Real-life Business sub-systems -Production, Marketing, Personal, Material, Finance

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Functional Information System is based on the various business functions such as Production,  Marketing, Finance and Personnel etc. These departments or functions are known as functional areas of business. Each functional area requires applications to perform all information processing related to the function. The popular functional areas of the business organization are:

  1. Financial Information System
  2. Marketing Information System
  3. Production Information System
  4. Human Resource Information System / Personal Information System
  5. Material information system

Financial Information System: 

Financial information system is a sub-system of organizational management information system. This sub-system supports the decision-making process of financial functions at the level of an organization.

Financial data analysis may be conducted through trend evaluations, ratio analyses and financial planning modeling. Data outputs that are produced by FIS can include

  • Operating and capital budgets
  • Working capital reports
  • Accounting reports
  • Cash flow forecasts

The predictive analytics included in these applications may also narrow down exactly what could be expected from a business interaction or transaction that has yet to take place.

The management of financial information in an e-commerce business is paramount in order to gain maximum operating results in the shortest amount of time. An FIS can also yield huge amounts of data for daily business operations. Financial markets traders and salespeople have the greatest demand for FIS because they work in very fast environments and their on-demand computing systems must keep up with real-time activities in order to allow these professionals to operate in real time. Broker investigating, investment and trade data along with fiscal asset classes can be relayed through an FIS. This also works for smaller businesses that need to obtain financial data about local markets. FIS is a form of real-time operating system that works to enhance financial information exchanges.

Marketing Information System:

A system that analyzes and assesses maketing information, gathered continuously from sources inside and outside an organization. Timely marketing information provides basis for decisions such as product development or improvement, pricing, packaging, distribution, media selection, and promotion.

  1. Internal reporting systems
  2. Marketing research systems
  3. Marketing intelligence systems
  4. Marketing models

Internal reporting systems: All enterprises which have been in operation for any period of time nave a wealth of information. However, this information often remains under-utilised because it is compartmentalised, either in the form of an individual entrepreneur or in the functional departments of larger businesses. That is, information is usually categorised according to its nature so that there are, for example, financial, production, manpower, marketing, stockholding and logistical data. Often the entrepreneur, or various personnel working in the functional departments holding these pieces of data, do not see how it could help decision makers in other functional areas. Similarly, decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it.

The internal records that are of immediate value to marketing decisions are: orders received, stockholdings and sales invoices. These are but a few of the internal records that can be used by marketing managers, but even this small set of records is capable of generating a great deal of information. Below, is a list of some of the information that can be derived from sales invoices.

These Topics Are Also In Your Syllabus Real-life Business sub-systems -Production, Marketing, Personal, Material, Finance
1 Types of Operating Systems - Batch operating system, Time-sharing systems, Distributed OS, Network OS, Real Time OS link
2 Planning the Project-Managing the Information Systems Project link
You May Find Something Very Interesting Here. Real-life Business sub-systems -Production, Marketing, Personal, Material, Finance link
3 Executing the Project-Managing the Information Systems Project link
4 Closing Down the Project-Managing the Information Systems Project link
5 Representing and Scheduling Project Plans link
· Product type, size and pack type by territory
· Product type, size and pack type by type of account
· Product type, size and pack type by industry
· Product type, size and pack type by customer
· Average value and/or volume of sale by territory
· Average value and/or volume of sale by type of account
· Average value and/or volume of sale by industry
· Average value and/or volume of sale by sales person

By comparing orders received with invoices an enterprise can establish the extent to which it is providing an acceptable level of customer service. In the same way, comparing stockholding records with orders received helps an enterprise ascertain whether its stocks are in line with current demand patterns.

Marketing research systems: The general topic of marketing research has been the prime ' subject of the textbook and only a little more needs to be added here. Marketing research is a proactive search for information. That is, the enterprise which commissions these studies does so to solve a perceived marketing problem. In many cases, data is collected in a purposeful way to address a well-defined problem (or a problem which can be defined and solved within the course of the study). The other form of marketing research centres not around a specific marketing problem but is an attempt to continuously monitor the marketing environment. These monitoring or tracking exercises are continuous marketing research studies, often involving panels of farmers, consumers or distributors from which the same data is collected at regular intervals. Whilst the ad hoc study and continuous marketing research differs in the orientation, yet they are both proactive.

Marketing intelligence systems: Marketing intelligence is the province of entrepreneurs and senior managers within an agribusiness. It involves them in scanning newspaper trade magazines, business journals and reports, economic forecasts and other media. In addition it involves management in talking to producers, suppliers and customers, as well as to competitors. Nonetheless, it is a largely informal process of observing and conversing.

Some enterprises will approach marketing intelligence gathering in a more deliberate fashion and will train its sales force, after-sales personnel and district/area managers to take cognisance of competitors' actions, customer complaints and requests and distributor problems. Enterprises with vision will also encourage intermediaries, such as collectors, retailers, traders and other middlemen to be proactive in conveying market intelligence back to them.

Marketing models: Within the MIS there has to be the means of interpreting information in order to give direction to decision. These models may be computerised or may not. Typical tools are:

· Time series sales modes
· Brand switching models
· Linear programming
· Elasticity models (price, incomes, demand, supply, etc.)
· Regression and correlation models
· Analysis of Variance (ANOVA) models
· Sensitivity analysis
· Discounted cash flow
· Spreadsheet 'what if models

production / manufacturing information system:

A management information system that is targeted for use anywhere production is taking place. Modern management information systems are generally computerized and are designed to collect and present the data which managers need in order to plan and direct operations within the company.


  • It is responsible for actually producing  thefirm·s goods  and services.
  • This system deals with planning,development & maintenance of productionfacilities.
  • Establishment of production goals
  • The acquisition, storage and availability of production materials.
  • Scheduling of euipment,facilities,materialsand labor required to fashion finishedproducts.  

Personal / Human Resources Information System: 

This functional information system supports the functions of human resource management of an organization. The human resource management function, in its narrow sense, it also known as personnel management .The function involves:

These Topics Are Also In Your Syllabus Real-life Business sub-systems -Production, Marketing, Personal, Material, Finance
1 Types of Operating Systems - Batch operating system, Time-sharing systems, Distributed OS, Network OS, Real Time OS link
2 Scope and classification of metrics link
You May Find Something Very Interesting Here. Real-life Business sub-systems -Production, Marketing, Personal, Material, Finance link
3 Software measuring process and product attributes link
4 Direct and Indirect Measures, Reliability link
5 Types Of Systems link
  •     Manpower planning.
  •     Staffing
  •     Training and development
  •     Performance evaluation, and
  •     Separation activities

Materials management information system:

It is a software suite packaged as an integrated offering to meet materials management, human-resources and back-office needs. At a minimum, MMISs should be designed to interface readily with other mission-critical information systems in the enterprise.

The hospital materials management function--ensuring that goods and services get from a source to an end user--encompasses many areas of the hospital and can significantly affect hospital costs. Performing this function in a manner that will keep costs down and ensure adequate cash flow requires effective management of a large amount of information from a variety of sources. To effectively coordinate such information, most hospitals have implemented some form of materials management information system (MMIS). These systems can be used to automate or facilitate functions such as purchasing, accounting, inventory management, and patient supply charges

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