Business Information Systems in firms.pptx

Business Information Systems in firms

1. Information systems help companies to: increase profits, decrease costs enhance customer satisfaction sustain competitive advantage in the marketplace, people and develop strategic alliances reduce product life cycles, achieve increased efficiencies hire and retain outstanding people develop strategic alliances between retailers and suppliers. Business Information System

2. Functional Information System Marketing Information System Manufacturing Information System Quality Information System Financial & Accounting Information System Human Resource Information System Geographical Information System Types of Business Information System

3. Way of assessing the contribution of IS to organizational productivity and market growth is to study the impact of IS on each of the five functional areas in an organization: Marketing Manufacturing Accounting and finance Quality control Human resources Functional Information System

4. A system that meets the marketing information needs of an organization. Customer-oriented and work toward achieving the strategic sales and marketing plan Aim is to gain instantaneous access to global market information Primary goal of retaining existing customers and attracting new ones Can’t be standardized for all companies. Every company has its own Marketing system must be tailored to match the marketing policies, procedures and practices of each company. A very popular marketing information system is one that automates sales and marketing functions. Such systems capture valuable customer information and hence can improve productivity, enhance customer service and create better sales and marketing strategies. Are influenced by and influence the strategic business plan and the strategic marketing plan. Marketing Information System

5. Provides employees with information that helps companies capture niche markets in highly competitive industries. Helps in sales forecasting. Able to provide demand forecast. Helps in achieving a company’s goal. Marketing information system have a deep and direct influence on the quality of customer service. Assists the marketing manager to maintain the better relationship with valuable customer. Benefits of Marketing Information System

6. A system that supports the manufacturing functions of: purchasing, receiving, quality control inventory management, material requirement planning, capacity planning Production scheduling and plant design. Applies to both manufacturing and service industries Manufacturing should be viewed within the broad context of delivering both goods and services since a manufacturer of automobile parts and a travel agency are likely to have manufacturing information system. Production system is a subset of manufacturing information system. Production system pertains to the production of goods and services. It specially addresses information needs relating to raw materials, equipment, manpower and other issues related to production of goods and services. Manufacturing Information System

7. Dynamic and flexible enough to instantaneously produce customized goods and services in different quantities effortlessly switch the manufacturing process from one product to another Production scheduling and plant design. Agile organizations have four key characteristics: The ability to thrive on constant change Recognition by the organization that people are its main asset Incorporation of the virtual company idea through the use of telecommunications A focus on creating products and services with real added value Agile Manufacturing Information System

8. Helps supplier to store such as Home Depot and Ace Hardware. Reduces operating cost and inventory levels To achieve strategic goal of company Benefits Mfg. Information System

9. Textile/Clothing Technology, a federally funded textile industry research and development group based in Cary, North Carolina, has an agile prototype. This prototype uses the data captured at POS terminals at retail outlets to give manufacturing instructions to computerized sewing machines in remote locations. Agile manufacturing will also help companies to better integrate their information systems. Agile Manufacturing Information System

10. Stand-alone or embedded systems that help an organization to achieve its quality goals. The quality plan is derived from the strategic information plan. It supports and facilitate an organization’s TQM efforts. Quality Information System

11. The QIS is an information system that can promote quality and provides tools and techniques to help the company to achieve its quality goals. Information systems also help companies to achieve quality certifications. For example, ISO 9001 labeling over the product package. Quality Information System

12. Provides information related to the accounting and financial activities of an organization Includes a large number of subsystems that address the operational, tactical and strategic information needs of the business Includes some subsystems such as budgeting, cash and asset management, capital budgeting, portfolio analysis, general ledger, account receivable, inventory control and payroll systems. Other subsystems include record keeping, account analysis, cash management, financial analysis, leasing options, insurance underwriting, insurance claims processing and investment management. Financial institution like bank, uses specialized FAIS, such as commercial loan analyzers, credit approval system, commercial account rating system, credit application system, automated teller control and securities trading. Financial and Accounting Information System (FAIS)

13. FAIS to support tactical and strategic decision making in the organization are: Cash Management System: - A system that the organization has enough cash to conduct normal business, to receive the best possible return on its short-term cash deposits, and to leverage its cash flow to achieve good ratings in financial markets. Capital budgeting System: - A system that ensures the acquisition and disposal of capital assets such as land, buildings and so on. Investment Management System: - A system that ensures that the organization gets the best possible returns on its long-term investments. Types of FAIS

14. Financial decisions are not made in vacuum; they often involve marketing, manufacturing and human resources, so a free flow of information among these functional units is vital for good decision making. FAIS are often integrated with other functional systems in the organization to facilitate data sharing and decision making. For global and multinational companies, integrated financial and accounting systems are simply a necessity. For example, a multinational corporation with operations in the US. The system ensures that every application, regardless of where it originated, complies with the accounting rules and principles of US. Integrated Financial and Accounting Systems

15. Supports the planning, control, coordination, administration and management of an organization’s human resources. HRIS includes a large number of subsystems that address the information needs of various human resource functions. They provide managers with information, policies and procedures concerning recruiting, layoffs, employee evaluation, promotion, termination, termination, transfer, salary equity monitoring, job descriptions and responsibilities, training, affirmative action and equal employment opportunities. An HRIS also determines how hiring and training decisions made by the personnel department can increase sales revenues. Human Resource Information System (HRIS)

16. An important subsystem of the HRIS is the compliance system, which closely tracks and monitors the organization’s record of compliance with government laws and regulations, such as affirmative action, equal employment opportunities, the health and safety codes of the Occupational Safety and Health Administration (OSHA) and others. Another vital HRIS subsystem manages records and generates information regarding recruitment, transfer, promotion, layoff and termination of employees. Human Resource Information System (HRIS)

17. Developing an HRIS Firm Level Competitive Strategies HR Competitive Objectives Cost Leadership Quality/Customer Satisfaction Innovation People Working Harder People Working Smarter People Working with Vision HR Decisions and Actions Streamline Standardize Decrease production time/head count Reduce costs (e.g. Increase accuracy Educate line managers and other “Clients” Delegate/share decisions Use customer driven performance criteria Increase flexibility Define vision Attract creative talent Reward risk Provide opportunities/tools for exploration The following table shows how the competitive strategies of a firm can directly influence the objectives of the HRIS.

18. A GIS is a computer-based system that stores and manipulate data that are viewed from a geographical point of reference. It can also be defined as powerful and versatile tools that allow users to generate and process information with a geographical point of reference. GIS has four main capabilities: 1. Data input 2. Data storage & retrieval 3. Data Manipulation and analysis 4. Data Output A GIS is much more versatile and powerful than a cartographic system, since it can create information by integrating different data, sometimes from different sources and display the data in different ways to the end-user. Geographical Information System (GIS)

19. The banking industry uses GIS to respond to regulatory pressures and to comply with the Community Redevelopment Act, which requires banks to demonstrate to regulators that their lending practices are nondiscriminatory. A GIS allows a bank to compare deposits with loan approvals in a given area and show that loan approvals meet regulatory standards in areas with high deposits, especially in parts of the country that have heavy minority populations. A GIS is an excellent decision-making tool that integrates geographical data with other business data. For companies with a customer focus, a GIS provides clear profiles of customers and their needs; hence these tools can be integrated with any of the functional system such as marketing information system, production information system and so on. Geographical Information System (GIS)

20. Today, the emphasis is on building cross-functional systems that facilitate the flow of information among all units in an organization. Some critics to develop a Cross-functional System are: 1. Decision-making should not be compartmentalized in functional areas, but should instead be viewed in the context of the entire organization 2. A close link is made in between information system and functional system. 3. System must be designed in such a way that it can work combinely with both the systems For example, a report of the number of people who worked overtime last month or the number of machines that operated during the night shift last month (manufacturing) are often the output of an MIS. Developing Cross-functional System