A workgroup process exists to enable workgroups to fulfill the charter, purpose, and goals of a

particular group or department.

Processes are the fabric of organizations; they are the means by which people organize their activities to
achieve the organization’s goals.
The two dimensions of process quality are efficiency and effectiveness. Process efficiency is
a measure of the ratio of process outputs to inputs.
Process effectiveness is a measure of how well a process achieves organizational strategy.
Organizations can improve the quality (efficiency and/or effectiveness) of a process in one of three
ways:
• Change the process structure. • Change the process resources. • Change both process structure and
resources.
Information systems can be used to improve process quality by:
• Performing an activity. • Augmenting a human who is performing an activity. • Controlling data quality
and process flow.

An information silo is the condition that exists when data are isolated in separated information systems.
It’s completely natural for workgroups to develop information systems solely for their own needs, but,
over time, the existence of these separate systems will result in information silos that cause numerous
problems.
When an organization has inconsistent duplicated data, it is said to have a data integrity problem.

The obvious way to fix such a silo is to integrate the data into a single database and revise applications
(and business processes) to use that database.
If that is not possible or practical, another remedy is to allow the isolation, but to manage it to avoid
problems.

Business process reengineering: the activity of altering existing and designing new business processes to
take advantage of new information systems.
Unfortunately, business process reengineering is difficult, slow, and exceedingly expensive.
Business analysts need to interview key personnel throughout the organization to determine how best
to use the new technology.
Because of the complexity involved, such projects require high-level, expensive skills and considerable
time.
Failure can lead to a partial implementation that could detriment workflow or leave personnel unable to
make effective use of their resources.
Vendors offered standardized business processes. These inherent processes, which are predesigned
procedures for using the software products, saved organizations from the expense, delays, and risks of
business process reengineering.
Inherent processes are almost never a perfect fit.

A customer relationship management (CRM) system is a suite of applications, a database, and a set of
inherent processes for managing all the interactions with the customer.
Customer life cycle: marketing, customer acquisition, relationship management, and loss/churn.
CRM has components for each phase.
This design eliminates duplicated customer data and removes the possibility of inconsistent data. It also
means that each department knows what has been happening with the customer at other departments.

Enterprise resource planning (ERP) is a suite of applications called modules, a database, and a set of
inherent processes for consolidating business operations into a single, consistent, computing platform.
An ERP system is an information system, based on ERP technology, that include the functions of CRM
systems but also incorporate accounting.
The primary purpose of an ERP system is integration; an ERP system allows the left hand of the
organization to know what the right hand is doing.
This integration allows real-time updates globally, whenever and wherever a transaction takes place.
Critical business decisions can then be made on a timely basis using the latest data.

ERP systems are not for every organization. For example, some nonmanufacturing companies find the
manufacturing orientation of ERP inappropriate.
Companies for which ERP is inappropriate still have the problems associated with information
silos, however, and some choose to use enterprise application integration (EAI) to solve those
problems.
EAI is a suite of software applications that integrates existing systems by providing layers of software
that connect applications together.
The EAI software keeps files of metadata that describe data formats and locations. Users can access the
EAI system to find the data they need. In some cases, the EAI system provides services that provide a
“virtual integrated database.”

For an ERP product to be recognized it must integrate supply chains, manufacturing, CRM, human
resources, and accounting.
As an information system, an ERP has 5 components: hardware, application programs (software),
databases, business process procedures, and the necessary training for the users.
Large organizational databases contain two types of program code: a trigger, is a computer program
stored within the database that runs to keep the database consistent when certain conditions arise, a
stored procedure, is a computer program stored in the database that is used to enforce business rules.
Considerable work needs to be done to customize an ERP application to a particular customer. To
reduce that work, ERP vendors provide starter kits for specific industries called industry-specific
solutions.

Implementing new enterprise systems, whether CRM, ERP, or EAI, is challenging, difficult, expensive,
and risky.
 Enterprise systems have no clear boss that can solve disputes. Companies can develop groups or
committees, but that is expensive.
 Purchased, licensed products are never a perfect fit. Almost always there are gaps between the
organization’s requirements and the application’s capabilities.
 Transitions require careful planning and substantial training. Inevitably, problems will develop.
 People resist change.
Employees fear change because it threatens self-efficacy, which is a person’s belief that he or
she can be successful at his or her job. To enhance confidence, employees need to be trained
and coached on the successful use of the new system.
 Emerging, new technology affects all information systems, but it affects enterprise systems
particularly because of their importance and their value.