Business Information Systems
Information System in business:
Business managers are moving from a tradition
where they could avoid. Delegate or ignore decision
make about IT to one where they cannot create a
marketing product , international , organizational , or
financial plan that does not involve such decisions.
Business information systems :
have a variety of types of information
systems ( transaction processing
management information decision support
, etc,) that support the business functions
of accounting , finance , marketing ,
operations management and human
Cross Functional Information Systems
P 10.2 page 406 MIS
Business Information Systems.
P 10.3 page 407
The new product development process in a
manufacturing company. This business process
must be supported by cross-functional
information systems the cross boundaries of
Company Component Purpose
Information Sale & Promotion analysis,
Resources Inc Marketing product management
and demand analysis,
scanner data analysis.
Industri- Order Finished goods
Matemetic management inventory, picking /
International shipping, invoicing,
sales orders, pricing
Oracle Financials Fixed assets, project Corporation
accounting, purchasing ,accounts
receivable, accounts payable,
Marketing Information Systems.
The business function of marketing is
concerned with the planning ,promotion ,
and sale of existing products in existing
markets, and the development of a new
products and new markets to better serve
present and potential customers.
Marketing Information System
Interactive Sales Force Advertising Sales
Marketing Automation & Promotion Management
Market Customer Product
resource & Service and Management
Forecasting Support h
Marketing Information System provide Information
Technologies to support major components of the
Marketing Information systems : provide
information technologies that support major
components of the marketing functions . Example
Internet/Intranet Web site and services make an
interactive marketing process.
Interactive marketing :
Type of marketing using Internet , Intranets
and Extranets to establish two way interaction
between a business and its customers or
potential customers. The goal of Interactive
marketing is to enable a company to profitably
use these networks to attract and keep
customer who will become partners with the
business in creating , purchasing and
improving products and services
P 10.6 page 409 MIS
Sales Force Automation systems
Sales Force Automation systems use mobile
computing and internet technologies to automate
many information processing activities for sales
support and management. Other marketing
information systems assist marketing managers in
product planning , pricing and other product
management decision , advertising and sales
promotion strategies and market research and sale
promotion strategies and forecasting.
Many companies provide notebook PCs ,
Web browsers and sales contact management
software to help their sales reps use the
resources at internet and intranet Web sites
support the selling process.
The benefits of Web based sales force automation.
• Shorten the sales cycle through prequalification
• Increase revenue through targeted marketing.
• Automate the management and qualification of
• Capture all customer information directly into a
• Enhance order management with access to data
on pricing , promotion,availability, production
schedules, export regulations ,carriers etc.
Sales and product Management
Sales managers must plan , monitor and support
the salespeople in their organizations. So in most
firm , computer based systems produce sales
analysis reports ( Next picture) That analysis sales
by product, product line, customer , type of
customer , salespeople , and sales territory. Such
reports help marketing managers monitor the
sales performance of products and salespeople
and help them develop sales support programs to
improve sales results.
Example of a sales analysis display.
Product managers need information to plan
and control the performance of specific products,
product lines, and brands. Computers can help
provide price , revenue, cost , and growth
information for existing products and new product
development. Providing information and analysis
for pricing decision is a major function of this
system. Information is a also needed on the
manufacturing and distribution resource proposed
product will require. Computer based models
may be to evaluate the performances of current
products and the prospects for success of proposed
Advertising and Promotion : Marketing
managers try to maximize sales at the lowest
possible costs for advertising and promotion.
Marketing information system use market resource
information and promotion model to help (1)
allocate financial resource (2) select media and
promotional method (3) control and evaluate
results of various advertising and promotion
Targeted marketing :
Targeted marketing :has become important tool
in developing advertising and promotion
strategies for a company’s electronic commerce
P 10.10 412 mis
The five major computers of targeted marketing
for electronic commerce on the World Wide
The five major components of targeted Marketing
• Community : Companies can customize their
Web advertising messages and promotion methods
to appeal to people in specific communities . These
can be communities of interest , such as virtual
communities of online sporting enthusiasts or art
and crafts hobbyists, or geographic communities
formed by the Web sites of a city or local
• Content : Advertising such as electronic
billboards or banners can be placed on various
Web site pages, in addition to a company ‘s home
page . These message reach the targeted audience.
And ad for a movie on opening page of the
internet search engine is a typical example.
• Context: Advertising appears only in Web
pages that are relevant to the content of a product
or services. So advertising is targeted only at
people who are already looking for information
about a subject matter (Vacation travel for
example) that is related to a company’s products (
Car rental services, for example)
efforts can be aimed only at specific type of class of
people: unmarried, twenty-something , middle
income , male collage graduates, for example.
Online behavior : Advertising and promotion
efforts can be tailored to each visit to a site by
individual. This strategy is based on “ Web cookie”
files recorded on the visitor’s disk drive from
A display of a Web based marketing survey service.
Manufacturing Information Systems.
Manufacturing Information Systems
support the production/operations function that
includes all activities concerned with the planning
and control of the processes producing goods or
services. Thus concerned with the management of
operational processes and systems of all business
Computer integrated Manufacturing (CIM)
A Variety of manufacturing information
systems are used to support computer
integrated manufacturing (CIM) . CIM is
an overall concept that stresses that the
objectives of computer based systems in
manufacturing must be to :
• Simplify production processes , product
designs and factory organization as a
vital foundation to automation and
• Automate production processes and the
business functions that support them with
computers machines and robots.
• Integrate all production and support
processes using computers
telecommunications networks and other
P 10.12 page 414 MIS
Manufacturing information systems support
computer integrated manufacturing.
The overall goal of CIM and such Manufacturing
information systems is to create flexible , agile ,
manufacturing processes that efficiently produce
products of the highest quality. Thus CIM
supports the concepts of flexible manufacturing
systems, agile manufacturing and total quality
management. Implementing such manufacturing
concepts enable a company to quickly respond to
and fulfill customer requirements with high
quality products and services.
Manufacturing information systems help companies
simplify , automate , and integrate many of the
activities needs to produce products of all kinds. For
example computers are used to help engineers design
better products using both computer aided engineering
and computer aided design, and better production
process with computer aided process planning. They
are also used to help plan the types of material needs
in the production process,which is called material
requirement planning (MRP)and to integrate MRP
with production scheduling and shop floor operations
which is known as Manufacturing resource planning.
Computer aided manufacturing (CAM)
systems are those that automate the
production process. For example This could
be accomplished by monitoring and
controlling the production process in a
factory through manufacturing executive
systems, or by directly controlling a physical
process , a machine tools
Manufacturing execution systems (MES)
are performance monitoring information systems
for factory for operations. They monitor , track,
and control the five essential components involved
in a production process: material , equipment,
personnel , instructions and specifications and
production facilities. MES includes shop floor
scheduling and control, machine control, robots
control, and process control systems.
P 10.14 page 416 MIS
Manufacturing execution systems monitor and
control the accomplishment of manufacturing
processes at each level of a flexible manufacturing
P 10.16 page 418 Mis
This computer controlled robotic arm and hand
helps to assemble computer circuit boards at
Human resource information systems. (HRM)
function involves the recruitment, placement ,
evaluation ,compensation , and development of the
employees of an organization . The goal of HRM is
the effective and efficient use of the human resources
of a company. Thus human resource information
systems are designed to support (1) planning to meet
the personnel needs of the business, (2) development
of employee to their full potential , and (3) control of
all personnel policies and programs.
Originally businesses used CBIS to (1)
produce paychecks and payroll reports (2)
maintain personnel records and (3) analyze
the use of personnel in business operations.
Many firms have gone beyond these tradition
personnel management functions and HRIS
that also support (1) recruitment , selection ,
haring (2) job placement (3) performance
appraisals (4) employee benefits analysis (5)
training and development (6) health ,safety,
P 10.18 page 420 MIS
Human resource information systems support
the strategic ,tactical, and operational use of
human resources of an organization.
Accounting Information Systems.
Accounting Information Systems are the oldest and
most widely use information system in business.
They record and report business transactions and
other economic events.
• Order Processing
• Inventory control
• Accounts Receivable
• Accounts Payable
• Payroll * General Ledger.
Accounting Information Systems.
P 10.23 page 425
Important accounting information systems for transaction
processing and financial reporting.
Online Accounting Systems
Accounting Information Systems are being
affected by Internet and client/Server technologies.
Using the internet ,intranets, extranets and other
networks changes how accounting information
systems monitor and track business activity. The
online, interactive nature of such networks calls
for new forms of transaction documents,
procedures,and controls. This particularly applies
to systems like order processing, inventory control,
accounts receivable and accounts payable.
Finance Information Systems
Computer based financial information systems
support financial managers in decision concerning
(1) the financing of a business and (2) the
allocation and control of financial resources within
a business. Major financial information system
categories include cash and investment
management , capital budgeting ,financial
forecasting, and financial planning.
Finance Information Systems
P 10.26 page 427 MIS
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