How does information system levels relate to their interdependency?
Answers
the relationship between information systems and business processes. Information systems automate manual business processes and make an organization more efficient. ... Tasks can be performed simultaneously rather than sequentially, speeding up the completion of business processes
Explanation:
The principal business functions in a business firm are:
1. Marketing and sales
2. Production
3. Accounting and finance
4. Human resources
Figure 12.1: Outlines a general view of information systems supporting a company's operations and management. Emphasize that management support systems (MRS), decision support systems (DSS), and executive information systems (EIS), rest on the foundation of transaction processing systems (TPS) that support business operations. TPSs are the major source of data used by the higher-level systems to derive information. Professional support systems (PSS) and office information systems (OIS), which support individual and group knowledge work, are also a part of this foundation.
12.2 Marketing Information Systems [Figure 12.2 & Figure 12.3]
Marketing activities are directed toward planning, promoting, and selling goods and services to satisfy the needs of customers and the objectives of the organization.
Marketing information systems support decision making regarding the marketing mix. These include:
1. Product
2. Price
3. Place
4. Promotion
Figure 12.3 illustrates the structure of the entire marketing information system. In order to support decision making on the marketing mix, a marketing information system draws on several sources of data and information.
Sources of Data and Information for Marketing: Boundary-Spanning and Transaction Processing Subsystems
A marketing information system relies on external information to a far greater degree than other organizational information systems. It includes two subsystems designed for boundary spanning - bringing into the firm data and information about the marketplace.
The objective of marketing research is to collect data on the actual customers and the potential customers, known as prospects. The identification of the needs of the customer is a fundamental starting point for total quality management (TQM). Electronic commerce on the WEB makes it easy to compile statistics on actual buyer behaviour.
Marketing research software supports statistical analysis of data. It enables the firm to correlate buyer behaviour with very detailed geographic variables, demographic variables, and psychographic variables.
Marketing (competitive) intelligence is responsible for the gathering and interpretation of data regarding the firm's competitors, and for the dissemination of the competitive information to the appropriate users. Most of the competitor information comes from corporate annual reports, media-tracking services, and from reports purchased from external providers, including on-line database services. The Internet has become a major source of competitive intelligence.
Marketing Mix Subsystems
The marketing mix subsystems support decision making regarding product introduction, pricing, promotion (advertising and personal selling), and distribution. These decisions are integrated into the sales forecast and marketing plans against which the ongoing sales results are compared.
Marketing mix subsystems include:
1. Product subsystem
2. Place subsystem
3. Promotion subsystem
4. Price subsystem
5. Sales forecasting