Recap: information systems help gain/sustain competitive advantage or survival by improving operational excellence, enabling new products, services and business models, enabling customer and supplier intimacy, and improving decision making. Increases efficiency of existing processes: automating steps that were manual, checking clients credit, generating an invoice. Enabling entirely new processes: changing flow of information, replacing sequential steps with parallel steps, eliminating delays in decision making, supporting new business models. Business processes: flows of material, info, knowledge, sets of activities, steps, may be tied to a functional area or be cross-functional, cross-functional- more than one area involved (ex. marketing working with accounting) Businesses can be seen as a collection of business processes: processes may be assets or liabilities. Examples of functional business processes: manufacturing and production, assembling the product, sales and marketing, identifying customers, finance and accounting, creating financial statements, human resources, hiring employees.