Executive Information System

History

Originally EIS were developed as programs for the central processing computer which was used by chief and chief executives. The main objective of creation of similar programs came down to that information required to heads was most available. Today EIS is applied not only in normal corporate hierarchy, but also on personal computers in the local area network. EIS  is a combination of computer hardware platforms and the integrated information which is contained both on central and on personal computers. So the companies which apply Executive Information System give to the employees an opportunity to provide from personal computers data access, necessary for decision making. By means of the software of EIS employees also have an opportunity to transfer important information on above - or subordinate levels of the organization.

EIS components

Equipment

Before purchasing the equipment for EIS it is necessary to define a circle of problems which will be solved with their help. The capital equipment are:

• input devices are intended for fast verification and updating of information;
• the central processor is a system core as it controls work of other components;
• files for data storage, in them there is all necessary business information;
• data output units, by means of them visualization or printing of information is performed.

Besides, with the advent of the LAN local area networks there were available several products EIS intended for network workstations. They do not demand special support and the expensive computer equipment.

Software

When choosing the software usually are guided by ease of use and compatibility with the existing equipment for EIS.

• basic text editors allow to work with documents;
• databases help heads to get an information access from internal and external sources;
• graphics editors, with their help texts and statistical data appear at the head in a simple visual form;
• the programs allowing to carry out routine and special statistical, financial or other quantitative analysis.

Interface

In EIS several types of interfaces are used: reports, questions/answers, menu, command or natural language, input/output. It is very important that the interface conformed to requirements of the head. The ideal interface is easy to use, plastic, can ensure consecutive functioning, reflects all necessary data and contains the reference information.

Telecom

As many companies are based on the principle of decentralization, telecommunications play a key role in network information systems. Reliable service of data is most important during creation of network. Telecommunications within EIS can accelerate access to the distributed data.

Advantages

• it is easy to use EIS, especially to the heads who do not have wide experience in computer transactions;
• EIS performs timely delivery of summary information on the company;
• information is provided in the most clear form;
• there are filters for information management;
• there are conditions for tracking of information;
• decision support is offered.

Shortcomings

• there is a restriction of functions in this connection there is no opportunity to execute difficult calculations;
• at making decision on creation of EIS it is difficult to estimate benefit from its implementation;
• the head can face an information overload;
• EIS can be slow, big on volume and difficult managed;
• it is difficult to save continuous data;
• EIS can miss unsafe information;
• the small companies can face excessive expenses on implementation of EIS.

Trends in development

Future EIS will not be connected with the central processing computer. It will allow heads not to depend on the training computer systems and considerably will reduce costs of the companies. Owing to use of new software applications users should not learn special languages for EIS. Executive Information System will be capable to provide to requirement not only heads, but also middle managers. EIS will include new applications and technologies, for example, of Artificial Intelligence (AI) and ISDN.

See Also

Business simulation

BI

CPM

Data mining - about intelligent data analysis