chapter 7 functional systems. functional business areas

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Chapter 7 Functional Systems

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Page 1: Chapter 7 Functional Systems. Functional Business Areas

Chapter 7

Functional Systems

Page 2: Chapter 7 Functional Systems. Functional Business Areas

Functional Business Areas

Page 3: 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

Page 4: Chapter 7 Functional Systems. Functional Business Areas

Marketing Systems

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

Page 5: Chapter 7 Functional Systems. Functional Business Areas

Marketing System Example

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

Page 6: Chapter 7 Functional Systems. Functional Business Areas

What is Spyware?

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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

Page 7: Chapter 7 Functional Systems. Functional Business Areas

Has anyone ever head of Claria?

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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

Page 8: Chapter 7 Functional Systems. Functional Business Areas

Does Marketing have anything to do with Spyware?

101 2

50%50%

1. Yes

2. No

Page 9: Chapter 7 Functional Systems. Functional Business Areas

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.

Page 10: Chapter 7 Functional Systems. Functional Business Areas

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

Page 11: Chapter 7 Functional Systems. Functional Business Areas

Does anyone really care about manufacturing systems?

10

50% 50%1

2

1. Yes

2. No

Page 12: Chapter 7 Functional Systems. Functional Business Areas

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

Page 13: Chapter 7 Functional Systems. Functional Business Areas

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.

Page 14: Chapter 7 Functional Systems. Functional Business Areas

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

Page 15: Chapter 7 Functional Systems. Functional Business Areas

HR Systems

Page 16: Chapter 7 Functional Systems. Functional Business Areas

Accounting and Finance Systems

What is really the difference between accounting and finance?

Page 17: Chapter 7 Functional Systems. Functional Business Areas

Investment Management

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1. Accounting

2. Finance

Page 18: Chapter 7 Functional Systems. Functional Business Areas

Cash flow forecasting

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1. Accounting

2. Finance

Page 19: Chapter 7 Functional Systems. Functional Business Areas

Payroll

101 2 3 4

25% 25%25%25%1. Accounting

2. Finance

3. HR

4. Accounting mostly but some HR

Page 20: Chapter 7 Functional Systems. Functional Business Areas

Order processing

101 2

50%50%

1. Accounting

2. Finance

Page 21: Chapter 7 Functional Systems. Functional Business Areas

Accounting Systems

Page 22: Chapter 7 Functional Systems. Functional Business Areas

Financial Management Systems

Page 23: Chapter 7 Functional Systems. Functional Business Areas

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

Page 24: Chapter 7 Functional Systems. Functional Business Areas

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

Page 25: Chapter 7 Functional Systems. Functional Business Areas

Types of Information System vs.Functional Business Areas

PCS TPS ECS MIS DSS EIS

Accounting

Finance

HR

Marketing

Production

Page 26: Chapter 7 Functional Systems. Functional Business Areas

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.