Executive Information System (EIS) Definition: Got A Question On This Topic?

executive information system (EIS) Definition
Executive Information System (EIS) is the support system planned to be utilized by the

managers that are senior, straightforwardly to offer help to non-customized choices in
strategic administration. This system is also called Executive Support System or ESS
The Executive Information System (EIS) can be utilized for checking organization

performance in a wide range of types of associations, just as for recognizing opportunities
and issues. An EIS isn’t just for the CEO, but also for any ranking director or executive
creating strategic choices to improve the performance of the association. In earlier times, EIS
was created on mainframe PCs as PC-based programs to give the depiction, sales execution
as well as statistical surveying information for senior administrators of an organization.
Administrators, however, were not all proficient at or certain about the computers.
Current EIS is accessible on LANs all throughout a given organization, making it easier to

access it through personal computer and workstations. Representatives can get access to
organizational information to understand work environment, offices, divisions and so forth.
This empowers workers to give important data and thoughts to those above and underneath
their own level in their organization. There are four components of EIS namely, software,
hardware, user interface and telecommunication. EIS has wide applications in marketing,
finance and manufacturing.
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Features of EIS
Drill down: The examination of data in detail. For instance, an executive may see a decrease
in corporate sales by locale or using any and all means.
Critical success factors (CSFs): The components that are generally critical to the achievement
of an organization, such factors which can be strategic, administrative or operational, and are
obtained principally from three assets like environmental, administrative and industrial.
Status access: A fast way to access current data is given by a computer. It might

require daily or even hourly operational following and reporting. In extraordinary cases,
an ongoing reporting might be required, which can be accessed.
Analysis: Analytical capabilities are accessible in EIS that utilize mathematical formulas to
infer an ideal solution straightforwardly or to foresee a specific outcome, basically in
explaining structural problems.
Exception reporting: It depends on the idea of exceptions by the management. That implies

in announcing exceptions, the executive’s consideration is called distinctly to cases
with either awful or generally excellent performance.
Use of color and audio: Commonly, this includes critical things that are accounted for

numerically, as well as in color. For example,
Green stands for OK
Yellow stands for WARNING
Red stands for DANGER, which implies the presentation outside the preset boundaries of the
arrangement.
A few signals are outfitted with sound signals to make the client aware of showing
information.
Communication: The method of communication for the officials might be by through email,

report transfer routed to the consideration of somebody, meeting calls, or through
the internet via a comment made to a news group.
Advantages and Disadvantages of EIS

Advantages: Executive Information system (EIS) is easy to use for senior executives and
helps in improving the tracking related information. There is a better understanding of the
information that is provided by the EIS. It also offers the proficiency to decision makers and
helps in developing managerial leadership skills. EIS filters the information for management
and delivery of summary information about the company at a particular time. The main
benefit of EIS is the improvement in financial and operational control.
Disadvantages: The drawback of EIS is that it is so simple such that it can be used by

everybody because of its technical functions. Executives may experience an overload of data.
Due to the enormous size of information, it is hard to oversee databases. Extra expenses are
required for small business associations to use EIS. EIS may become slow in speed
and become difficult to manage. Another disadvantage is that functions in EIS are restricted
and can’t perform complex calculations.
Components of Executive Information System (EIS)

There are four components of EIS:
Hardware: When discussing computer hardware for the EIS domain, we should concentrate
on the hardware that addresses the executives' issues. The essential hardware required for a
typical EIS incorporates four parts:
 Input data entry devices: These gadgets permit the executive to enter, check and
update information promptly.
 Central Processing Unit (CPU): It is an important device which helps in controlling
the other PC system components.
 Data storage files: These files are utilized by the executive to spare valuable business
data and this part likewise helps the executive to look through recorded business data
without any problem.
 Output devices: It gives a visual or perpetual record for the executive to read.
Computers and printers are the visual output devices.
Software: Picking the suitable software is fundamental to a successful EIS. A typical EIS
incorporates four software parts:
 Text handling software: Mostly, the documents are text-based.

 Database: Open PCs stages assist officials with getting to both inward and outer
information.
 Graphic base: The types of graphic are: maps, scatter diagrams, sequence charts and
charts of time series.
 Model base: EIS models consist of financial special statistical and quantitative
examination.
User Interface: A few kinds of interfaces can be accessed by the EIS structure. For example,
question/answers, input/output, natural language and scheduled reports.
Telecommunication: Telecommunication assumes a vital job network information system

and inside an EIS can quicken the requirement for access to distributed information.

Executive Information System (EIS) Definition: Got A Question On This Topic?

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executive information system (EIS) Definition

Executive Information System (EIS) is the support system planned to be utilized by the

The Executive Information System (EIS) can be utilized for checking organization

Current EIS is accessible on LANs all throughout a given organization, making it easier to

Got a question on this topic?

Find answers in our Expert Q&A

Status access: A fast way to access current data is given by a computer. It might

Exception reporting: It depends on the idea of exceptions by the management. That implies

Use of color and audio: Commonly, this includes critical things that are accounted for

Green stands for OK

Yellow stands for WARNING

Communication: The method of communication for the officials might be by through email,

Advantages and Disadvantages of EIS

Disadvantages: The drawback of EIS is that it is so simple such that it can be used by

Components of Executive Information System (EIS)

 Text handling software: Mostly, the documents are text-based.

Telecommunication: Telecommunication assumes a vital job network information system

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