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Management IC

Management Information System

1. Explain this figure below! How relationship between each part? Explain your answer.

2. Why is there a trend toward cross-functional integrated enterprise systems in

business?
3. How can Internet technologies be involved in improving a process in one of the
functions of business? And evaluate its business value.
4. What are several e-business applications that you might recommend to a small
company (eg:koperasi, SME etc) to help it survive and succeed in challenging
economic times? Why?

Answer

1. A business is usually split into a series of different departments. Each department has a
specific function in the operation of the business. Each of these different functions is a
crucial part of the overall business. If one of the system does not work optimally, the
other systems will also be affected because they are working in synergy with one
another. These are the explanation of each system’s functionality in a business and how
they affect it:
a. Marketing
 This is seen by many as the heart of the business as the marketing department tends to
have the most direct contact with customers. It is important to realize that marketing
is not the same as 'selling', but is a much broader concept. The responsibilities of the
marketing department may include:

 Researching the market - identifying market opportunities, examining the nature of

customers and potential customers, understanding the target market for the good or
service, testing consumer reaction to potential products and so on.

 New product development - the marketing department will often work together with
the production department to develop new products and services. The marketing
department will test if there is a market for the product, identify the features or
characteristics that the product requires and may carry out test launches of the product
in advance of the full product launch.

 Marketing mix - the marketing department will develop the mix of strategies that
will help with selling the product. This includes the pricing of the product, the
promotion, the nature of the product and the distribution channels for the product.

b. Human Resource Management HRM or just HR

The human resources department is responsible for the management of people. The
responsibilities of the HR, department will include:

 Recruitment - the process of finding appropriate people for a given role. This
includes advertising a vacancy, selecting candidates for interview, managing contracts
of employment, job descriptions and so on.

 Training - both new and existing staff will need training to help them develop and
improve their skills and this will be the responsibility of the HR department.

 Wages and Salaries - people work for money and this process needs managing.
How much is each job worth, what other benefits do employees get (pension
entitlement, fringe benefits and so on), what happens when people are sick? All these
questions and issues are dealt with by the HR department.
 Employee relations and welfare - this includes pay negotiations with employees,
disciplinary procedures, considering grievances of employees as well as health and
safety, social activities and so on. All these will usually be handled by the HR
department.

c. Finance and Accounting

The accounting and finance department is responsible for all issues related to the
management of money and the flows of money around the business and between the
firm and other
firms or customers.

The Finance function, on the other hand, is concerned with raising the money
required for all business operations and the decision-making on how and where that
money should be spent.

The Accounting function involves the collection, recording, presentation and analysis
of financial data. This may include 'management accounts' for the directors of the firm
to view on a regular basis or the public or 'financial accounts' for anyone to view (if
the firm is a public limited company).

The responsibilities of the finance function include:

 Sources of finance -decisions about the most appropriate source of finance for each
activity.
 Cash flow -the way in which money moves in and out of the business. It is important
to balance and manage these flows. If too much money flows out at a given time, the
firm is in danger of insolvency.
 Credit control - the process of collecting debts and managing payments. At any
given time a firm will be owed money by its customers and may owe money to its
suppliers.

Operations Management

The production function is perhaps the clearest of all. It may also be called the
'operations' function of the firm. However, as with marketing, there is more to the
 production function than immediately meets the eye. The responsibilities of the
production department may include:

 New product development - in association with the marketing department

 Research and development (R & D) - R&D refers to systematic investigation or

innovation; the outcomes of which are new or improved materials, products, devices,
processes, or services. Prototypes of new products may be tested by the marketing
department with potential customers.
 Production planning - the production department will consider the layout of the
facility, the optimum location of production, the method of production, the type of
machinery and so on.

 Quality control - the quality of the product or service is crucial if the reputation of
the firm is to be maintained and enhanced.

 Distribution - the production department will organise the distribution of the good or
service to the customers. This may be through middlemen or 'intermediaries' such as
retail shops or agents or direct to the customer through e-commerce.

 Purchasing and stock control - the production department is responsible for the
purchase of stocks or raw materials required for production.

2. Cross-Functional integrated enterprise system cross boundaries of traditional business

functions in order to reengineer and improve vital business possesses across the
enterprise. Businesses use cross-functional integrated enterprise systems to share
information resources, by doing this the business process becomes more efficient and
more effective. Cross-functional integrated enterprise systems also enable business to
develop strategic relationships with customers, suppliers and business partners.
In comparison to functional mainframe – based systems cross-functional integrated
enterprise systems enable businesses to focus on essential business information instead
of focusing on installing the necessary enterprise resource planning, supply chain
management or customer relationship management software. Managers are also able to
make better decisions due to increased quality of the data.
3. Using the Internet, intranets, extranets, and other network changes how accounting
information systems monitor and track business activity. The online, interactive nature
of such networks calls for new forms of transaction documents, procedures, and
controls. Many companies are using or developing network links to their trading
partners through the use of the Internet or other networks for applications such as order
processing, inventory control, accounts receivable, and accounts payable. These
advances in the accounting function have to vast improvements in the capturing,
reporting, and the accuracy of company data. Thus, real-time processing of accounting
information enables executives to make better and more informed decisions involving
their firm’s resources.

4. There are many e-Business application that we can use to improve the small business
according what we need in our business, for example:
a. For finance and accounting
Gusto
This app makes your company’s payroll, tax and benefits processes more efficient.
In addition to managing online employee onboarding, Gusto handles new-hire
reporting and all local, state and federal tax filings; automates deductions for benefits
and workers’ comp payments; and emails digital pay stubs to employees.
Quickbooks
QuickBooks’ accounting software helps you run your business and provides a sense of
your company’s overall financial health. You can use QuickBooks to track your
business’ sales and expenses; view financial statements, such as profit and loss reports;
pay your employees and vendors; track unpaid invoices; maximize your tax deductions;
and more.
Freshbooks
This app gives small-business owners and freelance workers a simple way to manage
and track invoices. FreshBooks lets you create personalized, professional-looking
invoices to match your business; automatically bill your clients for recurring invoices;
and accept credit cards on your mobile device.

b. For communication

Communicating effectively is critical for the daily operations of small businesses. Here
are some of the best communication apps to improve productivity within your company.
Addappt
Addappt makes it easier to manage your contacts. When your business contacts, friends
and family update their contact information, the changes automatically extend to your
phone, provided your contacts also use Addappt. You can also organize contacts into
groups and send messages via the app.
Fuze
Fuze is a videoconferencing app that hosts online meetings for all devices and operating
systems, including iPads and tablets. It offers high-definition video and crisp audio, and
it’s easy to set up and download.
Pushover
Pushover sends push messages to any smartphone and organizes messages and
notifications from your devices in one common space. You can send 7,500 messages
each month for free and receive an unlimited amount of notifications on Android and
iOS devices and desktops.

c. For Time Management

Rescuetime
Rescue Time automatically tracks time you’ve spent on applications and websites and
sends you detailed reports based on your activity, giving you an accurate picture of how
you spent your day. You can set alerts to notify you when you’ve spent a certain amount
of time on an activity, like social networking or reading the news, and block distracting
websites. It works for Mac, PC, Android and Linux.
My Minutes
If you find you can’t stay focused on your most important tasks, or you’re wasting too
much time on Facebook, My Minutes can help you stay grounded by setting goals, such
as “Spend only one hour checking email” or “Work out for 30 minutes.” The app is
available for iPhones only.
Omnifocus
OmniFocus is a personal task manager that lets you create projects and tasks and
organize them into to-do lists. OmniFocus syncs between your devices and works with
iPhones, iPads, Macs and Apple Watch.

d. For Mobile Payment

Paypal
PayPal reacted to the emergence of Square, by creating an app that lets businesses
attach PayPal’s card reader to a tablet or other device and use it as a portable register.
The PayPal Here app is ideal for businesses that need to get paid on the go.
Square
This payment app is a good fit for businesses such as food trucks, beauty salons and
retail shops. Its users get a small, portable card reader that attaches to a phone or another
mobile device to take fast, convenient payments. Square also offers a point-of-sale
system called Square Register for businesses with a brick-and-mortar store. Square’s
point-of-sale app is compatible with iOS and Android devices.
 e. For Organization
Asana
If your business is looking to improve its communication and collaboration, look no
further than Asana. The web-based and mobile app lets you view all tasks and projects
and follow progress on the Asana board, and you can share notes, upload files and
communicate without having to rely on email. Asana also integrates with Google Drive
and Dropbox to attach files, and with Slack for communication to post updates to a
Slack messaging channel.
Proven
Proven helps you organize your hiring, letting you post job listings to multiple job
boards with one click on your smartphone. You can also sort through dozens of
application responses in minutes; categorize applicants into “yes,” “no” and “maybe”
buckets; and note when you follow up with a candidate.
Boxmeup
The Android app Boxmeup organizes and tracks your packages, containers and other
bulk storage items. It allows you to print the proper QR labels, which you can scan with
your phone to access a list of items in each container at any time. There’s no iPhone
app, but you can access Boxmeup’s mobile website using an iPhone.