Enterprise information system

From CEOpedia | Management online

An Enterprise Information System (EIS) is a large-scale, integrated information system designed to support the business operations of an entire organization. It is typically composed of multiple component systems, such as asset management, financials, customer relationship management, supply chain management, human resources and payroll, and inventory management. EIS provides a unified interface and data model which allows users to access, view, and update all relevant data across the organization. It also helps to align business processes and policies across the organization, streamline operations, and improve decision-making.

Example of enterprise information system

  • SAP ERP: SAP ERP is a comprehensive enterprise resource planning (ERP) system that provides a unified platform for managing core business processes, including finance, inventory, and human resources. It integrates with existing systems and offers a wide range of features, including automated workflows, reporting, analytics, and forecasting. Its modular design allows organizations to adapt the system to their specific needs.
  • Oracle E-Business Suite: Oracle E-Business Suite is an integrated suite of software applications used to manage business processes and operations. It provides comprehensive capabilities for financials, supply chain, human resources, project portfolio management, and customer relationship management. The software also includes analytics and reporting tools, as well as mobile and cloud capabilities.
  • Microsoft Dynamics 365: Microsoft Dynamics 365 is a cloud-based enterprise platform designed to provide users with a unified view of their business operations. It offers applications for customer relationship management (CRM), financials, operations, project service automation, and field service. The system also provides reporting and analytics tools, as well as integration with other Microsoft products.

When to use enterprise information system

An Enterprise Information System (EIS) can be used in a variety of situations. It is most beneficial when an organization needs to access, view, and update data across multiple systems. Examples of application areas include:

  • Asset Management: EIS can provide a unified system to track and manage assets across the organization, including location tracking, asset utilization, maintenance scheduling, and asset lifecycle management.
  • Financials: EIS can provide a comprehensive view of financial transactions and performance across the organization, helping to streamline operations, improve accuracy, and increase visibility into financials.
  • Customer Relationship Management: EIS can provide a unified view of customer data and interactions, including customer profiles, sales history, and customer service requests.
  • Supply Chain Management: EIS can provide visibility into the entire supply chain process, from ordering and inventory management to shipping and delivery.
  • Human Resources and Payroll: EIS can provide a unified system for managing employee data and payroll, including employee profiles, performance tracking, and payroll calculations.
  • Inventory Management: EIS can provide a unified system for managing inventory levels and stock availability, including ordering, tracking, and forecasting.

Steps of implementing enterprise information system

  • An Enterprise Information System (EIS) typically requires several steps to implement. These steps include:
  1. Defining the goals and objectives: This involves determining the business needs, determining the current state of the organization, and setting goals and objectives for the EIS.
  2. Developing the system design: This step involves creating a detailed design for the system, including the architecture and the user interface.
  3. Developing the system components: This step involves creating the components necessary for the system, such as databases, applications, and data warehouses.
  4. Testing and evaluation: This step involves testing the system to ensure that it meets all of the requirements, and evaluating its performance.
  5. Deployment: This step involves deploying the system in the production environment and ensuring that it is running properly.
  6. Maintenance: This step involves monitoring the system and making any necessary changes or adjustments to keep it functioning properly.

Advantages of enterprise information system

An Enterprise Information System (EIS) provides numerous advantages to an organization. It can:

  • Enhance operational efficiency and effectiveness by providing a unified interface and data model which allows users to access, view, and update all relevant data across the organization.
  • Improve decision-making by providing real-time access to data and insights.
  • Streamline processes and improve collaboration by consolidating multiple component systems into one unified system.
  • Reduce costs by automating mundane tasks and eliminating manual data entry.
  • Increase customer satisfaction by providing faster response times and improved customer service.
  • Increase visibility into operations, allowing for better planning and resource allocation.
  • Improve security and compliance by centralizing data and providing centralized access control.

Limitations of enterprise information system

An Enterprise Information System (EIS) is a large-scale, integrated information system designed to support the business operations of an entire organization. However, there are some limitations associated with this type of system:

  • High cost of implementation and maintenance - EIS typically require significant investments in terms of time and money to set up and maintain, making them cost prohibitive for smaller organizations.
  • Complexity - EIS are complex systems, which can be difficult to understand and use. This can lead to problems with usability and user adoption.
  • Security risks - An EIS can be a target for malicious actors, which can lead to significant data breaches.
  • Vendor lock-in - EIS are often proprietary and require a long-term commitment to a specific vendor, limiting the organization’s ability to switch to a different system.
  • Rigidity - EIS often have rigid data models and limited flexibility, making them difficult to adapt to changing business requirements.

technologies provide organizations with the tools to streamline operations and improve decision-making.


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