Page 28 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Unit 2: Information Systems in the Enterprise

Introduction Notes

The classification of Information Systems can be done on the basis of business functions also.
This classification is done to achieve the maximum efficiency in business functions. There are lot
many considerations we have to bother while we do business. The role played by the Internet
and Information Technologies to support electronic commerce, enterprise communications and
collaboration, and Web-enabled business processes both within a networked enterprise, and
with its customers and business partners will definitely require specialized Information Systems
for Business functions.

2.1 Information Systems in the Enterprise

Information systems can be grouped into business function categories; however, in the real
world information systems are typically integrated combinations of functional information
systems. Functional business systems are composed of a variety of types of information systems
(transaction processing, management information, decision support, etc.) that support the business
functions of:
 Accounting

 Finance
 Marketing
 Productions/operations management
 Human resource management
There is a strong emphasis in many organizations to develop such composite or cross-functional
information systems that cross the boundaries of traditional business functions in order to
reengineer and improve vital business processes. These organizations view cross-functional
information systems as a strategic way to share information resources and improve the efficiency
and effectiveness of a business, thus helping it attain its strategic objectives.
Business firms are turning to Internet technologies to integrate the flow of information among
their internal business functions and their customers and suppliers. Companies are using the
World Wide Web and their intranets and extranets as the technology platform for their cross-
functional and inter-organizational information systems.
Let us review some foundation concepts which will help us to understand the detailed explanation
of these systems.
E-Business Systems describes how information systems integrate and support enterprise-wide
business processes and the business functions of marketing, manufacturing, human resource
management, accounting, and finance.
Functional Business Systems – Functional business information systems support the business
functions of marketing, production/operations, accounting, finance, and human resource
management through a variety of e-business operational and management information systems.
Marketing – Marketing information systems support traditional and e-commerce processes and
management of the marketing function. Major types of marketing information systems include
interactive marketing at e-commerce websites, sales force automation, customer relationship
management, sales management, product management, targeted marketing, advertising and
promotion, and market research. Thus, marketing information systems assist marketing managers
in electronic commerce product development and customer relationship decisions, as well as in
planning advertising and sales promotion strategies and developing the e-commerce potential
of new and present products, and new channels of distribution.

LOVELY PROFESSIONAL UNIVERSITY 23