Functional Business Systems

Oleh :
Angelia Merdiyanti, MM
Functional Business Systems

A variety of types of information systems

(transaction processing, management
information, decision support, etc) that support
the business functions of accounting, finance,
marketing, operation management and human
resource management
Examples of Functional Information
Systems
Marketing Systems

The business function of marketing is concerned with

the pricing, promotion, and sale of existing products in
existing markets, as well as the development of new
products and new markets to better attract and serve
present and potential customers.
Marketing Information Systems
Examples of Marketing Information
Systems
 Internet/intranet websites and services make an interactive
marketing process possible, in which customers can become
partners in creating, marketing, purchasing, and improving
products and services.

 Sales force automation systems use mobile computing and

Internet technologies to automate many information-processing
activities for sales support and management.

 Other marketing information systems assist marketing managers

in customer relationship management, product planning, pricing
and other product management decisions, advertising, sales
promotion, targeted marketing strategies, and market research
and forecasting.
Interactive Marketing
 It describes a customer-focused marketing process
that is based on using the Internet, intranets, and
extranets to establish two-way transactions between
a business and its customers or potential customers.

 The goal of interactive marketing is to enable a

company to use those networks profitably to attract
and keep customers who will become partners with
the business in creating, purchasing, and improving
products and services.
 Customers are not just passive participants who receive
media advertising prior to purchase but are actively engaged
in network-enabled proactive and interactive processes.
 Including chat and discussion groups, web forms and
questionnaires, instant messaging, and e-mail correspondence.

 Interactive marketing encourages customers to become

involved in product development, delivery, and service issues.

 the expected outcomes of interactive marketing are a rich

mixture of vital marketing data, new product ideas, volume
sales, and strong customer relationships.
Targeted Marketing
It is an advertising and promotion management concept that
includes five targeting components :
Community.
 Companies can customize their web advertising messages and
promotion methods to appeal to people in specific communities.
 They can be communities of interest, such as virtual communities of
online sporting enthusiasts or arts and crafts hobbyists, or geographic
communities formed by the web sites of a city or other local
organization.

Content.
 Advertising such as electronic billboards or banners can be placed on a
variety of selected web sites, in addition to a company’s web site.
 The content of these messages is aimed at the targeted audience.
 An ad for a product campaign on the opening page of an Internet search
engine is a typical example.
 Context.
 Advertising is targeted only at people who are already looking for
information about a subject (e.g., vacation travel) that is related to a
company’s products (e.g., car rental services).

 Demographic/Psychographic.
 Web marketing efforts can be aimed at specific types or classes of
people—unmarried, twenty-something, middle income, male college
graduates, for example.

 Online Behavior.
 This strategy is based on a variety of tracking techniques, such as Web
“cookie” files recorded on the visitor’s disk drive from previous visits.
 This technique enables a company to track a person’s online behavior at
a Website so that it can target marketing efforts (e.g., coupons
redeemable at retail stores or e-commerce Web sites) to that individual
during each visit to its Web site.
 An interesting and effective marriage between e-business and
target marketing is the emergence of the digital billboard.

 The concept behind the digital billboard is elegantly simple.

 A billboard is constructed using hundreds of thousands of

small LEDs which are controlled via a computer interface

that can be accessed via the Web.
 Advertisers can change their messages quickly, including

multiple times in one day.

 Target marketing is in the digital arena, with a new way of

doing something old.
Sales Force Automation
 In many companies, the sales force is being outfitted with
notebook computers, Web browsers, and sales contact
management software that connect them to marketing Web sites
on the Internet, extranets, and their company intranets.

 This connectivity not only increases the personal productivity of

salespeople but dramatically speeds up the capture and analysis
of sales data from the field to marketing managers at company
headquarters.

 In return, it allows marketing and sales management to improve

the delivery of information and the support they provide to their
salespeople.
For example :
 Salespeople use their PCs to record sales data as they make their
calls on customers and prospects during the day.

 Then each night, sales reps in the field can connect their computers
by modem and telephone links to the Internet and extranets, which
can access intranet or other network servers at their company.

 They can upload information about sales orders, sales calls, and
other sales statistics, as well as send electronic mail messages and
access Web site sales support information.

 In return, the network servers may download product availability

data, lists of information about good sales prospects, and e-mail
messages.
Manufacturing Systems
Manufacturing Information Systems
 it supports the production/operations function
that includes all activities associated with the
planning and control of the processes that
produce goods or services.

 Information systems used for operations

management and transaction processing
support all firms that must plan, monitor, and
control inventories, purchases, and the flow of
goods and services.
Manufacturing Information Systems Support
Computer-Integrated Manufacturing

Note that manufacturing resources planning systems are one of the application clusters in
an ERP system.
Computer-Integrated Manufacturing
(CIM)
 Once upon a time, manufacturers operated on a simple build-to-
stock model.
 They built 100 or 100,000 of an item and sold them via
distribution networks.
 They kept track of the stock of inventory and made more of the
item once inventory levels dipped below a threshold.
 Rush jobs were both rare and expensive, and configuration
options limited.
 Things have changed.
 Concepts like just-in-time inventory, build-to-order (BTO)

manufacturing, end-to-end supply chain visibility, the explosion in

contract manufacturing, and the development of Web-based e-
business tools for collaborative manufacturing have
revolutionized plant management .
CIM is an overall concept that stresses that the objectives
of computer-based systems in manufacturing must be to:

 Simplify (reengineer) production processes, product designs,

and factory organization as a vital foundation to automation and
integration.

 Automate production processes and the business functions that

support them with computers, machines, and robots.

 Integrate all production and support processes using computer

networks, cross-functional business software, and other
information technologies.
 The overall goal of CIM and other such manufacturing
information systems is to create flexible, agile,
manufacturing processes that efficiently produce
products of the highest quality.

 CIM supports the concepts of flexible manufacturing

systems, agile manufacturing, and total quality
management.

 Implementing such manufacturing concepts enables a

company to respond quickly to and fulfill customer
requirements with high-quality products and services.
Manufacturing information systems help companies simplify,
automate, and integrate many of the activities needed to produce
products of all kinds.

For example,
 Computers are used to help engineers design better products
using both computer-aided engineering (CAE) and computer-
aided design (CAD) systems and achieve better production
processes with computer-aided process planning.
 They are also used to help plan the types of material needed in
the production process, which is called material requirements
planning (MRP), and to integrate MRP with production
scheduling and shop floor operations, which is known as
manufacturing resource planning.
 Computer-aided manufacturing (CAM) systems are those that
automate the production process.
 For example, this automation could be accomplished by monitoring and
controlling the production process in a factory (manufacturing execution
systems) or by directly controlling a physical process (process control), a
machine tool (machine control), or machines with some humanlike work
capabilities (robots).

 Manufacturing execution systems (MES) are performance-monitoring

information systems for factory floor operations.
 They monitor, track, and control the five essential components involved in a
production process: materials, equipment, personnel, instructions and
specifications, and production facilities.
 MES includes shop floor scheduling and control, machine control, robotics
control, and process control systems.
 These manufacturing systems monitor, report, and adjust the status and
performance of production components to help a company achieve a flexible,
high-quality manufacturing process.
 Process control is the use of computers to control an ongoing physical
process.
 Process control computers control physical processes in petroleum
refineries, cement plants, steel mills, chemical plants, food product
manufacturing plants, pulp and paper mills, electric power plants, and so on.
 A process control computer system requires the use of special sensing
devices that measure physical phenomena such as temperature or pressure
changes.
 These continuous physical measurements are converted to digital form by
analog-to-digital converters and relayed to computers for processing.

 Machine control is the use of computers to control the actions of

machines, also popularly called numerical control.
 The computer-based control of machine tools to manufacture products of all
kinds is a typical numerical control application used by many factories
throughout the world.
Human Resource Systems
Human Resource Management
(HRM)
 HRM function involves the recruitment,
placement, evaluation, compensation, and
development of the employees of an
organization.

 The goal of human resource management is

the effective and efficient use of the human
resources of a company.
Human Resource Information Systems

 Human resource information systems are designed to

support :
 Planning to meet the personnel needs of the business
 Development of employees to their full potential, and
 Control of all personnel policies and programs.

 Originally, businesses used computer-based information

systems to :
 Produce paychecks and payroll reports,
 Maintain personnel records, and
 Analyze the use of personnel in business operations.
Human resource information systems (HRIS) also
support :
Recruitment, selection, and hiring;
Job placement;

Performance appraisals;

Employee benefits analysis;

Training and development; and

Health, safety, and security.

HRM and The Internet
 The Internet has become a major force for change in human
resource management.
For example,
 Online HRM systems may involve recruiting employees through
recruitment sections of corporate Web sites.
 Companies are also using commercial recruiting services and databases
on the World Wide Web, posting messages in selected Internet
newsgroups, and communicating with job applicants via e-mail.

 The Internet has a wealth of information and contacts for both

employers and job hunters.
 Top Web sites for job hunters and employers on the World Wide Web
include Karir.com, Jobsdb.com, and soon.
 These Web sites are full of reports, statistics, and other useful HRM
information, such as job reports by industry or listings of the top
recruiting markets by industry and profession.
HRIS support the strategic, tactical, and operational use
of the human resources of an organization
HRM and Corporate Intranet
 Intranet technologies allow companies to process most common
HRM applications over their corporate intranets.

 Intranets allow the HRM department to provide around-the-clock

services to their customers: the employees.

 They can also disseminate valuable information faster than

through previous company channels.

 Intranets can collect information online from employees for input

to their HRM files, and they can enable managers and other
employees to perform HRM tasks with little intervention by the
HRM department.
Accounting Systems
Accounting Information Systems
 Computer-based accounting systems record and report
the flow of funds through an organization on a historical
basis and produce important financial statements such
as balance sheets and income statements.

 Such systems also produce forecasts of future

conditions, including projected financial statements and
financial budgets.

 A firm’s financial performance is measured against such

forecasts by other analytical accounting reports.
 Operational accounting systems emphasize legal
and historical record keeping and the production of
accurate financial statements.
 These systems include transaction processing systems
such as order processing, inventory control, accounts
receivable, accounts payable, payroll, and general ledger
systems.

 Management accounting systems focus on the

planning and control of business operations.
 They emphasize cost accounting reports, the development
of financial budgets and projected financial statements, and
analytical reports comparing actual to forecasted
performance.
Accounting information systems for transaction
processing and financial reporting

Note how they are related to each other in terms of input and output flows.
Six essential accounting information
systems used in business
Online Accounting Systems
 Using the internet and other networks changes how
accounting information systems monitor and track
business activity.

 The online accounting system calls for new form of

transaction documents, procedures, and controls.

 Many company using internet and other network

links to these trading partners for such online
transaction processing systems
Financial Management Systems
Financial Management Systems
 Computer-based financial management systems
support in decisions regarding :
 The financing of a business

 The allocation and control of financial resources

within a business

 Major financial management system categories

include cash and investment management, capital
budgeting, financial forecasting, and financial
planning.
Financial Information Systems
Examples :
 The capital budgeting process involves evaluating
the profitability and financial impact of proposed
capital expenditures.
 Long-term expenditure proposals for facilities and
equipment can be analyzed using a variety of return
on investment (ROI) evaluation techniques.
 This application makes the use of spreadsheet models
that incorporate present value analysis or expected
cash flows and probability analysis of risk to determine
the optimum mix of capital projects for business.
 Financial analysts also use electronic spreadsheets and other
financial planning software to evaluate the present and projected
financial performance of business.

 They help determine the financing needs of a business and analyze

alternative methods of financing.

 They use financial forecasts of the economic situation, business

operations, type of financing available, interest rate, stock and bond
prices to develop an optimal financing plan for the business.

 Electronic spreadsheet packages, DSS software, and web-based

groupware can be used to build and manipulate financial models
Thank You