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

2. 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?

3. 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

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

5. 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

6. Functions of Sales and Marketing Systems
Figure CE9-1

7. Lead Generation and Lead Tracking Systems
Prospect generation
Send postal mailings and
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

8. 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

9. 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

10. Operations Information Systems
Figure CE9-3

11. 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

12. Manufacturing Information Systems
Figure CE9-4

13. 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

14. 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

15. 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

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

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

18. Human Resources Information Systems, continued
Figure CE9-7

19. 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

20. Accounting Information Systems, continued
Figure CE9-8

21. 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

22. DSI Functional Systems and Value Chain
Figure CE9-9

23. 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

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

25. 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?