Introduction about EIS, Insightformation

1. EXECTIVE INFORMATION SYSTEM & ITS
APPLICATIONS
MARIA JAVAID (3007)
ASMA SALEEM (3015)
University of Education Okara Campus
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2. Executive Information Systems
Introduction:
An Executive Information Systems (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.
The Role of ESS in the Organization:
As technology advances, ESS are able to link data from various sources both
internal and external to provide the amount and kind of information
executives find useful.
Rationale:
They are commonly integrated with operational systems, giving managers the
facility to drill down to find out further information on a problem. It usually allows
summary over the entire organization and also allows drilling down to specific levels of
detail. Thus they described as an MIS for executive use.
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3. Types of Executive Information System
Corporate Management:
Responsible for business and fiscal planning, budgetary control, as well as
for ensuring the corporate information technology needs are met in a co-ordinated
and cost effective manner. E.g., Management functions, human resources, financial
data, correspondence, performance measures, etc.
(whatever is interesting to executives)
Technical Information Dissemination:
For the purpose of disseminating the latest information on relevant technologies, products, processes and
markets E.g., Energy, environment, aerospace, weather,
etc.
Executive Information System Components:
The components of an EIS can typically be classified as:
Hardware:
When talking about hardware for an EIS environment, we should
focus on the hardware that meet executive’s needs.
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4. (1) Input data-entry devices. These devices allow the executive to enter,
verify, and update data immediately;
(2) The central processing unit (CPU), which is the kernel because it controls
the other computer system components;
(3) 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;
Software:
Choosing the appropriate software is vital to design an effective
EIS. Therefore, the software components and how they integrate the data
into one system are very important. The basic software needed for a typical
executive information system includes four components:
1.Text base software. The most common form of text is probably
documents;
2. Database. Heterogeneous databases residing on a range of vendorspecific and open computer platforms help executives access both
internal and external data;
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5. 3. 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);
4. Model base. The executive information system models contain routine
and special statistical, financial, and other quantitative analysis.
Interface:
An EIS needs to be efficient to retrieve relevant data for decision
makers, so the interface is very important. Several types of interfaces can be
available to the EIS structure, such as scheduled reports, questions &
answers, menu driven, command language, natural language, and input &
output.
Telecommunication:
As decentralizing is becoming the current trend in companies, telecommunications will play a
pivotal role in networked information systems. Transmitting data from one place to another has become
crucial for
a reliable network. In addition, telecommunications within an EIS can accelerate
the need for access to distributed data.
Example of Digital Dashboard
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7. Advantages and disadvantages of Exective Information System:
Advantages of Executive Information System;
Executives use that information, along with their experience, knowledge,
education, and understanding of the corporation and the business
environment as a whole, to make their decisions.
Executives are more inclined to want summarized data rather than
detailed data (even though the details must be available). ESS rely on
graphic presentation of information because it's a much quicker way for
busy executives to grasp summarized information
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• It provides timely delivery of company summary information.
• It provides better understanding of information
• It filters data for management.
• It provides system for improvement in information tracking
• It offers efficiency to decision makers.
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8. Disadvantages of Executive Information System;
• Functions are limited, cannot perform complex calculations.
• Hard to quantify benefits and to justify implementation of an EIS.
• Executives may encounter information overload.
• System may become slow, large, and hard to manage.
• Difficult to keep current data.
• May lead to less reliable and insecure data.
• Small companies may encounter excessive costs for implementation.
• Highly skilled personnel requirement can not be fulfilled by the small
business.
Executive Information System Features:
EIS are intended as decision support tools for senior managers. Since these
strategic decisions are based on a wide range of input information, they always need to be well
integrated with operational systems in a business.
Some important features of executive support system include the fact that:
They provide summary information to monitoring of business
performance. This is often achieved through measures known as ‘critical
success factors’ or ‘key performance indicators’ (KPIs).
• They are used mainly for strategic decision making, but may also provide
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9. Features that relate to tactical decision making:
• They provide a drill-down feature which gives a manager the opportunity
to find out more information necessary to take a decision or discover the
source of a problem.
• They provide analysis tools.
• They must be integrated with other facilities to help manage the solving
of problems and the daily running of the business.
• They integrate data from a wide range of information sources, including
company and external sources such as market and competitor.
• They have to be designed according to the needs of managers who do
not use computers frequently. They should be intuitive and easy to learn.
EIS Project Team:
The process of establishing organizational objectives and measures is
intimately linked with the task of locating relevant data in existing computer
systems to support those measures. Objectives must be specific and
measurable, and data availability is critical to measuring progress against
objectives.
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10. Factors influencing the functioning of Executive information systems:
Organizational setup;
The policies and procedures followed in an organization have a great
impact in the manner management information systems are implemented in an
organization. For e.g. If a company believes in centralization of authority and
hesitates to delegate authority then EIS will be provided for the top most
managers in the organization.
Other factors:
Internal and external factors;
The internal and external factors connected directly or indirectly with the
organization will have their own say in establishing executive information
systems in an organization. For e.g. if matters relating to compliance of tax,
audit and other statutory matters are handled by the senior mangers only
then EIS will be targeted to them alone.
On the other hand if clerical labour is also involved in
the same procedures EIS they will also be able to access EIS and render the
necessary supporting functions to the senior managers.
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11. The success of executive information systems lies in two issues.
Firstly: the information should properly reach the concerned executives.
Secondly: they should accord importance and act upon it. Above all whatever
they say must be given due consideration by the decision making authority.
Executive Support System Applications:
After realizing its advantages, people have applied
EIS in many areas, especially, in manufacturing, marketing, and finance areas.
Manufacturing;
Basically, manufacturing is the transformation of raw
materials into finished goods for sale, or intermediate processes involving the
production or finishing of semi-manufactures.
Marketing;
In an organization, marketing executives’ role is to create the
future. Their main duty is managing available marketing resources to create
Financial;
A financial analysis is one of the most important steps to
companies today.EIS enables executives to focus more on the
long-term basis of current year and beyond.
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12. Go ve rnme nt
Exe c ut ive I rmat ion Sys t e ms in gove rnme nt h ave be e n
nfo
c o ns t ruc t e d t o t rac k dat a ab out Minis t e rial c o rre s pond e nc e , c as e manage me nt ,
worke r p ro duc t ivit y, financ e s , and h uman re s ourc e s t o name o nly a fe w.
EIS
Marketin
g IS
Production
IS
Financi
al IS
Human
Resources
IS
MI
S
Transaction Processing System
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13. Examples of ESS:
The Sutter Home Winery uses mostly external data,including information from the internet, in its
ESS.
It organized the information in order to help executives make decisions based on trends in the
marketplace.The information includes data on competitors and information from market research,
Sutter uses its system output to determine sales forecasts,marketing compains,and investment
plans.
Future Trends in Executive Information System :
The future of executive info systems will not be bound by mainframe
computer systems. This trend allows executives escaping from learning
different computer operating systems and substantially decreases the
implementation costs for companies. Because utilizing existing software
applications lies in this trend, executives will also eliminate the need to learn
a new or special language for the EIS package.
Future executive information systems will not only provide a system
that supports senior executives, but also contain the information needs for middle managers.
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