Study Questions
Q1 – What are the differences between
functional and cross-functional systems?
Q2 – How do functional systems relate to the value chain?
Q3 – What are the functions of the five basic functional systems?
Q4 – What are the problems of functional systems?
Q5 – What is business process design?
Q6 – What are the functions and characteristics of the three major
cross-functional systems?
Q1 – What are the differences between functional and crossfunctional systems?
This chart depicts the history of information systems beginning with calculation
systems, moving to functional systems that served a single department or
function, and ending with integrated systems that span an entire organization.
Calculation System
 The calculation system was the first information system. The
calculation system is now antiquated, but had been used for a
very long time.
 Calculation machines were more accurate than humans.
 Functional System
 It was the second era of facilitated work of a single
department or function. This was a and-on to the calculation
system
 They had problems with the functional applications. For the
most part, the applications were sometimes called island of
automation because they worked independent of one
another.
Q1 – What are the differences between
functional and cross-functional systems?
Many companies are moving to integrated,
cross-functional systems that integrate
activities of an entire business process, like a
customer order. This type of system may also
be called a process-based system
Most organizations use a mixture of old-styled
functional systems and newer, integrated
systems.
Integrated, Cross-Functional
System
Isolation problems of functional systems led
to the third era of information systems.
These were designed to integrate the activities of
an entire business process.
These activities which cross the departmental
boundaries are called cross functional or
cross-departmental systems.
 Also they supported compete business processes
and are sometimes called process-based
systems.
Who does it help?
 The newer systems helped to increase the functional
abilities and the ability for the users for which they
were very grateful.
 Most organizations today use a mix of functional and
integrated systems, which is why they are so successful in
competing globally.
 Most of these systems are just for making money or profit but in
this case it also could be used for non profit organizations that
report financials at the end of the year such as The Girls Scouts
of America.