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 isnâ€™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.
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 executiveâ€™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 canâ€™t perform complex calculations.
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