Executive Information System (EIS) Meaning, Factors, Characteristics, Advantages, Pros, Benefits, Merits, Disadvantages, Cons, Limitation, and Demerits; An Executive Info System (EIS) is a kind of decision support system (DSS) used in associations to help managers in decision making. It does so by providing easy entrance to important data needed in an institution to achieve strategic objectives. An EIS usually has graphical presentations on a user-friendly interface. They can use for monitoring enterprise performance in many different types of organizations as well as for identifying opportunities and issues.
Here is the article to explain, Executive Information System (EIS) with their Meaning, Factors, Characteristics, Advantages, Pros, Benefits, Merits, Disadvantages, Cons, Limitation, and Demerits!
Early they were developed on mainframe computers as computer-based programs to provide the description, sales performance, and/or market research data for senior managers of an enterprise. Executives, however, were not all lettered or sure about the computers. Also, EIS data endorsed only executive-level decisions that did not necessarily support the entire organization or business. Current EIS data is available on local area networks (LANs) throughout the business or corporation, facilitated by personal computers and workstations.
Workers can access business data to help make decisions in their workplaces, departments, divisions, etc. This enables workers to provide relevant information and ideas above and below the level of their business. Administrative support systems are intended to be used directly by senior managers to support unscheduled strategic management judgments. Often such data is external, unstructured, and even doubtful. Often, the exact scope and context of such details are not known in advancement.
What is the meaning of Executive Information System (EIS)?
An EIS is an Information System that can transform the business data into insights and help the top-level executives of a company in the domain of corporate business intelligence; which consists of the processes, applications, and also practices that support executive decision making. This system delivers the most recent operational data gathered from various internal and external databases.
A Typical Executive Information System;
Executive Information System focuses on the present, usually presenting the executive with information within the budgeting time-frame of the organization. Furthermore, it is exclusively a display technology, oriented to presenting static reports graphs, and textual information on demand. It offers no analysis capabilities to help the executive explain, diagnose, and also understand the information presented to them.
Decision Support System:
A Decision Support System (DSS) is a collection of integrated software applications and hardware that help the analyst, managers of an organization in the decision-making process. Organizations depend on decision support tools, techniques, and models to help them assess and resolve everyday business problems. And make decisions. The decision support system is data-driven, as the entire process feeds off of the collection and also the availability of data to analyze. Business Intelligence (BI) reporting tools, processes, and methodologies are key components to any decision support system and provide end-users with rich reporting, monitoring, and data analysis.
Key Factors and Characteristics of Executive Information System (EIS);
The below-mentioned formation describes key factors and characteristics of EIS,
- Exact data – They provide absolute data from its current database.
- Incorporate external and internal data – They integrate external and internal data. Also, The external data was collected from different sources.
- Offering information – They describe available data in graphical form which helps to analyze it easily.
- Trend research and analysis – They help executives of the institutions to data prediction based on trend data.
- Easy to utilize – They very the simplest system to use.
Advantages and Disadvantages of Executive Information System;
The following Executive Information System (EIS) Advantages, Pros, Benefits, Merits, Disadvantages, Cons, Limitation, and Demerits below are;
Pros, Benefits, Merits, and Advantages of EIS;
- Trend Research and Analysis.
- Revision and Improvement of corporate version in the marketplace.
- Development of managerial and administrative leadership skills.
- Improves conclusion or decision-making.
- Easy to use by senior executives.
- The more useful reporting method, and.
- Also, Improved post efficiency.
Cons, Limitation, Demerits, and Disadvantages of EIS;
- Due to technological functions, not too easy to utilize by everyone.
- Also, Managers may encounter an overload of information.
- Difficult to handle database due to the large dimensions of data, and.
- Excessive expenditures for small business associations.
Sources for the information processed by an Executive Information System (EIS);
The sources for the information processed by an EIS are as follows:
The basic computer hardware needed for a typical EIS includes four components:
- Input data-entry devices; These devices allow the executive to enter, verify, and update data immediately.
- The central processing unit (CPU); CPU is the kernel because it controls the other computer system components.
- Data storage files; The executive can use this part to save useful business information, and this part also help the executive to search historical business information easily
- Output devices; Which provide a visual or permanent record for the executive to save or read. Also, This device refers to the visual output device or printer.
The basic software needed for a typical EIS includes four components:
- Text-based software; The most common form of text probably documents.
- Database; Heterogeneous databases residing on a range of vendor-specific and open computer platforms help executives access both internal and external data.
- Graphic base; Graphics can turn volumes of text and statistics into visual information for executives. Typical graphic types are time series charts, scatter diagrams, maps, motion graphics, sequence charts, and comparison-oriented graphs (i.e., bar charts).
- Model base; The EIS models contain routine and also special statistical, financial, and other quantitative analyses.
Levels of management need it;
An Executive Information System (EIS) is a type of management information system intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. Also, It exists commonly considered as a specialized form of a Decision Support System (DSS).
The information presented to the executive may include financial information, work in process, sales figures, market trends, industry statistics, and the market price of the firm’s shares performance data and trend analysis. Also, Graphical interfaces (GUI) make it possible to request reports and queries without resorting to programming.
Is there a relationship between global computing and executive information systems? Explain.
They believe there is a strong relationship between global computing and Executive information systems. Senior executives of the organizations spread globally need constant and also timely access to global information for making decisions. This information originates in different places worldwide for a global organization and needs to organize before it can use for decision-making. The organization and management of global corporate data present unique challenges for developing global executive information systems (EIS) for senior executives of global companies.
The objective of a global EIS should be to provide executives with a consistent, integrated, and summarized view of operational data from subsidiaries worldwide. Due to global computing, the EIS also provides access to external data that capture from different sources. Also, The system facilitates integrating the internal and external data for effective decision-making globally.