executive information system

Prepared For :MISS MIMA RAZANA BINTI MAT GHANI

Prepared By:Juladi Bin MurkimAsyraf Bin Khalid

Executive Information System

What Is Executive Information System?

• Executive Information System (EIS) is a set of management tools supporting the information and decision-making needs of management by combining information available within the organisation with external information in an analytical framework.

• Management targeted EIS because needs to :– Quickly assess the status of a business– Understanding of critical business information to aid decision

making

• Executive Information Systems come in two distinct types:– Ones that are data driven– And model driven

CONTENT

System Modules

1. Hardware– Hardware for environment of EIS must meet the executive need`s

• The basic computer hardware needed for a typical EIS is :– Input data-entry devices– The central processing unit (CPU),– Data storage files– Output devices

These systems require less support and less expensive computer hardware. They also increase access of the EIS information to many

more users within a company

System Modules

2. Software– Choosing the appropriate software is vital to design an effective EIS

• The basic sotfware needed for a typical EIS is :– Text base software– Database – Graphic base – Model base

System Modules

3. User Interface– An EIS needs to be efficient to retrieve relevant data for decision makers, so the

user interface is very important

• Several types of interfaces can be available to the EIS structure– scheduled reports -- command language– questions/answers -- natural language– menu driven -- input/output

The interface must fit the decision maker’s decision-making style. If the executive is not comfortable with the information

questions/answers style, the EIS will not be fully utilized

System Modules

4. Telecommunication– telecommunications will play a pivotal role in networked information systems

• Transmitting data from one place to another has become crucial for establishing a reliable network.

• Telecommunications within an EIS can accelerate the need for access to distributed data.

Characteristics Of EIS

• More point of characteristics of EISDrill downCritical success Factors (CSF)Status accessAnalysisException reportingColors and audioNavigation of informationCommunication

Usage Of EIS

• Executive Information Systems (EIS) are designed to enhance the– Managerial roles of executives– Including other senior managers

• The majority of prior EIS research has focused on documenting the features, benefits, development methodologies, and implementation of the systems

• The research model is used to hypothesis that EIS use (behavior) is determined by EIS experience and ability to use EIS (habits); subjective norms, roles, values and social situations (social factors); perceived usefulness of EIS (consequences); user satisfaction with EIS information, system, support, and plan (affect); and EIS development processes, management processes and organizational environment (facilitating conditions).

Usage Of EIS

ADVANTAGES OF EIS

Easy for upper-level executives to use, extensive computer 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 Of EIS System dependent

Limited functionality, by design

Information overload for some managers

Benefits hard to quantify

High implementation costs

System may become slow, large, and hard to manage

Need good internal processes for data management May lead to less reliable and less secure data

Difficult to keep current data

Example Of EIS

Basically, manufacturing is the transformation of raw

materials into finished goods for sale, or intermediate processes involving the production or finishing of semi-manufactures. It is a large branch of industry and of secondary production. Manufacturing operational control focuses on day-to-day operations, and the central idea of this process is effectiveness and efficiency

Manufacturing

Example Of EIS

• In an organization, marketing executives’ role is to create the future. Their main duty is managing available marketing resources to create a more effective future

• To assist marketing executives in making effective marketing decisions, an EIS can be applied. EIS provides an approach to sales forecasting, which can allow the market executive to compare sales forecast with past sales

• 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

Marketing

Example Of EIS

STUDY CASE OF EXECUTIVE INFORMATION SYSTEM

• Situation: Gold Rush Corporation relies heavily on its sales trends to predict future demand for the high quality gold watches that it manufactures and sells to jewelry and watch stores around the country. In the past the sales information has been passed on to production managers, sometimes up to month after large orders for popular watch styles have been ordered.

• Problem: The production managers are grateful for the information they do receive from the sales department because they base most of their production estimates on these numbers. However, the production managers could avoid costly production overruns as well as shortages in product if they had the information readily available to them

STUDY CASE OF EXECUTIVE INFORMATION SYSTEM

• Solution: Gold Rush Corporation decides to implement an executive information system available to all of its senior level managers, including the production managers, that possesses information regarding real time sales and orders of Gold Rush’s products. Thanks to this new system production managers are able to more accurately estimate the inventory levels they must realize in order to achieve demand. As an added benefit, production managers have decided that the executive information system provides them with such valuable and accurate real time information that they hope to move to a just in time inventory model to cut down on holding costs.

STUDY CASE OF EXECUTIVE INFORMATION SYSTEM

RELATED DIAGRAM OF EIS

RELATED DIAGRAM OF EIS

OTHER SUPPORT MATERIAL OF EIS

There a many support material have been developed to support the EIS, some of support material of EIS have been used several times so that EIS can be compatible with they organization system,example :

1 ) Executive Support System (ESS)– Comprehensive support system that goes beyond EIS to

include – Communications– Office automation– Analysis support– Intelligence

2 ) Enterprise Information System– Corporate-wide system– Provides holistic information– From a corporate view– Part of enterprise resource planning (ERP) systems– For business intelligence– Leading up to enterprise information portals and

knowledge management systems

OTHER SUPPORT MATERIAL OF EIS

CONCLUSION

Conclusion

• Executive Information Systems meet the needs of corporate executives by providing them with vast amounts of information quickly and in graphical form to help them make effective decisions. EIS must be flexible, easy to use, and contain both internal and external sources of information

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