An Executive Information System (EIS) is a type of management information system intended to facilitate and support the information anddecision-making

needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. It is commonly considered as a specialized form of a Decision Support System (DSS) [1] The emphasis of EIS is on graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. EIS and data warehousing technologies are converging in the marketplace.

History
Traditionally, executive information systems were developed as mainframe computer-based programs. The purpose was to package a companys data and to provide sales performance or market research statistics for decision makers, such as financial officers, marketing directors, and chief executive officers, who were not necessarily well acquainted with computers. The objective was to develop computer applications that would highlight information to satisfy senior executives needs. Typically, an EIS provides data that would only need to support executive level decisions instead of the data for all the company. Today, the application of EIS is not only in typical corporate hierarchies, but also at personal computers on a local area network. EIS now cross computer hardware platforms and integrate information stored on mainframes, personal computer systems, and minicomputers. As some client service companies adopt the latest enterprise information systems, employees can use their personal computers to get access to the companys data and decide which data are relevant for their decision makings. This arrangement makes all users able to customize their access to the proper companys data and provide relevant information to both upper and lower levels in companies. [edit]Components The components of an EIS can typically be classified as: [edit]Hardware When talking about hardware for an EIS environment, we should focus on the hardware that meet the executives needs. The executive must be put first and the executives needs must be defined before the hardware can be selected. The basic computer hardware needed for a typical EIS includes four components:

1.

Input data-entry devices. These devices allow the executive to enter, verify, and

update data immediately;

2.
3.

The central processing unit (CPU), which is the kernel because it controls the

other computer system components; 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; 4. Output devices, which provide a visual or permanent record for the executive to

save or read. This device refers to the visual output device such as monitor or printer. In addition, with the advent of local area networks (LAN), several EIS products for networked workstations became available. 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. [edit]Software Choosing the appropriate software is vital to design an effective EIS.[citation needed] Therefore, the software components and how they integrate the data into one system are very important. The basic software needed for a typical EIS includes four components: 1. 2. Text base software. The most common form of text are probably documents; Database. Heterogeneous databases residing on a range of vendor-specific and

open computer platforms help executives access both internal and external data;

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 EIS models contain routine and special statistical, financial, and

other quantitative analysis. Perhaps a more difficult problem for executives is choosing from a range of highly technical software packages. Ease of use, responsiveness to executives' requests, and price are all reasonable considerations. Further, it should be considered whether the package can run on existing hardware.

Advantages and disadvantages

[edit]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

[edit]Disadvantages System dependent

of EIS

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

Advantages: Filters data for management Improves to tracking information Offers efficiency to decision makers Disadvantages:

Difficult to keep current data May lead to less reliable and insecure data Small companies may encounter excessive costs for implementation Too detailed Oriented

Executive Information Systems (EIS) - Outline

Executive Information Systems (EIS) provide high level views of an organisation by aggregating data from various sources from within the organisation and also external sources. Ad hoc enquiries provide performance data and trend analysis for top level management. Ease of use is an important feature so that enquiries can be made without a detailed knowledge of the underlying data structures. Graphical interfaces (GUI) make it possible to request reports and queries without resorting to programming

What's an Executive Support System?

What's a ESS? A ESS (or DSS more in general) is a software system under control of one of many decision-makers that assists in their activity of decision making by providing and organised set of tools intended to impart structure to portions of the decision making situation and to improve the ultimate effectiveness of the decision outcome". Sharing the same concepts of a DSS, an ESS focuses more in the end-user requirements of maximum interactivity and user-friendlyness. An ESS can be understood as a friendly, fully customised and interactive DSS to be mostly used by top executives and policy-makers to get permanent and updated assessment in relation to key questions (information and knowledge). While a complete DSS will have efficient links to external large databases and advanced models, an ESS focuses only on interactive and executive assessment tools, those which can be used personally by end-users. An ESS requires a previous expert work filtering information and knowledge into meaningful indicators and tools. Because of ESS definition, its design and implementation must integrate future users as much as feasible, since a ESS represents both a challenge and an opportunity to improve their working processes. Although software development play an integral role in any Executive Support System design (and more in general in the Decision Support System world) the analysis of ESS and DSS is about how people think and make decisions Anyway a ESS will induce organisational changes which can not be succesful

in complex institutions unless they are clearly preceived and desired since the begining. Recent developments on ESS and DSS tend to integrate the multiple decisions being taken by the institution, so they become Organisational DSS. An ODSS is therefore a participative process, instead of a mandatory product. In the figure, the green circle represents the domain area of a typical Executive Support System. Examples of ESS The Sutter Home Winery uses mostly external data, including information from the Internet, in its ESS.Itorganizesthe information in order to help executives make decisions based ontrendsinthe marketplace. The information includes data on competitors and information from market research. Sutter uses its system output to determine sales forecasts, marketing campaigns, and investment plans. Managers at the Royal Bank of Canada are able to choose their own criteria (from among 15 choices) to drill down and navigate data through easy-to-use interfaces. They don't have to accept data in formats chosen bysomeone else who maynot understand individual manager's needs. Data analysis is more timely because the information is quicker to obtain and more convenient than before. Characteristics of ESS Degree of use High, consistent, without need of technical assistance Computer skills required Very low -must be easy to learn and use FlexibilityHigh - must fit executive decision making style Principle use Tracking, control Decisions supportedUpper level management, unstructured Data supportedCompany internal and external Output capabilities Text, tabular, graphical, trend toward audio/video in future Graphic concentrationHigh, presentation style Data access speedMust be high, fast response summary EExecutive Support Systems meet the needs of corporate executives by providing them with vastamounts of information quickly and in graphical form to help them make effective decisions.ESS must be flexible, easy to use, and contain both internal and external sources of information.