What kind of decisions can an Executive Information System most effectively support?

An Executive Information System (EIS) is designed specifically to assist top-level management in making long-term strategic decisions. These systems aggregate and analyze data from various internal and external sources, providing executives with critical insights and comprehensive overviews of the business environment and performance metrics.

The primary focus of an EIS is to present information in a way that is useful for high-level decision-making, which often involves setting overarching goals, planning for the future, and assessing the organization’s position in the market. The system supports decisions that have a significant impact on the company's direction, such as entering new markets, launching new products, or capital investments.

In contrast, day-to-day operational decisions are typically managed by other systems designed for routine administrative tasks. Tactical decisions, which involve managing resources to implement strategies, would usually be informed by more specialized systems that operate at a mid-management level. Transactional decisions specifically concern day-to-day transactions and are often made using transaction processing systems. Thus, the effectiveness of an EIS is most aligned with supporting long-term strategic decisions, making this the correct choice.