Chapter Extension 9

Functional Information
Systems

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Study Questions

CE9-2

What is the difference between a functional application and a

functional system?
What are the functions of sales and marketing information
systems?
What are the functions of operations information systems?
What are the functions of manufacturing information systems?
What are the functions of human resources information
systems?
What are the functions of accounting information systems?
What functional systems does DSI use?
2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Functional Applications
Computer

program

Provides features and functions to support

specific business activity

Map

to specific business activity in value

chain
Will have built-in databases, features for
processing and storing data

CE9-3

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Functional Systems
Information

Hardware, software, data, procedures, people

Must be integrated

Developed

CE9-4

system with all five components

in-house

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Sales and Marketing Information

Systems
Sales

systems

Obtain prospects
Turn prospects into customers
Used for managing customers

Marketing

CE9-5

systems

Used for product and brand management

Used for assessing effectiveness of marketing
messages, advertising, and promotions
2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Functions of Sales and Marketing

Systems

Figure CE9-1

CE9-6

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Lead Generation and Lead

Tracking Systems
Lead

Prospect generation
Send postal mailings and e-mail
Web sites may be used to send information in
return for contact information

Lead

CE9-7

generation

tracking systems

Record lead data and product interest

Record customer contacts
2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Customer and Product and Brand

Management Systems
Customer

Obtain additional sales from existing customers

Maintain customer contact and order-history data
May track customer credit status

Product

CE9-8

management systems

and brand management

Sales records are compare to sales estimates

Used to assess effectiveness of promotions and
sales channels
Used to manage product through life-cycles
2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Operations Information Systems

Manage finished-goods inventory and movement to

customer
Used primarily by non-manufacturers
Systems:

CE9-9

Used to manage finished-goods inventory

Order entry systems handle customer information
Order management systems track order through fulfillment
Employed to handle customer service functions

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Operations Information Systems

Figure CE9-3

CE910

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Manufacturing Information
Systems
Manufacturing

Operations functions merged into manufacturing

systems

Manufacturing

goods

CE911

organizations
systems facilitate production of

Inventory systems
Manufacturing-planning systems
Manufacturing-scheduling systems
Manufacturing operations systems
2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Manufacturing Information
Systems

Figure CE9-4

CE912

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Inventory Systems
Cover

inventory control, management, and

policy

CE913

Use past data to compute stocking levels and

reorder quantities
Inventory may be viewed as assets or liabilities
Inventory applications help organization
implement philosophies

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Manufacturing-Planning Systems
Bill

of materials (BOM)

List of materials that comprise subassemblies to

be manufactured

Schedules

equipment, people, and facilities

May be augmented to show labor and
equipment requirements

CE914

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Manufacturing-Scheduling
Systems

Generate master production schedule (MPS)

Three philosophies

Plans need for materials used in manufacturing

Manufacturing resource planning (MRP II)

CE915

Push manufacturing process

Pull manufacturing process
Combines push and pull systems

Materials requirement planning (MRP)

Analyzes past sales to estimate future sales

Plans need for materials, personnel, and machinery

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Manufacturing Operations
Control

of machinery and production

processes

Operate production lines

Linked

CE916

to manufacturing-scheduling systems

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Human Resources Information

Systems
Support:

CE917

Recruitment
Compensation
Evaluation
Development of employees, training
Employee assessment
Planning functions

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Human Resources Information

Systems, continued

Figure CE9-7

CE918

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Accounting Information Systems

CE919

Cost-accounting applications determine marginal cost and

profitability
Accounts receivable includes receivables, payments, and collections
Cash management is the process of scheduling payments and
planning use of cash
Financial reporting applications produce financial statements
General ledgers show assets and liabilities
Accounts payable systems reconcile payments against purchasers
Budgeting applications allocate and schedule revenues and
expenses
Treasury applications concern management and investment

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Accounting Information Systems,

continued

Figure CE9-8

CE920

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Dorset-Stratford Interiors
Dorset-Stratford

Interiors

Produces few, customized, expensive products

per year
Tailored functional information system
Uses

lead tracking system

Primary sales and marketing system is bidding
Based on past experience
Use accounting system to get data
Uses Sage MAS 90 software

CE921

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

DSI Functional Systems and Value

Chain

Figure CE9-9

CE922

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

DSI
Two

in-bound logistics information systems

AutoCad transforms designs into BOM and item lists

Engineers use BOM and item lists to prepare materials
requirements
Purchasing generates orders to vendors
Goods placed in raw material inventory, tracked by
software

Manufacturing

information systems track employee time

and attendance through WinStar
Service and support information systems store
drawings, designs, and cost data electronically
CE923

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

DSI, continued
MAS

No

CE924

90 software used for payroll and accounting

Supplemented with CribWare

human resource systems besides payroll

2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Active Review

CE925

What is the difference between a functional application and a

functional system?
What are the functions of sales and marketing information
systems?
What are the functions of operations information systems?
What are the functions of manufacturing information systems?
What are the functions of human resources information
systems?
What are the functions of accounting information systems?
What functional systems does DSI use?
2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke