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Executive Information System

Article · May 2012

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106 IJCSNS International Journal of Computer Science and Network Security, VOL.12 No.5, May 2012

Executive Information System

Dr Mir Mohammad Azad1† and Mohammad Bin Amin2††,Md Alauddin3†††

Shanto Mariam University of Creative Technology, Uttara, Dhaka, Bangladesh

Summary provides data that would only need to support executive

A management information system (MIS) provides information level decisions instead of the data for all the company.
that is needed to manage organizations efficiently and effectively. The application of EIS is not only in typical corporate
Management information systems involve three primary hierarchies, but also at personal computers on a local area
resources: people, technology, and information or decision network. EIS now cross computer hardware platforms and
making. Management information systems are distinct from
integrate information stored on mainframes, personal
other information systems in that they are used to analyze
operational activities in the organization. Academically, the term computer systems, and minicomputers. As some client
is commonly used to refer to the group of information service companies adopt the latest enterprise information
management methods tied to the automation or support of human systems, employees can use their personal computers to
decision making, e.g. decision support systems, expert systems, get access to the company’s data and decide which data
and executive information systems are relevant for their decision makings. This arrangement
Key words: makes all users able to customize their access to the proper
Executive System, EIS, Executive Information System. company’s data and provide relevant information to both
upper and lower levels in companies.

1. Introduction
An executive information system (EIS) is a type of
management information system intended to facilitate and
support the information and decision-making needs of
senior executives by providing easy access to both internal The components of an EIS can
and external information relevant to meeting the strategic typically be classified as:
goals of the organization. It is commonly considered as a 2.1.1 Hardware
specialized form of decision support system (DSS). The computer hardware for an EIS environment, focus on
The emphasis of EIS is on graphical displays and easy-to- the hardware that meet the executive’s needs. The
use user interfaces. They offer strong reporting and drill- executive must be put first and the executive’s needs must
down capabilities. In general, EIS are enterprise-wide DSS be defined before the hardware can be selected. The basic
that help top-level executives analyze, compare, and hardware needed for a typical EIS includes four
highlight trends in important variables so that they can components:
monitor performance and identify opportunities and 1. Input data-entry devices. These devices allow the
problems. EIS and data warehousing technologies are executive to enter, verify, and update data
converging in the marketplace. immediately
In recent years, the term EIS has lost popularity in favor of 2. The central processing unit (CPU), which is the
business intelligence (with the sub areas of reporting, kernel because it controls the other computer system
analytics, and digital dashboards). components
2. Literal Review and Methodology 3. Data storage files. The executive can use this part to
save useful business information, and this part also
Basically executive information systems were developed help the executive to search historical business
as mainframe computer-based programs. The purpose was information easily
to package a company’s data and to provide sales 4. Output devices, which provide a visual or permanent
performance or market research statistics for decision record for the executive to save or read. This device
makers, such as financial officers, marketing directors, and refers to the visual output device such as monitor or
chief executive officers, who were not necessarily well printer
acquainted with computers. The objective was to develop
computer applications that would highlight information to In addition, with the advent of local area networks (LAN),
satisfy senior executives’ needs. Typically, an EIS several EIS products for networked workstations became

Manuscript received May 5, 2012

Manuscript revised May 20, 2012
IJCSNS International Journal of Computer Science and Network Security, VOL.12 No.5, May 2012 107

available. These systems require less support and less components. User interfaces exist for various systems, and
expensive computer hardware. They also increase access provide a means of:
of the EIS information to many more users within a
 Input, allowing the users to manipulate a system
company.
2.1.2 Software  Output, allowing the system to indicate the effects of
The software is vital to design an effective EIS. Therefore, the users' manipulation
the software components and how they integrate the data Generally, the goal of human-machine interaction
into one system are very important. The basic software engineering is to produce a user interface which makes it
needed for a typical EIS includes four components: easy, efficient, and enjoyable to operate a machine in the
1. Text base software. The most common form of text way which produces the desired result. This generally
are probably documents means that the operator needs to provide minimal input to
achieve the desired output, and also that the machine
2. Database. Heterogeneous databases residing on a minimizes undesired outputs to the human.
range of vendor-specific and open computer platforms Ever since the increased use of personal computers and the
help executives access both internal and external data relative decline in societal awareness of heavy machinery,
the term user interface has taken on overtones of the
3. Graphic base. Graphics can turn volumes of text and graphical user interface, while industrial control panel and
statistics into visual information for executives. machinery control design discussions more commonly
Typical graphic types are: time series charts, scatter refer to human-machine interfaces.
diagrams, maps, motion graphics, sequence charts, Other terms for user interface include human–computer
and comparison-oriented graphs (i.e., bar charts) interface (HCI) and man–machine interface (MMI).
Several types of interfaces can be available to the EIS
structure, such as scheduled reports, questions/answers,
menu driven, command language, natural language, and
input/output.
2.1.4 Telecommunication

4. Model base. The EIS models contain routine and

special statistical, financial, and other quantitative
analysis
2.1.3 User interface
An EIS needs to be efficient to retrieve relevant data for
decision makers, so the user interface is very important.
The user interface, in the industrial design field of human–
machine interaction, is the space where interaction
As decentralizing is becoming the current trend in
between humans and machines occurs. The goal of
companies, telecommunications will play a pivotal role in
interaction between a human and a machine at the user
networked information systems. Transmitting data from
interface is effective operation and control of the machine,
one place to another has become crucial for establishing a
and feedback from the machine which aids the operator in
reliable network. In addition, telecommunications within
making operational decisions. Examples of this broad
an EIS can accelerate the need for access to distributed
concept of user interfaces include the interactive aspects of
data.
computer operating systems, hand tools, heavy machinery
operator controls, and process controls. The design 2.1.5 Applications
considerations applicable when creating user interfaces are EIS enables executives to find those data according to
related to or involve such disciplines as ergonomics and user-defined criteria and promote information-based
psychology. A user interface is the system by which insight and understanding. Unlike a traditional
people (users) interact with a machine. The user interface management information system presentation, EIS can
includes hardware (physical) and software (logical) distinguish between vital and seldom-used data, and track
different key critical activities for executives, both which
108 IJCSNS International Journal of Computer Science and Network Security, VOL.12 No.5, May 2012

are helpful in evaluating if the company is meeting its  Provides timely delivery of company summary
corporate objectives. After realizing its advantages, people information
have applied EIS in many areas, especially, in
manufacturing, marketing, and finance areas.  Information that is provided is better understood

2.1.6 Manufacturing  Filters data for management

Basically, manufacturing is the transformation of raw
materials into finished goods for sale, or intermediate  Improves tracking information
processes involving the production or finishing of semi-
manufactures. It is a large branch of industry and of  Offers efficiency to decision makers
secondary production. Manufacturing operational control Disadvantages of EIS
focuses on day-to-day operations, and the central idea of
this process is effectiveness and efficiency.  System dependent

 Limited functionality, by design

2.1.7 Marketing
In an organization, marketing executives’ role is to create  Information overload for some managers
the future. Their main duty is managing available
marketing resources to create a more effective future. For  Benefits hard to quantify
this, they need make judgments about risk and uncertainty
of a project and its impact on the company in short term  High implementation costs
and long term. To assist marketing executives in making
effective marketing decisions, an EIS can be applied. EIS  System may become slow, large, and hard to manage
provides an approach to sales forecasting, which can allow
the market executive to compare sales forecast with past  Need good internal processes for data management
sales. EIS also offers an approach to product price, which
is found in venture analysis. The market executive can  May lead to less reliable and less secure data
evaluate pricing as related to competition along with the
relationship of product quality with price charged. In
summary, EIS software package enables marketing 4.Future trends
executives to manipulate the data by looking for trends,
performing audits of the sales data, and calculating totals, The future of executive info systems will not be bound by
averages, changes, variances, or ratios. mainframe computer systems. This trend allows
executives escaping from learning different computer
2.1.8 Financial operating systems and substantially decreases the
A financial analysis is one of the most important steps to implementation costs for companies. Because utilizing
companies today. The executive needs to use financial existing software applications lies in this trend, executives
ratios and cash flow analysis to estimate the trends and will also eliminate the need to learn a new or special
make capital investment decisions. An EIS is a language for the EIS package.
responsibility-oriented approach that integrates planning
or budgeting with control of performance reporting, and it
can be extremely helpful to finance executives. Basically, 5. Conclusion
EIS focuses on accountability of financial performance
and it recognizes the importance of cost standards and An increasing number of organizations invest in the
flexible budgeting in developing the quality of information development of Executive Information Systems (EIS) to
provided for all executive levels. support senior management. Several studies however
indicate that a high percentage of these attempts fail. The
level of success of EIS is affected by several factors.
3. Advantages and disadvantages These factors may primarily be associated with two phases
of EIS implementation: the initial EIS development
Advantages of EIS process and EIS operation.
 Easy for upper-level executives to use, extensive The study consisted of three phases:
computer experience is not required in operations  An analysis of the literature to identify factors which
affect EIS success. Most of the literature on factors
associated with EIS success and failure comprises
IJCSNS International Journal of Computer Science and Network Security, VOL.12 No.5, May 2012 109

case studies or articles for the professional EIS [9] Salmeron, Jose L. EIS Success: Keys and difficulties in
community. A framework to taxonomise these factors major companies. Technovation Volume 23, Issue 1, 2003,
has been developed to facilitate their examination in a pp. 35–38.
structured manner. The factors are classified in six [10] Salmeron, Jose L. EIS Evolution in Large Spanish
Businesses. Information & Management Volume 40, Issue 1,
categories, each affecting EIS development and 2002, pp. 41–50.
operation. [11] Salmeron, Jose L. EIS profitability, costs and benefits: An
evolutionary approach. Industrial Management & Data
 A small-scale survey study to validate and determine Systems Volume 102, Issue 5–6, 2002, pp. 284–288.
the relative importance of factors appearing in the [12] Salmeron, Jose L. EIS data: Findings from an evolutionary
literature. study. Journal of Systems and Software Volume 64, Issue 2,
The study was organized on the framework developed 2002, pp. 111–114.
earlier. The relative importance of factors was based [13] Hennessy, John A.; Goldberg, David (1996). Computer
on the perceptions of EIS professionals (people Architecture: A Quantitative Approach. Morgan Kaufmann
involved in development and operation of EIS). The Publishers. ISBN 1-55860-329-8.
[14] Gary D. Knott (1974) A proposal for certain process
results from this phase were used to generate a set of
management and intercommunication primitives ACM
hypotheses concerning the relationships between SIGOPS Operating Systems Review. Volume 8, Issue 4
these factors and EIS success. (October 1974). pp. 7 – 44
[15] MIPS Technologies, Inc. (2005). MIPS32 Architecture For
 A survey study to test the hypotheses. Programmers Volume II: The MIPS32 Instruction Set.
This phase investigates potential relationships [16] Smotherman, Mark (2005). "History of Multithreading".
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the form of People, Activities, System Characteristics, [17] Utts, Jessica M. Seeing Through Statistics 3rd Edition,
and Social/Cultural, Political and Technological Thomson Brooks/Cole, 2005, pp 166-167.
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Quality Toolbox. Milwaukee, Wisconsin: American Society
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[19] Freeman, H., “Computer Name Placement,” ch. 29, in
Acknowledgments Geographical Information Systems, 1, D.J. Maguire, M.F.
Goodchild, and D.W. Rhind, John Wiley, New York, 1991,
The results of the study that contributes to the body of 449-460.
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 110 IJCSNS International Journal of Computer Science and Network Security, VOL.12 No.5, May 2012

Dr. Mir Mohammad Azad Received

PhD in Computer Science from Golden
State University. Received Master of
Computer Application (MCA) Degree
from Bharath Institute of Higher
Education and Research Deemed
University (Presently Bharath University)
and Bachelor of Computer Application
(BCA) Degree from Bangalore University,
India, Presently Working as an Assistant
Professor and Departmental Head of Computer Science and
Engineering, Shanto Mariam University of Creative Technology,
Dhaka, Bangladesh. His areas of interest include E-commerce,
Digital Image, Networking and Wireless communication

Mohammad Bin Amin Received

Master of Business Administration
(M.B.A) & Bachelor of Business
Administration (B.B.A) Degree from
Dhaka University, Bangladesh,
Presently Working as a Lecturer,
Department of Business
Administration, Shanto Mariam
University of Creative Technology,
Dhaka, Bangladesh.

MD. Alauddin, Received Master of

Business Administration (M.B.A) &
Bachelor of Business Administration
(B.B.A) Degree from Dhaka University,
Bangladesh, Presently Working as a
Lecturer, Department of Business
Administration, Shanto Mariam
University of Creative Technology,
Dhaka, Bangladesh. His area of interest
is application of business information
system in business.

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