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Functional Business Systems: James A. O'Brien, and George Marakas Management Information Systems

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LECTURE 5

FUNCTIONAL BUSINESS
SYSTEMS

James A. O'Brien, and George Marakas


Management Information Systems
Chapter 7 Electronic Business Systems 2

Learning Objectives
• Functional Business Systems
• Marketing Systems
• Manufacturing Systems
• Human Resource Systems
• Accounting Systems
• Financial Management Systems
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Functional Business Systems


• A variety of types of information systems that support the
business functions of
• Accounting
• Finance
• Marketing
• Operations management
• Human resource management
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Marketing Systems
• Marketing systems are concerned with
• Planning, promotion and sale of existing products in existing
markets
• Development of new products and new markets
• Better attracting and serving present and potential customers
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Marketing Information Systems


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Targeted Marketing
• An advertising and promotion management concept with
five targeting components
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Targeted Marketing Components


• Community: customized ads to appeal to specific virtual
communities
• Content: ads placed on a variety of selected websites,
aimed at a specific audience
• Context: ads placed on web pages that are relevant to a
product or service
• Demographic/Psychographic: web marketing aimed at
specific types or classes of people
• Online behavior: promotions tailored to each visit to a site
by an individual
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Manufacturing/Production Information Systems


• Supports the production/operations functions
• Includes all activities concerned with planning and control of the
processes producing goods or services
• Computer-integrated manufacturing (CIM) is the
manufacturing approach of using computers to control the
entire production process.
CIM Objectives:
• Simplify production processes, product designs, and factory organization
• Automate production processes and the business functions that support
them
• Integrate all production and support processes using
• Networks
• Cross-functional business software
• Other information technologies
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Human Resource Management (HRM)


• Information systems designed to support
• Planning to meet personnel needs
• Development of employees to their full potential
• Control of all personnel policies and programs
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Accounting Information Systems


• The oldest and most widely used information system in
business
• Records and reports business transactions and economic
events
• Produces financial statements
• Forecasts future conditions
• Typically consists of
• Order processing
• Inventory control
• Accounts receivable
• Accounts payable
• Payroll
• General ledger systems
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Financial Management Systems


• Supports business managers and professionals making
decisions concerning
• The financing of a business
• The allocation and control of financial
resources within a business
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Financial Management System


Example
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Enterprise Business Systems


• The overall combination of computer hardware and software
that a business uses to organize and run its operations and
covers all of the services that we need at the enterprise level

• Ensuring maximum efficiency.


• Implementing adequate knowledge management
• Implementing a robust system to support ICT needs
• Thus enterprise can thrive saving us countless wasted hours and expense
across the organization.
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Enterprise Application Architecture


• Focuses on accomplishing fundamental business
processes with
• Customers
• Suppliers
• Partners
• Employees
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Fundamental Entities of Enterprise Application


Architecture
• Enterprise Resource Planning (ERP)
• Focuses on efficiency of internal production, distribution, and
financial processes.

• Customer Relationship Management (CRM)


• Focuses on acquiring and retaining profitable customers via
marketing, sales, and services

• Partner Relationship Management (PRM)


• Focuses on policies, procedures and methodologies to deliver,
manage and maintain its relationships with external business
partners.
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Enterprise Application Architecture


• Supply Chain Management (SCM)
• Management of material and information flow in a supply chain to

• Provide the highest degree of customer satisfaction at the


lowest possible cost.
• Supply chain management requires the commitment of supply chain
partners to
• Work closely to coordinate order generation, order taking,
and order fulfillment.

• Knowledge Management (KM)


• The process of creating, sharing, using and managing the knowledge
and information of an organization. It refers to a multidisciplinary
approach to achieving organizational objectives by making the best use
of knowledge.
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Transaction Processing Systems


• A transaction process system (TPS) is an information processing
system for business transactions involving the collection, modification
and retrieval of all transaction data.
• Characteristics of a TPS include performance, reliability and
consistency.

• TPS is also known as transaction processing or real-time processing.


• Transactions include sales, purchases, deposits, withdrawals,
refunds, and payments

• Online transaction processing (OLTP) is a real-time system that


captures transactions immediately
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Transaction Processing Systems


• A type of processing in which the computer responds
immediately to User requests.
• Each request is considered to be a transaction. Automatic teller machines
for banks are an example of transaction processing.

• The opposite of transaction processing is Batch Processing, in which a


batch of requests is stored and then executed all at one time.

• Transaction processing requires interaction with a user,


whereas batch processing can take place without a user being
present (no interaction).
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Enterprise Collaboration Systems


(ECS)
• An Enterprise Collaboration System (ECS) is an information
system used to facilitate efficient sharing of documents and
knowledge between teams and individuals in an enterprise.

• ECSs are cross-functional information systems that enhance


team and workgroup
• Communication
• Coordination
• Collaboration
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Enterprise Collaboration Systems


(ECS)
• Systems may include
• Servers
• Databases
• The Internet,
• Groupware,
• Groupware and application packages
• Various forms of software and hardware
• Networked PC workstations (Internal and external
networks).
• ECS functions optimally in a collaborative working
environment (CWE).
•  
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Enterprise Collaboration Strategy


• Seven elements are most important to a successful
enterprise collaboration strategy:

• Platform
• Commercial value
• Community managers
• Management engagement
• Advocate network
• Center of excellence
• Individual benefits
Chapter 7 Electronic Business Systems 22

Questions
1. Briefly discuss the functional business system (FBS) in the context
of Accounting, Finance, Marketing, Manufacturing/Production and
HR management system with a diagram (DFD).
2. What is Enterprise Business Systems (EBS)? Sketch an Enterprise
Application Architecture.
3. Explain fundamental and main entities of an Enterprise Application
Architecture.
4. Define Transaction Processing and Batch Processing Systems?
Differentiate them.
5. Define Enterprise Collaboration Systems (ECS). What are its
different entities?
6. What are the elements of successful Enterprise Collaboration
Strategy?

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