Chapter 8: Processes, Organizations, and Information Systems

Vocabulary flashcards covering key concepts from the notes on processes, organizations, and information systems.

Workgroup process

A process that supports one or more workgroups; 10–100 users; procedures often formalized; workgroup data may be duplicated; changing these processes is relatively difficult.

Enterprise process

A process that supports one or more enterprise-wide activities; 100–1,000+ users; procedures formalized; eliminates workgroup data duplication; changes are difficult and affect the enterprise.

Inter-enterprise process

A process that spans multiple organizations; 1,000+ users; formalized procedures; problem solutions affect multiple organizations; very difficult to change.

Structured process

A process that supports operational and managerial activities; standardized and formally defined; exceptions are rare; changes occur slowly; examples include returns, order entry, payroll.

Dynamic process

A less specific, fluid process; usually informal; exceptions frequent; adaptive and changes structure rapidly; examples include collaboration, social networking; ill-defined situations.

Government – Highly Structured

An example of a highly structured process, typically seen in government contexts.

Start-up – Dynamic

An example of a dynamic process, typical in startups with fluid, adaptable processes.

Process efficiency

The ratio of outputs to inputs.

Process effectiveness

How well a process achieves the organization’s strategy or goals.

Improving processes

Methods to improve: change the process structure, change the process resources, or change both.

CRM (Customer Relationship Management)

Suite of applications that manages all customer and marketing information and supports four phases of the customer life cycle (marketing, acquisition, relationship management, loss/churn); enables a customer-centric organization.

ERP (Enterprise Resource Planning)

Integrated, single IT system for the entire organization; characterized by a central data store; a suite of applications; primary purpose is integration with real-time updates.

EAI (Enterprise Application Integration)

Middleware that connects disparate enterprise applications to enable data exchange and coordinated processes.

CRM programs (top sellers)

Salesforce.com, SAP, Oracle, and Microsoft Dynamics; widely used CRM tools; enhances customer management and marketing activities.

Microsoft Dynamics (ERP family)

ERP products including AX, Nav, GP, and SL; AX/Nav are more comprehensive; SL is declining; large VAR channel; mixed Office integration; cloud hosting considerations.

SAP

Largest ERP vendor; historically leading but expensive; older technology, moving to mobility and cloud; huge customer base; strong CRM presence.

Oracle (ERP)

ERP vendor with in-house and acquired products; expensive; strong technology base; flexible SOA; strong cloud-based solutions; competitive with SAP.

Infor ERP

Privately held; many non-integrated solutions; specialized for manufacturing and supply chain; evolving with 3D printing technologies.

Microsoft Dynamics (vendors)

Four products (AX, Nav, GP, SL); integration with Office varies; Azure hosting considerations for ERP products.

Sage

ERP, CRM, and financial-oriented solutions; cloud-based options; affordable, suited for startups and small businesses; broad product suite.

ERP applications

A suite of applications designed to run enterprise operations; emphasizes integration and real-time data across the organization.

CRM applications (top programs)

Popular CRM tools include Salesforce, SAP, Oracle, Microsoft Dynamics; supports customer-facing processes and marketing activities.

Category of goods – Consumer (Non-durable, Durable, Capital)

Consumer goods categories: Non-durable (<3 years; e.g., food, clothing, gasoline); Durable (3–5 years; e.g., cars, electronics); Capital (5+ years; e.g., houses, investment properties).

Category of goods – Organizations

Goods categorized as Capital (long-term assets), For sale/resale (goods bought to be sold), and MRO (maintenance, repair, and operations for running the business).

MRO

Maintenance, repair, and operations goods/services used to run and maintain the business (e.g., office supplies, company autos, repairs).

Subcategories of Marketing (B2C, B2B, C2C)

B2C: many clients; decisions influenced by price and personal preferences. B2B: fewer clients; purchases are business-utility driven. C2C: direct end-user sales (yard sales, eBay).

Consumer goods categories (Encyclopedia Britannica)

Non-durable, durable, and capital goods with respective typical life cycles used to classify consumer goods.

Customer motivation

Motives for customers: Convenience, Value/utility, Personal attention, Ease of buying, Trust, and Community.

Customer Life Cycle

Four phases of customer interactions: marketing, customer acquisition, relationship management, and loss/churn.

BPM (Business Process Management)

A discipline of continuously improving business processes to enhance efficiency and effectiveness.

Cost of customer acquisition vs retention

Acquiring a new customer costs 4–10 times more than retaining an existing one; 65% of business comes from existing customers; a 5% increase in retention can boost profit by 25%–95%; 20% of customers generate 80% of revenue.