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

2. CE9-2 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-3 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-4 Functional Systems Information system with all five components – Hardware, software, data, procedures, people – Must be integrated Developed in-house

5. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-5 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-6 Functions of Sales and Marketing Systems Figure CE9-1

7. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-7 Lead Generation and Lead Tracking Systems Lead generation – 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

8. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-8 Customer and 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-9 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-10 Operations Information Systems Figure CE9-3

11. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-11 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-12 Manufacturing Information Systems Figure CE9-4

13. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-13 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-14 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-15 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-16 Manufacturing Operations Control of machinery and production processes – Operate production lines Linked to manufacturing-scheduling systems

17. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-17 Human Resources Information Systems Support: – Recruitment – Compensation – Evaluation – Development of employees, training – Employee assessment – Planning functions

18. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-18 Human Resources Information Systems, continued Figure CE9-7

19. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-19 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-20 Accounting Information Systems, continued Figure CE9-8

21. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-21 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-22 DSI Functional Systems and Value Chain Figure CE9-9

23. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-23 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. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-24 DSI, continued MAS 90 software used for payroll and accounting – Supplemented with CribWare No human resource systems besides payroll

25. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE9-25 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?