Lecture 6 Functional Business Systems Objectives n Functional

Lecture 6 Functional Business Systems

Objectives n Functional Business Systems: – Marketing Systems – Manufacturing Systems – Human Resource Systems – Accounting Systems – Financial Management Systems

Marketing Systems n Business functions of marketing: – Planning, promotion, and sales of existing products in existing markets – Development of new products and new market – Attract and serve present and potential customers

Marketing Systems: Interactive Marketing n Use information technology to establish two-way interaction with customers: – With information technology, customers can actively engage in the proactive and interactive processes involving product development, delivery, and service issues

Marketing Systems: Sales Force Automation n Using notebook or handheld computers, sales contact management software, and network technology (e. g. , Internet) – Increase productivity of salespeople – Improve delivery of information supporting salespeople – Speed up the capture and analysis of sales data from the market

Marketing Systems: Sales and Product Management n Using computer-based systems to produce sales analysis reports – By product or product line – By customer – By salesperson or sales territory n Helping marketing manager and/or product manager to monitor performance of products or salespeople and to develop sales support programs to improve sales results

Marketing Systems: Advertising and Promotion n Using information technology (e. g. , UPC and barcode scanner) to collect market research information to: – Evaluate results of various advertising and promotion campaigns – Select media and promotional methods – Allocate financial resources

Manufacturing Systems: Computer-Integrated Manufacturing (CIM) Concept of using computer-based systems in manufacturing to create flexible manufacturing process; thus, quick response to fulfill customer requirements with highquality products and services n Three main objectives: n – Simplify the production processes – Automate the production processes and other business functions – Integrate all production and supporting processes

Manufacturing Systems: Computer-Aided Manufacturing (CAM) n CAM systems are used to automate the production process – Process control: to control ongoing physical process – Machine control (or numerical control): to control the actions of a machine

Manufacturing Systems: Computer-Aided Design (CAD) CAD systems are used to simulate, analyze, and evaluate the models of product designs n Product designs can be converted into mathematical model of the product as the basis for production specifications and machine tool programs n Specification of all required materials (bill of materials) for the product n

Human Resource Systems n Human resource management function involves recruitment, placement, evaluation, compensation, and development of the employees n Human resource information systems: – Planning for personnel needs – Development of employees – Control personnel policies and programs

Human Resource Systems: Recruitment and Employee Services Recruitment section of corporate Websites, or Recruiting services and database on the Web n Posting “Hiring” in some selected newsgroups and using e-mail to corresponding with job applicants n Using Intranet to provide around-the-clock services to employees and to disseminate valuable information faster n

Human Resource Systems: Staffing and Training Personnel database keeps track of employee skills data to locate employees for specific projects n Forecasting personnel requirements to assure an adequate supply of high-quality human resources n Analyzing career development status of each employee to recommend training programs n

Human Resource Systems: Governmental Reporting n Using computer-based information systems to keep track of the statistics and produce reports required by variety of government laws and regulations; for examples: – Equal Employment Opportunity – Occupational Safety and Health

Accounting Systems n Oldest and most widely used information systems in business – Inventory control – Account receivable – Account payable – Payroll – General ledger

Accounting Systems: Inventory Control n Process data reflecting changes to items in inventory – Prepare inventory status reports and reordering n Provide high-quality services while minimizing inventory costs n Prepare appropriate shipping documents

Accounting Systems: Account Receivable n To maximize profitable credit sales while minimizing losses from bad debts – Keep records of amounts owed by customers – Prepare accurate and timely invoices and monthly statements to credit customers – Prepare credit management reports

Accounting Systems: Account Payable n Ensure prompt and accurate payment to suppliers to maintain good relationships, ensure credit standing, and secure any discounts offered – Keep track of data about purchases from and payments to suppliers – Prepare checks for payments – Control overall cash disbursements – Provide analysis of payments, expenses, purchases, and cash requirements

Accounting Systems: Payroll n Ensure prompt and accurate payments to employees – Maintain data from employee time cards – Produce paychecks and related documents (e. g. , earning statement) – Analyze labor costs

Accounting Systems: General Ledger n Help business accomplish accounting tasks – double-entry bookkeeping – in an accurate and timely manner n Provide better financial controls and management reports with fewer costs – Consolidate data received from accounts receivable, accounts payable, payroll, and other accounting systems – Produce financial statements

Financial Management Systems n Financial Management Systems help financial managers in decisions concerning the “Financing of a business”: – Allocation and control of financial resources within a business

Financial Management Systems: Cash Management n Records of all cash receipts and disbursements on a real-time or periodic basis n Forecasts to spot future cash deficits or surpluses n Allow business to deposit or invest excess funds or prepare for loans

Financial Management Systems: Investment Management n Minimize risk and maximize investment income – Portfolio management software package helps financial manager to make buying, selling, or holding decisions

Financial Management Systems: Capital Budgeting n Evaluate the profitability and financial impact of the proposed long-term capital expenditures, incorporating – Present value analysis – Expected cash flows – Analysis of risk

Financial Management Systems: Financial Forecasting and Planning Using electronic spreadsheets and other financial planning software to evaluate the present and projected financial performance of a business n Determine financing needs and analyze alternatives n Answer to what-if and goal-seeking questions n