An executive information system (EIS) is a computer-based system that provides top executives with real-time data and summaries of key performance indicators (KPIs). EISs are used to monitor the overall performance of the organization and to identify potential problems or opportunities.
Characteristics of EISs
EISs are typically characterized by the following:
- Real-time data: EISs provide executives with real-time data from a variety of sources, including internal databases, transaction processing systems, and decision support systems. This allows executives to track the performance of their organization on a daily basis.
- KPIs: EISs focus on providing executives with summaries of KPIs. KPIs are measurable values that are used to track the progress of an organization towards its goals.
- Drill-down capabilities: EISs allow executives to drill down into the data to get more detailed information. This allows executives to identify the root cause of problems or opportunities.
- Easy to use: EISs are designed to be easy to use for executives who may not have a lot of technical expertise.
Benefits of EISs
EISs can provide a number of benefits to organizations, including:
- Improved decision making: EISs can help executives make better decisions by providing them with real-time data and summaries of KPIs.
- Increased efficiency and productivity: EISs can help executives to make decisions more quickly and efficiently.
- Reduced costs: EISs can help organizations to reduce costs by helping them to make better decisions and to avoid mistakes.
- Improved customer service: EISs can help organizations to improve their customer service by helping them to make better decisions about product development, marketing, and sales.
MCQs and Answers
Q1. Which of the following is NOT a characteristic of EISs?
(A) Real-time data (B) KPIs (C) Drill-down capabilities (D) Operating system
Answer: (D)
Q2. EISs are used to:
(A) Monitor the overall performance of the organization (B) Identify potential problems or opportunities (C) Both A and B (D) None of the above
Answer: (C)
Q3. EISs are typically designed for:
(A) Top executives (B) Middle management (C) Frontline employees (D) All of the above
Answer: (A)
Q4. EISs can help organizations to:
(A) Make better decisions (B) Increase efficiency and productivity (C) Reduce costs (D) All of the above
Answer: (D)