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1. DECISION MAKING WITH IS

2. FUNCTIONAL BUSINESS IS
Functional 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

3. 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

4. Functional Aspects of the MIS (continued)
Figure: An
Organization’s
MIS
4 4

5. Functional Areas in a Business
5

6. 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

7. Examples of functional information systems

8. TYPES OF FUNCTIONAL BUSINESS
INFORMATION SYSTEMS
1. 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.

9. 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

10. Marketing Information Systems

11. Marketing Management Information Systems (continued)
Overview of a Marketing MIS
11

12. 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

13. TYPES OF FUNCTIONAL BUSINESS
INFORMATION SYSTEMS
2. 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)

14. Manufacturing Management Information Systems
(continued)
14
Overview of a Manufacturing MIS

15. 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

16. TYPES OF FUNCTIONAL BUSINESS
INFORMATION SYSTEMS
3. 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

17. HRM Systems
obrien

18. 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

19. 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

20. 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

21. Human Resource Management Information Systems
(continued)
Overview of a Human Resource MIS
21

22. 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.

23. Accounting Information Systems

24. 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

25. 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

26. TYPES OF FUNCTIONAL BUSINESS INFORMATION
SYSTEMS
5. 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

27. Financial Management System Examples

29. Users of Financial Information
• Internal users
– Managers
– Nonmanagers
• Environmental users
– Those with direct business relationships
– Those with no direct relationships

30. 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.

31. TYPES OF CROSS FUNCTIONAL E-BUSINESS SYSTEMS
1. 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.

32. 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

33. TYPES OF CROSS FUNCTIONAL E-BUSINESS SYSTEMS
3. 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

34. 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.

35. 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.