Functional Information System

Functional business systems Support a variety of operational and managerial applications of the basic business functions of a company. Examples: information systems that support applications in accounting, finance, marketing, operations management, and human resource management.

Accounting information systems help record business transactions, produce periodic financial statements, and create reports required by law, such as balance sheets and profit-and-loss statements.

The purpose of financial systems is to facilitate financial planning and business transactions.

In finance, information systems help organize budgets, manage cash flow, analyze investments, and make decisions that could reduce interest payments and increase revenues from financial transactions.

Marketing IS provide information that helps management decide how many sales representatives to assign to specific products in specific geographical areas.

The systems identify trends in the demand for the company’s products and services.

Human resource (HR) management systems help mainly in record-keeping, employee evaluation, and employee benefits.

Every organization must maintain accurate employee records. Human resource management systems maintain such records, including employees’ pictures, marital status, tax information, and other data that other systems, such as payroll, might use.

Another way of Classifying Information Systems is by which level of organisation it serves.Three main levels of Organisation information systems serve are as follows:

Operational-level systems: support operational managers, keeping track of the elementary activities and transactions

Management-level systems: serve the monitoring, controlling, decision-making, and administrative activities

Strategic-level systems: help senior management tackle and address strategic issues

To learn more about Functional Information Systems click the links below
Financial Information Systems
Manufacturing Information System
Marketing Information System