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Chapter 7
Functional Systems
Functional Business Areas
Which functional area
interests you the most?
1.
2.
3.
4.
5.
Marketing
Finance
Human Resources
Accounting
Production/Operations/
Manufacturing
50%
1
50%
0%
0%
0%
2
3
4
5
Marketing Systems







Interactive Marketing
Sales Force Automation
Customer Relationship Management
Market Research and Forecasting
Advertising and Promotion
Product Management
Sales Management
Marketing System Example
 Oracle

Siebel
http://www.oracle.com/webapps/dialogue/dlgpage.jsp
What is Spyware?
1.
2.
3.
4.
5.
Shares my personal
info with a data center
Takes control of my
computer
Delivers pop-up adds
Tracks my Internet
usage
All of the above
100%
0%
1
0%
2
0%
3
4
0%
5
Has anyone ever head of Claria?
1.
2.
3.
4.
Yes, its for allergies
Yes, its a cartoon
Yes, they are leaders in online behavioral
marketing
No
25%
25%
1
2
3
4
25%
25%
10
Does Marketing have anything
to do with Spyware?
1.
2.
Yes
No
50%
1
50%
2
10
Targeted Marketing




appeal to people in specific Communities
Content of messages is aimed at targeted
audiences
Context: If you buying plane tickets
online, you might be more interested in ad
for suitcases.
Demographic/Psychographic  
Online Behavior.
Marketing System and Spyware
Proliferation

There is a connection between all of the
following:


1.
2.
Targeted Marketing, Marketing Information Systems,
Spyware, Spam, and Junk Mail
Information about your online behavior allows
companies to
Target you specifically
Learn about connections, context,
demographics, psychographics, and online
behavior
Does anyone really care about
manufacturing systems?
1.
2.
Yes
No
50%
50%
1
2
10
Manufacturing Systems




This is where we see the use of process
control systems.
From petroleum processing to toy
manufacturing
CAM: Computer Aided Manufacturing
CIM: Computer Integrated Manufacturing
Computer Integrated
Manufacturing (CIM)



Simplify production processes.
Re-engineer vs. gradual improvement.
Automation – robotics, artificial intelligence
Integrate production process with other
systems: Order processing, inventory
control, finance systems.
Human Resource Systems


HRM: Human Resource Management
Employee Self-Service Systems

Let employees manage their



Benefit Packages (Health Insurance)
Retirement Plans (Investments)
Online HRM systems...


Integration with Monster.com, CareerBuilder.com, etc.
Helps companies recruit more effectively
HR Systems
Accounting and Finance Systems

What is really the difference between
accounting and finance?
Investment Management
1.
2.
Accounting
Finance
50%
1
50%
2
10
Cash flow forecasting
1.
2.
Accounting
Finance
50%
1
50%
2
10
Payroll
1.
2.
3.
4.
Accounting
Finance
HR
Accounting mostly
but some HR
25% 25% 25% 25%
1
2
3
4 10
Order processing
1.
2.
Accounting
Finance
50%
1
50%
2
10
Accounting Systems
Financial Management Systems
Functional Business Systems

A complete
accounting system
may have some of
the characteristics of
an



MIS,
TPS, and
DSS.

A complete marketing
system may combine
an




MIS,
ECS,
TPS, and
DSS
Marketing Information
Systems
TPS
Interactive
Marketing
DSS
ECS
Sales Force
Automation
Market Research
and Forecasting
Customer
Relationship
Management
Sales
Management
Advertising and
Promotion
Product
Management
MIS
Types of Information System vs.
Functional Business Areas
PCS TPS
Accounting
Finance
HR
Marketing
Production
ECS MIS
DSS EIS
Summary


Typically, Business is broken into 5 Functional
Areas and Information Systems can be designed
for just one of the areas.
But this is not always the case…


Example: A Robust TPS may be used in Accounting,
Marketing, and Finance.
Also, a complete functional system may not fit
into one of the six categories

Example: An Accounting Systems is both a TPS and
an MIS.