Intro Letters and Resumes
Grades on both - two grades.
Resumes also have a comment as to
yes, maybe or no.
Introduction Letters
1. Lacked business letter format.
Block address
: and not a ,
Some paragraphs
Very truly yours,
2. Lacked content.
Didn’t really introduce yourself.
Resumes
1. Looks good, brutally clear, perfect.
2. Poor objective statement: what do you really want to
do? Don’t use “entry-level”.
3. Education after objective--you are a student.
4. Tense problems with work experience.
5. Fill a page--relevant courses, course projects.
6. Two pages only if have killer content.
7. References comments.
Chapter 10
Information Systems
for
Business Operations
Chapter Objectives
1. Gain an appreciate of the significance of information
systems support of business processes within major
business functions.
2. Understand the major activities of transaction
processing systems and examples of how such
systems are used in the operations of a business.
3. Understand business examples that demonstrate
using the Internet, intranets, or extranets to
accomplish online transaction processing, and
perform activities within each of the business
functions.
Additional Student Presentations
Accounting and Financial IS - Erin Burke
Marketing Information Systems - Brooke Butterick
Batch Processing versus Real-Time Systems - Daniel
Biskupski
Source Data Automation - Paul Simpson
IS in Business
Business managers have moved from a tradition
where they could avoid, delegate or ignore decisions
about IT to one where they cannot create a
marketing, product, international, organizational or
financial plan that does not involve such an IS
decision.
Peter Keen
Harvard Business Review
1991
What major functions must
be addressed for a business
to be successful?
Business Information Systems
Marketing
Production
Operations
Business
Information
Systems
Accounting
Finance
Human Resource
Management
Type of System Needed?
Scope of system: specific or integrated?
Batch Versus Real-time Processing?
Data requirements versus data
availability?
Major Business Functions
The increasing importance of crossfunctional systems.
In support of cross-functional teams
and concurrent engineering.
Cross-Functional Needs
Needs Analysis
Research
Marketing
Market Test
Component Design
Product Test
R&D/Engineering
Product Release
Equipment Design
Production Start
Manufacturing
Internet Potential
Adaptability of the Internet and Internet
technologies to address both internal and
external IT requirements of the business
needs to be addressed.
Possible Quiz Questions
1. Which business functions must be addressed for
a business to be successful?
2. In which functional areas does Internet
technology have the greatest potential to
contribute to the success of a business?
Increasingly Important Areas
Enterprise Resource Planning (ERP)
Customer Relationship Management
CRM Market Share 1999
Others
Trilogy
Baan
Vantive
Clarify
Oracle
Siebel Systems
0%
10%
20%
30%
40%
50%
60%
Marketing Information Systems
By Brooke Butterick
Marketing Versus Sales
Marketing is deciding what to sell.
Sales is selling what you have.
Marketing Information Systems
Interactive
Marketing
Sales Force
Automation
Sales
Management
Marketing
Information
Systems
Advertising &
Promotion
Marketing
Management
Sales
Forecasting
Market
Research
Product
Management
Market Research and Forecasting
• Provide marketing intelligence to help
managers make better marketing forecasts
and develop more effective marketing
strategies
• MIS help market researchers collect and
analyze data from a variety of market
variables
Targeted Marketing for E-Commerce
Online
Behavior
Demographic/
Psychographic
Community
Content
Context
Interactive Marketing
Goal:
– To enable a company to profitably use the Internet,
intranets, and extranets to attract and keep customers
who will become partners with the business in creating,
purchasing, and improving products and services.
Expected Outcome:
– Vital marketing data
– New product ideas
– Volume sales
– Strong customer relationships
Advertising and Promotion
• Marketing Managers maximize sales
• MIS use market research information and
promotion models to help:
– Select media and promotional methods
– Allocate financial resources
– Control and evaluate results of various
advertising and promotional campaigns
• Example: INFOSCAN
Sales Force Automation
• Increases the personal productivity of
salespeople
• Speeds up the capture and analysis of sales
data from the field to marketing managers
• Improves the delivery of information and
support provided to salespeople
Sales and Product Management
• Sales Managers
– Use computer based systems for sales analysis
• Product Managers
– Use computers to gain access to price, revenue,
cost, and growth information
Possible Quiz Questions
• How has IT helped companies perform vital
marketing functions?
• What are some reasons why IT is helpful to
Sales and Product Managers?
Manufacturing Information Systems
Computer-Aided
Engineering
Process
Control
Purchasing &
Receiving
Computer-Aided
Manufacturing
Production/
Operations
Machine
Control
Robotics
Material
Requirements
Planning
Computer Integrated Manufacturing
An overall concept that stresses that the objectives
of computer-based systems in manufacturing must
be to:
• Simplify processes, designs and organization.
• Automate production processes
• Use IT to integrate all production and support
processes.
Why Automate Manufacturing?
• Consistency
• Repetitiveness
• Precision
• Quality
• Cost
• Worker Safety
• Eliminate Worker Boredom
HRM Information Systems
Personnel
Requirements
Forecasting
Compensation
Analysis
Employee Skills
Inventory
Personnel
Record-Keeping
Human
Resource
Management
Training and
Development
Analysis
Governmental
Reporting
HR Career?
What would prompt you to want to pursue a
career in Human Resources?
Accounting and Financial IS
By Erin Burke
Accounting Information Systems
Inventory
Control
Order
Processing
Accounts
Receivable
Payroll
Common
Purposes of
AISs
Accounts
Payable
General
Ledger
Accounting and Financial
Information Systems
What are they?
Who uses them?
How are they used?
Three Types of Accounting Systems
• Operational
• Management
• Computer-Based
Why do company use computers
for their accounting systems?
Must do it!
Repetitive
Clearly defined procedures
Accounting is a combination of multiple subsystems
Frequently meets all three of the common
criteria: volumes, complexity and timing.
Timing considerations . . .
Cisco Systems and Motorola can close their
books at the end of the quarter or the end of the
year within two hours.
Typically, it takes five to seven working days for
a large company to close its books. e.g. HP
Cisco and Motorola gain the ability to better
manage their financial performance and their
stock value.
Major Operational Accounting Systems
Operational Processing
Inventory Control
Accounts Receivable
Accounts Payable
Payroll
General Ledger
Finance Information Systems
Support managers to make financial decisions:
(1) Financing the business
(2) Allocation and control of financial
resources
Financial Information Systems
Financial
Performance
Analysis
Cash
Management
Financial
Forecasting
Credit
Management
Finance
Investment
Management
Financial
Planning
Capital
Budgeting
Four Major Finance Systems
Cash Management
Investment Management
Capital Budgeting
Financial Planning
Summary
Accounting Information Systems:
What are they?
Accounting systems, Operational and Management systems.
Who uses them?
End users in business firms and other organizations.
How are they used?
Record and report business transactions and events, produce
accurate financial statements, plan and control business operations.
Finance Information Systems:
What are they?
Systems include cash and online investment management, capital
budgeting, and financial planning and forecasting.
Who uses them?
Financial managers.
How are they used?
Provide decision making support related to financial resource
allocation and financing of the business.
Two Quiz Questions
1) How can Internet technologies be involved in
some of the most common applications of
computers in accounting? In finance?
2) Name and describe the function of a finance
information system? An accounting information
system? How are they improved if computerbased?
The Transaction Processing Cycle
1
2
Data
Entry
Transaction
Processing
4
Document
and Report
Generation
5
Inquiry
Processing
3
Database
Maintenance
Transaction Processing
1. Data entry
2. Transaction Processing
3. Database maintenance
4. Documents and report generation
5. Inquiry Processing
Billing (Order Entry)
Unique Identified
What other data is important
in a billing process?
What data is captured in the
billing process that is input
to another business process?
Data Flow
What flows to Accounts Receivable?
What flows to Inventory Control?
What flows to Sales Analysis?
Don’t forget the unique identifier!
BICARSA
Basic premises of Information Systems:
1. Capture data at the source of the transaction.
2. Create data once and utilize it many times.
3. Treat data as a valuable organizational resource.
B=
IC =
AR =
SA =
B = Billing
IC = Inventory Control
AR = Accounts Receivable
SA = Sales Analysis
Source Data Automation
By Paul Simpson
Source Data Automation
Definition: The use of automated methods of data
entry that attempt to reduce or eliminate many of the
activities, people, and data media required by
traditional data entry methods.
Why Source Data Automation?
• Cost effective
• Accurate and complete data
• Timely availability of data
• Better able to track operational trends
• Decision support
Examples of Source Data Automation
•
•
•
•
•
•
Bar code scanners (Optical Character Readers)
MICR codes on bank checks
Magnetic stripe on credit cards
Mark sense readers (Scantron tests)
Touch screens
Voice recognition systems
Conclusion
• Understanding how source data automation
can fit into different systems
• Understanding the benefits of a system that
uses source data automation
Two Possible Quiz Questions
• Give an example of a system that uses
source data automation and explain the
source data automation part of it.
• Give an example of a system that uses
traditional data entry and explain how it
could benefit from source data entry.
Batch and Online Processing
By Daniel Biskupski
Definitions
• Batch Processing - A category of data processing
in which data is accumulated into batches and
processed periodically. (hourly, daily, weekly,
once a month)
• Real-time (online) Processing - Data processing in
which data is processed immediately through the
use of direct access devices rather than
periodically.
Batch Processing
With the continued increase in network-based
systems, will batch processing eventually
disappear as a common processing approach?
An Example of Batch Processing
In the Banking Industry:
– Batches of deposited checks are accumulated and
processed on a daily basis.
– Monthly customer statements are also processed in
batch mode.
See figure 10.33 in the textbook
Example of Online Processing
• Campbell’s Online Processing System
– The system tracks inventory for production and sales
– MCI network is used by Campbell’s to advise customers when to
replenish inventories and expect delivery on orders
See figure 10.32 in the textbook
Batch to Online Changes
Expectations regarding response time.
Attitudes relative to computer down-time.
Attitudes towards computer capacity utilization.
Criteria to justify a computer with more capacity.
Concern regarding computer (data) security.
In Conclusion...
The table below summarizes the crucial points that
comprise each system
Batch Processing
Processing of transactions Data is recorded,
accumulated into batches,
sorted and processed
periodically.
Realtime Processing
Data is processed as
generated.
Database update
When batch is processed
Response time
Several hours or days after
When transaction is
processed.
A few seconds after
batches are submitted for
transaction is processed.
processing.
Possible Quiz Questions
1. In terms of data security, what are the pro’s and
con’s of the batch and online processing systems?
2. Define and give an example for each of the
following systems approaches:
• Batch Processing
• Online Processing
Key Terms in Chapter 10
Accounting Information Systems
Accounts Payable
Accounts Receivable
Batch Processing
Business Information Systems
Collaborative Manufacturing Networks
Computer-Aided Design
Computer-Aided Engineering
Computer-Aided Manufacturing
Computer Graphics
Computer-Integrated Manufacturing
Control Listing
Cross-Functional Information Systems
Edit Report
Fault Tolerant System
Financial Information Systems
General Ledger
Human Resource Information Systems
Inquiry Processing
Interactive Marketing
Inventory Control
Machine Control
Manufacturing Information Systems
Marketing Information Systems
Material Requirements Planning
Online Accounting Systems
Online HRM Systems
Online Investment Systems
Online Transaction Processing
Order Processing
Payroll
Process Control
Real-time Processing
Robotics
Sales Force Automation
Source Data Automation
Source Document
Strategic TPS Networks
Traditional Data Entry
Transaction
Transaction Document
Transaction Processing Cycle
Transaction Processing System
Turnaround Document
Database Project
Do an analysis for our client, CompUSA, to
identify prospects that have a high probability
to purchase a new PC.
Work in two person teams under the direction of
your manager within Market Research, Inc.
The Assignment Includes:
1. Determining the right questions to ask and designing a
questionnaire form that will also serve as a source
document to enter data into an Access database.
2. Editing the data in the source documents. (anti-GIGO)
3. Entering the data to create a relationship database table.
4. Doing an analysis of the data collected.
5. Preparing a report summarizing the market analysis FOR
THE CLIENT.
6. Preparing a report FOR YOUR BOSS summarizing the
major learning points of this assignment.
Database Project Grade
(15% of course grade)
Questionnaire/source document design
Input data editing
Client cover letter and report
25%
5%
45%
Prospect priority logic
5%
Internal project report
20%