CHP. 7 Flashcards
Primary activities
In Michael Porter’s value chain model, the fundamental activities that create value—inbound logistics, operations, outbound logistics, marketing/sales, and service.
Support activities
In Michael Porter’s value chain model, the activities that contribute indirectly to value creation—procurement, technology, human resources, and the firm’s infrastructure.
Functional systems (ERP
Enterprise resource planning
The second era of information systems. The goal of such systems was to facilitate the work of a single department or function. Over time, in each functional area, companies added features and functions to encompass more activities and to provide more value and assistance.
Functional silos
An organizational area (such as marketing or finance) that operates without considering other organizational areas.
Cross-departmental systems or Cross-functional systems
The third type of computing systems. In this type, systems are designed not to facilitate the work of a single department or function but, rather, to integrate the activities of a complete business process.
interorganizational systems
Information systems processing of routine transactions between two or more organizations.
Business process design
The creation of new, usually cross-departmental business practices during information systems development. With process design, organizations do not create new information systems to automate existing business practices. Rather, they use technology to enable new, more efficient business processes.
Enterprise application integration (EAI)
An approach to combining functional systems that uses layers of software as a bridge to connect different functional systems together.
Industry standard processes
Processes built into business applications from companies such as Oracle or SAP.
SAP R/3
A software product licensed by German company SAP that integrates business activities into inherent processes across an organization.
Enterprise resource planning (ERP) system
The integration of all the organization’s principal processes. Support all the primary business processes as well as the HR and accounting procceses
Process blueprint
In an ERP product, a comprehensive set of inherent processes for organizational activities.
Customer relationship management (CRM) system
An information system that maintains data about customers and all their interactions with the organization.
Customer life cycle
Taken as a whole, the processes of marketing, customer acquisition, relationship management, and loss/churn that must be managed by CRM systems.
Supply chain management
An information system that integrates the primary inbound logistics business activity.
