Transcript information systems intro

FUNCTIONAL BUSINESS SYSTEMS
BIS 1202
FOUNDATIONS OF INFORMATION SYSTEMS
Chapter
6
Overview
Marketing
Systems
Manufacturing Systems
Human Resource Systems
Accounting Systems
Financial Management Systems
Functional Areas in an
Organisation A Vertical View
Marketing Finance
Human
resources
Manufacturing
(Laudon & Laudon,
2006)
Functional Areas in an Organisation. A Vertical
View
• From the pyramid, Each vertical section represents a
functional area of the organization, and thus a
vertical view can be compared to a functional view
of the organization
• Information systems can be designed to support the
functional areas or traditional departments such as,
accounting, finance, marketing, human resources, and
manufacturing, of an organization
• Such systems are classified as ‘functional information
systems’. Functional information systems typically
follow the organizational structure
Functional Areas in an Organisation A
Vertical View
• Functional information systems are typically
focused on increasing the efficiency of a particular
department or a functional area.
• One disadvantage of functional systems is that
although they may support a particular functional
area effectively, they may be incompatible to each
other(NO interaction between internal systems ).
• Such systems, rather than aiding organizational
performance will act as inhibitors to an
organization's development and change.
Functional Areas in an Organisation A
Vertical View




Organizations have realized that in order to be agile
and efficient they need to focus on organizational
processes
A process may involve more than one functional area.
Some Information Systems are cross-functional
 Example: A TPS can affect several different business
areas: Accounting, Human Resources, Production, etc.
Some Information Systems concentrate on one particular
business area (Accounting for example)
FUNCTIONAL INFORMATION SYSTEMS

These systems are:
Marketing Systems
Manufacturing Systems
Human Resource Systems
Accounting Systems
Financial Management Systems
Functional
Business
Areas
Marketing Systems

Marketing
Information
Systems
provide
information technologies that support major
components of the marketing function.
 Interactive Marketing
Customer focused marketing process
Based on using Internet, intranets, & extranets
to establish two-way communications between
customers or potential customers and the
business
Customers
become involved in product
development, delivery, & service issues
Marketing systems

Market Research
Statistical
models help market researchers
find the best populations for new and
existing products

Targeted Marketing
Database
management systems (DBMS)
help define potential customers as
narrowly as possible
Marketing systems
Five targeting components

Community: Customize their Web advertising messages
and promotion methods to appeal to people in specific
communities. Virtual communities.
Content: Advertising such as electronic billboards or
banners can be placed on various Web site pages, in
addition to a company ‘s home page .These message
reach the targeted audience.

Context: Advertising appears only in Web pages that

are relevant to the content of a product or services.
So advertising is targeted only at people who are
already looking for information about a subject matter.
Marketing systems
Five targeting components.


Demographic/psychographic: Marketing efforts
can be aimed only at specific type of class of
people: unmarried, twenty-something , middle
income , male collage graduates
Online behavior: Advertising and promotion
efforts can be tailored to each visit to a site by
individual. This strategy is based on “ Web cookie”
files recorded on the visitor’s disk drive from
previous visits.
Marketing systems
Sales Force Automation


The sales force is connected to marketing websites
on the Internet, extranets, & the company intranet
Equipping salespeople with information technology to
facilitate productivity



IT allows salespeople to present different options for
products and services on the spot.
Increases productivity of sales force Speeds up the
capture & analysis of sales data.
Allows management to provide improved delivery
information & better support of the sales force.
The Internet as a Marketing and Selling
Medium
Web
lets companies reach more
shoppers and serve them better
Mobile
Commerce (M-Commerce) is the
newest form of marketing
Commercial
Web
announcements pervade the
Marketing Systems
Manufacturing systems.


Support the production/operations function
Assists firms in,
 Planning, monitoring, & controlling inventories,
purchases, & the flow of goods and services
 Plant activity scheduling
 Material requirement assessment
 Material reallocation between orders
 Resource qualification for task completion
Manufacturing Systems (continued)

Computer-Integrated Manufacturing (CIM)
the manufacturing approach of using computers to control the
entire production process
Objectives of CIM



Simplify production processes , product designs and
factory organization as a vital foundation to automation
and integration.
Automate production processes and the business functions
that support them with computers machines and robots.
Integrate all production and support processes using
computers telecommunications networks and other
information technologies.
Manufacturing Systems (continued)

Supports the concepts of flexible
manufacturing
systems,
agile
manufacturing,
&
total
quality
management
 Computer-Aided Engineering (CAE)
 Computer-Aided
Design (CAD)
 Material Requirements Planning (MRP)
Manufacturing Systems (continued)

Computer-Aided Manufacturing (CAM)
 Systems

that Automate the production process
Manufacturing Execution Systems (MES)
 Performance
monitoring systems for factory floor
operations
 Track, schedule, and control manufacturing processes
Collect data such as:
 Hours

machine operates every day of the month
 Hours the machine is idle and why
MES includes shop floor scheduling and control, machine control,
robots control, and process control systems.
Manufacturing Systems (continued)

Process Control
 The
use of computers to control an ongoing
physical process

Machine Control
 The
use of a computer to control the actions of
a machine.
 Also called numerical control
Manufacturing Systems (continued)
HUMAN RESOURCE SYSTEMS.

Human Resource Information Systems
 Support
 Planning to meet the personnel needs of the
business
 Development of employees to their full potential
 Recruitment, selection, & hiring
 Job placement
 Performance appraisals
 Employee benefits analysis
 Training and development
 Health, safety, & security
Human Resource systems (Cont.)

Employee Record Management
Reduce
space needed to store records,
time to retrieve them, and costs of both

Promotion and Recruitment
Search
databases for qualified personnel
Use intranet to post job vacancies
Use the Web to recruit
Human Resource systems (Cont.)

Training
 Multimedia
software training is replacing
classrooms and teachers (CBT)
 Training software simulates an actual task or
situation and includes evaluation tools

Evaluation
 Evaluation
software helps standardize the
evaluation process and adds a certain measure
of objectivity and consistency
Human Resource systems (Cont.)

Compensation and Benefits Management
 ISs can help manage compensation efficiently and
effectively
 Calculate salaries, hourly pay, commissions, and
taxes
 Automatically generate paychecks or direct deposits
 Special software helps manage benefits, such as
health insurance, life insurance, retirement plans, and
sick and leave days
Human Resource Systems (continued)

HRM and the Internet
Allows companies to process most common
HRM applications over their intranets.
Allows companies to provide around-theclock services to their employees.
Allows companies to disseminate valuable
information faster.
Allows employees to perform HRM tasks
online.
Human Resource Systems (continued)
Accounting system.




AISs automatically post transactions in the books and automate
generation of reports for management and legal requirements
Record and report business transactions and other economic
events
Online Accounting Systems
Accounting Information Systems
are being affected by Internet and client/Server
technologies.
Using the internet ,intranets, extranets and other networks
changes how accounting information systems monitor and
track business activity.
Accounting Systems (continued)

Six widely used accounting systems
 Order processing
 Captures & processes customer orders and
produces data needed for sales analysis and
inventory control
 Inventory Control
 Processes data reflecting changes in items in
inventory.
 Helps provide high-quality service while
minimizing investment in inventory & inventory
carrying costs
Accounting Systems (continued)
Accounts
Receivable
Keeps records of amounts owed by
customers from data generated by
customer purchases and payments
Accounts Payable
Keeps track of
data concerning
purchases from, and payments to,
suppliers
Accounting Systems (continued)
 Payroll
Receives
and maintains data from employee
time cards and other work records
 General Ledger
Consolidates data received from accounts
receivable, accounts payable, payroll, &
other accounting information systems
Accounting systems (Cont.)

Electronic Data Processing (EDP) Audits
 Ensure
electronic systems comply with standard
regulations and acceptable rules
 Ensure
systems cannot be manipulated to avoid
acceptable principles
Accounting systems(Cont.)
Financial information system.

The job of financial managers is to manage money
as efficiently as possible by:
 Collecting payables as soon as possible
 Making payments by the latest time allowed by
contract or law
 Ensuring sufficient funds are available for dayto-day operations
 Taking advantage of opportunities to accrue the
highest yield on funds not used for current
activities
Financial Management Systems

Supports financial managers in
decisions concerning
The financing of the business
The
allocation & control of
financial resources within the
business.
Financial Management Systems
(continued)

Major financial management system categories
 Cash Management
 Collects information on all cash receipts and
disbursements on a real-time or periodic basis
 Investment Management
 Helps the financial manager make buy, sell, or hold
decisions for each type of security
 Helps the financial manager develop the optimum
mix of securities in order to minimize risk and
maximize return
Financial Management Systems
(continued)
 Capital
Budgeting
 Involves evaluating the profitability and financial
impact of proposed capital expenditures
 Allows financial managers to analyze long-term
expenditure proposals for plant and equipment
 Financial Forecasting & Planning
 Evaluate the present and projected financial
performance of the company
 Help determine financing needs and analyze
alternative methods of financing
 Explore what-if and goal-seeking questions
Finance (Cont.)
Financial management system
Students research….

Cross functional systems
 Enterprise resource planning(ERP)
 Examples
 Advantages and disadvantages.