Examples –
Point of sale – grocery stores, tollway speed pass
Format – monthly reports (Schneider blackbook) and/or balanced scorecard
Weaknesses of current EIS (from
Peter Drucker)
Good IT should provide executives with:
1. Activity-based costing (includes cost of machine downtime, cost of waiting for a part, cost of inventory waiting to be shipped, cost of scrapping a defective part…)
2. Cost of entire economic chain (e.g. cost of production, shipping, service, training…)
3. Price-led costing vs cost-led pricing
4. Productivity information (benchmarking, economic value-added analysis (profits must be greater than the cost of capital))
5. Competence information (measured by unexpected successes and failures, innovation levels compared to competitors (why do the others guys have all the new products?))
6. Resource allocation Information (review of ROI and payback period and discounted present value), people performance (against set any known standards)
7. Business intelligence –knowledge about actual and potential competitors worldwide.