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Unit 3 PDF

This document outlines the objectives and key topics of an IT applications course. The objectives are to identify the role of IS in various business functions, how they relate and support each other, and how IT facilitates managers' work. Key business functions discussed include accounting, finance, engineering, manufacturing, marketing, sales, HR, ERP systems, and collaborative work. IT is shown to increase effectiveness and efficiency across various functions.

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Rodel Novesteras Claus
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
105 views

Unit 3 PDF

This document outlines the objectives and key topics of an IT applications course. The objectives are to identify the role of IS in various business functions, how they relate and support each other, and how IT facilitates managers' work. Key business functions discussed include accounting, finance, engineering, manufacturing, marketing, sales, HR, ERP systems, and collaborative work. IT is shown to increase effectiveness and efficiency across various functions.

Uploaded by

Rodel Novesteras Claus
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ITAB 2100

IT Application Tools in Business


Objectives
1) identify various business functions and the role of ISs in
these functions;
2) explain how ISs in the basic functions relate to each
other;
3) show how ISs of different business functions support
each other;
4) explain how information technology is used in the most
common business functions to make business
processes more effective and more efficient;
5) explain the notion of enterprise resource planning
systems; and
6) identify business areas where information technology
facilitates the work of managers and knowledge
workers.

ITAB2100 2
FR
Effectiveness and Efficiency of IS
IS in Business Functions

EFFECTIVENESS EFFICIENCY
defines the degree to which a goal is • is determined by the relationship
achieved. Thus, a system is more or less between resources expended and the
effective depending upon: benefits gained in achieving a goal.
(1) how much of its goal it achieves and;
(2) the degree to which it achieves better
outcomes than other systems do.

ITAB2100 3
FR
Information Technology
IS in Business Functions

• Accounting
• Finance
• Engineering
• Manufacturing and Inventory Control
• Marketing and Sales

ITAB2100 4
Accounting
IS in Business Functions

• The purpose of accounting is to track every


financial transaction within a company,
from dollar to multimillion dollar
purchases, from salaries to benefits, to
sales of every item.

ITAB2100 5
FR
Finance
IS in Business Functions

• A firm’s health is often measured by its finances, • collecting payables as soon as possible
and ISs can significantly improve financial
• making payments at the latest time allowed by
management. The goal of financial managers,
contract or law
including controllers and treasurers, is to
manage an organization’s money as efficiently as • ensuring that sufficient funds are available for
possible. day-to-day operations
• taking advantage of opportunities to accrue the
highest yield on funds not used for current
activities

ITAB2100 6
FR
Finance
IS in Business Functions

Cash Management Investment Analysis


• A Systems that deal specifically with cash are • Every investors goal is to buy an asset and later
often called cash management systems (CMSs). sell it for more than it cost. When investing in
One common use for a CMS is to execute cash securities, such as stocks and bonds, it is
transactions in which financial institutions important to know the prices of securities in real
transfer huge amounts of money using time, that is, “right now”.
electronic funds transfer (EFT). EFT is the
electronic transfer of cash from an account in
one bank to an account in another bank

ITAB2100 7
Engineering
IS in Business Functions

• IT’s greatest contribution to engineering is


in the area of computer aided design (CAD)
and rapid prototyping (creating one of a
kind products to test design in three
dimensions).

ITAB2100 8
Manufacturing and Inventory Control
IS in Business Functions

Materials Requirement Manufacturing Resources


Planning (MRP) Planning (MRP II)

Manufacturing MRP II systems can


Economic Order Quantity And quickly modify schedules
(EOQ) of a specific raw Inventory to accommodate orders.
materials is the optimal Control The most important input
quantity that allows ISs of MRP II systems is the
business to minimize master production
overstocking and save schedule (MPS), which
cost. specifies how production
Manufacturing capacity will be used to
Execution meet customer demands
Systems & maintain inventories.
ITAB2100 9
Manufacturing and Inventory Control
IS in Business Functions

10
Marketing and Sales
IS in Business Functions

• Market Research system help to find the


population and regions that are most likely
to purchase a new product or service. They
also help analyze how a new product fares
in its first several months on the market.

ITAB2100 11
Marketing and Sales
IS in Business Functions

• The principle of targeted marketing is to


define the prospective customer as
accurately as possible and then to direct
promotional content only to those people
most likely to purchase your product.

ITAB2100 12
Marketing and Sales
IS in Business Functions
• Computer telephony integration (CTI) is a technique allowing
computer to use the digital signal coming through a
telephone line as input in a computer system. It has been
used often in marketing, sales, and customer service.

ITAB2100 13
Marketing and Sales
IS in Business Functions
• The Computer as Marketing and Selling Medium. For several
decades, radio and television were marketing’s only non-print
media. Now, the household computer has become a means of
promoting products.

ITAB2100 14
Marketing and Sales
IS in Business Functions
• Sales Force Automation can increase sales productivity
significantly, making sales presentations more efficient.

ITAB2100 15
Marketing and Sales
IS in Business Functions
• To better serve customer and learn of their changing needs,
companies use customer relationship management (CRM).

ITAB2100 16
Human Resources
IS in Business Functions
• HR Management has become more complex due to the fast
growth in specialized occupations, the need to train and
promote highly skilled employees, and the growing variety of
benefits programs.
• HR management can be classified into five activities:
1. Employee Record Management
2. Promotion and Recruitment
3. Training
4. Evaluation
5. Compensation and Benefits Management

ITAB2100 17
Enterprise Resource Planning
IS in Business Functions
• Many corporations have opted to replace their disparate ISs
with a single integrated systems. Rather than using an IS, or
several ISs, in each business function, all business functions
are served by one system that supports different activities for
different departments. Such systems are often called
enterprise resource planning (ERP) systems. Although these
systems do help in planning, their main focus is to help run
the different functions, therefore, their more accurate name
is enterprise applications, but ERP is their more popular
name.

ITAB2100 18
Groupware and Collaborative Work
IS in Business Functions
• When people work together, either to provide a service or
create a product, they often do so in sequence: one person
provides his or her input to the project, then passes it along
to other person, who does the same, and so on along the
chain. A series of such repeated activities is called work cycle ,
or simply cycle.
• Work cycles may take a long time to complete.

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Groupware and Collaborative Work
IS in Business Functions
Document Control
Quality Manager document control module allows
companies to automate and manage internal and external
document.

ITAB2100 20
Groupware and Collaborative Work
IS in Business Functions
Collaborative Projects
• Managing a project– especially a large one involving many
organizational units– and keeping on track requires enormous
effort.

ITAB2100 21
Groupware and Collaborative Work
IS in Business Functions
Brainstorming
• In business, brainstorming refers to the process of a group
of colleagues meeting and working collaboratively to
generate creative solution and new ideas.

ITAB2100 22
FR
Reference
IS in Business Functions

• Oz, Effy: Management Information Systems Third edition, Thomson


Learning Center, 5 Shenton Way UIC Building, Singapore 2002.

ITAB2100 23
END
ITAB 2100

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