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Information Systems
KIND OF SYSTEM MANAGERS
STRATEGIC LEVEL SENIOR
EXECUTIVE SUPPORT SYSTEMS (ESS),
MANAGERS

DECISION SUPPORT SYSTEMS (DSS)

MANAGEMENT LEVEL MIDDLE
MANAGERS
FUNCTIONAL AREAS MANAGEMENT INFORMATION SYSTEMS (MIS)

*KNOWLEDGE LEVEL KNOWLEDGE WORK SYSTEMS (KWS) KNOWLEDGE &

DATA WORKERS
OFFICE APPLICATION SYSTEMS (OAS)

OPERATIONAL LEVEL OPERATIONAL

Sales and marketing LEVEL
TRANSATION PROCESSING SYSTEMS (TPS)
Manufacturing and production MANAGERS
Finance and accounting
SALES & MARKETING MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCES
Human resources
FUNCTIONAL AREAS

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SALES AND MARKETING SYSTEMS

FUNCTIONAL AREAS
 The functional areas in most organizations
include application systems to assist in:
◦ sales and marketing,
◦ manufacturing and production,
 The major functions include:
 monitoring trends affecting new
products and sales opportunities,
support planning for new products and
services, and monitor the performance
of competitors.

◦ financing and accounting  Major application systems include:

 sales-order information systems,
◦ human resource management. market research systems, and even
pricing systems.

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WHAT/WHO IS YOUR TARGET MARKET??

SALES AND MARKETING SYSTEMS

SYSTEM DESCRIPTION ORGANIZATIO Flow of

NAL LEVEL informati
on
Sales trend Prepare 3-year sales Strategic ^
forecasting forecasts |

Pricing analysis Establish prices for Tactical / |

products and Management
services |
Order Enter, process, and Operational |
processing track orders

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MANUFACTURING AND MANUFACTURING AND

PRODUCTION SYSTEMS PRODUCTION SYSTEMS

• Major functions include:

– scheduling, purchasing, shipping,
receiving, and engineering tasks.

• Major application systems include:

– materials resource planning systems
(MRP), purchase order control
systems, engineering systems, and
quality control systems.

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MANUFACTURING AND PRODUCTION

MANUFACTURING AND PRODUCTION
SYSTEMS
SYSTEMS
SYSTEM DESCRIPTION ORGANIZATIONAL Flow of
LEVEL information

Facilities Decide where to Strategic ^

location locate new |
production
facilities
|
|
Production Decide when and Tactical/Manageme
planning how many nt |
products should |
be produced |
Machine Control the actions Operational |
control of machines and |
equipment |

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FINANCE
FINANCE AND
ACCOUNTING SYSTEMS • Firm’s health is measured by its finances
• Information systems can improve
financial management
 Major functions include:
• Financial managers’ goal is to manage
 budgeting, general ledger, billing, and cost money as efficiently as possible by:
accounting. – Collecting payables as soon as possible
 Major application systems include: – Making payments at the latest time allowed
 general ledger, accounts receivable, accounts – Ensuring funds are available for daily
payable, and budgeting. operations
– Investing funds not used for current activities

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CASH MANAGEMENT ACCOUNTING

 Purpose is to track every financial transaction

 Financialinformation systems help  Accounting systems are required by law and for
managers track company finances proper management
 Needed to ensure company is making a profit

 Accounts payable and accounts receivable

 Electronic funds transfer: electronic
track who owes whom what
transfer of cash from one bank account
 Balance sheet: picture of financial situation
to another
 Includes profit-and-loss report

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ACCOUNTING (CONTINUED)
ACCOUNTING (CONTINUED)
 Accounting information system:
receives information from transaction  Cost-accounting systems: accumulate
processing systems (TPSs) data about costs involved in producing
 Automatically routes purchases to specific products
accounts payable
 Accounting ISs are used for managerial
 Automatically routes sales to accounts
purposes for budgeting and cost control
receivable
 Generates reports on demand or on
schedule

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HUMAN RESOURCE MANAGEMENT

FINANCE AND ACCOUNTING SYSTEMS  Human resource management (HRM) can be
SYSTEM DESCRIPTION ORGANIZATIO Flow of classified into five main activities:
NAL LEVEL information  Employee record management
 Promotion and recruitment
 Training
Profit planning Plans long-term profits Strategic ^
|
 Evaluation
Budgeting Prepares short-term Tactical |  Compensation and benefits management
budgets / Management |
|
Accounts Tracks money owed Operational
receivable the firm

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HUMAN RESOURCE SYSTEMS HUMAN RESOURCE

SUMMARY SYSTEMS
SYSTEM DESCRIPTION ORGANIZATIONAL Flow of
LEVEL information
Human resources Plans the long-term Strategic ^
planning labor force |
needs of the |
organization |
Compensation Monitors the range Tactical/Management |
analysis and distribution |
of employee |
wages, salaries, |
and benefits
Training and Tracks employee Operational
development training, skills,
and
performance
appraisals

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BUSINESS PROCESSES BUSINESS PROCESSES

 It is the business process that establishes the flow of

 As you review the organizational levels, management
groups and main functional areas in any business, you
should remember that all are based on the business
process that drives the profits and staff and inner
working of that business.
material, information, and knowledge as interrelated
sets of activities.
 Also, for each business, it is the process that creates
unique ways to coordinate work, information, and
knowledge and is the backbone for methods in which
management chooses to coordinate that work.

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EXAMPLES OF BUSINESS PROCESSES
Functional Area
Sales and marketing
Manufacturing and production
Finance & accounting
Human resources
Examples of business processes
Identifying customers, creating customer
awareness, selling products and services
Assembling product, checking quality,
producing bills of materials
Paying creditors, creating financial statements,
managing cash accounts
Hiring employees, evaluating performance,
enrolling employees in benefits plans
CROSS-FUNCTIONAL BUSINESS
PROCESSES
 Although the development of competitive
products and services in the business process are
very important in driving a business, cross-
functional business processes are even more
effective.
 Many traditional companies have individual
departments of functional areas that are solely
responsible for specific functions. However,
cross-functional business processes go beyond
the traditional boundaries among the sales,
marketing, manufacturing, and research and
development areas.

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CROSS-FUNCTIONAL BUSINESS
WASTAGE
PROCESSES
 The concept is to group employees from
different functional specialties to complete • Finally, as in most
specific sections of work. businesses,
processing can incur
 Examples include using one employee to take wastage.
an application for an insurance policy from a • This can be seen
potential client through every step in the through a number of
process, to the delivering of the policy to the ways, such as the in
client. Another example would be using a core the elements of the
group of employees in an order fulfillment
process where customers deal with one work system, or in
customer service representative until the order is the reports produced
delivered to the customer. by management at
each level.

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WASTAGE
WASTAGE Some examples of tangible and intangible
forms of waste in business processes include:

 defects in products that cannot now be sold,

 excess goods produced which cannot be used,
 too early purchase of goods that now require storage
while waiting for processing or consumption,
 unnecessary processing or movement of people, or
both
 unnecessary goods being transported, and
 time spent waiting or idle until processing starts.

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WHAT FUNCTIONAL AREA???? WHAT FUNCTIONAL AREA????

WHAT MANAGEMENT LEVEL??
PRODUCT DESIGN SYSTEMS
• CAD systems – accept coded descriptions of
components and processes and graphically display the
resulting product specifications
• Wide range of applications
 Computer integrated manufacturing (CIM)
◦ Computerized data collection + integrated data flows
between design, manufacturing, planning, and other
business functions
 The use of CAD, CIM, and other techniques lead
to an increase in the information content of
products

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What Functional Area???? What Functional Area????

 Point-of-sale (POS) systems –  Electronic funds transfer (EFT)

◦ Combined with customization techniques, can be used in  Accounts between companies settled electronically
direct marketing
 Electronic cash
 Telemarketing
 Program trading
 Sales force automation (SFA)
 Automating buy/sell decisions
 Customer relationship management (CRM)

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Which Information System?

 Describe the type of Information System which
is responsible for the production of reports.
• Help people perform personal record keeping, writing, Include the inputs to and outputs from this
and calculations efficiently system, and the frequency of these reports.
• Main types of tools include:  Explain the purpose of an exception report
– Spreadsheet programs
– Text & image processing systems
– Presentation packages
– Personal database systems and note-taking systems

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YOU HAVE TO GIVE A PRESENTATION ON THE RESULTS OF A REPORT, AND HAVE

GATHERED THE FOLLOWING INFORMATION. WRITE A SHORT PARAGRAPH ANALYZING

THE OVERALL SALES BY COUNTRY FOR YOUR COMPANY .

SALES BY COUNTRY
 You have to give a presentation on the results Country Sales
of the report, and have gathered the following St. Jago $230,000
Antiko $102,000
information. Write a short paragraph analyzing Grenica $ 54,345
the overall sales by country for your company.
SALES BY SECTION
Section Sales
Toiletries $15,120
Produce $ 5,950
Dairy $14,225

PRODUCT LINE SALES

Product Sales
Vegetables $0
Ground Prov. $0
Fruit $5,950

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CONSIDER THE FOLLOWING REPORT THAT WAS BRIEFLY ANALYZE THE REPORT AND IDENTIFY
GENERATED BY MRA FOOD IMPORTS INC. ANY EXCEPTIONAL INFORMATION

Report X Report X
December 2019 December 2019
Date Empl# Name Dept Reason Date Empl# Name Dept Reason
11/04/2019 2234 Janice Blackman Production Retired 11/04/2019 2234 Janice Blackman Production Retired

11/07/2019 1266 Richard Hall Accounting Insubordinate 11/07/2019 1266 Richard Hall Accounting Insubordinate

11/12/2019 8990 Alison Reid Sales Insufficient sales 11/12/2019 8990 Alison Reid Sales Insufficient sales

11/15/2019 7684 Awai Longg HR Breech of contract 11/15/2019 7684 Awai Longg HR Breech of contract

11/21/2019 4534 Junior Senior Accounting Insubordinate 11/21/2019 4534 Junior Senior Accounting Insubordinate

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STATE THE FUNCTIONAL AREA THAT

GENERATED THIS REPORT (2 MARKS)
Five employees from four depts were cited in the
report (2)
Report X
December 2019
HR specific problems:
Date Empl# Name Dept Reason
Two employees from accounting have been
cited for insubordination, and another for breach of 11/04/2019 2234 Janice Blackman Production Retired
contract (2) 11/07/2019 1266 Richard Hall Accounting Insubordinate

11/12/2019 8990 Alison Reid Sales Insufficient sales

Non – HR specific problems (!):
Only one person (Janice) has retired (1) 11/15/2019 7684 Awai Longg HR Breech of contract
while Alison had insufficient sales (1)
11/21/2019 4534 Junior Senior Accounting Insubordinate

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STATE AND DESCRIBE ONE INFORMATION

SYSTEM IN THIS FUNCTIONAL AREA THAT IS
APPLICABLE AT THE OPERATIONAL LEVEL
Report X
December 2019
Date Empl# Name Dept Reason
11/04/2019 2234 Janice Blackman Production Retired

11/07/2019 1266 Richard Hall Accounting Insubordinate

11/12/2019 8990 Alison Reid Sales Insufficient sales

11/15/2019 7684 Awai Longg HR Breech of contract

11/21/2019 4534 Junior Senior Accounting Insubordinate

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