1/6/2023
Lecture 7
Business Functions and
Supply Chain
Outline
• Effectiveness and Efficiency
• Accounting
• Finance
• Engineering
Lecturer : Rebin B.
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1/6/2023
Effectiveness and Efficiency
• Information technology makes work more effective,
more efficient, or both.
• Effectiveness: the degree to which a goal is achieved
• Efficiency: the relationship between resources expended
and benefits gained in achieving a goal
• Productivity: efficiency of human resources
• Productivity increased with software applications
Effectiveness and Efficiency(cont.)
• Customer relationship management system: serves
customers better and faster
• Service continues after delivery of goods as customer
service
• Often combined with supply management systems to
make enterprise resource planning system
Lecturer : Rebin B.
2
1/6/2023
Effectiveness and Efficiency(cont.)
• Business activities
consist of
customer
relationship
management,
supply chain
management,
and supporting
functions.
ISs in different business functions are
interdependent
Lecturer : Rebin B.
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1/6/2023
Accounting
Accounting
• Purpose is to track every financial transaction
• Make sure company is pulling a profit
• Accounts payable and receivable track who owes who
what
• Balance sheet: picture of financial situation
• Includes profit-and loss report
Lecturer : Rebin B.
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1/6/2023
Accounting
• Accounting information system
•
pulls information from transaction processing system
•
Automatically routes purchases to accounts payable
•
Generates reports on demand or on schedule
• Cost-accounting systems accumulate data about costs
involved in producing specific products
Finance
Lecturer : Rebin B.
5
1/6/2023
Finance
• Firm’s health is measured by its finances
• Information systems improve financial management
• Financial managers try to manage money as
efficiently as possible
Finance
• To achieve the goal, financial managers:
• Collect payables as soon as possible
• Making payments at 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 highest yield
on funds possible
Lecturer : Rebin B.
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1/6/2023
Finance
Cash Management
• Financial information systems help managers track company
finances
• Cash management systems: deal specifically with cash
• Electronic funds transfer: huge cash transactions From one
bank to another
Engineering
Lecturer : Rebin B.
7
1/6/2023
Engineering
•
Time to market: time between generating an idea for product and
completing a prototype
•
Engineering includes designing and building the prototype
•
Brainstorming: group meeting and collaborating to generate ideas
•
Minimizing time to market is key to maintain competitive edge
•
Information systems contribute significantly to minimizing time to
market
Engineering(cont.)
• Computer-aided design: tools to create, modify and store
designs and drawings
• Rapid prototyping: creating one-of-a-kind products to test
design in three dimensions
• Takes hours rather than days or weeks to produce product
• Computer-aided manufacturing: systems that instruct
machines to manufacture parts and assemble product
Lecturer : Rebin B.
8
1/6/2023
Summary
Effectiveness and Efficiency
Accounting
Finance
Engineering
Questions?
Lecturer : Rebin B.
9