Page 629 - Introduction to Business

CHAPTER 17 Management Information Systems 603

Marketing Information Systems
Marketing is the business function that plans, promotes, and sells current products
in existing markets and, at the same time, develops new products and new markets
to better serve present and potential customers. Marketing information systems marketing information systems
are information systems that provide information for supporting the major com- Information systems that provide
information to support the major
ponents of the marketing function. For operational managers, marketing informa-
components of the marketing function
tion systems can help with locating prospective customers, processing sales orders,
tracking sales orders, and providing customer service support. For middle man-
agers, marketing information systems can assist with market research and per-
formance, sales and product management, advertising and promotion, and pricing
decisions. For senior managers, marketing information systems can monitor the
performance of competitors’ products, predict sales trends affecting current prod-
ucts, and signal opportunities for new products.

Production Information Systems

Production is the business function that is responsible for the creation of goods and
services. Production information systems are information systems that help a production information systems
company develop, plan, execute, and control this production. For operations man- Information systems that help a
company develop, plan, execute, and
agers, production information systems can help with processing production
control the production of goods and
orders, monitoring inventory levels, tracking production orders, managing quality services
control charts, and supervising maintenance schedules. For middle managers, pro-
duction information systems facilitate the analysis of production costs and
required resources and materials, the estimation of the optimal reorder points and
lot sizes for an inventory system, and the determination of the optimal production
levels for a given time horizon. For senior managers, production information sys-
tems assist with plant location and layout decisions, strategic capacity needs, and
product and process design.

Accounting Information Systems

The accounting function records and reports the flow of funds in a business organ-
ization. Accounting information systems perform legal and historical record keep- accounting information systems
ing, and produce financial statements. Accounting information systems are the Information systems that perform legal
and historical record keeping and
oldest and most widely used information systems in business. For operations man-
produce financial statements
agers, accounting information systems help track money owed to the firm,
accounts receivable, and money owned by the firm, accounts payable; they also
help with order processing, inventory control, and payroll. For middle managers,
accounting information systems assist in preparing budgets, calculating profitabil-
ity per product and product line, and analyzing financial statements. For senior
managers, accounting information systems provide long-range forecasts of the
company’s financial performance and investment and cash needs and estimates of
the impact of mergers and acquisitions.

Financial Information Systems
The finance function deals with the acquisition of financial assets and the alloca-
tion of these assets to maximize the market value of the firm. Financial informa- financial information systems
tion systems support decisions regarding the financing of a business organization Information systems that support
decisions regarding the financing of a
and the allocation of financial resources within the organization. For operations
business organization and the allocation
managers, financial information systems keep track of cash, stocks, bonds, and of financial resources within the
other financial assets. For middle managers, financial information systems help organization

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