Skip to main content

Management Information Systems-Business Functions

Marketing Information Systems provide information for the planning and control of the marketing function. Marketing planning information assists marketing managers in product planning ,pricing decisions,planning advertising and sales promotion strategies and expenditures, forecasting the market potential for new and present products and determining the channels of distribution. Marketing control information supports the efforts of management to control the efficiency and effectiveness of the selling and distribution of products and services. The major types of marketing information systems are sales management, product management , advertising and promotion, sales forecasting, market research and marketing management systems.

Computer based Manufacturing Information Systems use several major sub systems to achieve computer  aided manufacturing (CAM). Computers are automating many of the activities needed to produce products in manufacturing industries. For example, computers help engineers design products using Computer Aided Design(CAD) Then they help plan the types of material needed in the production process using Material Requirements Planning (MRP). Finally they may be used to directly manufacture the products on the factory floor by controlling a physical process (process control), a machine tool (numerical control) or a machine with some human like capabilities (robotics).  

Human Resources Information Systems support human resource management in organizations. They include information systems for staffing, training and development , compensation administration and performance appraisal.

Accounting Information Systems record and report business transactions and events for business firms and other organizations. Operational accounting systems emphasize legal and historical record keeping and the production of accurate financial statements. Management accounting systems focus on the planning and control of business operations. Common Operational Accounting information systems include order processing,inventory control,accounts receivable, accounts payable,payroll and general ledger systems. Management Accounting Systems include applications such as cost accounting and budgeting systems.


Information Systems in finance support financial managers in decisions regarding the financing of a business and the allocation of financial resources within a business. Financial Information Systems include cash and securities management , capital budgeting financial forecasting and financial planning .

Comments

Popular posts from this blog

RISK in Investments

Investment decisions are a trade off between Risk and Return. Risk refers to the possibility that the actual outcome of an investment will differ from its expected outcome. Most investors are concerned about the actual outcome being less than the expected outcome. The wider the range of possible outcomes,the greater the risk. SOURCES OF RISK The three major sources of risk are: Business Risk Interest Rate Risk Market Risk   Business Risk As a holder of corporate securities (equity shares and debentures) you are exposed to risk of poor business performance. This may be caused by a variety of factors like heightened competition, emergence of new technologies, development of substitute products , shifts in consumer preferences, inadequate supply of essential inputs,changes in governmental policies and so on. The principal reason might be inept and incompetent management. Interest Rate Risk The changes in interest rate have a bearing  on the welfare of investo...

Money Markets Instruments

Money Market Securities in India The money market includes instruments for raising and investing funds for periods ranging from one day up to one year. Money market securities consist of repos/reverse repos, CBLOs ( collateralized borrowing and lending obligations),certificates of deposits, treasury bills, and commercial paper. All these securities are issued at a discount and redeemed at par, and are zero coupon in structure.  Money markets also include inter-bank call markets that are overnight lending transactions between banks, inter- bank terms markets that  are long term deposits between banks, and interoperate deposits, which are short term lending between companies. These transactions do not involve creation of a debt security and are therefore not included here. The Participants in the money market include banks, primary dealers, financial institutions, mutual funds, provident and pension funds, companies and the government. The purpose of the money market is to e...

Financial Glossary 1

Financial Resources Resources which have a monetary value Financial Management is planning, organizing and controlling the acquisition and use of financial resources for the purposes of achieving organisational goals. Financing is the process of determining the appropriate forms and sources of finance Financing strategy is the determination of the type of finance used to purchase assets, and the resulting mix between equity, short term debt and long term debt Investment is the use of finance to acquire an asset which will yield a required return Investment strategy is the determination of the appropriate mix of a business's assets Asset Item of value which is owned by an organisation Accounts receivable (Short term/ current asset) - customer who owes the business money for buying goods/services on credit Inventory stock - Items manufactured or purchased by the business for sale to the customers Financial Intermedia...