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Module 1-Functional Information Systems

A functional information system provides detailed information for a specific business activity and related groups of activities. It aims to facilitate the work and generate information for a single department. Examples of functional information systems include finance/accounting systems, sales/marketing systems, manufacturing/production systems, and human resources systems. Each type of system supports key business functions through various subsystems and outputs information to support operational, knowledge, management, and strategic levels of an organization. Challenges for current information systems include both operational issues like communication and unclear requirements as well as technical issues involving technical needs, design, quality control, security, and debugging.

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160 views30 pages

Module 1-Functional Information Systems

A functional information system provides detailed information for a specific business activity and related groups of activities. It aims to facilitate the work and generate information for a single department. Examples of functional information systems include finance/accounting systems, sales/marketing systems, manufacturing/production systems, and human resources systems. Each type of system supports key business functions through various subsystems and outputs information to support operational, knowledge, management, and strategic levels of an organization. Challenges for current information systems include both operational issues like communication and unclear requirements as well as technical issues involving technical needs, design, quality control, security, and debugging.

Uploaded by

Asis Mahalik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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FUNCTIONAL

INFORMATION SYSTEMS
FUNCTIONAL INFORMATION SYSTEM

 A Functional Information System is a


system that provides detailed information
for a specific type of activity or related
group of activities,as well as summarized
information for management control of
such activities
 Purpose: facilitate the work and generate
information for a single department or
function
MIS-FUNCTIONAL VIEW
CHARACTERISTICS OF FUNCTIONAL INFORMATION SYSTEM

 Composed of smaller systems


 Integrated/independent systems
 Interfacing
 Supportive of different levels
WHAT ARE FUNCTIONAL UNITS?

Sales Operations

Manufactu Human
ring Resources
TYPE OF SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

• Finance and accounting information systems


• Sales and Marketing information system
• Production/manufacturing information system
• Human resource information system 
TRANSACTION PROCESSING SYSTEM

• A transaction process system (TPS) is an


information processing system for
business transactions involving the
collection, modification and retrieval of
all transaction data.
• Characteristics of a TPS include
performance, reliability and consistency.
Components of TPS
• TPS is also known as transaction
processing or real-time processing
FINANCE AND ACCOUNTING INFORMATION SYSTEMS

 Systems that keep track of the firm’s financial


assets and fund flows.
 The finance function is responsible for managing

the firm’s financial assets,such as


cash,stocks,bonds and other investments in order
to maximize the return on these financial assets.
 The accounting function is responsible for

maintaining and managing the firm’s financial


records-
receipts,disbursements,depreciation,payroll-to
account for the flow of funds in a firm.
FUNCTIONS SUPPORTED BY ACCOUNTING AND
FINANCE INFORMATION SYSTEM
INPUTS TO FINANCIAL INFORMATION SYSTEM

 Strategic plan or corporate policies


 contains major financial objectives and often projects financial needs.

 Transaction processing systems


 Important financial information collected from every TPS- payroll, inventory
control, order processing, accounts payable, accounts receivable, general ledger
 External sources
 Annual reports and financial statements of competitors and general news items
FINANCIAL MIS SUBSYSTEMS AND OUTPUTS

 Financial subsystems
 Profit/loss and cost systems
 Auditing
 Internal auditing
 External auditing
 Use and management of funds
EXAMPLES OF FINANCE AND ACCOUNTING INFORMATION SYSTEMS

SYSTEM DESCRIPTION ORGANIZATIONAL


LEVEL
Accounts receivable Track money owed the Operational
firm
Portfolio analysis Design the firm’s portfolio Knowledge
of investments
Budgeting Prepare short-term budgets Management
Profit planning Plan long-term profits Strategic
SALES AND MARKETING INFORMATION SYSTEMS

 Systems that help the firm identify customers for the


firm’s products or services, develop products and
services to meet customers’ needs, promote these
products and services, sell the products and services,
and provide ongoing customer support.
 Marketing is concerned with identifying the customers
for the firm’s products or services, determining what
they need or want, planning and developing products
and services to meet their needs, and advertising and
promoting these products and services.
 Sales is concerned with contacting customers, selling
the products and services, taking orders, and following
up on sales.
COMPONENTS OF A MARKETING INFORMATION SYSTEM

 The internal reporting system,


 The marketing research
systems,
 The marketing intelligence
system
 Marketing models
The marketing information systems and its subsystems
FUNCTIONS SUPPORTED BY MARKETING INFORMATION
SYSTEM
INPUTS TO MARKETING MIS

 Transaction Processing Data


 Marketing Research Data
 Marketing Intelligence Data
 External Environment Data
 Strategic Plan
MARKETING MIS SUBSYSTEMS AND OUTPUTS

 Product planning
 Place Planning
 Promotion
 Pricing
 Budget
 Allocation
 Sales Forecast
EXAMPLES OF SALES AND MARKETING INFORMATION SYSTEMS

SYSTEM DESCRIOPTION ORGANIZATIONAL


LEVEL
Order processing Store, process and track Operational
orders
Market analysis Identify customers and Knowledge
markets using data on
demographics, markets,
consumer behavior and
trends
Pricing analysis Determine optimum prices Management
for products and services
Sales trend forecasting Prepare 5-year sales Strategic
forecasts
HUMAN RESOURCE INFORMATION SYSTEMS

• Systems that maintain employee


records; track employee skills, job
performance, and training; and support
planning for employee compensation
and career development.
• Human Resource Information Systems
supports activities such as identifying
potential employees,maintaining
complete record on existing
employees,and creating programs to
develop employees’ skills and talents
FUNCTIONS SUPPORTED BY HUMAN RESOURCES SYSTEM
INPUTS TO HRIS

 Strategic plan or corporate policies


 The TPS:
 Payroll data
 Order processing data
 Personnel data
 External sources
HUMAN RESOURCE MIS SUBSYSTEMS AND OUTPUTS

 Human resource planning


 Personnel selection and
recruiting
 Training and skills inventory
 Scheduling and job placement
 Wage and salary adminstration
EXAMPLES OF HUMAN RESOURCES INFORMATION SYSTEMS

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

Training and development Track employee training,skills,and Operational


performance appraisals

Career pathing Design career paths for employees Knowledge


MANUFACTURING AND PRODUCTION INFORMATION SYSTEMS

 Systems that deal with the planning,


development, and production of products
and services, and with controlling the flow
of production.
 The manufacturing and production
function is responsible for actually
producing the firm’s goods and services.
 Manufacturing and production systems
deal with the planning, development, and
maintenance of production facilities
FUNCTIONS SUPPORTED BY MANUFACTURING
AND PRODUCTION INFORMATION SYSTEMS
INPUTS TO THE MANUFACTURING MIS

 Strategic plan or corporate policies.


 The TPS:
 Order processing
 Inventory data
 Receiving and inspecting data
 Personnel data
 Production process
 External sources
Manufacturing MIS Subsystems and Outputs

 Design engineering
 Master production scheduling
 Inventory control
 Manufacturing resource planning
 Just-in-time inventory and manufacturing
 Process control
 Computer-integrated manufacturing(CIM)
 Quality control and testing
EXAMPLES OF MANUFACTURING AND PRODUCTION INFORMATION SYSTEMS

SYSTEM DESCRIPTION ORGANIZATIONAL


LEVEL
Machine control Control the actions of Operational
machines and equipment
Computer aided Design new products using Knowledge
design(cad) the computer
Production planning Decide when and how Management
many products should be
produced
Facilities location Decide where to locate Strategic
new production facilities
CHALLENGES OF CURRENT INFORMATION SYSTEMS

 Operational Challenges  Technical Challenges


 Bad Communication  Knowing the Technical needs:
 Unclear Requirements  Right Design Patterns
 Increasing Cost  Quality Control
 Delayed Project Delivery  Security
 Market Pressure -Competition  Debugging Activities
THANK YOU

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