Executive information system

Definition

An executive information system (EIS) is a specialized information system designed to support senior management in decision-making by providing easy access to internal and external data relevant to their strategic goals. It typically presents information in a user-friendly format, such as dashboards and visualizations, allowing executives to quickly assess organizational performance and market trends. This system enhances the role of information systems in business by enabling leaders to make informed decisions based on real-time data and insights.

5 Must Know Facts For Your Next Test

1. EIS often integrates data from various sources, including operational systems, external databases, and market research, providing a comprehensive view of the business environment.
2. It allows executives to customize their dashboards according to their specific needs, focusing on key performance indicators (KPIs) that matter most to them.
3. EIS can incorporate predictive analytics, helping executives forecast future trends based on historical data patterns.
4. One of the main advantages of EIS is its ability to present complex data in an easily digestible format, improving the speed and quality of decision-making.
5. EIS typically includes features like drill-down capabilities, enabling users to explore detailed data behind summary reports.

Review Questions

• How does an executive information system enhance decision-making for senior management?
  • An executive information system enhances decision-making for senior management by providing timely access to critical data in a user-friendly format. This allows executives to quickly assess key performance indicators and market trends that impact their strategic goals. By integrating internal and external data sources, EIS enables leaders to make informed decisions based on comprehensive insights, ultimately improving organizational performance.
• Discuss the relationship between executive information systems and business intelligence in organizations.
  • Executive information systems are a subset of business intelligence that specifically caters to the needs of senior management. While business intelligence encompasses a broader range of tools and techniques for analyzing organizational data, EIS focuses on delivering tailored insights through dashboards and visualizations that support high-level decision-making. The two concepts work together, as EIS relies on business intelligence principles to provide actionable information that aligns with an organization's strategic objectives.
• Evaluate how the implementation of an executive information system can impact an organization's overall effectiveness and efficiency.
  • The implementation of an executive information system can significantly enhance an organization's overall effectiveness and efficiency by streamlining decision-making processes. By providing real-time access to critical data and allowing for customized reporting, EIS empowers executives to respond swiftly to changing market conditions. Furthermore, with improved visibility into performance metrics, organizations can identify areas for improvement, allocate resources more effectively, and ultimately drive better outcomes in achieving their strategic goals.

Related terms

Decision Support System: A computer-based system that helps with decision-making by analyzing data and presenting actionable information to users.

Business Intelligence: Technologies and strategies for analyzing business data, allowing organizations to make more informed decisions.

Data Warehouse: A centralized repository for storing large amounts of structured data from various sources, enabling efficient analysis and reporting.