Chapter Extension 9

1
Chapter Extension 9

• Functional Information Systems
• Provides greater detail than Chapter 7

2
Agenda

• What is 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?

3
A Functional System

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

4
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

5
Functions of Sales and Marketing Systems
Figure CE9-1
6
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

7
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

8
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

9
Operations Information Systems
Figure CE9-3
10
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

11
Manufacturing Information Systems
Figure CE9-4
12
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

13
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

14
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

15
Manufacturing Operations

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

16
Human Resources Information Systems

• Support
• Recruitment
• Compensation
• Evaluation
• Development of employees, training
• Employee assessment
• Planning functions

17
Human Resources Information Systems, continued
Figure CE9-7
18
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

19
Accounting Information Systems, continued
Figure CE9-8