Lecture 6 Functional Business Systems

Objectives Functional Business Systems: –Marketing Systems –Manufacturing Systems –Human Resource Systems –Accounting Systems –Financial Management Systems

Marketing Systems Business functions of marketing: –Planning, promotion, and sales of existing products in existing markets –Development of new products and new market –Attract and serve present and potential customers

Marketing Systems: Interactive Marketing Use information technology to establish two-way interaction with customers: –With information technology, customers can actively engage in the proactive and interactive processes involving product development, delivery, and service issues

Marketing Systems: Sales Force Automation Using notebook or handheld computers, sales contact management software, and network technology (e.g., Internet) –Increase productivity of salespeople –Improve delivery of information supporting salespeople –Speed up the capture and analysis of sales data from the market

Marketing Systems: Sales and Product Management Using computer-based systems to produce sales analysis reports –By product or product line –By customer –By salesperson or sales territory Helping marketing manager and/or product manager to monitor performance of products or salespeople and to develop sales support programs to improve sales results

Marketing Systems: Advertising and Promotion Using information technology (e.g., UPC and barcode scanner) to collect market research information to: –Evaluate results of various advertising and promotion campaigns –Select media and promotional methods –Allocate financial resources

Manufacturing Systems: Computer-Integrated Manufacturing (CIM) Concept of using computer-based systems in manufacturing to create flexible manufacturing process; thus, quick response to fulfill customer requirements with high- quality products and services Three main objectives: –Simplify the production processes –Automate the production processes and other business functions –Integrate all production and supporting processes

Manufacturing Systems: Computer-Aided Manufacturing (CAM) CAM systems are used to automate the production process –Process control: to control ongoing physical process –Machine control (or numerical control): to control the actions of a machine

Manufacturing Systems: Computer-Aided Design (CAD) CAD systems are used to simulate, analyze, and evaluate the models of product designs Product designs can be converted into mathematical model of the product as the basis for production specifications and machine tool programs Specification of all required materials (bill of materials) for the product

Human Resource Systems Human resource management function involves recruitment, placement, evaluation, compensation, and development of the employees Human resource information systems: –Planning for personnel needs –Development of employees –Control personnel policies and programs

Human Resource Systems: Recruitment and Employee Services Recruitment section of corporate Websites, or Recruiting services and database on the Web Posting “Hiring” in some selected newsgroups and using to corresponding with job applicants Using Intranet to provide around-the-clock services to employees and to disseminate valuable information faster

Human Resource Systems: Staffing and Training Personnel database keeps track of employee skills data to locate employees for specific projects Forecasting personnel requirements to assure an adequate supply of high-quality human resources Analyzing career development status of each employee to recommend training programs

Human Resource Systems: Governmental Reporting Using computer-based information systems to keep track of the statistics and produce reports required by variety of government laws and regulations; for examples: –Equal Employment Opportunity –Occupational Safety and Health

Accounting Systems Oldest and most widely used information systems in business –Inventory control –Account receivable –Account payable –Payroll –General ledger

Accounting Systems: Inventory Control Process data reflecting changes to items in inventory –Prepare inventory status reports and reordering Provide high-quality services while minimizing inventory costs Prepare appropriate shipping documents

Accounting Systems: Account Receivable To maximize profitable credit sales while minimizing losses from bad debts –Keep records of amounts owed by customers –Prepare accurate and timely invoices and monthly statements to credit customers –Prepare credit management reports

Accounting Systems: Account Payable Ensure prompt and accurate payment to suppliers to maintain good relationships, ensure credit standing, and secure any discounts offered –Keep track of data about purchases from and payments to suppliers –Prepare checks for payments –Control overall cash disbursements –Provide analysis of payments, expenses, purchases, and cash requirements

Accounting Systems: Payroll Ensure prompt and accurate payments to employees –Maintain data from employee time cards –Produce paychecks and related documents (e.g., earning statement) –Analyze labor costs

Accounting Systems: General Ledger Help business accomplish accounting tasks – double-entry bookkeeping – in an accurate and timely manner Provide better financial controls and management reports with fewer costs –Consolidate data received from accounts receivable, accounts payable, payroll, and other accounting systems –Produce financial statements

Financial Management Systems Financial Management Systems help financial managers in decisions concerning the “Financing of a business”: –Allocation and control of financial resources within a business

Financial Management Systems: Cash Management Records of all cash receipts and disbursements on a real-time or periodic basis Forecasts to spot future cash deficits or surpluses Allow business to deposit or invest excess funds or prepare for loans

Financial Management Systems: Investment Management Minimize risk and maximize investment income –Portfolio management software package helps financial manager to make buying, selling, or holding decisions

Evaluate the profitability and financial impact of the proposed long-term capital expenditures, incorporating –Present value analysis –Expected cash flows –Analysis of risk Financial Management Systems: Capital Budgeting

Financial Management Systems: Financial Forecasting and Planning Using electronic spreadsheets and other financial planning software to evaluate the present and projected financial performance of a business Determine financing needs and analyze alternatives Answer to what-if and goal-seeking questions