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Functional Systems: 4 & 6 October 2010

The document discusses the history and evolution of organizational systems from calculation systems to functional systems to integrated systems. Functional systems emerged from 1975-present and used computers to improve individual department operations through applications like HR, order entry, manufacturing. However, functional systems had problems like data duplication, inconsistency between isolated applications. The solution is integrated enterprise systems that consolidate data and processes across the organization.

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Ram Powru
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49 views

Functional Systems: 4 & 6 October 2010

The document discusses the history and evolution of organizational systems from calculation systems to functional systems to integrated systems. Functional systems emerged from 1975-present and used computers to improve individual department operations through applications like HR, order entry, manufacturing. However, functional systems had problems like data duplication, inconsistency between isolated applications. The solution is integrated enterprise systems that consolidate data and processes across the organization.

Uploaded by

Ram Powru
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FUNCTIONAL SYSTEMS

4 & 6 October 2010


History of organizational systems

 Calculation systems
 Functional systems
 Integrated systems
Calculation systems
 1950-80
 Single purpose
 Eliminate tedious human work
 Examples: Payroll, General ledger, Inventory
 Technology used: Mainframes, magnetic tapes,
batch processing
Functional systems
 1975-20??
 Use computers to improve operations
 Applications: Human resources, order entry,
manufacturing resource planning
 Technologies: Mainframes, PC’s, LAN’s
Minicomputer
Functional systems
 Typically contained within a department
 Islands of automation
 Applications independently developed and
deployed
 Driving force: availability of mini-computers
Functional system applications
 Human resources System
 Accounting and finance systems
 Sales and marketing System
 Operations and Manufacturing Systems
Key HR Functions
Assessment
• Job Requirement
• Performance
Compensation Evaluation Development
• Payroll and Training
• Leave • HR Development
• Retirement plans • Training sessions
• Staff Welfare

Recruiting HR Planning

HR
• Job posting • Policies and
• Resume Standards
processing • Staff Planning
• Hiring Process
Key Finance Functions
Costing
• Prime cost
• Overhead
Accounting • Works Cost Reporting
• General Ledger • Financial
• Accounts Payable Statements
• Receivables • Compliance
• Banking

Budgeting Treasury
• Setting
quantitative goals
Financ • Cash
management
• Monitoring
spending
e • Working capital
Key Sales Functions
Lead Tracking Forecasting
• Contact list • Budgeting
• Qualification of • Projections
customers
• Pipeline monitoring

Product Customer Service


Management • Call Centers
• After-sales services
• Reporting sales by
product, region, date
• Promotion and
advertisement
Financ
e
Key Operations Functions
Inventory
Management
• Stores management
• Inspection of goods
Production • Re-order levels Order
• Planning and Management
Scheduling • Order Entry
• Capacity • Credit check
management • Order Fulfillment
• Plant maintenance • Delivery

Financ
e
Types of Organizational IS
 Administrative systems
 Scheduling / Transaction systems
 Value oriented systems
 Reporting and controlling systems
 Analysis and information systems
 Planning and decision support systems
Problems with Functional Systems
 Sharing of data between systems
 Data duplication
 Data inconsistency
 Applications that don’t talk to one another
 Limited or lack of integrated information
 Isolated decisions lead to overall inefficiencies
 Increased expenses
Solution to disparate systems?

 Disparate systems are non-integrated systems, the


problems of such systems can be solved by:
 Integration
 Consolidation
 Right-sizing
 Business Process Redesign
 Enterprise wide system

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