Unit 2 MIS

Decision Making in MIS

• Decision making is an essential part of an management. Some have even suggested that
management is synonymous with decision making are complex activities that involve many
decisions of human behavior.
• Early classical models of management stressed the functions of managers , namely ,planning,
organizing, staffing, coordinating, reporting, budgeting. Depending on the level at which
managerial decision makers are they performing a different mix of managerial functions?
• There are primarily three levels of management and decision making termed as strategic,
technical/tactical and operational decision making.
• These three levels of decision making relate to one another closely. In essence management the
functions that a manager performs the levels at which the decision maker is and on the type of
decisions.
Types of Decisions: Structured decisions
• Structured decisions are those that can be programmed.
• These decisions can be taken objectively.
• They are essentially repetitive, routine and involve a definite procedure for handling them.
• Herbert A. Simon termed structured decisions as programmed decisions.
• Programmed decisions are in fact those that are made in accordance with some policy, rule or
procedure so that they do not have to be handled de novo each time they occur.
• It is for these reasons that such managerial problems are relegated to the supervisory level.
Types of Decisions: Unstructured decisions
• Unstructured decisions are those in which the decision maker must provide judgment, evaluation
and insights into the problem definition.
• These decisions must be taken subjectively.
• Unstructured decisions are more respectively in nature, usually one-sort occurrences for which
standard responses are usually not available.
• Hence, they require a creative process of problem-solving which is specially tailored to meet the
requirement of situation on hand.
• In fact manager at higher level in an organisation are usually faced with more such unstructured
decision making situation.
• Some have aptly descried the situation as some what strategic in nature as compare to the tactical
orientation of the structured decision at lower level of management.
• Strategic decisions are non-respective, vital and important and aim at determining or changing the
ends or means of enterprise.
Attributes of Information
• Accuracy:
• Accuracy is the degree of the absence of error in the process of
generation of information. It is an important attribute of good
information. However, increasing the accuracy may have a cost. It is,
therefore, necessary to determine the acceptable levels of ac­curacy for
each type of information.
• For example, the cost estimates for the product need to be as accurate
as possible since a minor inaccuracy may have significant impact on
the performance of the enterprise. However, the estimate of total size
of the market and the company’s share in it with comparatively higher
degree of error may still be of great value to the decision maker.
Attributes of Information
• Precision:
• Precision is an important virtue of good quality in­formation.
Too much of information sometimes results in dumping of
important information in the heap of details that may not be
required at a particular point of time.
• Excessive detail of informa­tion results in information overload
causing what is now being termed as Information Fatigue
Syndrome. Only precise informa­tion is respected and used by
managers. Unnecessary details are just filed.
Attributes of Information
• Completeness:
• Information communicated to a manager should be complete
and meet all his needs. Incomplete information can be
misleading and may result in wrong decisions. That is why, a
man­ager must insist on his involvement in defining the
information that shall be made available to him.
• In case, providing comprehen­sive information is not feasible for
one or the other reason, the manager must be made aware of
this fact, so that the incomplete information is used with
caution.
Attributes of Information
• Unambiguity:
• Clarity of information is an important attribute of good information.
Information must be unambiguous and should be communicated in such
a way that it conveys the same meaning to different users. Modern data
bases maintain data dictionaries that clearly define the variable used in
the information in order to standardise the terminology used in reports.
• In addition, there are other attributes such as quantifiability, verifiability,
unbiasedness, etc. that one may attempt to incorpo­rate to improve the
quality of information. To what extent the qual­ity of information can be
maintained, it shall depend upon the cost considerations, nature and
source of information, time available for generating information and such
other factors.
Relevance to Decision Making

• Information Access:
• Managers need rapid access to information to make decisions about strategic,
financial, marketing and operational issues. Companies collect vast amounts
of information, including customer records, sales data, market research,
financial records, manufacturing and inventory data and human resource
records. However, much of the information is held in separate departmental
databases, making it difficult for decision makers to access data quickly. A
management information system simplifies and speeds up information
retrieval by storing data in a central location that is accessible via a network.
The result is decisions that are quicker and more accurate.
Relevance to Decision Making

• Data Collection:
• Management Information Systems bring together data from inside and
outside the organization. By setting up a network that links a central
database to retail outlets distributors and members of supply chain,
companies can collect sales and production data daily, or more frequently and
make decisions based on the latest information
• Collaboration:
• In situations where decision-making involves groups, as well as individuals,
management information systems make it easy for teams to make
collaborative decisions. In a project team, for example, management
information systems enable all members to access the same essential data,
even if they are working in different locations.
Relevance to Decision Making

• Interpretation:
• Management information systems help decision-makers understand the
implications of their decisions. The systems collate raw data into reports in a
format that enables decision-makers to quickly identify patterns and trends
that would not have been obvious in the raw data. Decision-makers can also
use management information systems to understand the potential effect of
change. A sales manager for example, can make predictions about the effect
of a price change on sales by running simulations within the system and
asking a number of “what if the price was” questions.
Relevance to Decision Making

• Presentation:
• The reporting tools within management information systems enable decision
makers to tailor reports to the information needs of other parties. If a
decision requires approval by a senior executive, the decision maker can
create a brief executive summary for review. If managers want to share the
detailed findings of a report with colleagues, they can create full reports and
provide different levels of supplementary data.
Types of Information
Types of Information: Classification by characteristics
Action versus no-action information
The information which induces action is called action information. The information which communicates only the
status of a situation is no-action information. No stock' report calling a purchase action is action information but
the stock ledger showing the store transactions and the stock balances is No-action information.

Recurring Versus non–recurring

The information generated at regular intervals is recurring information. The monthly sales reports, the stock
statements, the trial balance, etc. are recurring information. The financial analysis or the report on the market
research study is non-recurring information.

Internal versus external information

The information generated through the internal sources of the organization is termed as internal information,
while the information generated through the Government reports, the industry surveys, etc. is termed as external
information, as the sources of the data are outside the organization.

The action information, the recurring information and the internal information are the prime areas of
computerization and they contribute qualitatively to the MIS.
Types of Information: Classification by Application
• Planning Information − These are the information needed for establishing standard
norms and specifications in an organization. This information is used in strategic, tactical,
and operation planning of any activity. Examples of such information are time standards,
design standards.
• Control Information − This information is needed for establishing control over all
business activities through feedback mechanism. This information is used for controlling
attainment, nature and utilization of important processes in a system. When such
information reflects a deviation from the established standards, the system should induce
a decision or an action leading to control.
• Knowledge Information − Knowledge is defined as "information about information".
Knowledge information is acquired through experience and learning, and collected from
archival data and research studies.
Types of Information: Classification by Application
• Organizational Information − Organizational information deals with an organization's
environment, culture in the light of its objectives. Karl Weick's Organizational Information
Theory emphasizes that an organization reduces its equivocality or uncertainty by
collecting, managing and using these information prudently. This information is used by
everybody in the organization; examples of such information are employee and payroll
information.
• Functional/Operational Information − This is operation specific information. For
example, daily schedules in a manufacturing plant that refers to the detailed assignment
of jobs to machines or machines to operators. In a service oriented business, it would be
the duty roster of various personnel. This information is mostly internal to the
organization.
• Database Information − Database information construes large quantities of information
that has multiple usage and application. Such information is stored, retrieved and
managed to create databases. For example, material specification or supplier information
is stored for multiple users.
Types of Information: Classification by Management
Hierarchy
• Based on Anthony's classification of Management, information used in business for decision-
making is generally categorized into three types −
• Strategic Information − Strategic information is concerned with long term policy decisions that
defines the objectives of a business and checks how well these objectives are met. For example,
acquiring a new plant, a new product, diversification of business etc, comes under strategic
information.
• Tactical Information − Tactical information is concerned with the information needed for
exercising control over business resources, like budgeting, quality control, service level, inventory
level, productivity level etc.
• Operational Information − Operational information is concerned with plant/business level
information and is used to ensure proper conduction of specific operational tasks as
planned/intended. Various operator specific, machine specific and shift specific jobs for quality
control checks comes under this category.
Models of Decision Making - Classical
• Classical approach is also known as prescriptive, rational or normative model.
• It specifies how decision should be made to achieve the desired outcome.
• Under classical approach, decisions are made rationally and directed toward a single and stable
goal.
• It is applied in certainty condition which the decision maker has full information relating to the
problem and also knows all the alternative solutions.
• It is an ideal way in making decision. It is rational in the sense that it is scientific, systematic and
step-by-step process.
Models of Decision Making - Classical
• There are four main assumptions behind the classical model:
• First is a clearly defined problem. The model assumes that the decision-maker has clearly set
goals and knows what is expected from him.
• Next is a certain environment. The model further suggests that it is in the power of the decision-
maker to eliminate any uncertainty that might impact the decision. As a result, there are no risks
to account for.
• The third assumption is full information. The decision-maker is able to identify all alternatives
available to him and to evaluate and rank them objectively.
• The final assumption is rational decisions. The decision-maker is believed to always be acting in
the best interests of the organization.
Models of Decision Making - Classical
• This model assumes the manager as a rational economic man who makes decisions to meet the
economic interest of the organization. Classical approach is based on the following assumptions:
• The decision maker has clear and well-defined goal to be achieved.
• All the problems are precisely defined.
• All alternative courses of action and their potential consequences are known.
• The decision maker can rank the entire alternatives on the basis of their preferred
consequences.
• The decision maker can select the alternative that maximizes outcome.
Models of Decision Making - Classical
• The classical model is supposed to be idealistic and rational, but it is rarely found in practice.
• Therefore, this approach has many criticisms. It is known by normative theory rather than
descriptive theory.
• Generally, managers operate under the condition of risk and uncertainty rather than the certainty
condition.
• In many situations, complete goal stability can never be realized due to continuous environmental
changes.
• It is applied only in the close system and not practicable in real life situations where environment
is changing rapidly.
Models of Decision Making - Classical
• Steps in the Classical Model
• The classical model proposes three main steps for decision-making:
• First is listing all available alternatives. Under the classical model, the decision-maker is not
limited by time or resources and can continue looking for alternatives until he identifies the one
that maximizes the utility from the decision.
• The second step is ranking listed alternatives. The decision-maker is believed to possess not only
all required information but also the cognitive ability to prioritize the alternatives accurately and
objectively.
• The last step of the classical model is selecting the best-suited alternative.
Models of Decision Making – Administrative Model
• Decision-making involve the achievement of a goal.
• Rationality demands that the decision-maker should properly understand the alternative courses
of action for reaching the goals.
• He should also have full information and the ability to analyse properly various alternative
courses of action in the light of goals sought. There should also be a desire to select the best
solutions by selecting the alternative which will satisfy the goal achievement.
• Herbert A. Simon defines rationality in terms of objective and intelligent action. It is characterized
by behavioural nexus between ends and means. If appropriate means are chosen to reach desired
ends the decision is rational.
• Bounded Rationality model is based on the concept developed by Herbert Simon. This model
does not assume individual rationality in the decision process.
• Instead, it assumes that people, while they may seek the best solution, normally settle for much
less, because the decisions they confront typically demand greater information, time, processing
capabilities than they possess. They settle for “bounded rationality or limited rationality in
decisions. This model is based on certain basic concepts.
Models of Decision Making - Administrative Model
a. Sequential Attention to alternative solution:
• Normally it is the tendency for people to examine possible solution one at a time instead of
identifying all possible solutions and stop searching once an acceptable (though not necessarily
the best) solution is found.
b. Heuristic:
• These are the assumptions that guide the search for alternatives into areas that have a high
probability for yielding success.
c. Satisficing:
• Herbert Simon called this “satisficing” that is picking a course of action that is satisfactory or
“good enough” under the circumstances. It is the tendency for decision makers to accept the first
alternative that meets their minimally acceptable requirements rather than pushing them further
for an alternative that produces the best results.
• Satisficing is preferred for decisions of small significance when time is the major constraint or
where most of the alternatives are essentially similar.
Models of Decision Making – Herbert Simon Model
• Herbert Simon made key contributions to enhance our understanding of the decision-making process.
• In fact, he pioneered the field of decision support systems. According to (Simon 1960) and his later work
with (Newell 1972), decision-making is a process with distinct stages.
• He suggested for the first time the decision-making model of human beings. His model of decision-making
has three stages:
• • Intelligence which deals with the problem identification and the data collection on the problem.
• Design which deals with the generation of alternative solutions to the problem at hand.
• Choice which is selecting the ‘best’ solution from amongst the alternative solutions using some criterion.

• The figure given below depicts Simon’s decision-making model clearly.

Models of Decision Making – Herbert Simon Model
• Intelligent Phase:
• This is the first step towards the decision-making process. In this step the decision-maker
identifies/detects the problem or opportunity.
• A problem in the managerial context is detecting anything that is not according to the plan,
rule or standard.
• An example of problem is the detection of sudden very high attrition for the present month
by a HR manager among workers.
• Opportunity seeking on the other hand is the identification of a promising circumstance that
might lead to better results.
• An example of identification of opportunity is-a marketing manager gets to know that two of
his competitors will shut down operations (demand being constant) for some reason in the
next three months, this means that he will be able to sell more in the market.
Models of Decision Making – Herbert Simon Model
• Thus, we see that either in the case of a problem or for the purpose of opportunity seeking the
decision-making process is initiated and the first stage is the clear understanding of the stimulus
that triggers this process.
• So if a problem/opportunity triggers this process then the first stage deals with the complete
understanding of the problem/opportunity. Intelligence phase of decision-making process
involves:
• Problem Searching: For searching the problem, the reality or actual is compared to some
standards. Differences are measured & the differences are evaluated to determine whether there
is any problem or not.
• Problem Formulation: When the problem is identified, there is always a risk of solving the wrong
problem. In problem formulation, establishing relations with some problem solved earlier or an
analogy proves quite useful.
Models of Decision Making – Herbert Simon Model
• Design Phase
• Design is the process of designing solution outlines for the problem.
• Alternative solutions are designed to solve the same problem. Each alternative
solution is evaluated after gathering data about the solution.
• The evaluation is done on the basic of criteria to identify the positive and negative
aspects of each solution. Quantitative tools and models are used to arrive at these
solutions.
• At this stage the solutions are only outlines of actual solutions and are meant for
analysis of their suitability alone. A lot of creativity and innovation is required to
design solutions.
Models of Decision Making – Herbert Simon Model
• Choice Phase
• It is the stage in which the possible solutions are compared against one another to
find out the most suitable solution. The ‘best’ solution may be identified using
quantitative tools like decision tree analysis or qualitative tools like the six thinking
hats technique, force field analysis, etc.
• This is not as easy as it sounds because each solution presents a scenario and the
problem itself may have multiple objectives making the choice process a very difficult
one. Also uncertainty about the outcomes and scenarios make the choice of a single
solution difficult.
• Limitations of the Simon Model
1. This model does not go further than the choice model.
2. Does not include the cognizance of the implementation and also of the feedback aspects.
Decision Support System
• Decision Support Systems are an application of Herbert Simon Model.
• As explained earlier, the model has three phases, viz. Intelligence, Design and Choice.
• The decision support system basically helps the information system in the intelligence phase where the
objective is to identify the problem and then go to the design phase for solution.
• It is therefore, required to go through these phases again and again till a satisfactory solution is found. In
the following three phase cycle, you may use inquiry, analysis, and models or accounting system to come
to a rational solution.
• Decision support systems (DSS) are interactive software-based systems intended to help managers in
decision-making by accessing large volumes of information generated from various related information
systems involved in organizational business processes, such as office automation system, transaction
processing system, etc.
• DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A
decision support system helps in decision-making but does not necessarily give a decision itself. The
decision makers compile useful information from raw data, documents, personal knowledge, and/or
business models to identify and solve problems and make decisions.
Decision Support System: Types of Decisions
• There are two types of decisions - programmed and non-programmed decisions.
• Programmed decisions are basically automated processes, general routine work, where
• These decisions have been taken several times.
• These decisions follow some guidelines or rules.
• For example, selecting a reorder level for inventories, is a programmed decision.
• Non-programmed decisions occur in unusual and non-addressed situations, so −
• It would be a new decision.
• There will not be any rules to follow.
• These decisions are made based on the available information.
• These decisions are based on the manager's discretion, instinct, perception and
judgment.
• For example, investing in a new technology is a non-programmed decision.
• Decision support systems generally involve non-programmed decisions. Therefore,
there will be no exact report, content, or format for these systems. Reports are
generated on the fly.
Decision Support System: Attributes of Decision
Support System
• flexibility
• The systems are flexible so that any semi-structured or unstructured decision making situation
can be tackled with ease and speed.
• Simple models
• The systems use simple models of decision making. The only change is that a different set of
information is sought for the use of different models. The choice of a model depends upon the
complexity of decision making.
• Database
• The decision support system needs database(s). The system calls for several inputs from
database(s) for decision making. The use of information being common, input to the system is
from the database.
Decision Support System: Components
• Database Management System (DBMS) − To solve a problem the necessary data may
come from internal or external database. In an organization, internal data are generated
by a system such as TPS and MIS. External data come from a variety of sources such as
newspapers, online data services, databases (financial, marketing, human resources).
• Model Management System − It stores and accesses models that managers use to
make decisions. Such models are used for designing manufacturing facility, analyzing the
financial health of an organization, forecasting demand of a product or service, etc.
• Support Tools − Support tools like online help; pulls down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with the
system.
Decision Support System: Types of Tools/ Models
• Behavioral models
• These models are useful in understanding the behavior amongst the business variables.
• The decision maker can then make decisions giving due regard to such behavioral relationships.
• The trend analysis, forecasting, and the statistical analysis models belong to this category.
• The trend analysis indicates how different variable behave in trend setting in the past and hence in
the future.
• A regression models shows the correlation between one or more variables. It also helps in
identifying the influence of one variable on the other.
• These types of models are largely used in process control, manufacturing, agricultural sciences,
medicines, psychology and marketing. The behavioral analysis can be used to set the points for
alert, alarm and action for the decision maker.
• E.G. Forecasting, Market Research, Ratio Analysis for Financial Assessment
Decision Support System: Types of Tools/ Models
• Management Science Models
• These models are developed on the principles of business management, accounting and
econometrics.
• In many areas of management, the proven methods of management control are available which can
be used for the management decision.
• There are also several management systems, which can be converted into the decision support
system models.
• Some of these models can be used straight away in the design of the decision support system.
• While some others require the use of management principles and practices, most of the procedure
based decision making models belong to this category.
• One can develop a model for selection of vendor for procurement of an item, based on the complex
logical information scrutiny. Such models take away the personal bias of the decision maker.
• E.g Budgeting Model, Break-Even Analysis, ROI Analysis,
Decision Support System: Types of Tools/ Models
• Operation Research Models
• The Operations Research (OR) models are mathematical models.
• These models represent a real-life problem situation in terms of the variables, constants and parameters
expressed in algebraic equations.
• In arriving the solution, methods of calculus, matrix algebra, probability, and set theory are used.
• These models have clarity to the extent that each of them has a set of assumptions which must be true in
real life.
• Further, if the assumptions are valid, the solutions offered are realistic and practical; the model represents
the real-life problem situation.
• The OR models address themselves to the resources usage optimization, by balancing two or more aspects
of the decision situation.
• The efforts are made to find the optimum solution. In business and industry, there are a number of
situations where one type of cost is controlled, the other cost goes up.
• This play between the two costs has to be balanced at a point, which is known as an optimum point. The OR
models generally try to find a solution which maximize or minimize certain aspects of business, under the
conditions of constraints.
• E.G. Manufacturing Business, Facility Designing problem (Running cost, idle time, customer waiting time)
Decision Support System: Benefits

• Improves efficiency and speed of decision-making activities.

• Increases the control, competitiveness and capability of futuristic decision-making of the
organization.
• Facilitates interpersonal communication.
• Encourages learning or training.
• Since it is mostly used in non-programmed decisions, it reveals new approaches and sets
up new evidences for an unusual decision.
• Helps automate managerial processes.
Group Decision Support System

• A GDSS is an interactive computer-based system for facilitating the solution of unstructured

problems by a set of decision makers working together as a group in the same location or in
different locations.
• Collaboration systems and Web-based tools for videoconferencing and electronic meetings
described earlier in this text support some group decision processes, but their focus is primarily on
communication.
• GDSS, however, provide tools and technologies geared explicitly toward group decision making.
• GDSS-guided meetings take place in conference rooms with special hardware and software tools to
facilitate group decision making. The hardware includes computer and networking equipment,
overhead projectors, and display screens.
• Special electronic meeting software collects, documents, ranks, edits, and stores the ideas offered in
a decision-making meeting.
• The more elaborate GDSS use a professional facilitator and support staff. The facilitator selects the
software tools and helps organize and run the meeting.
Group Decision Support System

• A sophisticated GDSS provides each attendee with a dedicated desktop computer under that
person’s individual control.
• No one will be able to see what individuals do on their computers until those participants are ready
to share information.
• Their input is transmitted over a network to a central server that stores information generated by
the meeting and makes it available to all on the meeting network. Data can also be projected on a
large screen in the meeting room.
• GDSS make it possible to increase meeting size while at the same time increasing productivity
because individuals contribute simultaneously rather than one at a time.
• A GDSS promotes a collaborative atmosphere by guaranteeing contributors’ anonymity so that
attendees focus on evaluating the ideas themselves without fear of personally being criticized or of
having their ideas rejected based on the contributor. GDSS software tools follow structured
methods for organizing and evaluating ideas and for preserving the results of meetings, enabling
nonattendees to locate needed information after the meeting.
• GDSS effectiveness depends on the nature of the problem and the group and on how well a
meeting is planned and conducted.
Executive Information System (EIS)
• An EIS can be understood as a computer-based information system designed specifically for use
by top-level company managers, providing internal and external information that they can use as
a support in performing their work.
• The characteristics they all share, which we now detail below:
• a) Capacity to access and manage information
• EIS must gather the internal and external information that is relevant to the executive, and
must therefore be able to access and manage information from a range of sources and in
different formats, and handle quantitative and qualitative, structured and non-structured
information.
• An EIS provides direct access to information without the need for intermediaries.
Executive Information System (EIS)
b) Presentation of information
• The information must be presented to the user in a meaningful and manageable way, which
involves combining data from different sources in the same report or on the same screen,
and filtering and condensing a wide range of information.
• As well as its capacity to aggregate information, an EIS must also allow the executive to
explore more deeply and obtain additional more detailed information on a specific aspect if
he or she considers it necessary.
• The presentation of information must be adapted to the user’s personal preferences, for
example by offering choices on how the system can alert the executive to deviations in any
variable.
Executive Information System (EIS)
c) Orientation to Critical Success Factors (csf)
• The EIS must provide information on key business variables, and must be flexible enough to
adapt to possible changes occurring in the business, guaranteeing that the system remains
oriented to critical success factors.
• For this reason, the design of the eis must allow for constant evolution.
• The EIS must be able to accurately determine the user’s information needs in order for it to
have the right orientation; to a large extent, its success or failure depends on this capacity.
d) Capacity for communication and time organisation
• An EIS must also act as a support for communication, through electronic mail, and in
organizing the executive’s work in the diary or calendar that usually comes with the system.
e) Ease of use
• These systems must match the user’s profile, in this case, people who do not usually have any
it training and moreover do not have the time to acquire it.
• This means that they must be easy to use and allow direct, intuitive access to their features.
• The EIS learning curve should be no longer than a few minutes.
Executive Information System (EIS): Ways to
Use
a) Access to information
• When executives have “read-only” access to the latest data or reports on the situation of key
variables, they can examine the information but do little, or perhaps nothing, in terms of
processing the data.
• This type of access may be widely used in sectors where market conditions change quickly,
where executives have to keep up with a lot of reports, or where hour-by-hour monitoring of
operations is important.
Executive Information System (EIS): Ways to
Use
b) Personalized analysis
• Naturally, executives can use the computer not only to gain exclusive access to information,
but also as an analytical tool.
• The type of analysis will vary from one executive to another. Some will simply calculate new
ratios or extrapolate current trends for application to future scenarios.
• Others will highlight trends of particular interest on figures or graphs to gain an additional
visual perspective.
• Some work with simulated models to determine where capital investments will be most
productive.
• What is important is that the EIS allows the executive to consider, change, extend and operate
data according to procedures that are meaningful to him or her at a personal level.
• For this method to be efficient, executives will inevitably spend a lot of their own time and
effort in defining the data they need and learning what the computer can do. Users will need at
least some initial training and assistance with the computer languages involved.
Executive Information System (EIS):
Characteristics
 Detailed data – EIS provides absolute data from its existing database.
 Integrate external and internal data – EIS integrates integrate external and internal data. The
external data collected from various sources.
 Presenting information – EIS represents available data in graphical form which helps to analyze
it easily.
 Trend analysis – EIS helps executives of the organizations to data prediction based on trend
data.
 Easy to use – It is a very simplest system to use.
Executive Information System (EIS):
Advantage and Disadvantage
Advantages
 Trend Analysis
 Improvement of corporate performance in the marketplace
 Development of managerial leadership skills
 Improves decision-making
 Simple to use by senior executives
 Better reporting method
 Improved office efficiency
Disadvantage
• Due to technical functions, not to easy to use by everyone
• Executives may encounter overload of information
• Difficult to manage database due to the large size of data
• Excessive costs for small business organizations