Functional Information Systems Chapter Extension 9 Functional Information Systems © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Study Questions What is the difference between a functional application and a functional system? What are the functions of sales and marketing information systems? What are the functions of operations information systems? What are the functions of manufacturing information systems? What are the functions of human resources information systems? What are the functions of accounting information systems? What functional systems does DSI use?

Functional Applications Computer program Provides features and functions to support specific business activity Map to specific business activity in value chain Will have built-in databases, features for processing and storing data

Functional Systems Information system with all five components Hardware, software, data, procedures, people Must be integrated Developed in-house

Sales and Marketing Information Systems Sales systems Obtain prospects Turn prospects into customers Used for managing customers Marketing systems Used for product and brand management Used for assessing effectiveness of marketing messages, advertising, and promotions

Functions of Sales and Marketing Systems Figure CE9-1

Lead Generation and Lead Tracking Systems Prospect generation Send postal mailings and e-mail Web sites may be used to send information in return for contact information Lead tracking systems Record lead data and product interest Record customer contacts

Customer, Product, and Brand Management Systems Customer management systems Obtain additional sales from existing customers Maintain customer contact and order-history data May track customer credit status Product and brand management Sales records are compare to sales estimates Used to assess effectiveness of promotions and sales channels Used to manage product through life-cycles

Operations Information Systems Manage finished-goods inventory and movement to customer Used primarily by non-manufacturers Systems: Used to manage finished-goods inventory Order entry systems handle customer information Order management systems track order through fulfillment Employed to handle customer service functions

Operations Information Systems Figure CE9-3

Manufacturing Information Systems Manufacturing organizations Operations functions merged into manufacturing systems Manufacturing systems facilitate production of goods Inventory systems Manufacturing-planning systems Manufacturing-scheduling systems Manufacturing operations systems

Manufacturing Information Systems Figure CE9-4

Inventory Systems Cover inventory control, management, and policy Use past data to compute stocking levels and reorder quantities Inventory may be viewed as assets or liabilities Inventory applications help organization implement philosophies

Manufacturing-Planning Systems Bill of materials (BOM) List of materials that comprise subassemblies to be manufactured Schedules equipment, people, and facilities May be augmented to show labor and equipment requirements

Manufacturing-Scheduling Systems Generate master production schedule (MPS) Analyzes past sales to estimate future sales Three philosophies Push manufacturing process Pull manufacturing process Combines push and pull systems Materials requirement planning (MRP) Plans need for materials used in manufacturing Manufacturing resource planning (MRP II) Plans need for materials, personnel, and machinery

Manufacturing Operations Control of machinery and production processes Operate production lines Linked to manufacturing-scheduling systems

Human Resources Information Systems Support: Recruitment Compensation Evaluation Development of employees, training Employee assessment Planning functions

Human Resources Information Systems, continued Figure CE9-7

Accounting Information Systems Cost-accounting applications determine marginal cost and profitability Accounts receivable includes receivables, payments, and collections Cash management is the process of scheduling payments and planning use of cash Financial reporting applications produce financial statements General ledgers show assets and liabilities Accounts payable systems reconcile payments against purchasers Budgeting applications allocate and schedule revenues and expenses Treasury applications concern management and investment

Accounting Information Systems, continued Figure CE9-8

Dorset-Stratford Interiors Produces few, customized, expensive products per year Tailored functional information system Uses lead tracking system Primary sales and marketing system is bidding Based on past experience Use accounting system to get data Uses Sage MAS 90 software

DSI Functional Systems and Value Chain Figure CE9-9

DSI Two in-bound logistics information systems AutoCad transforms designs into BOM and item lists Engineers use BOM and item lists to prepare materials requirements Purchasing generates orders to vendors Goods placed in raw material inventory, tracked by software Manufacturing information systems track employee time and attendance through WinStar Service and support information systems store drawings, designs, and cost data electronically

DSI, continued MAS 90 software used for payroll and accounting Supplemented with CribWare No human resource systems besides payroll

Active Review What is the difference between a functional application and a functional system? What are the functions of sales and marketing information systems? What are the functions of operations information systems? What are the functions of manufacturing information systems? What are the functions of human resources information systems? What are the functions of accounting information systems? What functional systems does DSI use?