What is the primary function of an executive information system (EIS)?

• A. To manage daily transactions effectively
• B. To assist in tactical decision-making
• C. To facilitate senior management in strategic decisions
• D. To analyze operational data for efficiency

Answer: (C)

The primary function of an executive information system (EIS) is to facilitate senior management in strategic decisions. EIS is specifically designed to provide top executives with quick and easy access to internal and external information that is relevant to their strategic objectives. By focusing on high-level data, trends, and key performance indicators, EIS enables senior management to make informed decisions that align with the organization’s long-term goals.

Unlike other systems aimed at operational or tactical levels, EIS provides a broader context that helps in understanding the overall business environment, assessing performance, and identifying new opportunities or threats. This enhances strategic planning and foresight, enabling executives to act swiftly and effectively.