Applications of Information Systems to Functional Business Areas

What will be covered?

Applications of Operational

Information Systems to functional Business areas.

Applications of Tactical and Strategic

Information Systems to functional Business areas.

Applications of Operational Information Systems to Functional Business Areas.

Revisit the organizational pyramid. Strategic , Tactical , Operational levels Information systems can be useful at all these levels. The information systems at operational level are also called Transaction processing systems sales invoicing, purchase order placement, payroll, accounts receivable, accounts payable etc. The operational information systems primarily produce routine, repetitive, descriptive, expected, and objective data that describes past activities. The information they produce is usually detailed, highly structured, , accurate, derived from internal sources, and produced regularly. The application of information systems technology reduce the drudgery to a great extent and provides managers with number of major advantages.

Applications of Operational Information Systems to Functional Business Areas.

Automating operational information systems usually increases the efficiency of these systems; they typically run faster, and require less personnel and other business resources than manual systems. Organizations that automate operational information systems usually receive following benefits for their efforts. Reduced cost - Payroll calculation of 5000 or 50000 employees. Reduced manpower. Increased speed Increased accuracy salary, invoice, a/c balance etc. Increased customer service Increased data for decision making
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Applications of Operational Information Systems to Functional Business Areas.

These operational systems can be useful in almost all major functions like Accounting and finance Marketing Production Human Resources Some of the information systems in these functions are as follows :
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Applications of Operational Information Systems to Functional Business Areas.

Accounting / Finance Fixed assets Sales Order Processing Accounts Receivable Accounts Payable Inventory Control Marketing Prospect Leads Contact Information Production Purchasing Receiving Human Resources Position Control Employee Profile Employee skills Inventory Performance Management Government Reporting
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Telemarketing quality Control Direct mail Shipping advertising Point-of-sale CAD/CAM

Applications of Operational Information Systems to Functional Business Areas.

Accounting / Finance Pur. Order Processing Payroll Billing / invoicing Marketing Delivery tracking / routing Electronic shopping Electronic Advertising Production Automated Materials handling Material Selection Shop floor control Shop floor scheduling Image Management Human Resources Selection and placement Training

Applications of Tactical and Strategic Info Systems to Functional Business Areas

As one moves up the organization ladder from supervisory positions to middle and uppermanagement positions, one is required to make decisions that have an increasingly greater impact on the organization. Some of the examples are as follows: Purchase or lease new piece of equipment? Is the idle cash being invested wisely? Invest in new computer or in additional merchandise? Criteria to be used for creating sales territories for sales people. How large should the sales territory be? Best potential sites for new retail store? Number and types of workers required for new plant.
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Applications of Tactical and Strategic Info Systems to Functional Business Areas

These decisions are classified as tactical (medium term) and strategic (long term). Strategic information systems are goal oriented. These systems are designed to support organizational goal and direction setting. Tactical information systems support management decision making by providing mangers with regular summary reports, exception reports, ad hoc reports and other information that helps them (1) control their areas of responsibility and (2) allocate their resources to pursue organizational goals. The focus of operational information systems is on the completion of tasks whereas the focus of tactical information systems is on the resource allocation. Examples of tactical information systems in different functional areas are as follows :

Applications of Tactical Info Systems to Functional Business Areas Accounting / Finance Budgeting Marketing Production MRP Just in time Capacity planning Production scheduling Product design and development Human Resources Job analysis and design Recruiting Compensation and benefits Succession planning

Sales management Cash Advertising & Management promotion Capital Pricing Budgeting Investment Distribution management channel Competitive tracking

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Applications of Strategic Info Systems to Functional Business Areas Accounting / Finance Financial Condition analysis Long term forecasting Marketing Sales Forecasting Market Research Product Planning and Development Production Human Resources

Site Planning Workforce and Selection planning Labour Technology planning and negotiations management Process positioning Plant Design
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Applications of Tactical Info Systems to Functional Business Areas

Accounting / Finance Budgeting System : Track actual revenues and expenses and compare with expected revenues and expenses. Current budget with prior fiscal periods, other divisions, other departments and even industrywide data. Find out variance. zero based budgeting. Cash Management : Working capital and long term asset acquisition. Cash flow report. Capital Budgeting : Investment Management System : Overseeing the organizations investments in stocks, bonds and other securities.
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Applications of Tactical Info Systems to Functional Business Areas Marketing Sales Management System : Decisions regarding salespeople, territories, products, customers. Advertising media, promotion schemes. Pricing System : Helps in setting prices for products and services. Distribution Channel Systems : Direct to customers, through middleman or both. Competitive Tracking system : Major competitors and their marketing activities.
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Applications of Tactical Info Systems to Functional Business Areas Production MRP : JIT Just in time . Capacity Planning System : Production capacity. Machine, manpower, space. Avoid excess capacity. Production Scheduling System : Product Design and Development system : MRP II : Computer Integrated Manufacturing : CIM
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Applications of Tactical Info Systems to Functional Business Areas Human Resource Job analysis and Design Systems : Describes the jobs needed in an organization and the qualities of workers needed to fill these jobs. Recruiting systems : Provide bank of qualified applicants to fill vacant positions. Compensation and benefits systems : Succession planning system : Identify replacement employees and train them.

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Applications of Strategic Info Systems to Functional Business Areas

Accounting / Finance Financial Condition analysis : Ratios and analysis tools. Long Range forecasting system : Sales, Manpower, economic environment Marketing Sales Forecasting system : Industry , Organization, product, market segment Marketing Research system : Trend analysis, population and target group characteristics, customer satisfaction, , market share etc. Product Planning and development : Product specifications

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Applications of Strategic Info Systems to Functional Business Areas

Production Site planning and selection : availability of Manpower, RM, PM, market, land etc. Technology Planning and assessment : Identify and assess new technologies Process Positioning System : Vertical integration Textile mill Composite, spinning, looms, bleaching , dyeing Plant Design systems : Plant Layout

Human Resources Work force planning system : Labour force requirement in terms of number, skills, time frame , experience, knowledge etc. IS supporting labour negotiations :
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