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Chapter 3 Information Systems in Business Functions

Chapter 3 Information Systems in Business Functions. Effectiveness and Efficiency. ISs can help companies attain more effective and efficient business processes. Effectiveness The degree to which a task is accomplished Efficiency

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Chapter 3 Information Systems in Business Functions

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  1. Chapter 3 Information Systems in Business Functions

  2. Effectiveness and Efficiency • ISs can help companies attain more effective and efficient business processes. • Effectiveness • The degree to which a task is accomplished • Efficiency • Determined by the relationship between resources expended and benefits gained in achieving a goal

  3. Effectiveness and Efficiency Information technology supports a variety of business functions

  4. Accounting • AISs automatically post transactions in the books and automate generation of reports for management and legal requirements. • Three types of AISs • Transaction processing systems (TPS) • Cost accounting systems • Managerial accounting systems

  5. Accounting Accounting information Systems include features that reflect up-to-date performance of the organization in financial terms.

  6. Finance • The job of financial managers is to manage money as efficiently as possible by: • Collecting payables as soon as possible • Making payments by the latest time allowed by contract or law • Ensuring that sufficient funds are available for day-to-day operations • Taking advantage of opportunities to accrue the highest yield on funds not used for current activities

  7. Finance Financial information systems help manage cash and investment portfolios.

  8. Engineering • ISs reduce engineering lead time or time-to-market. • Key to maintaining a competitive edge • Computer-Aided Design (CAD) Systems • Help engineers and technicians design new products and quickly modify and store drawings electronically. • Rapid Prototyping: Creating one-of-a-kind products to test design in three dimensions.

  9. Engineering Engineering information systems aid engineers in designing new products and simulating operations.

  10. Manufacturing andInventory Control • IT helps in these manufacturing activities: • Plant activity scheduling • Material requirement assessment • Material reallocation between orders • Dynamic inventory management • Grouping work orders by “characteristics” • Resource qualification for task completion

  11. Manufacturing andInventory Control Manufacturing and inventory control IS help reduce cycle times and the cost of maintaining inventory.

  12. Materials requirement planning and manufacturing resource planning Manufacturing andInventory Control • Materials Requirement Planning (MRP) • Take customer demand as initial input • Number of product units needed and when they are needed • Help reduce inventory cost while ensuring availability

  13. Marketing, Sales, and Customer Service • Sales Force Automation • Equipping salespeople with information technology to facilitate productivity. • IT allows salespeople to present different options for products and services on the spot. • Customer Service • Customer service via the Web is available 24 hours/day, 7 days/week. • Saves companies labor hours and telephone expenses

  14. Human Resources Human resource management information systems help managers optimize the assignment of employees and provide payroll, benefits, and other employee-related services.

  15. Human Resources • Employee Record Management • Reduce space needed to store records, time to retrieve them, and costs of both • Promotion and Recruitment • Search databases for qualified personnel • Use intranet to post job vacancies • Use the Web to recruit

  16. Human Resources • Training • Multimedia software training is replacing classrooms and teachers. • Training software simulates an actual task or situation and includes evaluation tools. • Evaluation • Evaluation software helps standardize the evaluation process and adds a certain measure of objectivity and consistency.

  17. Groupware andCollaborative Work • GroupWare lets workers in different locations communicate ideas, brainstorm, and work together as if they were in the same place. • Document Control • Users can distribute and track electronic documents without working with outdated information. • Collaborative Projects • Users can coordinate work on a single document from many different terminals.

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