ISTM ABCC ISTM Exam 3 Material: Ch 12 Business Functions

5 core business functions

accounting, production, research and development, human resources, marketing

definition of collaboration

2 or more people working towards the same goal

broad deifnition of business

an organized entity designed to sell goods and/or services to make a profit

every busn should account for their

profits and losses

acct department is often the most

important

acct basically

measures and provides info abt an org for its decision makers, investors and tax authorities

acct is referred to as the language or

mathematics of business

in the us, what rules/regulations do orgs follow when they account for their money

GAAP - Generally Accepted Accounting Principles

GAAP ensures that

the company and its investors have a standard set of reports regarding the business’s well being

which act prevents corporate fraud

Sarbane Oxley Act of 2002 - ensures accuracy and fair reporting of these finc stmts

to faciliate the reporting process we need hardware and software and a networked system, example?

SAP which is an ERP software (world’s largest)

most important asset in any business

firm specific human capital and human resources

this department’s job is to

administer people, doing tasks like recruiting and hiring new employees, evaluating and managing personnel, tracking data, sometimes giving employees advice on work related issues

this department must be aware of the org’s…

entire structure

they should define intra departmental relationships clearly

the hr deps communicate just to hired employees the expectations of the busn through an employee manual or can do this through

internet tech using intranet

marketing =

the promotion of a business’ products

the marketing department focuses on the

people

who coined the term “the 4 P’s of Marketing”

Mccarthy - professor at michigan state university

4 P’s of Marketing

Products = how they relate to customer needs

Pricing = how prices can vary on the same product

Promotion = ad’s of the busn’s products

Placement = How, where and to whom a product is delivered

for pricing, busns need a firm grasp on

economic theory

finding a suitable market segment can involve complex database analysis and risk assessment to make sure that

products are introduced to suitable customers

if a business isn’t growing, its

dying

one of this dep’s main focuses are to keep the business…

growing

the R and D dep takes a ______ and _______ appraoch to evolve a busn’s original idea

creative and systematic

sometimes they refer to what they do as..

brainstorming

part of the systematic approach is to

consider whether the ideas are feasible

this department also has to have a

grasp of the business they serve and its industry

what info technology plays a part in R and D

video conferencing, webcasts, etc

tangible =

intangible =

goods, services

this dep focuses their attention to the most…

efficient and cost effective way to produce to maximize profit

important info tech tool here would be

excel which has ability to make what if analysis

info and data are simple tools for

decision making

data and info exchange vs collaboration

collaboration is actaully using the info to work towards a common goal

IT always assumes what?

use of a network (private or the internet)

to encourage collaboration..

IT must be leveraged efficiently

data and information exchange software and techniques can be categorized as

electronic computing tools

collaborative software and techniques can be categorized as

management tools

electronic computing tools provide

data and information exchange to facilitate decisions

one of the oldest electronic computing tools is a

internet discussion board

the first post to the discussion board is typically a comment that starts the

thread

instant messaging and online chat

not restricted to personal computers, may devices offer mobile instant messaging, called texting

video and data conferencing

allows business’s to collaborate through a netowrk by allowing 2 or more location to interact via video and exchange data

they exchange data during a conference called a

webinar (allows collab between presenter and audience)

major advantage of both:

also whats this collab sometimes called?

no travel required

virtual collaboration

data conferencing

hen 2 or more users share the same excel while collaborating on a sinlge computer from different locations

application conferencing

looking at the same excel while collaborating on a single computer from diff locations

project management software

provides a business with a collaborative road map for organizing and managing resources to schedule a project from start to finish

example of a project management software

Microsoft Project = spreadsheet like GUI input screen that helps assign people to certain tasks to accomplish goals

what does Microsoft Project provide us

Gantt Chart which is the graphical representation of the project (very similar to a road map)

the output of the project management software shows the steps in the

System development life cycle (SDLC)

list the 8 steps of the System development life cycle

initiation

requirements

design

development

testing

implementation

operation

maintenance

when a business wants to outsource a computer programming job, what project management software will it use to define the project?

unified modeling language (UML)

knowledge management system

a collaborative system that organizes, creates, and distributes a business’s collective knowledge

within a business, these systems start with distributing an idea which is called a

knowledge transfer

a newer online collaboration system is

online application software

whats the online application software that Google offers (whats a plus)

Google Docs and Spreadsheets (free!)