1. Information systems help companies to:
• increase profits, decrease costs
• enhance customer satisfaction
• sustain competitive advantage in the marketplace, people and
develop strategic alliances
• reduce product life cycles, achieve increased efficiencies
• hire and retain outstanding people
• develop strategic alliances between retailers and suppliers.
Business Information System
2. • Functional Information System
• Marketing Information System
• Manufacturing Information System
• Quality Information System
• Financial & Accounting Information System
• Human Resource Information System
• Geographical Information System
Types of Business Information System
3. Way of assessing the contribution of IS to organizational
productivity and market growth is to study the impact of IS on
each of the five functional areas in an organization:
• Marketing
• Manufacturing
• Accounting and finance
• Quality control
• Human resources
Functional Information System
4.
5. • A system that meets the marketing information needs of an organization.
• Customer-oriented and work toward achieving the strategic sales and marketing plan
• Aim is to gain instantaneous access to global market information
• Primary goal of retaining existing customers and attracting new ones
• Can’t be standardized for all companies. Every company has its own
• Marketing system must be tailored to match the marketing policies, procedures and practices of
each company.
• A very popular marketing information system is one that automates sales and marketing functions.
• Such systems capture valuable customer information and hence can improve productivity, enhance
customer service and create better sales and marketing strategies.
• Are influenced by and influence the strategic business plan and the strategic marketing plan.
Marketing Information System
6.
7. • Provides employees with information that helps companies
capture niche markets in highly competitive industries.
• Helps in sales forecasting.
• Able to provide demand forecast.
• Helps in achieving a company’s goal.
• Marketing information system have a deep and direct
influence on the quality of customer service.
• Assists the marketing manager to maintain the better
relationship with valuable customer.
Benefits of Marketing Information System
8. A system that supports the manufacturing functions of:
• purchasing, receiving, quality control
• inventory management, material requirement planning, capacity planning
• Production scheduling and plant design.
• Applies to both manufacturing and service industries
• Manufacturing should be viewed within the broad context of delivering
both goods and services since a manufacturer of automobile parts and a
travel agency are likely to have manufacturing information system.
• Production system is a subset of manufacturing information system.
• Production system pertains to the production of goods and services.
• It specially addresses information needs relating to raw materials,
equipment, manpower and other issues related to production of goods
and services.
Manufacturing Information System
9.
10. • Dynamic and flexible enough to instantaneously produce
customized goods and services in different quantities
• effortlessly switch the manufacturing process from one
product to another Production scheduling and plant design.
Agile organizations have four key characteristics:
• The ability to thrive on constant change
• Recognition by the organization that people are its main asset
• Incorporation of the virtual company idea through the use of
telecommunications
• A focus on creating products and services with real added
value
Agile Manufacturing Information System
11. • Helps supplier to store such as Home Depot and Ace
Hardware.
• Reduces operating cost and inventory levels
• To achieve strategic goal of company
Benefits Mfg. Information System
12. • Textile/Clothing Technology, a federally funded textile industry
research and development group based in Cary, North Carolina, has an
agile prototype.
• This prototype uses the data captured at POS terminals at retail outlets
to give manufacturing instructions to computerized sewing machines in
remote locations.
• Agile manufacturing will also help companies to better integrate their
information systems.
Agile Manufacturing Information System
13. • Stand-alone or embedded systems that help an organization
to achieve its quality goals.
• The quality plan is derived from the strategic information plan.
• It supports and facilitate an organization’s TQM efforts.
Quality Information System
14.
15. • The QIS is an information system that can promote quality and
provides tools and techniques to help the company to achieve
its quality goals.
• Information systems also help companies to achieve quality
certifications. For example, ISO 9001 labeling over the product
package.
Quality Information System
16. • Provides information related to the accounting and financial activities of
an organization
• Includes a large number of subsystems that address the operational,
tactical and strategic information needs of the business
• Includes some subsystems such as budgeting, cash and asset
management, capital budgeting, portfolio analysis, general ledger,
account receivable, inventory control and payroll systems.
• Other subsystems include record keeping, account analysis, cash
management, financial analysis, leasing options, insurance underwriting,
insurance claims processing and investment management.
• Financial institution like bank, uses specialized FAIS, such as commercial
loan analyzers, credit approval system, commercial account rating system,
credit application system, automated teller control and securities trading.
Financial and Accounting Information System (FAIS)
17.
18. FAIS to support tactical and strategic decision making in the
organization are:
• Cash Management System: - A system that the organization has
enough cash to conduct normal business, to receive the best possible
return on its short-term cash deposits, and to leverage its cash flow
to achieve good ratings in financial markets.
• Capital budgeting System: - A system that ensures the acquisition
and disposal of capital assets such as land, buildings and so on.
• Investment Management System: - A system that ensures that the
organization gets the best possible returns on its long-term
investments.
Types of FAIS
19. • Financial decisions are not made in vacuum; they often involve
marketing, manufacturing and human resources, so a free flow of
information among these functional units is vital for good decision
making.
• FAIS are often integrated with other functional systems in the
organization to facilitate data sharing and decision making.
• For global and multinational companies, integrated financial and
accounting systems are simply a necessity. For example, a multinational
corporation with operations in the US.
• The system ensures that every application, regardless of where it
originated, complies with the accounting rules and principles of US.
Integrated Financial and Accounting Systems
20. • Supports the planning, control, coordination, administration and
management of an organization’s human resources.
• HRIS includes a large number of subsystems that address the information
needs of various human resource functions.
• They provide managers with information, policies and procedures
concerning recruiting, layoffs, employee evaluation, promotion,
termination, termination, transfer, salary equity monitoring, job
descriptions and responsibilities, training, affirmative action and equal
employment opportunities.
• An HRIS also determines how hiring and training decisions made by the
personnel department can increase sales revenues.
Human Resource Information System (HRIS)
21.
22. • An important subsystem of the HRIS is the compliance system,
which closely tracks and monitors the organization’s record of
compliance with government laws and regulations, such as
affirmative action, equal employment opportunities, the
health and safety codes of the Occupational Safety and Health
Administration (OSHA) and others.
• Another vital HRIS subsystem manages records and generates
information regarding recruitment, transfer, promotion, layoff
and termination of employees.
Human Resource Information System (HRIS)
23. Developing an HRIS
Firm Level Competitive Strategies
HR Competitive
Objectives
Cost Leadership Quality/Customer
Satisfaction
Innovation
People Working Harder People Working Smarter People Working
with Vision
HR Decisions and
Actions
Streamline
Standardize
Decrease production
time/head count
Reduce costs (e.g. Increase
accuracy
Educate line managers and
other “Clients”
Delegate/share decisions
Use customer driven
performance criteria
Increase flexibility
Define vision
Attract creative
talent
Reward risk
Provide
opportunities/tools
for exploration
The following table shows how the competitive strategies of a firm can directly influence the objectives of the HRIS.
24. • A GIS is a computer-based system that stores and manipulate data that
are viewed from a geographical point of reference.
• It can also be defined as powerful and versatile tools that allow users to
generate and process information with a geographical point of reference.
GIS has four main capabilities:
1. Data input
2. Data storage & retrieval
3. Data Manipulation and analysis
4. Data Output
• A GIS is much more versatile and powerful than a cartographic system,
since it can create information by integrating different data, sometimes
from different sources and display the data in different ways to the end-
user.
Geographical Information System (GIS)
25. • The banking industry uses GIS to respond to regulatory pressures and to
comply with the Community Redevelopment Act, which requires banks to
demonstrate to regulators that their lending practices are
nondiscriminatory.
• A GIS allows a bank to compare deposits with loan approvals in a given
area and show that loan approvals meet regulatory standards in areas
with high deposits, especially in parts of the country that have heavy
minority populations.
• A GIS is an excellent decision-making tool that integrates geographical
data with other business data.
• For companies with a customer focus, a GIS provides clear profiles of
customers and their needs; hence these tools can be integrated with any
of the functional system such as marketing information system,
production information system and so on.
Geographical Information System (GIS)
26. Today, the emphasis is on building cross-functional systems that facilitate
the flow of information among all units in an organization. Some critics to
develop a Cross-functional System are:
1. Decision-making should not be compartmentalized in functional areas,
but should instead be viewed in the context of the entire organization
2. A close link is made in between information system and functional
system.
3. System must be designed in such a way that it can work combinely with
both the systems
For example, a report of the number of people who worked overtime last
month or the number of machines that operated during the night shift
last month (manufacturing) are often the output of an MIS.
Developing Cross-functional System
Editor's Notes
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?