FUNCTIONAL BUSINESS ISFunctional business systems are composed of a variety of types of information systems (transaction processing, management information, decision support, etc) that support the business functions of: – Accounting – Finance – Marketing – Productions/operations management – Human resource management
Functional Aspects of the MIS• Most organizations are structured along functional lines or areas• MIS can be divided along functional lines to produce reports tailored to individual functions 3 3
Functional Aspects of the MIS (continued) Figure: An Organization’s MIS 4 4
Functional Business Systems• A variety of information systems (transaction processing, management information systems, decision support, etc.)• That support the business functions of – Accounting, finance, marketing, operations management and human resource management 6
TYPES OF FUNCTIONAL BUSINESS INFORMATION SYSTEMS1. Marketing Systems (MKIS) The business function of marketing is concerned with the planning, promotion, and sale of existing products in existing markets, and the development of new products and new markets to better serve present and potential customers.Example: Marketing Information Systems - an interactive marketing process possible where customers can become partners in creating, marketing, purchasing, and improving products and services.b. Sales Force Automation - use mobile computing and Internet technologies to automate many information processing activities for sales support and management.
Sales Force Automation• Outfit sales force with notebook computers, web browsers and sales contract management software• Connect them to marketing websites and company intranet• Goal: – Increase personal productivity – Speeds up capture and analysis of sales data from the field to marketing managers – Gain strategic advantage
Marketing Management Information Systems (continued) Overview of a Marketing MIS 11
MKIS Use by Managers• Industry giants are using the computer as a marketing tool – To learn about consumer needs and wants – To formulate the marketing mix – To follow-up on how well mix is received by the consumers• MKIS information output used across the firm 8-12
TYPES OF FUNCTIONAL BUSINESS INFORMATION SYSTEMS2. Manufacturing Systems Manufacturing information systems support the production/operations function, which includes all activities concerned with the planning and control of the processes that produce goods or services.Example:Uses of computers in manufacturing include:• Computer-aided engineering (CAE)• Computer-aided design (CAD)• Computer-aided process planning (CAPP)• Material requirements planning (MRP)• Manufacturing resource planning (MRP-II)• Computer-aided manufacturing (CAM)
Manufacturing Management Information Systems (continued) 14 Overview of a Manufacturing MIS
Manufacturing Information System• Used to support efforts to produce products• Evolution of computer use in manufacturing – Systems keyed on reorder points – MRP – JIT• Consists of three input and four output subsystems 9-15
TYPES OF FUNCTIONAL BUSINESS INFORMATION SYSTEMS3. Human Resource Systems Human resource information systems (HRIS) support:• Recruitment, selection and hiring• Job placement• Performance appraisals• Employee benefit analysis• Training and development• Health, safety, and security
HRM and the Internet• Recruiting employees using the corporate website and commercial recruiting services• Posting messages in selected Internet newsgroups• Communicating with job applicants via e-mail
HRM and Corporate Intranets• Process common HRM applications• Allow HRM department to provide around-the-clock services• Disseminate valuable information faster than through previous company channels• Collect information from employees online• Allow managers and other employees to perform HRM tasks with little intervention by the HRM department• Training tool
Employee Self-Service (ESS)• Intranet applications that allow employees to – View benefits – Enter travel and expense reports – Verify employment and salary information – Update their personal information – Enter data that has a time constraint to it
Human Resource Management Information Systems (continued) Overview of a Human Resource MIS 21
TYPES OF FUNCTIONAL BUSINESS INFORMATION SYSTEMS 4. Accounting Information Systems Operational accounting systems focus on transaction processing systems. They emphasize legal and historical record-keeping and the production of accurate financial statements. Typically, operational accounting systems include:• Order processing• Inventory control• Accounts receivable• Accounts payable• Accounts payroll• General ledger systems.
6 essential Accounting Information Systems• Order Processing – Captures and processes customer orders and produces data for inventory control and accounts receivable• Inventory Control – Processes data reflecting changes in inventory and provides shipping and reorder information• Accounts Receivable – Records amounts owed by customers and produces customer invoices, monthly customer statements, and credit management reports
6 essential Accounting Information Systems• Accounts Payable – Records purchases from, amounts owed to, and payments to suppliers, and produces cash management reports• Payroll – Records employee work and compensation data and produces paychecks and other payroll documents and reports• General Ledger – Consolidates data from other accounting systems and produces the periodic financial statements and reports of the business
TYPES OF FUNCTIONAL BUSINESS INFORMATION SYSTEMS5. Financial Management Systems Computer-based financial management systems support financial managers in decisions concerning: – The financing of a business. – The allocation and control of financial resources within a business.• Major financial information system categories include: – Cash and investment management. – Capital budgeting – Financial forecasting – Financial planning
Users of Financial Information• Internal users – Managers – Nonmanagers• Environmental users – Those with direct business relationships – Those with no direct relationships
CROSS FUNCTIONAL E-BUSINESS SYSTEMS• Cross-functional enterprise applications are integrated combinations of information subsystems that share information resources and support business processes across the functional units of the business enterprise and extend beyond to customers, suppliers, and other business partners.
TYPES OF CROSS FUNCTIONAL E-BUSINESS SYSTEMS1. Enterprise Resource Planning (ERP)• Enterprise resource planning (ERP) is a cross-functional enterprise system that serves as a framework to integrate and automate many of the business processes that must be accomplished within the manufacturing, logistics, distribution, accounting, finance, and human resources functions of a business.2. Supply Chain Management SCM is a system used to capture and integrate supplier data from all over the organization, consolidate the data, analyze the data and then distribute the results to various systems.
7 Reasons on How Business Information Systems Facilitate Supply Chain Management.• Decide when and what to produce store and move.• Rapidly communicate orders• Track the status of orders• Check inventory , transportation and warehousing costs• Reduce inventory, transportation and warehousing costs• Track shipment• Plan production based on actual customer demand• Rapidly communicate changes in product design
TYPES OF CROSS FUNCTIONAL E-BUSINESS SYSTEMS3. Customer Relationship Management (CRM) CRM is a system used to capture and integrate customer data from all over the organization, consolidate the data, analyze the data and then distribute the results to various systems. Methods of interaction in CRM:• Telephone• E-mail• Website• Wireless device• Conventional mail• Customer service desk
Categories of CRM• Operational CRM – most businesses start out with operational CRM systems such as sales force automation and customer service centres.•• Analytical CRM – analytical CRM applications are implemented using several analytical marketing tools, such as data mining, to extract vital data about customers and prospects for targeted marketing campaigns.•• Collaborative CRM – CRM systems to involve business partners as well as customers in collaborative customer service.•• Portal-based CRM – Internet, intranet, and extranet Web-based CRM portals as a common gateway for various levels of access to all customer information, as well as operational, analytical, and collaborative CRM tools for customers, employees, and business partners.
TRANSACTION PROCESSING SYSTEMS (TPS)• Transaction processing systems capture and process data relate to all business transactions.• A transaction processing cycle consists of several basic activities, which involve: – Data entry activities – Transaction processing activities – Database maintenance activities – Document and report generation – Inquiry processing activities.