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Chapter 7

Computer Science 1032A/B Chapter Notes - Chapter 7: Sales Operations, General Ledger, Business Process

Computer Science
Course Code
Diane Goldstein

of 2
Computer Science Final Exam Notes
Chapter 7
Calculation Systems
- Relieve workers of tedious tasks
- First systems computed payroll, wrote paycheques, balanced accounting records,
applied debits and credits to general ledger
- Kept record of inventory quantities (verified every quarter with physical count)
- Labor saving devices but produced little info don’t exist today
Functional Systems
- 2nd era: facilitated work of single department or function
- Grew as natural expansion: ex: payroll became HR, general ledger became financial
reporting, inventory became operations or manufacturing
- Companies added features and capabilities to ISs to support more functional activity
- Problem with functional systems is their isolation
- Functional systems sometimes called islands of automation because they work
independent of each other
- Decisions based solely on one function may cause future inefficiencies
Integrated, Cross-Functional Systems
- Isolation problem led to 3rd era of ISs
- Systems designed to integrate activities of entire business process
- Also referred to as: cross-departmental or cross-functional systems
o Because they support complete business process also called process-based
- Difficult transition from functional to integrated systems because:
o No clear line of authority, peer competition can be fierce, interdepartmental
rivalries can subvert development of new system
- Some systems so sophisticated they cross departmental and organizational
boundaries: interorganizational systems, ex: e-commerce and supply chain mgmt
- Most companies have combination of integrated and functional system, to compete
internationally companies must eventually achieve efficiencies of integrated systems
Marketing and Sales systems
- Product mgmt is the primary functional system for marketing
- Sales data are summarized by product, product category and business line
- Sales to date are compared to forecasts, sales in past periods, and other expectations
- Lead tracking records prospects and keeps rack of sales contacts with potential
- Sales forecasting is vital not only for planning production or managing inventories,
but also for financial reporting by publicly held companies
- Major purpose of customer mgmt is to generate follow-up business from existing
o Salespeople use such systems to determine what products customers have
already purchased, to record all contacts with customers and follow up for
additional revenue generation
Operations Systems
- Both operations and manufacturing systems support primary activities
- Operations systems used by non-manufacturers, ex: distributors and retailers
- Order Entry can take place in-house, or web based
- Order mgmt systems track orders (and associated functions)
- Inventory mgmt