexibility for managers to meet the new
organizational demands. |
Table 2 :
EIS within the Contracting Company.
6 Interpretive evaluation of EIS
investment
The benefits of EIS are organizational. These can
only be identified by analysing the culture of the organization and
showing how EIS strengthens the organization culturally and politically.
Therefore, in assessing the benefit of EIS to an organization, the
organizational fit of EIS must be examined closely. If the
organizational fit of EIS is good, as it was in the case of the
Contracting Company, then benefits will accrue to the organization, in
terms of supporting organizational change, increased market share and
better ability to compete. Most importantly, EIS will support a process
of organizational learning and enable a strategic response to change.
An interpretive approach to evaluation may help
participants to identify the important issues to be considered. Within
a framework of content, social context, social process and
context/process linkage, questions can be asked concerning the nature
and maturity of an organization which will indicate whether it is likely
to benefit from EIS. Some of these issues are highlighted in Table 3.
EIS may flourish where there is a high level of organizational change.
The maturity of the organization, the availability of data and the
extent of unanimity of management are all important for successful use
of EIS. The success of EIS will rest on the perception of the
stakeholders that their needs are being met.
In interpreting the benefits of EIS we must
understand the current and historical context current and historical.
Stakeholders' views will change and will need to be understood. The
acceptance of EIS will rest on the attainment of a common view as to
what its benefits are, which will be supported by technical measurements
but not dependent on them. Context should be considered at several
levels. Individual, organizational and national or even international
context will have a bearing on the value of EIS. An organisation pressed
to change by management and forced to change by external events may gain
more value from the functions of an EIS that identify exceptions and
trends. The nature of managerial culture will also affect the value that
can be obtained from an EIS.
The process by which the point at which a possible
need for an EIS is recognised is itself an area for consideration. The
extent of management support and the change occurring within the
organization may well influence possible benefit. The process by which
an evaluation occurs may also influence benefits, both positively and
negatively. While executives may be involved in supporting a proposal
for an EIS, the benefits assessment may be seen as a technical process
left to the IS professionals. The benefits assessment should be carried
out by the executives but they are often too busy to get involved.
Finally, structuration theory is particularly
relevant to EIS and their assessment. It forms one organisational
context where there occurs 'a process of selective information filtering
whereby strategically placed actors seek reflexively to regulate the
overall conditions of the system reproduction either to keep things as
they are or to change them' (Giddens 1984, p. 27).
Content
Management
recognition of need for better information in order to respond to
a changing environment.
EIS suits
organizations in a wide range of sectors.
These are
characterised by being relatively large in size.
Products and
process will be fairly complex, requiring a greater than average
level of control and management.
EIS may act as
an information bridge, enabling better delivery and interpretation
of data. |
Context
Large amounts
of data are available on a wide variety of systems but little
effort has been made to unite them.
IS function
unable to provide flexible reporting facilities or rapid response
to information requirements.
Organization
subject to significant change both internally and externally.
Managerial
culture is hands-on and significant collaboration and
cross-fertilisation of ideas occurs between managers and with the
executive.
Absence of
barriers between managers of different departments.
Forward-looking
management, willing to invest in better information and seeing it
as being intrinsically important. |
Process
Management able
to implement findings which result from using the EIS.
Managers have
an understanding of the organization and its business before using
EIS.
Management
support for EIS is strong, regardless of understanding of what EIS
is.
Management
aware of changing technology.
Requirement for
improved control of resources.
Agreement of
approach to EIS implementation.
Controlled user
expectations concerning the benefits that EIS can deliver. |
Context/Process Linkage
New norms being
established within the organization.
EIS interpreted
as adding value to data.
Extent to which
EIS will alter control and power within the organization clearly
understood and agreed amongst the subcultures. |
Table 3 :
The Justification of EIS Investment : an interpretive framework.
7 Conclusions
This paper has introduced the application of the
interpretive approach to IS feasibility evaluation, focusing on one type
of IS: the Executive Information System. Using the case study approach,
some tentative guidelines as to whether an EIS will be of benefit to an
organization have been identified. EIS are essentially agents of
organizational change and catalysts for organizational learning. The
success of EIS will depend on identifying the correct role for these
systems within an organization and demonstrating organizational fit. An
interpretive approach provides a means of embracing the social,
political and cultural issues that are key to the success of any IS,
regardless of the technical procedures that have been applied. Further
research, involving case studies of successful and unsuccessful EIS
application in a variety of organizations, will lead to refinement of
the approach.
The interpretive approach may provide fruitful
insights as to the benefits to an organization of a wide range of IS
where the possible benefits are at least intangible, if not unknown.
Details of the organization and its context, together with an analysis
of the social processes within the organization, can be related to the
nature of the IS whose procurement is being considered. The
applicability of this approach to the process of evaluation has been
clearly shown by Farbey, Land and Targett (1993, p. 87). This paper has
sought to illustrate its appropriateness to the process of matching up
an IS to an organization and identifying the benefits specific to that
organization and no other. In any evaluation exercise the requirements
for the system and the benefits will be unique because the organization
is unique. Approaches to evaluation should seek to shed light on that
uniqueness and derive a benefits profile that takes into account the
cultural and political issues. It is the task of the evaluator to
ensure that the selected IS fits the organization in which it is to
grow. A plant grown in the wrong soil and the wrong environmental
conditions will wither and die. The plant selected must be the most
suitable for the soil. Similarly, the correct IS to match the
organizational soil must be selected if it is to flourish and yield
benefits to its host organization.
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Acknowlegdement: This paper was presented at
the 1st European Conference on Information Technology Evaluation,
Henley-on-Thames, 1994. |