Kroenke - Experiencing MIS 4th Ed - Instructor’s Manual 1

Experiencing MIS 4th Edition by

Kroenke ISBN 0132967480
9780132967488
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CE-8
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.. Functional Applications
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LEARNING OBJECTIVES

1. Explain the difference between a functional IS and a functional application.

2. Describe the functions of sales and marketing applications.
3. Describe the functions of operations applications.
4. Describe the functions of manufacturing applications.
5. Describe the functions of human resource applications.
6. Describe the functions of accounting applications.

CHAPTER OUTLINE

▪ What is the difference between a functional IS and a functional application?

 Creating functional information systems
 An example of a functional application

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 Kroenke - Experiencing MIS 4th Ed - Instructor’s Manual 2

▪ What are the functions of sales and marketing applications?

▪ What are the functions of operations applications?
▪ What are the functions of manufacturing applications?
 Inventory applications
 Manufacturing planning applications
 Manufacturing scheduling applications
 Manufacturing operations
▪ What are the functions of human resource applications?
▪ What are the functions of accounting applications?

USING YOUR KNOWLEDGE

1. The text uses the example of an appointment schedule system as a functional

application. Give three examples of other functional systems that the Flores’ group
will need. Briefly describe each.

There are a number of functional applications that could be mentioned in answers to

this question. Several typical examples include:
• Patient medical records – an application that maintains details of the patient’s
medical condition, including physician notes from surgical procedures,
physician/physician assistant notes from office visits, test results, and prescribed
therapies and medicines.
• Private insurance billing – an application that maintains a record of expenses
covered by patient’s private insurance, sends bills to the insurance carrier and
records insurance payments.
• Patient billing – an application that maintains a record of expenses for which the
patient is responsible, sends bills to the patient and records patient payments.
(LO: 1, Learning Outcome: Discuss the role of information systems in supporting
business processes, AACSB: Analytic Skills)

2. In your own words, explain the differences among functional applications and
functional information systems. Suppose you manage the office staff at Flores’
medical practice, and you’ve just been informed that they are going to implement a
new appointment system. Write a one-page memo to the practice partners explaining
the role that you think you should have in this process. Justify your statements.

A functional application is a computer program that supports or automates some or all

activities in the functional process. A functional information system utilizes a
functional application along with all five components of an information system (HW,
SW, data, procedures, people).

In the student memo, look for several key points in the role that the manager of office
staff should play. First, this manager has the most in-depth knowledge of medical
office operations. The manager should play a key role in defining the requirement of
the business function. Second, the manager should be involved in the review and

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selection of a functional application that most closely matches the business process
requirements. Third, the manager should be involved in the design of procedures that
will be used to interact with the new functional application because procedures will
undoubtedly have to change from their current form when the application is
implemented. Fourth, the manager should oversee training to use the new information
system. Finally, the success of the new information system depends on the manager’s
visible support and involvement with the new information system, so playing a key
role is essential to the project’s success. (LO: 1, Learning Outcome: Discuss the role
of information systems in supporting business processes, AACSB: Analytic Skills)

3. The text indicates that when a new customer-facing application is implemented, both
employees and customers need to be trained. It is easy to envision employee training,
but how do you train your customers? Identify three techniques that you could use to
train customers. Employees are paid for training; to customers, it’s a nuisance.
Describe techniques you could use to incentivize your customers to use the three
customer training techniques you identified.

Sometimes, customers are not trained at all. A new application is displayed to the
customer for order taking, let’s say, and the customer just has to figure it out as he
goes. There may be directions, hints, “Need help?” links, etc. scattered throughout the
page so that the customer can get support if needed. Sometimes, an offer for live chat
with a customer service agent is displayed if the customer pauses too long while
working on a page. All of these techniques are there to help the customer teach
himself about the new application.

Another approach might be to directly ask customers to use a beta version of the new
application for a period of time before the new application goes live. Feedback from
the customers will be strongly encouraged. Just being asked to participate may be
sufficient to motivate customers.

Customers could also be offered a more tangible incentive to use the new application.
This incentive could come in the form of a discount on the order or a coupon to use
on a future order. (LO: 2, Learning Outcome: Discuss the role of information systems
in supporting business processes, AACSB: Analytic Skills)

4. Based on this chapter extension, choose the category of functional application that is
closest to your major. Select one application from the list of applications described
for that category. For that application:

a. Google or Bing your application and identify five possible off-the-shelf

applications.

Student answers will vary depending on the category of software selected. As an

example, I have chosen accounting information systems as the category. A useful
link to a large table of both open source and proprietary accounting software
products is:

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http://en.wikipedia.org/wiki/Comparison_of_accounting_software

In this example, I will focus on personal accounting software. The products from
this list in this group include: Grisbi, HomeBank, JGnash, KMyMoney (all open
source); Fortora Fresh Finance, iBank, Mint.com, MoneyDance, Quicken, You
Need a Budget (all proprietary). (LO: 6, Learning Outcome: Discuss the role of
information systems in supporting business processes, AACSB: Analytic Skills)

b. Characterize the differences among those five applications.

The major differences appear to be whether the products offer double-entry

accounting, can support multiple currencies; have the ability to track investments;
include online banking support; and provide personal cash management. (LO: 6,
Learning Outcome: Discuss the role of information systems in supporting
business processes, AACSB: Analytic Skills)

c. Describe, in general terms how you would go about evaluating those five
applications.

List the purposes that I want to have for a personal accounting system. For
example, college students who live on a tight budget might want to have a better
way of tracking where their money goes each month. They probably are also
interested in online banking features. They would be less interested in multi-
currencies or tracking investments in rental properties, stocks or bonds. I would
then look at the websites of each product and compare their features with my list
and narrow my search to those that meet my needs most closely. (LO: 6, Learning
Outcome: Discuss the role of information systems in supporting business
processes, AACSB: Analytic Skills)

d. List criteria you would use to select one of those applications.

I would want to be sure the product is compatible with my computer’s operating

system. As a college student, cost will be an issue. I would also want to look at
the support that is available and its cost. For the open source products, I would
want to see how long the product has existed and if it seems to be a stable,
established product or one that is very new. (LO: 1, Learning Outcome: Discuss
the role of information systems in supporting business processes, AACSB:
Analytic Skills)

e. Summarize the risks of choosing the wrong application.

For the application I’ve chosen, the risks of choosing the wrong application are
limited to the personal time and resources I’ve invested in the product. If it turns
out I’ve made a bad choice, I will be out the money I spent plus the time I have
spent setting up the product and learning how to use it. For an organization, the

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risks have much greater consequences. Not only will the firm be out the cost of
the product, but will also have invested resources in tailoring itself to the product,
setting up the data for the product, and trying to do things to conform to the
product. Making a bad choice will be quite costly in terms of lost and wasted
resources. (LO: 1, Learning Outcome: Discuss the role of information systems in
supporting business processes, AACSB: Analytic Skills)

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