FUNCTIONAL INFORMATION

SYSTEMS
 Marketing
Management
Information
System

Production Functional Human

Management Resource
Information Information Information
System Systems System

Financial
Management
Information
System
Marketing Management Information System

A Marketing Information System is:

• Designed specifically for managing the marketing aspects of
business.
• Intended to bring together disparate items of data into a
coherent body of information.
Thus, Marketing Information System is a continuing and
interacting structure of people, equipment and procedures to
gather, sort, analyze, evaluate and distribute needed, timely and
accurate information for use by market decision makers to
improve their marketing planning, implementation and control.
 Marketing Information System
These points will enable you to understand the concept of MkIS
clearly.

• Assess the information needs

• Develop needed information

• Analyze information

• Distribute information
 Features of MkIS
• Continuous System: Permanent and continuous system of
collecting information.

• Basic objective: To provide the right information at the right

time to the right people to help them take right decisions.

• Computer-based system: Uses computer, up-to date and

accurate results.

• Future oriented: Provide information for solving future

problems.
 Features of MkIS (contd.)
• Used by all levels: Used by all the three levels of
management.

• Sources: Collect information from both internal and external

sources.

• Collects marketing information: Information about consumer

competition, marketing environment etc.

• Helps in Decision making: Supplies up-to date and accurate

information that helps take quick and right decisions.
 Role of MkIS in Decision making
• Improve the efficiency of company’s operations: By having all
the information regarding procedures, MkIS helps to improve
the efficiency of the company’s operations.
• Collects information about the needs of the customer: The
basic objective of Marketing is to satisfy the needs of the
customer and MkIS collects information about those needs.
• Provide pertinent decision making information to marketing
managers on regular basis: By collecting and sorting the
relevant information, MkIS enables the marketing managers
to take decisions on regular basis.
 Role of MkIS in Decision making
(contd.)
• Helps in recognizing trends and changes: It is only the
marketing information that enables the managers to
recognize trends and changes in the marketing environment.
• Facilitate Marketing planning and control: With the relevant
information in the system, planning and controlling the
marketing activities become a much easier task.
• Provide marketing intelligence for the organization: A well
organised marketing information system does not only
provides relevant information but it also provide solutions to
the complex problems.
 Components of MkIS

Internal Marketing
Reporting Research
System System

Marketing
Marketing
Intelligence
Models
System
Internal Reporting System
• This system enables a company to always be aware of how they
are performing as a team and what issues they need
addressing.

• Generally, this system provide records about sales, costs,

inventories, cash flows and account receivables and payables.

• These records prove to be the immediate value to the

marketing decision makers.

• Information gathered from internal sources used to evaluate

marketing performance and detect problems and opportunities.
Marketing Intelligence System
• The marketing intelligence system are used to deal with the
costs of running a marketing department and a business as a
whole.
• It collects information from external sources. It provides
information about current marketing environment and
changing conditions in the market.
• The information which is collected from external sources
cannot be used directly. It must be first evaluated and
arranged in a proper order. It can be used by the marketing
manager for taking decisions.
Marketing Research Systems
• This system allow a company to really find out what their
customers/ potential customers think of the current trends
and their views on certain items or policies.

• It also can delve into customer’s habits in the hope the

company can spot a gap in the market or service.

• Can gather quantitative and qualitative information.

• Conducted to solve specific marketing problems of the

company.
Marketing Models
Marketing models work as a tool which help the marketing
managers to analyze data and take better decisions by making
the models before entering the actual market and applying
constructs.

These tools are:

• Linear programming
• Regression and correlation
• Analysis of Variance (ANOVA) etc.
Human Resource Management System
• The HRIS is a system that is used to collect and store data on
an organization’s employees. It encompasses the basic
functionalities needed for end-to-end human resource
management.

• It has a system for recruitment, performance management,

learning and development and more.

• HRIS is a software that can run either on the company’s own

infrastructure or what’s more common nowadays, be cloud
based.
 Functions of HRIS
The following functions are performed by the system of human
resource:
• Applicant Tracking System
• Payroll
• Time and Attendance
• Training
• Performance Management
• Succession Planning
• Reporting and Analytics
 Elements of HRIS

Input Process Output

• Human energy • Acquisition • Goal
• HR plan • Development Achievement
• HR inventory • Motivation
• Job analysis • Maintenance
Input
• Human energy and competency: Energy is represented by
physical strength. Competencies are represented by skills,
knowledge, experience, potential for growth etc.
• Human Resource Plan: HR plan is also the important input
component. It is the process of making plans for future
human resources.
• Human Resource Inventory: It represents inventory of current
human resources available in the organisation.
• Job Analysis: It specifies job requirement, qualifications and
skills for various jobs.
Process
• Acquisition: It ensures right number of people at right place
and at right time. It consists of recruitment, selection and
socialisation.
• Development: It ensures competencies of employees to
handle job. It is also the process of training and developing
the employees.
• Motivation: It ensures willingness of employees for doing the
job effectively. The employees should be motivated towards
their jobs in order to increase productivity and efficiency.
• Maintenance: It ensures retention of employees in the
organisation. It involves compensation management,
employees’ discipline and grievance handling.
Output
• Goal Achievement: This refers to overall organisational goal
achievement. The goal of societal well being is one of the
goals of the organization.
 Benefits of HRIS
• Record keeping: It keeps track of changes anything related to
employees.
• Compliance: It includes material for identification of
employees in case of theft, fraud or other misbehaviors.
• Efficiency: Having all this information in one place not only
benefits accuracy but also saves time.
• HR strategy: It enables the tracking of data required to
advance the HR and business strategy.
• Self-service HR: It has the ability to offer self service HR to
employees and managers. This enable employees to manage
their own affairs.
Financial Management Information System
• Financial Management Information System support the
automation and integration of public financial management
processes including budget formulation, execution,
accounting and reporting.
• When FMIS is linked with central data warehouse (DW) to
record and report all daily financial transactions, offering
reliable consolidated platforms can be referred to as
integrated FMIS.
• The World Bank is a leading provider of financing and
technical assistance for FMIS development.
Functions of FMIS
 Functions of FMIS
• Budget Execution: The very basic function of FMIS is to
execute the budget because the budget was already planned
by the organisation and execution is little more difficult than
planning and FMIS makes this task easier for the managers.
• Treasury and Cash Management: Recording cash transactions
merely not helps in getting what an organization needs.
Treasury and cash management is required to effectively
utilize the cash and this function is performed by FMIS.
• Accounting: Record keeping nowadays, is not limited to books
or software. It has transformed into relevant information that
needs to be stored and FMIS performs this task to store
accounting information and produce results.
Components of FMIS
Input Output
Subsystem Subsystem
s s
Internal
Forecasting
Audit
Subsystem
Subsystem

Financial Funds
Intelligence Managemen
Subsystem t Subsystem

Control
Subsystem
Input Subsystems
• Internal Audit Subsystem: Internal audit evaluates the
company’s internal controls, including its corporate
governance and accounting processes. These subsystems
consist of firm’s internal auditors who analyze the firm’s
conceptual systems to ensure that they process financial data
properly as required.

• Financial Intelligence Subsystem: It seeks to identify the best

sources of additional capital and the best investment of
surplus funds. It gathers data and information from
stockholders and financial community.
Output Subsystems
• Forecasting Subsystem: On the basis of the given relevant and
current information, the decision makers try to reach to the
conclusions which helps them to make forecasts.

• Funds management Subsystem: This subsystem attempts to

balance the cash inflows with the outflows so that the funds
of the organizations should be maintained properly.

• Control Subsystem: This subsystem is a set of devices used to

manage, command, direct or regulate the output of a specific
process to achieve the desired results.
 Production Management Information
System

Production means transformation of raw materials into finished

products for sale.

According to E.L. Brech,

“Production management is the process of effective planning

and regulating the operations of that section on an enterprise
which is responsible for the actual transformation of materials
into finished goods.”
 Production Management Information
System

Production information system performs an integrating role

within the production system of any organisation. Management
of activities/operations in a production system is concerned with
decision making related to different components of the system
so as to accomplish the desired output.
 Characteristics of PMIS
• Tailor-made system
• Wide data base
• Flexible and Efficient
• Easy interpretation and presentation
• Cost of procuring must be less than relative advantage
accrued
• Involvement of top management is essential
Classification of Production decisions

Implementatio
Planning Control
n

Procurement of
It includes raw material, Inventory
operations, men etc. Job control, cost
capacity, design, operation control,
location, layout standards and maintenance and
and forecasting work feedback
measurement
 Components of PMIS

Annual
Long Term Inventory
Production
Planning Control
Plan

Production
Dispatching
Scheduling
 Components of PMIS
• Long term planning: This implies planning the conversion
system specifying the sequence of operations, capacity of the
system, plant location and its layout aspects. The decisions
derived have the long term impact on the concern.
• Annual Production Plan: These are meant to plan the use of
transformation process. These plans are drawn from sales
programmes by optimising inventory carrying costs, costs on
labour with hiring and firing of personnel etc.
• Inventory control: It is generally expressed in terms of money
and number of units produced. It deals with preparation of
master inventory and production schedules.
 Components of PMIS (contd.)
• Production Scheduling: These decisions are to determine,
what to make, how to make, how much time is required to
make it, production plan, bill of materials and operations
sheets providing the necessary information for the
preparation of production schedules.
• Dispatching: Time standards are formulated through
operation/route sheets supplied by planning and engineering
departments. Cost standards are calculated through cost
cards and job tickets and the quality standards are prescribed
by engineering and design sections.