Explain Executive Information System (EIS). What purpose does it serve and what are the characteristics of Executive Information System

A Management Information System ICT Revision Questions and Answers

An Executive Information System (EIS) – sometimes referred to as an Executive Support System (ESS) is a DSS that is designed to meet the special needs of top-level managers. Some people use the terms ―EIS‖ and ―ESS‖ inter changeably, but others do not. Any distinction between the two usually is because Executive Support Systems are likely to incorporate additional capabilities such as electronic mail. An Executive Information System (EIS) is a tool that provides direct on-line access to relevant information in a useful and navigable format. The relevant information is timely, accurate, and actionable information about aspects of a business that are of particular interest to the senior manager. An EIS is easy to navigate so that managers can identify broad strategic issues, and then explore the information to find the root causes of those issues.
EIS serves the following major purposes:
• The primary purpose of an Executive Information System is to support managerial learning about an organization, its work processes, and its interaction with the external environment.
• A secondary purpose is to allow timely access to information so that based on the answers to questions, strategic decisions could be taken a manger in time.
• It directs the attention of the management to specific areas of the organization or specific business problems. It makes managers and subordinates to work together to determine the root causes of issues highlighted EIS.
Major characteristics of an Executive Information System (EIS) are given as follows:
• EIS is a computer-based-information system that serves the information need of top executives.
• EIS enables users to extract summary data and model complex problems without the need to learn query languages, statistical formulae or high computing skills.
• EIS provides rapid access for timely information and direct access to the management reports.
• EIS is capable of accessing both internal and external data.
• EIS provides extensive online analysis tools like trend analysis, market conditions etc.
• EIS can easily be given a DSS support for decision making.

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