Chapter 7 Functional Systems. Functional Business Areas.

Chapter 7

Functional Systems

Functional Business Areas

Which functional area interests you the most?

1 2 3 4 5

50%

0%

50%

0%0%

1. Marketing

2. Finance

3. Human Resources

4. Accounting

5. Production/Operations/Manufacturing

Marketing Systems

Interactive Marketing Sales Force Automation Customer Relationship Management Market Research and Forecasting Advertising and Promotion Product Management Sales Management

Marketing System Example

Oracle Siebel http://www.oracle.com/webapps/dialogue/dlgpage.jsp

What is Spyware?

1 2 3 4 5

0% 0% 0%0%

100%

1. Shares my personal info with a data center

2. Takes control of my computer

3. Delivers pop-up adds

4. Tracks my Internet usage

5. All of the above

Has anyone ever head of Claria?

10

25%

25% 25%

25%1

2

3

4

1. Yes, its for allergies

2. Yes, its a cartoon

3. Yes, they are leaders in online behavioral marketing

4. No

Does Marketing have anything to do with Spyware?

101 2

50%50%

1. Yes

2. No

Targeted Marketing

appeal to people in specific Communities Content of messages is aimed at targeted

audiences Context: If you buying plane tickets

online, you might be more interested in ad for suitcases.

Demographic/Psychographic Online Behavior.

Marketing System and Spyware Proliferation

There is a connection between all of the following:

Targeted Marketing, Marketing Information Systems, Spyware, Spam, and Junk Mail

Information about your online behavior allows companies to

1. Target you specifically2. Learn about connections, context,

demographics, psychographics, and online behavior

Does anyone really care about manufacturing systems?

10

50% 50%1

2

1. Yes

2. No

Manufacturing Systems

This is where we see the use of process control systems.

From petroleum processing to toy manufacturing

CAM: Computer Aided Manufacturing CIM: Computer Integrated Manufacturing

Computer Integrated Manufacturing (CIM)

Simplify production processes. Re-engineer vs. gradual improvement.

Automation – robotics, artificial intelligence Integrate production process with other

systems: Order processing, inventory control, finance systems.

Human Resource Systems

HRM: Human Resource Management Employee Self-Service Systems

Let employees manage their Benefit Packages (Health Insurance) Retirement Plans (Investments)

Online HRM systems... Integration with Monster.com, CareerBuilder.com,

etc. Helps companies recruit more effectively

HR Systems

Accounting and Finance Systems

What is really the difference between accounting and finance?

Investment Management

101 2

50%50%

1. Accounting

2. Finance

Cash flow forecasting

101 2

50%50%

1. Accounting

2. Finance

Payroll

101 2 3 4

25% 25%25%25%1. Accounting

2. Finance

3. HR

4. Accounting mostly but some HR

Order processing

101 2

50%50%

1. Accounting

2. Finance

Accounting Systems

Financial Management Systems

Functional Business Systems

A complete accounting system may have some of the characteristics of an MIS, TPS, and DSS.

A complete marketing system may combine an MIS, ECS, TPS, and DSS

Marketing Information Systems

Interactive Marketing

Sales Force Automation

Customer Relationship Management

Sales Management

Product Management

Market Research and Forecasting

Advertising and Promotion

TPS

MIS

ECS

DSS

Types of Information System vs.Functional Business Areas

PCS TPS ECS MIS DSS EIS

Accounting

Finance

HR

Marketing

Production

Summary

Typically, Business is broken into 5 Functional Areas and Information Systems can be designed for just one of the areas.

But this is not always the case… Example: A Robust TPS may be used in Accounting,

Marketing, and Finance. Also, a complete functional system may not fit

into one of the six categories Example: An Accounting Systems is both a TPS and

an MIS.