B5 CARS EIS
Eis is basically used by senior management to take take decisions.It requires an environment to operate
.The reason why it is expensive to operate because it requires a lot money and updatation.It is used by
senior manager and it requires maintainence and related technician to run it. In requires a lot of info
which would be difficult to source.Moreover it would be open to hacking so it would require a security
normally an antivirus.It is used in basically large organizations. Moreover there would be some sort of
restrictions on the info available because the competitor would felt uneasy to give. It requires a lot of
info or you can say data to be stored which wont be possible without a proper heavy computer system
and that computer would require maintainence too.
Part(b)
The reason why internally source info use merely would not be good for the organization as that it
would result in lack of progress for us and progress wont be possible without external source of info.
Competitors could use our info and beat us in product features and sales but we wont be able to do so
because we would be lacking that info.It would result in lose market even if at a moment if we felt that
we are going as per plan than with the passage of time we would start losing sales eventually losing our
future sales and goodwill along with customer loyalty. At anytime we wont be having update of govt and
it could cause us heavy damage as we would be working by mistake against govt policies. It can benefit in
the form of save of cos5ts as mentioned in part (a). It would save costs for us but it can result in low
quality product and at the last it could have liquidity problems for our business.External info can be
found by any source outside the organization for eg mainly trade union competitor govt. So overall it
wont be good to just rely on internal info because our info systems would require these info to make
decisions and if we lose them then it would be disastrous for us.
Mistakes
Amt of data
Online and offline update
Disc storage
Processing power reqd for large systems
Investment in hardware
Info requirements change of semior executive over time
Maintainence and support costs would change
Sources of data
Restricted picture of competitor’s
Info system like eis cannot be defned as an eis without info system
No indicator of performance comparison
Lack of decision making
Out of line with industry damaging firm
Lack of info of competitior deals about a product
Out of date info invaluable
Customer info lost
Lose damaging to firm
Survival and growth of business
Eis wont be able to good decision making because of lack of info
New technological breakthrough and unnecessary research and development
Lack of info of trends
They couldn’t be able to predict the market
Incorrect pricing
Marketing info would be forgone
So overall it is good but in short term