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EXECUTIVE INFORMATION SYSTEM

EIS
WHO : Executives They are managers at the top level i.e. the strategic level who exercise a strong influence on the firm. They perform functions such as- plan, organize, staff, direct asand control. WHOM : WHAT :

DEFINITION
A highly integrated IT system that allows one to first view highly summarized information & then choose how one would like to see greater detail, which may alert one to potential problems or opportunities.

CHARACTERISTICS

COMPONENTS
The components of an EIS can typically be classified as : Hardware - The basic computer hardware needed for a typical EIS includes four components: 1. Input data-entry devices. data2. The central processing unit (CPU). 3. Data storage files. 4. Output devices. Software - The basic software needed for a typical EIS includes four components: 1. Text base software. 2. Database. 3. Graphic base. 4. Model base. User Interface - 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

CAPABILITIES
Support for defining an overall vision. Support for strategic planning. Support for strategic organizing & staffing. Support for strategic control. Support for crisis management.

APPLICATION
EIS is applied in many areas, specially in Finance, Marketing and Manufacturing in the following ways : Manufacturing : 1. The executive can oversee and review purchasing operations effectively with EIS. 2. EIS also provides an approach to improve production planning and control. Marketing : 1. EIS provides an approach to sales forecasting allowing the market executive to compare sales forecast with past sales. 2. EIS also offers an approach to product price. 3. EIS software package enables marketing executives to manipulate the data by looking for trends, performing audits of the sales data, and calculating totals, averages, changes, variances, or ratios.

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Finance : 1. An EIS is a responsibility-oriented approach that integrates responsibilityplanning or budgeting with control of performance reporting, and it can be extremely helpful to finance executives. 2. EIS focuses on accountability of financial performance and it recognizes the importance of cost standards and flexible budgeting in developing the quality of information provided for all executive levels. 3. EIS enables executives to focus more on the long-term basis longof current year and beyond. 4. The combination of EIS and EDI environment can help cash managers to review the companys financial structure so that the best method of financing for an accepted capital project can be concluded. 5. EIS is a good tool to help the executive to review financial ratios, highlight financial trends and analyze a companys performance and its competitors.

ADVANTAGES
Easy for upper-level executives to use, extensive uppercomputer experience is not required in operations. Provides timely delivery of company summary information. Information that is provided is better understood. Filters data for management. Improves to tracking information. Offers efficiency to decision makers.

DISADVANTAGES
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. Too detailed Oriented.

ARCHITECTURE
Executive Database Personal Computer EXECUTIVE WORKSTATION To other executive workstations Information Requests. Information Information Displays.

To other executive executive workstations

Corporate Database

Make corporate Information Available

Current Current News Explanation Explanation

Electronic Mail box

CENTRAL COMPUTER

Software Library External Data & Information

SUGGESTIONS FOR IMPROVING EIS


Take an inventory of incoming information transactions. Stimulate high value sources. Take advantage of opportunities. Tailor the system to the individual. Take advantage of technology.

FUTURE EIS TREND


EIS use in large firm will become commonplace. There is a need for lower-priced special EIS lowersoftware. Tomorrow MIS and DSS will look like todays EIS. Executives will keep the computer in perspective.

DIFFERENCE BETWEEN EIS & MIS


MIS 1. MIS consist of people,inforpeople,information,procedures,to gather,sort, analyse,evaluate and distribute needed,timely and accurate data to marketing decision makers. 2. Components are input,process, output,control and feedback. EIS EIS is a type of MIS intended to facilitate and support the inforinformation and decision-making decisionneeds of senior executives by providing easy access to both external & internal information. Components are hardware, software, user-interface & usertelecommunication.

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