Enterprise Information Systems Adoption in Iberian Large Companies: Motivations and Trends

Background

A common approach to examine the types of IT/IS solutions used within organizations is to categorize their roles at various management levels within the organizational structure (Belle, Eccles, & Nash, 2003; Laudon & Laudon, 2005), according to Robert Anthony’s (1965) pyramid of operational control, managerial control and strategic planning.

At the lowest level of the organizational hierarchy we find the transaction processing systems (TPS), which support the day-to-day activities of the business. These applications are normally the first to be computerized and are characterized by large numbers of transactions, updating the corporate database. These systems are usually used by clerical staff, who conduct routine daily business activities such as issuing of invoices, following well-defined business procedures. Low-level managers and supervisors, responsible for monitoring transactions and dealing with any problems that may arise, occupy the next level in the organizational hierarchy. Management Information Systems (MIS) use the data collected by the TPS to assist the operations and line managers with the control of business process activities, usually by means of standard, regular reports. Tactical management occupies the next level in the organizational hierarchy. These managers are responsible for ensuring that plans and targets set by senior management are achieved. They decide on budgets, set targets, identify trends and develop short-term business plans. To achieve this, tactical managers need to have more interactive applications that actually assist them with the decision making process of middle management. These applications are called Decision Support Systems (DSS) and allow managers to request the relevant data, select and apply the appropriate decision model and generate the output report in the required format. At the top of the pyramid, strategic management is responsible for defining the long-term goals and positioning the company within a particular industry. They require an information system that enables them to identify problems that may threaten the organization’s competitive position or opportunities and trends that may enhance it. Executive Information Systems (EIS) assist top-level executives with their daily information needs for top management control, as well as their strategic decision-making (Belle, et al., 2003; Laudon & Laudon, 2005).