1. 1 Chapter 3 Information Systems in Business Functions

2. 2 Effectiveness and Efficiency ISs can help companies attain more effective and efficient business processes. –Effectiveness The degree to which a task is accomplished –Efficiency Determined by the relationship between resources expended and benefits gained in achieving a goal

3. 3 Effectiveness and Efficiency Information technology supports a variety of business functions

4. 4 Accounting AISs automatically post transactions in the books and automate generation of reports for management and legal requirements. Three types of AISs –Transaction processing systems (TPS) –Cost accounting systems –Managerial accounting systems

5. 5 Accounting information Systems include features that reflect up-to-date performance of the organization in financial terms. Accounting

6. 6 Finance The job of financial managers is to manage money as efficiently as possible by: –Collecting payables as soon as possible –Making payments by the latest time allowed by contract or law –Ensuring that sufficient funds are available for day-to-day operations –Taking advantage of opportunities to accrue the highest yield on funds not used for current activities

7. 7 Finance Financial information systems help manage cash and investment portfolios.

8. 8 Engineering ISs reduce engineering lead time or time-to-market. –Key to maintaining a competitive edge –Computer-Aided Design (CAD) Systems Help engineers and technicians design new products and quickly modify and store drawings electronically. –Rapid Prototyping: Creating one-of-a-kind products to test design in three dimensions.

9. 9 Engineering Engineering information systems aid engineers in designing new products and simulating operations.

10. 10 Manufacturing and Inventory Control IT helps in these manufacturing activities: –Plant activity scheduling –Material requirement assessment –Material reallocation between orders –Dynamic inventory management –Grouping work orders by “characteristics” –Resource qualification for task completion

11. 11 Manufacturing and Inventory Control Manufacturing and inventory control IS help reduce cycle times and the cost of maintaining inventory.

12. 12 Materials requirement planning and manufacturing resource planning Materials Requirement Planning (MRP) –Take customer demand as initial input Number of product units needed and when they are needed –Help reduce inventory cost while ensuring availability Manufacturing and Inventory Control

13. 13 Manufacturing Execution Systems (MES) –Track, schedule, and control manufacturing processes –Collect data such as Hours machine operates every day of the month Hours the machine is idle and why Manufacturing and Inventory Control

14. 14 Marketing, Sales, and Customer Service Market Research –Statistical models help market researchers find the best populations for new and existing products. Targeted Marketing –Database management systems (DBMS) help define potential customers as narrowly as possible.

15. 15 Figure 3.8 Marketing and sales information systems help target potential buyers and serve clients. Marketing, Sales, and Customer Service

16. 16 The Computer as a Marketing and Selling Medium –Companies send customers promotional disks with information on their products and services. –Commercial announcements are posted on public bulletin board systems. –The Web lets companies reach more shoppers and serve them better. Marketing, Sales, and Customer Service

17. 17 Sales Force Automation –Equipping salespeople with information technology to facilitate productivity. IT allows salespeople to present different options for products and services on the spot. Customer Service –Customer service via the Web is available 24 hours/day, 7 days/week. Saves companies labor hours and telephone expenses Marketing, Sales, and Customer Service

18. 18 Human Resources Human resource management information systems help managers optimize the assignment of employees and provide payroll, benefits, and other employee-related services.

19. 19 Human Resources Employee Record Management –Reduce space needed to store records, time to retrieve them, and costs of both Promotion and Recruitment –Search databases for qualified personnel –Use intranet to post job vacancies –Use the Web to recruit

20. 20 Training –Multimedia software training is replacing classrooms and teachers. –Training software simulates an actual task or situation and includes evaluation tools. Evaluation –Evaluation software helps standardize the evaluation process and adds a certain measure of objectivity and consistency. Human Resources

21. 21 Compensation and Benefits Management –ISs can help manage compensation efficiently and effectively. Calculate salaries, hourly pay, commissions, and taxes Automatically generate paychecks or direct deposits –Special software helps manage benefits, such as health insurance, life insurance, retirement plans, and sick and leave days. Human Resources

22. 22 Enterprise Resource Planning Enterprise Resource Planning (ERP) –All business functions served by one system that supports different activities for different departments –Support supply chain management, the series of main and supporting activities from order to delivery.

23. 23 Groupware and Collaborative Work GroupWare lets workers in different locations communicate ideas, brainstorm, and work together as if they were in the same place. Document Control –Users can distribute and track electronic documents without working with outdated information. Collaborative Projects –Users can coordinate work on a single document from many different terminals.