BUSINESS INFORMATION SYSTEMS Functional Business Systems Enterprise Business Systems

Functional Business Systems

Functional Business Systems A variety of information systems that support specific business functions e.g. Accounting (Accounting Information Systems) Finance (Financial Management Systems) Marketing (Marketing Management Systems) Operations management (CAM, CAD) human resource management (HR Management Systems)

Examples of functional information systems

Accounting Information Systems AISs are the oldest and most widely used ISs They record and report the flow of funds through an organization Produce financial statements Forecasts of future conditions Examples: QuickBooks, Sage Line 50, Pastel Oldest and most widely used information systems

Sage Line 60

Financial Management Systems Support business managers and professionals in decisions concerning The financing of a business The allocation and control of financial resources within a business Major financial management system categories: Cash and investment management Capital budgeting Financial forecasting Financial planning

Financial Management System Examples

ENTERPRISE BUSINESS SYSTEMS

ENTERPRISE BUSINESS SYSTEMS Companies are now adopting cross-functional enterprise systems that cross the boundaries of traditional business functions Enterprise business systems: Improve efficiency and effectiveness of business processes Enable the firm to develop strategic relationships with customers, suppliers and business partners These systems focus on supporting integrated clusters of business processes The internet is vital in enabling these systems

ENTERPRISE BUSINESS SYSTEMS Span functional areas Include all levels of management Have a central database that enables data to be shared by many different business processes and functional areas. Acquiring enterprise software: Usually purchased from an independent software developer, that often installs and maintains the software for their customers However, it may be designed and implemented by specialists in the IT department within an organization

ENTERPRISE BUSINESS SYSTEMS As many business enterprises have similar departments and systems, enterprise software is often available as a suite of programs Enterprise software is usually developed for specific lines of business, e.g. the health care industry, the manufacturing industry, universities, the banking industry, etc

ENTERPRISE BUSINESS SYSTEMS It is frequently hosted on servers and simultaneously provides services to a large number of users, typically over a computer network. Major enterprise software developers: Microsoft Oracle Corporation SAP As opposed to functional business systems, enterprise business systems focus on accomplishing business objectives in conjunction with the company’s suppliers, customers, business partners and employees.

ENTERPRISE BUSINESS SYSTEMS There are four major enterprise business systems: Enterprise Resource Planning systems Customer Relationship Management systems Supply Chain Management systems Knowledge Management Systems

ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS Cross-functional enterprise system with an integrated suite of software modules support the basic internal business processes of a company Integrate information across the entire company, eliminating complex, expensive links between computer systems in different areas of the business. ERP systems are an integration of functional business systems dealing with internal processes

ERP

Customer Relationship Management (CRM Systems) What is CRM? The strategies, processes, people and technologies used by companies to successfully attract and retain customers for maximum corporate growth. Customer relationship management (CRM) is a broad term that covers concepts used by organizations to manage their relationships with customers, including collecting, storing and analyzing customer information.

CRM CRM uses technology to Create a cross-functional enterprise system That integrates and automates many of the processes in sales, marketing and customer service that interact with customers, eg Account Management Sales Customer Service and Support CRM integrates these processes with the rest of the company’s processes

ENTERPRISE BUSINESS SYSTEMS Customer Relationship Management – focus on acquiring and retaining profitable customers via marketing, sales and service processes. Customer relationship management (CRM) is a broad term that covers concepts used by organizations to manage their relationships with customers, including collecting, storing and analyzing customer information. Knowledge Management applications – focus on providing a firm’s employees with tools that support group collaboration and decision support