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Enterprise Information System (EIS)

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An enterprise information system (EIS) is any kind of information system which improves the functions of an enterprise business processes by integration. This means typically offering high quality of service, dealing with large volumes of data and capable of supporting some large and possibly complex organization or enterprise. An EIS is capable being used by all parts and all levels of an enterprise. The word enterprise can have various connotations. Frequently the term is used only to refer to very large organizations such as multi-national companies or public sector organizations. However, the term may be used to mean virtually anything, by virtue of it having become the latest corporate-speak buzzword. Enterprise information systems provide a technological platform that enables organizations to integrate and coordinate their business processes on a robust foundation. An EIS is currently used in conjunction with customer relationship management and supply chain management systems to automate business processes. An enterprise information system provides a single system that is central to the organization that ensures information can be shared across all functional levels and management hierarchies. An EIS can be used to increase business productivity and reduce service cycles, product development cycles and marketing life cycles. It may be used to amalgamate existing applications. Other outcomes include higher operational and cost savings. Financial value is not usually a direct outcome from the implementation of an enterprise information system.

  • Design stage

At the design stage the main characteristic of EIS efficiency evaluation is the probability of timely delivery of various messages such as command, service, multimedia files, etc. Enterprise systems create a standard data structure and are invaluable in eliminating the problem of information fragmentation caused by multiple information systems within an organization. An EIS differentiates itself from legacy systems in that it self-transactional, self-helping and adaptable to general and specialist conditions. Unlike an enterprise information system, legacy systems are limited to department wide communications. A typical enterprise information system would be housed in one or more data centers ,would run enterprise software and could include applications that typically cross organizational borders such as content management systems.[1]


Enterprise systems create a standard data structure and are invaluable in eliminating the problem of information fragmentation caused by multiple information systems within an organization. An EIS differentiates itself from legacy systems in that it is self-transactional, self-helping and adaptable to general and specialist conditions. Unlike an enterprise information system, legacy systems are limited to department-wide communications. A typical enterprise information system would be housed in one or more data centers, would run enterprise software, and could include applications that typically cross organizational borders such as content management systems.[2]


Enterprise information systems include enterprise resource planning systems (ERPs), relational databases and mainframe transaction processing systems.[3]


Enterprise Information System (EIS) Functions[4]
Enterprise information systems have both operational (transaction-processing) and informational (data storage, retrieval, and reporting) functions.

  • The operational goals tend to be focused on efficiency. When done well, enterprise information systems make it easier for people to complete their work in a timely and accurate manner. They also enable the university to standardize and streamline its operations. By contrast, poor quality enterprise systems can actually increase workloads, lead to frustration among the people who use them, and cause costly operational disruptions.
  • The informational goals of enterprise systems focus on effectiveness. Institutional data needs to be readily available to decision-makers in a form that marries data with context. The quality of the information is more important than the quantity of data.


New concept of EIS (See Figure 1.)[5]
Recent trends in the development of enterprise information systems are associated with the intention to use information generated within the company, in the external environment to ensure cooperation with other enterprises, customers and partners. Here we take into account the new concept of Enterprise Information System: the emphasis is placed on the EIS which is opened for the all partners operating in common business interests instead of on traditional internal business process management optimization (Figure 1). This concept includes five new tendencies:

  • Change the role of ERP system. Automation the internal business processes as well as external, counteragent relationships: customers, suppliers, banks, tax authorities;
  • The system technologies move towards an openness and transparency. Internal processes are becoming more open. Information and data about activity of an enterprise can be available for

business society member. Use of Web-technologies.

  • Structural changes of system architecture. Instead of closed monolithic platform – open multilevel applications built on concepts of service-oriented architecture (SOA). Use E-SOA;
  • Expansion of system implementation. Adaptation for enterprises of different kinds and sizes;
  • Deepen the system functionality. All enterprise business processes should be automated;


Enterprise Information System
Figure 1. source: St. Petersburg State University


Enterprise Information System (EIS) Categories[6]
Enterprise Information systems are divided into several categories, each of them occupies a niche in the production life cycle of the enterprise

  • ERP (Enterprise Resource Planning) - System for planning (managing) enterprise resources.
  • CRM (Customer Relationship Management) - interaction model, which is based on the assumption that the center of all business philosophy is the client and the main activities are effective marketing, sales and customer service.
  • ECM (Enterprise Content Management) - a strategic infrastructure and technical architecture to support a single life cycle of unstructured data (content) of various types and formats. Primarily used to capture, manage, store, preserve, and deliver content.
  • CPM (Corporate Performance Management) - corporate performance management concept, which covers the whole range of tasks in the area of strategic and financial administration of the company. It is the process of monitoring and managing an organization's performance, according to key performance indicators.
  • HRM (Human Resource Management) - the field of knowledge and practices, aimed at ensuring the staff organization and its optimal use. HR is primarily concerned with the organization of people resources within companies.
  • EAM (Enterprise Asset Management) - is an information system designed primarily for the automation of processes related to the maintenance of the equipment, its repair and after-sales service. It is the optimal life cycle management of the physical assets in organization.
  • EDMS (Electronic Document Management System) - enterprise document management framework. It is a software complex based on computer programs used to track, manage and store documents. Usually has the client-server architecture.


Characteristics and Benefits of Enterprise Information System (EIS)[7]
The characteristics and Benefits of Enterprise Information System (EIS) are illustrated in Table 8.2 below:


Characteristics and Benefits of Enterprise Information System
source: Hall, Decision Support Systems and Intelligent Systems, Seventh Edition


Systems Theory and Systems Thinking in Enterprise Information Systems (EIS)[8]

  • System thinking provides an important insight into the role of information systems plays in the process from data to knowledge. Information systems are not created for their own sake. They serve or support users engaged in what for them is meaningful action. When one system is thought of as serving another, it is a fundamental principle of systems thinking that should be thought carefully about, it is primary to define carefully the nature of the system served. Information System is a comprehensive concept which is far more substantial than the original phrase “data processing system”, which adequately expressed the nature of computing only in the days of transaction processing. Indeed, an “enterprise information system” is a “knowledge attribution system” in which people select certain data, get them processed and make them meaningful in enterprise context alike to support people engaged in purposeful action. Therefore, one crucial factor of successful EIS is to govern people purposed actions in EIS development and implementation.
  • System theories focus problems on the relationship between parts and the whole. For a corporation or an organization, departments and business units or service providers are the parts and itself is the whole. For a supply chain or virtual enterprise, all the companies or collaboration units embedded in are the parts, while the whole enterprise is a whole. Every system is composed of separate parts, but the function of a system can not simply achieved by the sum of functions provided by each part or subsystems. Consequently, the whole enterprise system can accomplish certain function while the parts of it cannot, which is called the whole affectivity in enterprise systems. From systems theory, synthesis of EIS with enterprise scope has two fundamental facets:
    • It means synthesis inside the enterprise itself. The scale of synthesis covers businesses between each department, the restrictions between each resource, and so on. All of these need some tools to cooperate and unite.
    • It also means the internal and external synthesis of enterprise in supply chain or global marketplace, such as the synthesis among users’ requirements, supplies, purchases and transactions.


A Conceptual Model for Enterprise Information System Security (See Figure 2.)[9]
“Information Security Policy is not an option, it’s demanded from the top of the house on down, it’s board approved,accepted by regulators, and executed throughout the organization. ” The Conceptual Model for Enterprise Architecture was presented to Information Security Officers at a Bank who confirmed the the importance of all the main issues proposed in the conceptual model.


Enterprise Information System Security
Figure 2. source: CONFENIS 2012 - GHENT, BELGIUM


  • Security Policy
    • Set rules for behavior
    • Define consequences of violations
    • Procedure for dealing with breach
    • Authorize company to monitor and investigate
    • Legal and regulatory compliance
  • Security Awareness
    • Continued education
    • Collective and individual activities
    • Formal classes, emails, discussion groups
    • Employee compliance
  • Access Control
    • Limit information
    • Access linked to job function
    • Restrict information not relevant to position
    • Management of access rule changes
  • Top level management support (TLMS)
    • Transparent support for policies and procedures
    • Ingrain information security into company culture
    • Effective communications


See Also

Enterprise Information Integration (EII)
Information System (IS)
Enterprise Data Integration (EDI)
Enterprise Application Integration (EAI)
Enterprise Integration
Enterprise Asset Management (EAM)
Enterprise Content Management (ECM)
Information Management (IM)
Information Governance
Information Security
Information Security Governance
Enterprise Information Management (EIM)
Enterprise Architecture
IT Governance


References

  1. Defining Enterprise Information System (EIS) Joseph Ezenwa
  2. Information Systems Wikipedia
  3. What does EIS include? Techopedia
  4. Functions of Enterprise Information System (EIS) cornell.edu
  5. New concept of EIS Elena Serova
  6. Categories of Enterprise Information System (EIS) Fosslook
  7. Characteristics and Benefits of Enterprise Information System (EIS) Turban, Aronson, and Liang
  8. Systems Theory and Systems Thinking in Enterprise Information Systems (EIS) Song Wang, Li Xu and Ling Li et al.
  9. A Conceptual Model for Enterprise Information System Security Sohail Chaudhry, Peggy Chaudhry, Kevin Clrk, Darryl Jones


Further Reading