10.2 Functional Area Information Systems Functional Area IS are designed to support a functional area by increasing its internal effectiveness and efficiency in the following areas: Accounting Finance Marketing Operations (POM) Human Resources Management
Examples of Information Systems Supporting the Functional Areas
ERP Systems (continued) A business process is a set of related steps or procedures designed to produce a specific outcome.
SAP Modules (aka “Solutions”) SAP Solutions: Financials Human Resources Customer Relationship Management Supplier Relationship Management Product Lifecycle Management Supply Chain Management Business Intelligence Chapter 11
Benefits of ERP Systems Organizational flexibility, agility, and adaptability. Decision Support (improve managers’ ability to make better, more timely decisions) Quality and Efficiency (improve customer service, production, and distribution)
Limitations of ERP Systems May require customization or changes to existing business processes Can be complex, expensive, and time consuming to implement.
10.4 Functional Area Information Systems Reports Routine reports (e.g. Daily Error Reports) Ad hoc (on demand) reports Drill-down reports (e.g. sales by region) Key-indicator reports (e.g. cash on hand) Comparative reports (e.g. business unit performance) Exception reports
Case – Managing ERP Describe what it means for an ERP system to be inflexible. Describe the pros and cons of tailoring your organization’s business processes to align with the procedures in an ERP system.
Chapter 10 Review Explain the purposes of transaction processing systems, and provide at least one example of how businesses use these systems.
Chapter 10 Review (continued) Define functional area information systems, and provide an example of the support they provide for each functional area of the organization.
Chapter 10 Review (continued) Explain the purpose of enterprise resource planning systems. Identify advantages & drawbacks to implementing an ERP system.
Chapter 10 Review (continued) Discuss the three major types of reports generated by the functional area information systems and enterprise resource planning systems.