Management Information Systems, 13TH ED.
MANAGING THE DIGITAL FIRM
Kenneth C. Laudon ● Jane P. Laudon
continued
Learning Track 1: Systems from a Functional Perspective
We will start by describing systems using a functional perspective because this is the most
straightforward approach, and, in fact, because this is how you will likely first encounter systems
in a business. For instance, if you are a marketing major and take a job in marketing, you will be
Sales and Marketing Systems
e sales and marketing function is responsible for selling the organization’s products or services.
Marketing is concerned with identifying the customers for the firm’s products or services, deter–
mining what customers need or want, planning and developing products and services to meet
their needs, and advertising and promoting these products and services. Sales is concerned with
contacting customers, selling the products and services, taking orders, and following up on sales.
Sales and marketing information systems support these activities.
Table 2-1 shows that information systems are used in sales and marketing in a number of ways.
Sales and marketing systems help senior management monitor trends aecting new products
Figure 2-1 illustrates a sales information system used by retailers, such as e Gap or Target. Point–
of-sale devices (usually handheld scanners at the checkout counter) capture data about each item
Chapter 2: Global E-business and Collaboration
Chapter 2: Learning Track 1: 2
continued
TABLE 2-1 Examples of Sales and Marketing Information Systems
System Description Groups Served
Order processing Enter, process, and track orders Operational management
Employees
FIGURE 2-1 Example of a Sales Information System
Chapter 2: Learning Track 1: 3
continued
Manufacturing and Production Systems
e manufacturing and production function is responsible for actually producing the firm’s
goods and services. Manufacturing and production systems deal with the planning, development,
and maintenance of production facilities; the establishment of production goals; the acquisition,
TABLE 2-2 Examples of Manufacturing and Production Information systems
System Description Groups Served
Machine control Controls the actions of machines Operational management and equipment
FIGURE 2-2 Overview of an Inventory System
This system provides information about the number of items available in inventory to support manufac-
turing and production activities
Chapter 2: Learning Track 1: 4
continued
Manufacturing and production systems for middle management analyze and monitor manufac–
turing and production costs and resources. Operational management uses manufacturing and
production systems that deal with the status of production tasks.
Most manufacturing and production systems use some sort of inventory system, as illustrated in
Finance and Accounting Systems
e finance function is responsible for managing the firm’s financial assets, such as cash, stocks,
bonds, and other investments, to maximize the return on these financial assets. e finance func–
tion is also in charge of managing the capitalization of the firm (finding new financial assets in
stocks, bonds, or other forms of debt). To determine whether the firm is getting the best return
on its investments, the finance function must obtain a considerable amount of information from
sources external to the firm.
Chapter 2: Learning Track 1: 5
continued
TABLE 2-3 Examples of Finance and Accounting Information Systems
System Description Groups Served
Accounts receivable Tracks money owed the firm Operational management
Figure 2-3 illustrates an accounts receivable system, which keeps track of what customers who have
made purchases on credit owe to a company. Every invoice generates an “account receivable”—
that is, the customer owes the firm money. Some customers pay immediately in cash, but others
FIGURE 2-3 An Accounts Receivable System
Chapter 2: Learning Track 1: 6
continued
Human Resources Systems
e human resources function is responsible for attracting, developing, and maintaining the firm’s
workforce. Human resources information systems support activities such as identifying potential
employees, maintaining complete records on existing employees, and creating programs to develop
employees’ talents and skills.
TABLE 2-4 Examples of Human Resources Information Systems
System Description Groups Served
Training and develop-
ment
Tracks employee training, skills, and per–
formance appraisals
Operational management
Figure 2-4 illustrates a typical human resources system for employee record keeping. It maintains
basic employee data, such as the employee’s name, age, sex, marital status, address, educational
Chapter 2: Learning Track 1: 7
FIGURE 2-4 An Employee Record Keeping System
Google is an example of a company using a human resources system with a strategic orientation.
Google is one of the world’s most leading-edge, rapidly growing companies. It is best known for