7/26: IS for Business Operations

• Cross-Functional Information Systems

• Marketing information systems

• Manufacturing information systems

• Human resource information systems

• Accounting information systems

• Financial information systems

• Transaction processing systems

Cross-Functional IS

• Keep in mind that most IS are not purely for one business functional area or another

• Much overlap and integration is seen

• Enterprise Resource Planning (ERP)– EX: SAP, PeopleSoft, Oracle, Baan, etc.– Aids many functions while focusing on Supply Chain

Management                                                                                                                   

Image courtesy of http://www.sap.com

Manufacturing information systems

• Production & Operations Management (DSC305)

• Simplify, Automate, Integrate

• Computer-integrated manufacturing– Manufacturing Resource Planning Systems (MRP)

• Manufacturing Execution Systems– Process control– Robotics– Machine control (ex: CNC

lathes)

Image courtesy of http://robotics.jpl.nasa.gov/groups/rv/homepage.html

Manufacturing information systems

• Collaborative Manufacturing Networks– Last week’s example from DaimlerChrysler

• Engineering Systems– Computer aided design (CAD) & engineering (CAE)– Prototyping

Marketing information systems

• Interactive marketing– Internet based– Customer is participant in marketing, not endpoint

• Sales force automation– Productivity, speed & reaction time improvements

• Sales & product management: analysis tools

• Advertising & promotion– Targeted marketing: context, community, content,

online behavior, class

• Market research & forecasting

Human Resource IS

• Payroll control & analysis

• Benefits calculation & monitoring

• Personnel record-keeping

• Recruiting

• Training & development

• Governmental reporting

Accounting IS

• General ledgers

• Payroll

• Billing

• Financial reporting

• Accounts receivable

• Payroll & timekeeping

AR Image courtesy of http://www.peachtree.com/complete/html/8screenshot3.cfm

Finance IS

• Cash management– Investment decisions,

forecasting cash flows

• Online investment management

• Capital budgeting

• Financial Forecasting

Image courtesy of http://www.quicken.com

Small Groups: Cases

• Pg. 446 Ornda HealthCorp.: IT-based recruiting

• Pg. 445 Earthlink: Advertising effectiveness

• Pg. 441 Adaptec: Manufacturing boost with IT

• Pg.430 Book-of-the-month Club: Web marketing

• Pg. 405: Gulf States Paper: Machine Control

Transaction processing systems

• Data entry

• Batch vs. real-time processing

• Database management

• Document & report generation

• Inquiry processing

TPS: Data Entry

• Traditional method: manual data entry

• Source data automation– Point of Sale (POS) terminals & ATMs– Bar codes, credit card magnetic stripes, etc.– Prerecording frequently seen data (autofill)

TPS: Batch vs. Real-Time Processing

• Batch processing– Good for applications that are utilized at scheduled

intervals– Ex: customer statements

• Real-time processing– Online transaction processing (OLTP)– Immediate updating of databases & inquiries– Required: access to databases at anytime– Fault-Tolerant systems (“Fault-proofed”)

• Redundant processors, storage facilities

TPS: Document & Report Generation

• Action documents– Purchase orders

• Information documents– Receipts– Customer statements

• Turnaround documents– Credit card statements

• Control listings

• Edit reports (error reports)

TPS: Inquiry Processing

• Sales order status

• Account balances

• Inventory counts