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 24 of 25 © Boardworks Ltd 2007 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? 25 of 25 © Boardworks Ltd 2007 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? 26 of 25 © Boardworks Ltd 2007 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. 27 of 25 © Boardworks Ltd 2007 Simple ICT . . . MAXIMUM impact! 28 of 25 © Boardworks Ltd 2007 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. 29 of 25 © Boardworks Ltd 2007 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? 30 of 25 © Boardworks Ltd 2007 A business example. . . 31 of 25 © Boardworks Ltd 2007 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? 32 of 25 © Boardworks Ltd 2007 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. 33 of 25 © Boardworks Ltd 2007 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? 34 of 25 © Boardworks Ltd 2007