Functional Information Systems

8/11/2019 Functional Information Systems

1/40

FUNCTIONAL BUSINESS

SYSTEMS

ap

er

6

BIS 1202 FOUNDATIONS OF INFORMATIONSYSTEMS


2/40

Overview

Marketing Systems

Manufacturing Systems

Human Resource Systems

Accounting Systems

Financial ManagementSystems


3/40

Functional Areas in an

Organisation A Vertical View

(Laudon & Laudon,

2006)

Marketing Finance ManufacturingHuman

resources


4/40

From the pyramid, Each vertical sectionrepresents a functional area of the

organization, and thus a vertical view can be

compared to a functional view of theorganization

Information systems can be designed to

support the functional areas or traditionaldepartments such as, accounting, finance,

marketing, human resources, and

manufacturing, of an organization

Such systems are classified as functional

Functional Areas in an Organisation. A Vertical

View


5/40

Functional information systems are typicallyfocused on increasing the efficiency of a

particular department or a functional area.

One disadvantage of functional systems isthat although they may support a particular

functional area effectively, they may be

incompatible to each other(NO interactionbetween internal systems ).

Such systems, rather than aiding

organizational performance will act as

inhibitors to an organization's development

Functional Areas in an Organisation A

Vertical View


6/40

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 functionalarea.

Some Information Systems are cross-functional

Example: A TPS can affect several differentbusiness areas: Accounting, Human Resources,

Production, etc.

Some Information Systems concentrate on one

particular business area (Accounting for example)


7/40

FUNCTIONAL INFORMATION

SYSTEMS

These systems are:

Marketing Systems



Accounting Systems

Financial Management

Systems


8/40

Functional

Business

Areas


9/40

Marketing Systems

Marketing Information Systems provideinformation technologies that support majorcomponents of the marketing function.

Interactive Marketing

Customer focused marketing process

Based on using Internet, intranets, &extranets to establish two-way

communications between customers orpotential customers and the business

Customers become involved in productdevelopment, delivery, & service issues


10/40

Marketing systems

Market Research

Statistical models help market

researchers find the best populationsfor new and existing products

Targeted Marketing

Database management systems(DBMS) help define potentialcustomers as narrowly as possible


11/40

Marketing systems

Five targeting components Community: Customize their Web advertising

messages and promotion methods to appeal topeople in specific communities. Virtual

communities. Content:Advertising such as electronic billboards

or banners can be placed on various Web sitepages, in addition to a company s home page .

These message reach the targeted audience.

Context:Advertising appears only in Web pagesthat are relevant to the content of a product orservices.

So advertising is targeted only at people who are


12/40


13/40

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.


14/40

The Internet as a Marketing and SellingMedium

Web lets companies reach moreshoppers and serve them better

Mobile Commerce (M-Commerce) isthe newest form of marketing

Commercial announcementspervade the Web


15/40

MarketingSystems


16/40

Manufacturing systems.

Support the production/operations function

Assists firms in,

Planning, monitoring, & controlling

inventories, purchases, & the flow of goodsand services

Plant activity scheduling

Material requirement assessment Material reallocation between orders

Resource qualification for task completion


17/40

anu ac ur ng ys ems(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 businessfunctions that support them with computers

machines and robots.

Integrate all production and support processes

using computers telecommunications networks


18/40

anu ac ur ng ys ems(continued)

Supports the concepts of flexible

manufacturing systems, agile

manufacturing, & total qualitymanagement

Computer-Aided Engineering (CAE)

Computer-Aided Design (CAD)Material Requirements Planning

(MRP)

M f t i S t


19/40


(continued)

Computer-Aided Manufacturing (CAM)

Systems that Automate the production process

Manufacturing Execution Systems (MES)

Performance monitoring systems for factory flooroperations

Track, schedule, and control manufacturingprocesses Collect data such as:

Hours machine operates every day of the monthHours the machine is idle and why

MES includes shop floor scheduling and control, machinecontrol, robots control, and process control systems.


20/40


(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


21/40


(continued)


22/40

HUMAN RESOURCE SYSTEMS.

Human Resource Information Systems

Support

Planning to meet the personnel needs of thebusiness

Development of employees to their fullpotential

Recruitment, selection, & hiring

Job placement Performance appraisals

Employee benefits analysis

Training and development

Health, safety, & security

Human Resource systems


23/40


(Cont.)

Employee Record ManagementReduce space needed to store

records, time to retrieve them, andcosts of both

Promotion and RecruitmentSearch databases for qualified

personnel

Use intranet to post job vacancies

Use the Web to recruit


24/40


(Cont.)

TrainingMultimedia software training is replacing

classrooms and teachers (CBT)Training software simulates an actual task

or situation and includes evaluation tools

EvaluationEvaluation software helps standardize theevaluation process and adds a certain

measure of objectivity and consistency


25/40

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

depositsSpecial software helps manage benefits, such as

health insurance, life insurance, retirement plans,

and sick and leave days


26/40

H R S t


27/40


(continued)


28/40

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

Account ing Informat ion 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.


29/40

Accounting Systems (continued)

Six widely used accounting systems

Order processing

Captures & processes customer orders and

produces data needed for sales analysisand inventory control

Inventory Control

Processes data reflecting changes in itemsin inventory.

Helps provide high-quality service whileminimizing investment in inventory &

inventory carrying costs


30/40

Accounting Systems (continued)

Accounts Receivable

Keeps records of amounts owed by

customers from data generated bycustomer purchases and payments

Accounts Payable

Keeps track of data concerningpurchases from, and payments to,

suppliers


31/40


32/40

Accounting systems (Cont.)

Electronic Data Processing (EDP)

Audits

Ensure electronic systems comply with

standard regulations and acceptable rules

Ensure systems cannot be manipulated toavoid acceptable principles


33/40

Accounting systems(Cont.)

Fi i l i f ti


34/40

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

day-to-day operations

Taking advantage of opportunities to accrue

the highest yield on funds not used for

current activities


35/40

Financial Management Systems

Supports financial managers in

decisions concerning

The financing of the business

The allocation & control of

financial resources within thebusiness.


36/40

Financial Management Systems

(continued) Major financial management system categories

Cash Management

Collects information on all cash receipts and

disbursements on a real-time or periodicbasis

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


37/40


38/40

Finance (Cont.)


39/40

Financial management system


40/40

Functional Information Systems

Documents

Transcript of Functional Information Systems