Creating strategic value through executive information systems: an exploratory study

Abstract

Abstract: Over the past few years, information technology has grown so rapidly that businesses had to adjust very quickly to keep abreast of fast growing technologies and international trends. An increasing number of South African companies listed on the Johannesburg Stock Exchange (JSE) have implemented Executive Information Systems (EISs) that have resulted in the widespread use of computers in companies. Users of EISs need systems that provide them with access to diverse types of information in order to take decisions, to solve problems and to compete with competitors. This article discusses whether South African companies create strategic value through the use of EISs. The strategic value of the business is explained as an advantage to improve businesses ’ performances firstly, by gains in profitability and financial strength and secondly, gains in the businesses ’ competitive strength and market standing. Executives and top management need to be aware of the opportunities available to them by using information technology as a business tool to analyse their businesses’ performance and competitiveness. This study is an exploratory study and the research method is quantitative of nature. A structured questionnaire was designed and was sent to 334 listed JSE companies in order to investigate the existence of an EIS, the gathering, selecting and use of information in companies in order to make decisions and to solve problems. Many businesses have chosen EIS technology to provide relevant and accurate information to top management and executives. Currently the EIS provides information that is only

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