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Components of EIS

The components of an EIS can typically be classified as:

Hardware

When talking about hardware for an EIS environment, we should focus on the hardware that meet the executive’s needs. The executive must be put first and the executive’s needs must be defined before the hardware can be selected. The basic computer hardware needed for a typical EIS includes four components:

  1. Input data-entry devices. These devices allow the executive to enter, verify, and update data immediately;
  2. The central processing unit (CPU), which is the kernel because it controls the other computer system components;
  3. Data storage files. The executive can use this part to save useful business information, and this part also help the executive to search historical business information easily;
  4. Output devices, which provide a visual or permanent record for the executive to save or read. This device refers to the visual output device or printer.

In addition, with the advent of local area networks (LAN), several EIS products for networked workstations became available. These systems require less support and less expensive computer hardware. They also increase access of the EIS information to many more users within a company.

Software

Choosing the appropriate software is vital to design an effective EIS. Therefore, the software components and how they integrate the data into one system are very important. The basic software needed for a typical EIS includes four components:

  1. Text base software. The most common form of text are probably documents;
  2. Database. Heterogeneous databases residing on a range of vendor-specific and open computer platforms help executives access both internal and external data;
  3. Graphic base. Graphics can turn volumes of text and statistics into visual information for executives. Typical graphic types are: time series charts, scatter diagrams, maps, motion graphics, sequence charts, and comparison-oriented graphs (i.e., bar charts);
  4. Model base. The EIS models contain routine and special statistical, financial, and other quantitative analysis.

Perhaps a more difficult problem for executives is choosing from a range of highly technical software packages. Ease of use, responsiveness to executives' requests, and price are all reasonable considerations. Further, it should be considered whether the package can run on existing hardware.

User Interface

An EIS needs to be efficient to retrieve relevant data for decision makers, so the user interface is very important. 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. It is crucial that the interface must fit the decision maker’s decision-making style. If the executive is not comfortable with the information questions/answers style, the EIS will not be fully utilized. The ideal interface for an EIS would be simple to use and highly flexible, providing consistent performance, reflecting the executive’s world, and containing help information.

Telecommunication

As decentralizing is becoming the current trend in companies, telecommunications will play a pivotal role in networked information systems. Transmitting data from one place to another has become crucial for establishing a reliable network. In addition, telecommunications within an EIS can accelerate the need for access to distributed data.

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