Functional Business Systems

Week 3
Dr. Azza Zeinelabdin Karrar
 Functional Business Information
Systems
Marketing

Production Human Resource

Operations Functional
Management
Business
Systems

Accounting Finance
Part 1

MARKETING AND
MANUFACTURING SYSTEMS
 Marketing Information Systems

• 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
• Marketing information systems assist marketers in
meeting the information needs in each of the following
areas:
▪ Sales Management the information system helps plan,
monitor, and support the performance of sales people
and sales of products and services
 Marketing Information Systems

• Sales Force Automation the information system automates

the recording and reporting of sales activity by salespeople and
the communications and sales support from sales management

• Product Management the IS helps plan, monitor, and

support the performance of products, product lines, and
brands

• Advertising and Promotion the information systems help

select media and promotional methods and control and
evaluate advertising and promotion results
 Marketing Information Systems

• Sales Forecasting An information system can rapidly

produce short- and long-term sales forecasts

• Market Research The tools of an information system can

assist researchers in collecting and analyzing internal and
external data on market variables, development, and trends

• Marketing Management Information systems can help

marketing managers develop marketing strategies and plans
based on corporate goals and market research and sales
activity data, and monitor and support overall marketing
activities
 Marketing Information Systems

Marketing
Information
Systems

Customer
Interactive Sales Force Sales
Relationship
Marketing Automation Management
Management

Market Advertising
Product
Research and and
Management
Forecasting Promotions
Video – Interactive Marketing
 Targeted Marketing

Context
Content

Demographic/
Psychographic Online Behavior

Community
 Targeted Marketing

• An important tool in developing advertising and

promotion strategies for a company’s electronic
commerce websites
• Targeted marketing is an advertising and promotion
management concept that includes five targeting
components:
1. Community: Companies can customize their Web
advertising messages and promotion methods to appeal to
people in specific communities
 Targeted Marketing

2. Content Advertising such as electronic billboards or

banners can be placed on various website pages, in addition
to a company’s home page

3. Context Advertising appears only in Web pages that are

relevant to the content of a product or service

4. Demographic/Psychographic Marketing efforts can be

aimed only at specific types or classes of people

5. Online Behavior Advertising and promotion efforts can

be tailored to each visit to a site by an individual
 Manufacturing Information Systems

Intranet

Computer Integrated Manufacturing

Manufacturing Manufacturing Engineering
Resource Execution Systems
Planning Systems Remote
•CAD Worker
•Production •Shop Floor •CAE
Forecasting •Scheduling •Computer- Supplier
•Production •Machine Control Aided
Scheduling •Process Control Process
•Quality Control •Robotic Control Planning

Extranet
 Manufacturing Information Systems
• Support the production/operations function, which includes all
activities concerned with the planning and control of the
processes that produce goods and services
• These operational systems can be divided into the following
categories:
• Computer-Integrated Manufacturing. CIM stresses that the
computer use in factory automation must be to:
• Simplify (reengineer) production processes, product designs, and
factory organization as a vital foundation to automation and integration
• Automate production processes and the business functions that
support them with computers and robots
• Integrate all production and support processes using computers and
telecommunications networks
 Manufacturing Information Systems

• Process Control is the use of computers to control an

ongoing physical process. Process control software uses
mathematical models to analyze the ongoing process
and compare it to standards or forecasts of required
results
• Machine Control Also called numerical control, it uses
computer programs for machine tools to convert
geometric data from engineering drawings and
machining instructions from process planning into
commands that control the machines
 Manufacturing Information Systems

• Robotics Robotics is the technology of building and

using machines (robots) with computer intelligence and
computer-controlled human like physical capabilities
• Computer-Aided Engineering Manufacturing engineers
use powerful workstations with enhanced graphics and
computational capabilities to simulate, analyze, and
evaluate models of product design in less time and at
lower cost than constructing physical prototypes.
Part 2

HUMAN RESOURCE MANAGEMENT

, FINANCIAL AND ACCOUNTING
SYSTEMS
 Human Resource Management
(HRM)
• The HRM function involves the recruitment, placement,
evaluation, reward, and development of employees
• Goal of HRM is the effective and efficient use of the
human resources of a company
• Human resource information systems are designed to
support:
• 1. Planning to meet the personnel needs of the business
• 2. Development of employees to their full potential
• 3. Control of all personnel policies and programs

17
 Human Resource Management
(HRM)
• Originally, businesses used computer-based information
systems to:
(1) Produce paychecks and reports
(2) maintain personnel records, and
(3) analyze the use of personnel in business operations
• Many firms have developed HRIS that support:
1. Recruitment, selection, and hiring
2. Job placement
3. Performance assessments
4. Employee benefits analysis
5. Training and development
6. Health, safety, and security 18
 Human Resource Management
Training & Compensation
Staffing Administration
Development
•Manpower •Succession
•Contract
Strategic Planning planning
costing
Systems •Labor Force •Performance
•Salary forecast
Tracking appraisal plans

•Labor Cost •Training •Compensation

Tactical Analysis effectiveness effectiveness
Systems •Turnover •Career •Benefits
Analysis matching Analysis

•Payroll
•Recruitment •Skill assessment
Operational control
•Workforce •Performance
Systems evaluation •Benefits
Planning
Administration
Human Resource Information
Systems
 Accounting Information Systems

• The oldest and most widely used information systems

in business
• They record and report business transactions and
other economic events
• Operational accounting systems emphasize legal and
historical record-keeping and the production of
financial statements
• Management accounting systems focus on the
planning and control of business operations
 Accounting Information Systems

• Six common purposes of accounting systems

include:
• Order Processing Or, sales order processing is an
important transaction processing system which captures
and processes customer orders and produces invoices for
customers and data needed for sales analysis and inventory
control
• Inventory Control These systems track and monitor levels
of and changes in inventory. They may be programmed to
notify managers if some threshold level of inventory is
reached that requires a decision. They may also be
equipped to handle routine re-order information
 Accounting Information Systems

• Accounts Receivable Accounts receivable systems keep

records of amounts owed by customers from data generated
by customer purchases and payments
• Accounts Payable Accounts payable systems keep track of
data concerning purchases from and payments to suppliers
• Payroll Payroll systems receive and maintain data from
employee time cards and other work records to produce
paychecks and other documents such as earning statements,
payroll reports, and labor analysis reports
• General Ledger General ledger systems consolidate data
received from accounts receivable, accounts payable, payroll,
and other accounting information systems
Accounting Information Systems
 Financial Information Systems

Financial
Information Systems

Cash Investment Capital Financial

Management Management Budgeting Planning
 Financial Information Systems
• Support financial managers in decisions concerning the financing
of the business and the allocation and control of financial
resources.
• Key areas for financial information systems include:
• Cash and Securities Management Information systems collect
information on all cash receipts and disbursements within a company
on a realtime or periodic basis. Further, many businesses invest their
excess cash in short-term marketable securities and these portfolios
can be managed by systems software

• Capital Budgeting The IS assists the capital budgeting process by

helping to evaluate the profitability and financial impact of proposed
capital expenditures
 Financial Information Systems

• Financial Forecasting The financial information system

package of the organization will have a variety of
statistical forecasting packages to provide analytical
techniques that result in economic or financial forecasts
of national and local economic conditions, wage levels,
price levels, and interest rates.
• Financial Planning Financial planning systems use
financial planning models to evaluate the present and
projected performance of a business or of one of its
divisions or subsidiaries. They also help determine the
financing needs of a business and analyze alternative
methods of financing
 References

• Second Reference:
• Management Information Systems, James A.
O’Brien, George M. Marakas.(10th edition)
• Today lecture references:
Ref 2: Chapter 7