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

Chapter Extension 9

Functional Information Systems

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

CE9-2 © 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

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


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


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

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?

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

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