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FUNCTIONAL BUSINESS
SYSTEMS
ap
er
6
BIS 1202 FOUNDATIONS OF INFORMATIONSYSTEMS
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Overview
Marketing Systems
Manufacturing Systems
Human Resource Systems
Accounting Systems
Financial ManagementSystems
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Functional Areas in an
Organisation A Vertical View
(Laudon & Laudon,
2006)
Marketing Finance ManufacturingHuman
resources
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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
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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
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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)
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FUNCTIONAL INFORMATION
SYSTEMS
These systems are:
Marketing Systems
Manufacturing Systems
Human Resource Systems
Accounting Systems
Financial Management
Systems
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Functional
Business
Areas
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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
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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
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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
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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.
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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
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MarketingSystems
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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
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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
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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
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Manufacturing Systems
(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.
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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
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Manufacturing Systems
(continued)
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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
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Human Resource systems
(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
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Human Resource systems
(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
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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
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H R S t
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Human Resource Systems
(continued)
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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.
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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
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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
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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
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Accounting systems(Cont.)
Fi i l i f ti
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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
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Financial Management Systems
Supports financial managers in
decisions concerning
The financing of the business
The allocation & control of
financial resources within thebusiness.
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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
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Finance (Cont.)
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Financial management system
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