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 e-mail 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