Functional Area

Information Systems

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Functional Units

What is a functional unit?

Individual operating entity, which can include
departments, centers, and divisions

Human Accounting Engineering

Resources and or product Manufacturing
(HR) Finance development

Marketing Sales Distribution

Customer Information
Service Technology

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Human Resource Systems

Manages human resources functions

Support
 Planning to meet the personnel needs of the business
 Recruitment, selection, & hiring
 Performance appraisals
 Employee benefits analysis
 Training and development
 Health, safety, & security

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Human Resource Systems (Cont’d)

Employee relationship management (ERM) system

facilitates communication with employees

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Financial and Accounting Systems
What are the functions of accounting and finance systems?

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Accounting Systems

Record and report business transactions and
other economic events

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Accounting Systems
 Six widely used accounting systems

Order processing
 Captures & processes customer orders and
produces data needed for sales analysis and
inventory control

Inventory Control
 Processes data reflecting changes in items in
inventory.
 Helps provide high-quality service while
minimizing investment in inventory &
inventory carrying costs

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Accounting Systems (Cont’d)

Accounts Receivable
 Keeps records of amounts owed by customers from data
generated by customer purchases and payments

Accounts Payable
 Keeps track of data concerning purchases from, and
payments to, suppliers

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Accounting Systems (Cont’d)

Payroll
 Receives and maintains data from employee time cards and
other work records

General Ledger
 Consolidates data received from accounts receivable,
accounts payable, payroll, & other accounting information
systems

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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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Financial Management Systems ((Cont’d)

 Major financial management system categories

Cash Management
 Collects information on all cash receipts and disbursements
on a real-time or periodic basis

Investment Management
 Helps the financial manager make or buy, sell or hold
decisions for each type of security
 Helps the financial manager develop the optimum mix of
securities in order to minimize risk and maximize return

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Financial Management Systems ((Cont’d)

Capital Budgeting
 Involves evaluating the profitability and financial impact of
proposed capital expenditures
 Allows financial managers to analyze long-term expenditure
proposals for plant and equipment

Financial Forecasting & Planning

 Evaluate the present and projected financial performance of
the company
 Help determine financing needs and analyze alternative
methods of financing
 Explore what-if and goal-seeking questions

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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 (Cont’d)

What is computer-aided design (CAD)?

Uses special
software to aid in
product design

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Manufacturing Systems (Cont’d)

What is computer-aided manufacturing (CAM)?

Use of computers to control production equipment

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Manufacturing Systems (Cont’d)

What is Material Requirements Planning (MRP)?

Uses software to
monitor and control
production processes

Focuses on
inventory of parts

Manufacturing Resource Helps in scheduling,

tracking production,
Planning II (MRP II) and monitoring
is extension of MRP product quality

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Marketing and Sales Systems

 Provide information technologies that support

major components of the marketing and Sales
functions

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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Marketing and Sales Systems (Cont’d)

What is sales force automation (SFA) software?

Tools for
traveling
salespeople

Runs on PDAs
or notebook
computers

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Marketing and Sales Systems (Cont’d)

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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