Functional areas within
business
AS
Key functions in business
ICT
Services
Sales
Administration
Distribution
Accounts/Fi
nance
The main
functional
areas
Marketing
Human
resources
Research and
development
Design
Production
AS:U2 Functional areas within business
Delivering key functions
 In a small business, will be done by
individuals
 In a medium/large business, will be done
by individuals working in functional areas
or departments
AS:U2 Functional areas within business
Links between functions

All functional areas must link
together to achieve the
overall aims and objectives

Each functional area collects
and stores information using
ICT

This information needs to be
shared within thecompany

This means cooperation and
good communications, which
obviously ICT plays a major
part!!
Distribution
R&D
HR
Sales
Admin
Marketing
ICT
Design
Production
Finance
AS:U2 Functional areas within business
Human resources
Recruitment, retention
and dismissal
Health and
safety
The main
responsibilities of the
human resources
function
Employee
organisations
and unions
Working
conditions
Training,
development
and promotion
Includes the legal rights and responsibilities of
employer and employees
AS:U2 Functional areas within business
What information does
the Human Resources
Function need?
AS
Marketing and Sales
Both are concerned with customer needs.
Market research
Activities
include:
Sales
Promotion
AS:U2 Functional areas within business
What information does
the Marketing Function
need?
AS
Finance
Concerned with money and future plans
 Preparing accounts, eg invoices, management
accounts, financial accounts for shareholders
and Inland Revenue
 Preparing wages and salaries
 Obtaining capital and resources, eg money for
expansion or to pay for resources such as
equipment and materials.
AS:U2 Functional areas within business
What information does
the Finance Function
need?
AS
Research and development
Concerned with developing new goods/services
and updating old ones
Activities include:




Technological developments
Scientific research
Design features
Performance of product
AS:U2 Functional areas within business
What information does
the Research Function
need?
AS
Production (sometimes called operations)
 Concerned with the main business activities
 Obtains and converts resources of the business
into goods/services, ie
–
–
–
–
Buildings and land
Equipment
People
Materials
AS:U2 Functional areas within business
What information does
the Production Function
need?
AS
Customer service
Concerned with customer relationships
Activities include:
 Providing information
 Giving advice
 Providing credit facilities
 Delivering goods
 Providing after-sales service
AS:U2 Functional areas within business
What information does
the Customer Service
Function need?
AS
Administration
Clerical work, eg
mail, record keeping
Cleaning and
maintenance
The role of
administration and
ICT function
Health and
safety records
Security
AS:U2 Functional areas within business
What information does
the Administration
Function need?
AS
The use of IT
Relates to all functional areas:
Support for software applications,
 electronic
Electronic
communications
communications
and
electronic transactions
(eg email)
 Data sharing or EDI (eg databases)
 Security systems (eg virus protection)
 External communications (eg Internet)
 Online support for customers (eg order tracking)
 Electronic transactions (eg EFT (linked to EDI))
AS:U2 Functional areas within business
What information does
the ICT Services
Function need?
AS
Functional variations
No two businesses are the same!
Functions will vary because of:
 Size and scale of business
 Activities of business
 Type(s) of customers
 Needs of customers
 Preferences of owner(s)
AS:U2 Functional areas within business
Investigating functional areas






Identify key functions
Find out where these carried out (or by whom)
Check names of key areas/departments
Identify what information is collected and how
Identify links between functions/areas
Identify use of IT within/between functions and
customers to access stored information or
exchange information
 Note any problem areas
AS:U2 Functional areas within business
AS:U2 Functional areas within business
Functional Areas and ICT
Functional Areas and ICT
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Learning objectives
Why must the functional areas within a
business work together?
How does ICT help the different functional
areas perform their tasks efficiently?
How does ICT help businesses save money?
Why is ICT vital for security and safety?
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Communication
The functional areas in a business can
work on the same or different projects.
Ultimately, they share the same goal:
achieve the aims of the business.
It is, therefore, very important that they
cooperate and communicate with each
other and the customers.
Communication should be fast, efficient
and inexpensive; ICT can ensure this
happens. It can be very expensive to
install but can then lead to cost savings.
What methods of communication do you think
are used between the functional areas?
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Uses of ICT in business
ICT (Information and Communication Technology) can
make organizations more efficient by saving money and
improving quality. ICT is used for:
internal communications
data sharing
security systems
external communications
online support for customers
electronic transactions
production.
Try to think of some specific examples of how
ICT helps functional areas work efficiently.
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Simple ICT
. . . MAXIMUM impact!
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Bar codes and EPOS
Sophisticated till systems are used
in shops and catering outlets which
require a bar code to be scanned
to produce the price of an item.
EPOS (Electronic Point Of Sale) is used
for all products. It involves linking bar
code scanners to the central stock
control system – a computerized
database which monitors all sales and
produces detailed reports.
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Electronic purchases at Tesco
Purchases inside Tesco stores and on their website are
processed electronically. The data from each purchase is
stored in a database. The functional areas access that
information and use it to perform their tasks and assess
whether or not they are meeting their objectives.
Marketing, for example, build up
customer profiles. This helps them
target the right market segments.
Tesco’s loyalty card, ‘Clubcard’, has
enabled it to construct the UK’s largest
database.
How could Tesco’s other functional areas use the
data from EPOS to perform their tasks?
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A business example. . .
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ICT at Thorpe Park
Below are some of the uses of ICT at Thorpe Park.
Internet sales
security
cash
registers
ride control
Can you add any more uses for ICT at Thorpe
Park to the spider diagram?
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The security of premises
The security of every business and organization is
taken very seriously and ICT plays a vital role.
At Thorpe Park, walkie-talkies are used by the
staff to relay security information. Each department
has its own channel so that all of the staff within a
department can be in constant contact with each
other and with the other departments.
CCTV (closed circuit television) cameras are used
in most premises and are linked to video recorders
and monitors which security guards watch. Alarms
that are set off automatically send security alerts,
either to the police or the fire service.
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Ride safety at Thorpe Park
Many of Thorpe Park’s rides
use computer control systems
to ensure safety. They are fed
by mechanical levers and have
optical or magnetic sensors to
detect the speed, number and
frequency of the carriages.
This information is visible on a screen watched by the
operator in the control cabin. The system detects faults
and potential problems. It also monitors the locking of
safety bars and a ride cannot start until they are locked.
Why are these safety measures necessary?
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AS Functional areas within business