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Chapter 7 Processes, Organizations, and Information Systems
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Issue Enterprise
Discharge Stop Food Applications
Patient
Order Prepare Schedule
Discharge Prepare Take- Pickup
home Meds
Deliver Meds Enterprise
Discharge Arrive Database
Patient Hospital
Prepare Room

“OK, you’re ready
Figure 7-7 to go home!”
Example Enterprise Process
and Information System

kitchen. Some of those activities initiate activities back at the nursing staff. In Figure 7-7, the
enterprise process (supported by the IS) is represented by a dotted blue line.
Prior to the enterprise system, the hospital had developed procedures for using a paper-based
system and informal messaging via the telephone. Each department kept its own records. When
the new enterprise information system was implemented, not only was the data integrated into
a database, but new computer-based forms and reports were created. The staff needed to transi-
tion from the paper-based system to the computer-based system. They also needed to stop making
Eliminating information silos is
not without security risk; for more phone calls and let the new information system make notifications across departments. These
information, see the Security Guide measures involved substantial change, and most organizations experience considerable anguish
on pages 314–315. when undergoing such transitions.

Q7-4 How Do CRM, ERP, and EAI Support

Enterprise Processes?

Enterprise systems like the one in Figure 7-7 were not feasible until network, data communica-
tion, and database technologies reached a sufficient level of capability and maturity in the late
1980s and early 1990s. At that point, many organizations began to develop enterprise systems.

The Need for Business Process Engineering

As they did so, organizations realized that their existing business processes needed to change. In
part, they needed to change to use the shared databases and to use new computer-based forms
and reports. However, an even more important reason for changing business processes was that
integrated data and enterprise systems offered the potential of substantial improvements in
process quality. It became possible to do things that had been impossible before. Using Porter’s
language (Chapter 3, pages 119), enterprise systems enabled the creation of stronger, faster, more
effective linkages among value chains.
For example, when the hospital used a paper-based system, the kitchen would prepare meals
for everyone who was a patient at the hospital as of midnight the night before. It was not possible