Functional Business Systems

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Section I

• Functional Business Systems

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IT in Business

• Business managers are moving from a tradition
  where they could avoid, delegate, or ignore
  decisions about IT to one where they cannot
  create a marketing, product, international,
  organization, or financial plan that does not
  involve such decisions.
• In all areas and functions of business.
• That is what MIS is all about and that is why it
  is in the CBA upper division core.

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Ahead

• Part 1 of chapter 5
• Functional business systems
• Types of ISs that support the business functions
  of
• Accting
• Finance
• Marketing
• Operations management
• HRM
• Part 2 of chapter 5
• Cross-funtional enterprise systems
• CRM, ERP, SCM

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Introduction

• E-business
• Use of the Internet, other networks, IT to
  support
• E-commerce
• Enterprise communications collaboration
• Web-enabled business processes
• E-business Again
• E-commerce

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Functional business systems
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Marketing Systems
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Marketing Information Systems

• Pricing
• A part of marketing
• Imagine a marketing information system for an
  airline that helps determine price for tickets.

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Marketing Systems

• Marketing Information Systems provide information
  technologies that support major components of the
  marketing function.
• Interactive Marketing
• Customer focused marketing process
• Based on using Internet, intranets, extranets
  to establish two-way communications between
  customers or potential customers and the business
• Customers become involved in product development,
  delivery, service issues

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Targeted Marketing
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Marketing Systems (continued)

• Sales Force Automation
• The sales force is connected to marketing
  websites on the Internet, extranets, the
  company intranet
• Increases productivity of sales force
• Speeds up the capture analysis of sales data
• Allows management to provide improved delivery
  information better support of the sales force.

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Manufacturing Systems

• Support the production/operations function
• Assists firms in planning, monitoring,
  controlling inventories, purchases, the flow of
  goods and services

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Manufacturing Systems (continued)

• Computer-Integrated Manufacturing (CIM)
• Simplify
• Automate
• Integrate
• Supports the concepts of flexible manufacturing
  systems, agile manufacturing, total quality
  management
• Computer-Aided Engineering (CAE)
• Computer-Aided Design (CAD)
• Material Requirements Planning (MRP)

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Manufacturing Information Systems
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Manufacturing Systems (continued)

• Computer-Aided Manufacturing (CAM)
• Automate the production process
• Manufacturing Execution Systems (MES)
• Performance monitoring systems for factory floor
  operations

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Manufacturing Systems (continued)

• Process Control
• The use of computers to control an ongoing
  physical process
• Machine Control
• The use of a computer to control the actions of a
  machine.

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Human Resource Systems

• Human Resource Information Systems
• Support
• Planning to meet the personnel needs of the
  business
• Development of employees to their full potential
• Recruitment, selection, hiring
• Job placement

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Human Resource Systems (continued)

• Human Resource Information Systems
• Support
• Performance appraisals
• Employee benefits analysis
• Training and development
• Who needs training
• Who will do the training
• What type of training
• Where will the training be
• Cost effective?
• How does work continue with personnel in training
• Health, safety, security

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Human Resource ISs
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Human Resource Systems (continued)

• HRM and the Internet
• Allows companies to process most common HRM
  applications over their intranets.
• Allows companies to provide around-the-clock
  services to their employees.
• Allows companies to disseminate valuable
  information faster.
• Allows employees to perform HRM tasks online.

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HRM Corporate Intranets

• Most HRM applications can be run over the firms
  intranet. 24X7
• Provides services to the customers employees.
• Faster than previous channels
• Intranet can collect information on-line for
  input to their employee files. NAU
• Enable employees to perform HRM tasks with little
  or no intervention

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HRM Corporate Intranets

• Enable employees to perform HRM tasks with little
  or no intervention
• Employee Self Service (ESS)
• View benefits
• Enter travel expense reports
• Access update personal information
• The first intranets developed were for HRM
  functions.

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Human Resource Systems (continued)

• Staffing
• Supported by information systems that record and
  track human resources to maximize their use
• Training and Development
• Help human resource managers plan and monitor
  employee recruitment, training, and development
  programs

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Accounting Systems

• Record and report business transactions and other
  economic events
• Who is interested in this ???
• Online Accounting Systems

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Widely Used Accounting ISs
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How the Accounting Systems are Related to Each
Other in Terms of Input and Output
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Financial Management Systems

• Supports financial managers in decisions
  concerning
• The financing of the business
• The allocation control of financial resources
  within the business.

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Section II

• Cross-Functional Enterprise Systems

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Cross-Functional Enterprise Applications

• Integrated combinations of information subsystems
  that share information resources and support
  business processes across the functional units
• A strategic way to use IT to share information
  resources improve efficiency effectiveness

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Cross-Functional Enterprise Applications

• They also extend beyond to
• Customers
• Suppliers
• Other business partners

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Cross-Functional Enterprise Applications
Interrelationships Between Cross-functional
Applications

• Enterprise Application Architecture

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Cross-Functional Enterprise Applications

• Focused on accomplishing fundamental business
  processes in concert with the companys customer,
  supplier, partner, employee stakeholders
• Business processes

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Cross Functional Enterprise Systems

• To cross the boundaries of traditional business
  functions
• To reengineer and improve vital business
  processes all across the enterprise.
• A strategic way to use IT to share infor.
  resources and improve the efficiency and
  effectiveness of business processes
• To develop strategic relationships with
  customers, suppliers, and business partners.

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Enterprise Application Integration (EAI)

• Software enables users to model the business
  processes involved in the interactions that
  should occur between business applications.
• Also provides middleware that
• Performs data conversion coordination
• Provides application communication messaging
  services
• Provides access to the application interfaces

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Enterprise Application Integration (continued)

• Business value
• Integrates front-office and back-office
  applications to allow for quicker, more effective
  response to business events and customer demands
• Improves customer and suppler experience with the
  business because of its responsiveness.

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Enterprise Application Integration (continued)
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Enterprise Application Integration (continued)
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Transaction Processing Systems

• One of the major application categories of ISs
  in business.
• Cross-functional information system.
• Processes data resulting from the occurrence of
  business transactions
• Transactions events that occur as part of doing
  business
• Sales
• Purchases
• Deposits
• Withdrawals
• Refunds
• Payments

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Transaction Processing Systems

• These systems play an important role in
  supporting the operations of a business

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Transaction Processing Systems (continued)

• Online transaction processing systems
• Play a strategic role in e-commerce.
• Real-time systems
• Can use the Internet or extranets for OLTP
• Real-time systems that capture and process
  transactions immediately
• Adds value to product or service through superior
  customer service
• For differentiation

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Online Transaction Processing Systems--
Syntellect

• A Cable pay-per-view system
• Use phone or WWW
• Then transported to db applica. Server
• Order is processed. DB is updated
• Approval order is relayed back to the cable video
  server
• Transmits the video to customer
• 700 cable companies. Very profitable

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Transaction Processing Cycle
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Transaction Processing Systems (continued)

• Transaction Processing Cycle
• Data entry
• The capture of business data
• Transaction processing
• Two basic ways
• Batch processing where transaction data are
  accumulated processed periodically
• Real-time processing where data are processed
  immediately after a transaction occurs

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Transaction Processing Cycle(continued)

• Transaction Processing Cycle (continued)
• Database maintenance
• Corporate databases are updated to reflect the
  day-to-day business transactions
• Document and report generation
• A variety of documents and reports are produced

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Transaction Processing Cycle(continued)

• Transaction Processing Cycle (continued
• Inquiry processing
• Inquiries and responses concerning the results of
  transaction processing activity

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Enterprise Collaboration Systems

• Cross-functional e-business systems that enhance
  communication, coordination, collaboration
• Communicate share information with each other
• Coordinate coordinate individual work efforts
  use of resources with each other.
• Collaborate work together cooperatively on
  joint projects and assignments
• Allows virtual teams

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Tools for Enterprise Collaboration
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Tools for Enterprise Collaboration

• Tools for Enterprise Collaboration
• Electronic communication
• E-mail
• Voice mail
• Fax
• Web publishing
• Bulletin boards
• Paging
• Internet phone systems

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Tools for Enterprise Collaboration

• Electronic conferencing
• Data voice conferencing
• Videoconferencing
• Chat systems
• Discussion forums
• Electronic meeting systems
• Synchronous. Team members can meet at the same
  time and place in a decision room setting

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Tools for Enterprise Collaboration

• Collaborative work management
• Calendaring scheduling
• Task project management
• Workflow systems
• Knowledge management

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General ElectricCommitted to Collaboration

• Use Lotus development tools
• Web-based work spaces
• Realtime online meetings
• 18,000 workspaces for 250, 000 employees
• Company wide knowledge mgt. System
• Database of employee areas of expertise
• So others can contact
• Faster workflow and quicker, smarter decisions