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BUSS110 Introductory Business Computing A Module III 4. Business Information Systems Learning Objectives To list several examples of accounting, financial, marketing, manufacturing and human resource IS To describe ways if organising the functions of these BIS

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Buss110 introductory business computing a l.jpg

BUSS110Introductory Business Computing A

Module III

4. Business Information Systems


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Learning Objectives

  • To list several examples of accounting, financial, marketing, manufacturing and human resource IS

  • To describe ways if organising the functions of these BIS


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Basics ofBusiness Information Systems


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Basics ofBusiness Information Systems

  • Each system uses hardware, software, stored data, personnel, and procedures

  • Each system uses input, processing, output, and storage

  • Each system processes one or more types of master data

  • Each system may use transaction data


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Basics ofBusiness Information Systems

  • Each system involves several computer programs and manual procedures

  • Although they’re described separately, these systems may be combined & work together

  • Sometimes packaged software is sold that performs one or more of these functions


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Systems that Support Specific Business Functions

[Table 8.1]


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Order entry

Basic Functions inBusiness Information Systems


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Basic Functions inBusiness Information Systems

  • This system uses 2 programs and a manual procedure

  • Order entry

  • The data entry program involves online processing

  • The customer order data is transaction data used by this system and deleted later


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Basic Functions inBusiness Information Systems

  • Billing


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Basic Functions inBusiness Information Systems

  • Computerized order entry and billing allow data to be passed between systems

  • Billing

  • This billing system can use order entry transaction data, and customer and inventory master data to create an invoice

  • Passing data is done through an interface


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Basic Functions inBusiness Information Systems

  • Accounts Receivable (A/R)


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Basic Functions inBusiness Information Systems

  • Inventory Control


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Basic Functions inBusiness Information Systems

  • Purchasing


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Basic Functions inBusiness Information Systems

  • Accounts Payable (A/P)


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Basic Functions inBusiness Information Systems

  • Payroll


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Basic Functions inBusiness Information Systems

  • General Ledger (G/L)


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Basic Functions inBusiness Information Systems (cont’d)

  • General ledger (G/L) (cont’d)

  • G/L ties all systems together by reflecting financial transaction data

  • Financial transaction data is used to prepare income statements, balance sheets, and forecast budgets

  • A/P and A/R are tied closely to G/L


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Other Business Information Systems

  • Accounting

  • May include A/R, A/P, G/L

  • Fixed asset accounting

  • Budgeting

  • Tax accounting


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Other Business Information Systems (cont’d)

  • Financial

  • Cash management

  • Capital expenditure analysis

  • Financial forecasting

  • Portfolio management

  • Credit analysis


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Order entry

Inventory control (finished product)

Order Processing System

  • Sales configuration

  • Invoicing

  • Shipment planning

  • Customer interaction

  • Shipment execution

  • Routing and scheduling



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Order Processing System (cont’d)

  • Order Entry System

  • Captures basic data needed to process a customer order


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Order Processing System (cont’d)

  • Sales Configuration System

  • Ensures that products and services ordered are sufficient to accomplish customer’s objectives and will work well together


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Order Processing System (cont’d)

  • Shipment Planning System

  • Determines which open orders will be filled and from which location they will be shipped


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Order Processing System (cont’d)

  • Shipment Execution System

  • Coordinates the outflow of all products and goods from the organization to deliver quality products on time to customer


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Order Processing System (cont’d)

  • Inventory Control System

  • Manages inventory levels to minimize stockouts and back orders

An inventory status report


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Order Processing System (cont’d)

  • Invoicing

  • Generates customer invoices based on records received from the shipment execution TPS

Output of an invoicing system


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Order Processing System (cont’d)

  • Customer Interaction System

  • Monitors and tracks each customer interaction with the company


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Order Processing System (cont’d)

  • Routing System

  • Determines the best way to get goods and products from one location to another

  • Scheduling System

  • Determines the best time to deliver goods and services


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Purchasing Systems

  • Inventory Control

  • Raw materials

  • Packing materials

  • Spare parts

  • Supplies

  • Purchase Order Processing

  • Receiving

  • Accounts Payable


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Purchasing Systems (cont’d)

  • Purchase Order Processing System

  • Helps purchasing department complete transactions quickly and efficiently

[Figure 8.14]


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Purchasing Systems (cont’d)

  • Receiving System

  • The system to which certain business transactions are input and that creates a record of expected receipts


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Purchasing Systems (cont’d)

  • Accounts Payable System

  • Sends checks to suppliers

  • Attempts to increase an organization’s control over purchasing, improve cash flow, increase profitability, and provide more effective management of current liabilities


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SampleAccounts Payable

[Figure 8.15]

A check generated by an accounts payable application


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SampleAccounts Payable

[Figure 8.16]

An accounts payable purchases journal


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Accounting Systems

  • Budget

  • Accounts receivable

  • Payroll

  • Asset management

  • General ledger


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Financial Systems

[Figure 8.17]


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Accounting Systems

  • Budget TPS

  • Manages budget data

  • Distributes data to users

  • Consolidates prepared budgets


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Accounting Systems

  • Accounts Receivable System

  • Manages the cash flow of a company by keeping track of the money owed the company on charges for goods sold and services performed


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Sample Accounts Receivable

[Figure 8.18]

An accounts receivable statement


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Sample Accounts Receivable

[Figure 8.19]

An accounts receivable aging report


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[Figure 8.20]

Accounting Systems

  • Payroll

  • Generates payroll checks and stubs, as well as W-2 statements at the end of the year for tax purposes


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Accounting Systems

  • Payroll Journal

  • A report produced by the payroll program that includes such entries as employees’ names, hours worked, pay rate, earnings, and various deductions


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Sample Payroll Journal

[Figure 8.20]

[Figure 8.21]


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Accounting Systems

  • Asset Management System

  • Controls investments in capital equipment

  • Manages depreciation for maximum tax benefits


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Accounting Systems

  • General Ledger System

  • Allows automated financial reporting and data entry


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Other Business Information Systems

  • Marketing

  • Sales analysis

  • Sales forecasting

  • Market research

  • Advertising

  • Electronic commerce

  • Sales force automation


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Other Business Information Systems (cont’d)

  • Manufacturing

  • Production scheduling

  • Materials resource planning (MRP)

  • Mfg. resource planning (MRPII)

  • Just-in-time inventory management

  • Computer-aided design (CAD)


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Other Business Information Systems (cont’d)

  • Manufacturing (cont’d)

  • Computer-aided manufacturing (CAM)

  • Computer-integrated manufacturing (CIM)

  • Robotics


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Other Business Information Systems (cont’d)

  • Human Resource (HR)

  • Performance appraisal

  • Skills inventory

  • Benefits administration

  • Job applicant tracking


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Organizing Information System Functions

  • Centralized


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Organizing Information System Functions (cont’d)

  • Centralized (cont’d)

  • Advantages

  • Economy

  • Control

  • Disadvantages

  • Response to users (output distribution)

  • Distance between users and tech staff


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Organizing Information System Functions (cont’d)

  • Teleprocessing


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Organizing Information System Functions (cont’d)

  • Teleprocessing

  • Advantage - quicker input and output response times

  • Disadvantage - distance between users and tech staff


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Organizing Information System Functions (cont’d)

  • Decentralized


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Organizing Information System Functions (cont’d)

  • Decentralized (cont’d)

  • Advantages

  • Better response to user needs

  • Sometimes has a distributed staff

  • Disadvantages

  • Hardware cost

  • Lack of control


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Organizing Information System Functions (cont’d)

  • Disadvantages (cont’d)

  • Decentralized (cont’d)

  • Incompatibility of systems

  • Difficulty in standardizing if the decision is made later

  • Ultimate form - PC on every desk

  • Must have standards


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Organizing Information System Functions (cont’d)

  • Decentralized (cont’d)

  • Information Centers

  • Computer professionals who establish and maintain standards

  • Trains other computer professionals and users

  • Provides assistance when needed


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Organizing Information System Functions (cont’d)

  • Distributed


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Organizing Information System Functions (cont’d)

  • Distributed

  • Also called cooperative processing

  • Advantages

  • Provide good response to user needs

  • More control through remote control

  • Greater system compatibility

  • Disadvantage - complexity


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Emergency Alternate Procedures

  • Enable the organization to continue processing key transactions in the event that the most critical transaction processing systems become unusable


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Disaster Recovery Planning

  • The process of anticipating and providing for disasters

  • Disaster recovery

  • Implementation of the disaster plan


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Tools for Disaster Planning and Recovery

  • Hardware backup

  • Software and database backup and control

  • Telecommunications backup and control

  • Personnel backup and control


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Transaction ProcessingSystem Audit

  • Attempts to determine what procedures and controls have been established and whether these procedures and controls are being used properly

  • Audit trail

  • Allows the auditor to trace output from the computer system back to source documents


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