functional systems

1. Understanding Major
Functional Systems

2. Marketing and Sales System
 Marketing consists of individual and organizational
activities that facilitate and expedite satisfying
exchange relationships in a dynamic environment
through creation, distribution, promotion and
pricing of goods, services and ideas.

3. Types of Marketing Information
 Three types of marketing information:
 Market Intelligence – Information that flows into the firm
from the environment.
 Internal Marketing Information – Information that is gathered
within the firm.
 Marketing Communications – Information that flows the firm
outward to the environment.

4. Types of Information
 Recurrent:
 Information required by an organization on day-to-day basis.
 E.g.: customer expectations, changing needs and market share
of the product.
 Monitoring:
 Market related information collected by scanning information
sources on a regular basis.
 E.g.: magazines, articles, government reports, annual reports.
 Requested:
 Information generated in response to explicit request by
marketing department.
 E.g.: Competition strategies and market share.

5. Marketing Information System Model

6. Marketing Information System Model (Cont..)
 Database
 Output Systems
 Product Sub System
 Pricing Sub System
 Distribution Sub System
 Promotion Sub System
 Internal Record System
 Marketing Intelligence Subsystem
 Marketing Research Subsystem

7. Marketing Information System Model (Cont..)
 Marketing Decision Support Subsystem (MDSS):
 A marketing decision support system (MDSS) is coordinated
collection of data systems, tools, and techniques with
supporting software and hardware by which an organization
gathers and interpret relevant information from environment
and turns it into basis for making decisions.
 MDSS models are used for:
 Data Collection,
 Data Analysis,
 Interpreting results, and
 Supporting managerial decision making

8. Components of MDSS
 The Statistical Bank:
 It consists of quantitative tools used in marketing decision
making.
 It is also known as Operations Research (OR).
 The statistical tools used for data analysis includes:
 Simple statistical techniques like averages, mode, etc.
 Factor Analysis
 Input-Output Analysis

9. Components of MDSS
 The Model Bank:
 This component includes decision support models.
 The models are developed by scientists who are known as
Operation Researchers.
 Using relevant variables, mathematical operators and some
techniques the new model can be developed as per firms need.
 Such models are also called as packages.
 Models Include:
 Feedback system model
 Decision Tree model
 Statistical Decision theory

10. Finance and Accounting System
 Accounting Information System (AIS) is linked to all
the information systems in an organization.
 It is useful to extract important data required for
proper book keeping and generating reports.
 Finance and Accounting System are responsible for
following:
 Cash
 Stocks
 Bonds
 Investments
 Financial liabilities, etc.

11. Importance of Finance and Accounting
Information System
 Finance Information System should cater for
information requirement at the following levels:
 Strategic Level:
 Investment goals, financial performance forecasts, financial
resources and goals
 Knowledge Level:
 Portfolio updates, market information analysis
 Management Level:
 Management of investment, budget, tax and performance
evaluation
 Operational Level:
 Cash flow statements, inventory management, creditors
management

12. Manufacturing/Production/Inventory
Systems
 The role of manufacturing information systems is to
support manufacturing operations by providing
relevant and timely information for decision making.
 There are various sub-systems of manufacturing
information systems.

13. Sub-systems of manufacturing information
systems
 Raw material procurement sub-system
 Parameters of raw material procurement
 Inventory Sub-System
 Production sub system
 Maintenance and scheduling sub system

14. Sub-systems of manufacturing information
systems
 Quality sub system
 Total quality management (TQM)
 Costing sub system
 Order processing sub system
 Management levels in manufacturing information
systems

15. Planning Production/Operations
 The major areas of planning and their computerized
support are as follows:
 Materials Requirement Planning (MRP)
 Manufacturing Resource Planning (MRP II)
 Automated Software
 Computer Aided Design (CAD)
 Computer Aided Manufacturing (CAM)
 Manufacturing Integrated Manufacturing (CIM)

16. Materials Requirement Planning (MRP)
 Materials Requirement Planning (MRP) software
based production planning and inventory control
system for material procurement and scheduling.
 Objectives:
 Ensure materials and products are available for production
and delivery to customers.
 Maintain the lowest possible level of inventory.
 Plan manufacturing activities, delivery schedules and
purchasing activities.

17. Manufacturing Resource Planning (MRP II)
 An expanded version of MRP that integrates finance,
accounting, and human resource.
 Functions:
 Business planning
 Sales and operations planning
 Production planning
 Benefits:
 Strategic planning
 Sales and Marketing
 Inventory Shortages
 Accounting and Finance

18. Computer Aided Design (CAD)
 It is a system that enables drawings to be
constructed on a computer screen and subsequently
stored, manipulated and updated electronically.
 Used in the field of architecture, electronics,
aerospace, naval and automotive engineering.

19. Computer Aided Manufacturing (CAM)
 Computer Aided Manufacturing (CAM) is a form of
automation where computers communicate work
instructions directly to the manufacturing
machinery.
 Techniques:
 Computer Aided process planning
 Computerized Numerical control (CNC)
 Robotics Programming

20. Manufacturing Integrated Manufacturing (CIM)
 Integrated Computerized Manufacturing system
combining CAD and CAM.
 Installed on a local area network linking several
related departments.
 Goal: Simplification of all manufacturing
technologies and techniques.

21. Human Resource Information System (HRIS)
 Functionality:
 Management of all employee information
 Company related documents
 Benefits administration
 Complete integration with payroll
 Applicant tracking and resume management
 Performance development plans
 Disciplinary actions
 Training records