Types of Information System – Executive Information Systems (EIS) 24 th October 2011

Executive Information System (EIS) A type of business information system that provides high-level information in an aggregated form for the higher level executives of an organisation High-level aggregation of information Executive Level: Focus on long-term strategic issues of the firm! What is important here?

Executive Information System (EIS) EIS are used to support managers at the executive level where strategic concerns are typically the focus – Allows executives to scan abstract information for trends or anomalies – Rather than providing concrete solutions and decisions, this abstract information is used by executives along with many other elements to do their work

Different Levels of Organisation Top Level – Strategic Middle Level – Management Lower Level – Operations

Middle Level Management Concerned with functional management! Middle level management require abstract information based on the data collected at the operational level. Transaction Processing Systems (TPS) allow you to capture the data in the operational level The effectiveness of middle level management may often depend on the relevance and timeliness of the data collected in the TPS.

Top Level Management - Concerned with Strategic Issues! Executives and Top Level management require highly abstract information TPS allow you to capture the data in the operational level MIS use the data captured by TPS to enable effective management of the functional areas of the business Executive Information Systems (EIS) use highly abstracted information from both MIS and TPS to enable effective strategic management

An Example – Assess the different types of Information at each Level Top Level – Strategic Middle Level – Management Lower Level – Operations

Benefits of EIS View more data and information but takes less time and effort – Think of before contemporary IT based IS Flexibility to view the information in different ways – Can change presentation type; timelines, etc – Can compare different time periods Monitor Key Performance Indicators (KPI)

How Management Information Systems Obtain Their Data from the Organization’s TPS Figure 2-3 In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports. 9

Example of Google Analytics

Abstract Information D6w D6w