Functional Business Systems (O'Brien Introduction to Information Systems: Chapter 7)

Transaction Processing Systems -Transaction processing systems (TPS) are cross-functional information systems that process data resulting from the occurrence of business transactions. -Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. -Online transaction processing systems play a strategic role in Web-enabled businesses. Many firms are using the Internet and other networks that tie them electronically to their customers or suppliers for online transaction processing (OLTP).

Transaction Processing Cycle © 2002 McGraw-Hill Companies

Enterprise collaboration systems (ECS): -Enterprise collaboration systems (ECS) are cross-functional information systems that enhance communication, coordination, and collaboration among the members of business teams and workgroups. The goal of enterprise collaboration systems: :  Communicate: Share information with each other.  Coordinate: Organize our individual work efforts and use of resources.  Collaborate: Work together cooperatively on joint projects and assignments.

Tools for Enterprise Collaboration System Electronic Communications Tools Conferencing Collaborative Work Management E-Mail Voice Mail, I Phone Web Publishing Faxing Data Conferencing Voice Conferencing Videoconferencing Discussion Forums Electronic Meetings Calendaring Task and Project Mgt Workflow Systems Knowledge Mgt Document Sharing © 2002 McGraw-Hill Companies

Functional Business Information Systems -Information systems within a business organization that support one of the traditional functions of business such as marketing, finance, or production. Functional business systems can be either operations or management information systems. Marketing: Accounting: - Customer relationship management - Order processing - Interactive marketing - Inventory control - Sales force automation - Accounts receivable - Accounts payable Human Resource Management - Payroll - Compensation analysis - General ledger - Employee skills inventory - Personnel requirements forecasting Finance: - Cash management Productions/Operations - Credit management - Manufacturing resource planning - Investment management - Manufacturing execution systems - Capital budgeting - Process control - Financial forecasting

Functional Business Information Systems Production Operations Marketing Human Resource Management Finance Accounting Functional Business Systems © 2002 McGraw-Hill Companies

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. MKT IS assists marketers in meeting the information needs in each of the following areas: Sales Management. helps plan, monitor, and support the performance of salespeople and sales of products and services. Sales Force Automation. automates the recording and reporting of sales activity by salespeople and the communications and sales support from sales management. Product Management. helps plan, monitor, and support the performance of products, product lines, and brands.

Marketing Information Systems Advertising and Promotion. help select media and promotional methods and control and evaluate advertising and promotion results. Sales Forecasting. rapidly produce short- and long-term sales forecasts. Market Research. assist researchers in collecting and analyzing internal and external data on market variables, development, and trends. Marketing Management. 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 Interactive Sales Force Automation Customer Relationship Management Sales Market Research and Forecasting Advertising and Promotions Product © 2002 McGraw-Hill Companies

Manufacturing Information 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 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 Automate production processes Integrate all production and support processes

Manufacturing Information Systems Process Control. 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.

Human Resource Information Systems (HRIS) -The human resource management (HRM) function involves the recruitment, placement, evaluation, compensation, and development of employees. -Goal of HRIS is the effective and efficient use of the human resources of a company. -Human resource information systems are designed to support: Planning to meet the personnel needs of the business Development of employees to their full potential 3. Control of all personnel policies and programs.

Human Resource Information Systems (HRIS) -Initially computer-based information systems supports mainly: (1) Produce paychecks and reports, (2) maintain personnel records, and (3) analyze the use of personnel in business operations. -Now firms have developed HRIS that support: 1. Recruitment, selection, and hiring. 2. Job placement 3. Performance appraisals 4. Employee benefits analysis 5. Training and development 6. Health, safety, and security.

Accounting Information Systems -Accounting Information Systems are 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.

Financial Information Systems 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: Financial Information Systems Planning Cash Management Investment Capital Budgeting © 2002 McGraw-Hill Companies