Discuss the purpose of executive information system in an organization?

Discuss the purpose of executive information system in an organization?

Answer:

The primary purpose of an Executive Information System is to support managerial learning about an organization, its work processes, and its interaction with the external environment. Informed managers can ask better questions and make better decisions.

A secondary purpose for an EIS is to allow timely access to information. All of the information contained in an EIS can typically be obtained by a manager through traditional methods. However, the resources and time required to manually compile information in a wide variety of formats, and in response to ever changing and ever more specific questions usually inhibit managers from obtaining this information.

An EIS has a powerful ability to direct management attention to specific areas of the organization or specific business problems. Some managers see this as an opportunity to discipline subordinates. Some subordinates fear the directive nature of the system and spend a great deal of time trying to outwit or discredit it. Neither of these behaviours is appropriate or productive. Rather, managers and subordinates can work together to determine the root causes of issues highlighted by the EIS.

In a nutshell the advantages EIS offers are:

•    Easy for upper-level executives to use, extensive computer experience is not required in operations

•    Provides timely delivery of company summary information

•    EIS provides timely delivery of information. Management can make decisions made promptly.

•    Improves tracking information.

•    Offers efficiency to decision makers