AI-assisted development uses artificial intelligence to help with tasks like system design, coding, debugging, and code generation. Tools include AI code suggestions, auto-completion, and error detection. This approach speeds up development and lowers technical barriers—especially useful for low-code/no-code users and those without programming experience.

An API (Application Programming Interface) is a set of rules that allows different software systems to communicate and share data or functions. In ERP or business systems, APIs are commonly used to connect with third-party services—such as linking a sales order system to a shipping provider—reducing manual input and enabling automation and integration.

An after-sales service system manages the support processes that occur after a product is sold, such as repair requests, warranty tracking, customer inquiries, and issue resolution. It helps businesses centralize service data, monitor progress, and enhance customer satisfaction—especially valuable for product-focused or tech-based companies.

Bill of materials (BOM) is a detailed list of all raw materials, components, and sub-assemblies needed to manufacture a product. It typically includes quantities, specifications, and hierarchy levels. In ERP systems, the BOM plays a central role in production planning, inventory control, and cost calculation, especially in manufacturing industries.

BYOA, short for “Bring Your Own App,” refers to a practice whereby a company allows employees to independently choose and integrate third-party or self-developed applications to fill specific workflow needs not covered by core information systems (e.g., ERP, CRM). This approach enhances agility and efficiency, but also requires careful management of data security, access controls, and compliance.

BYOD, short for “Bring Your Own Device,” refers to a policy in which a company allows employees to use their personal smartphones, tablets, or laptops to access corporate systems and data. Compared with centrally issued equipment, BYOD expands flexibility and convenience, lowers hardware procurement costs, and boosts employee satisfaction; however, it also introduces challenges in device management, security updates, and data segregation.

Business intelligence (BI) refers to tools and processes that collect, analyze, and visualize business data to support better decision-making. Often used alongside ERP systems, BI addresses the limitations of traditional systems in data interpretation by offering dashboards, reports, and trend analysis. Its goal is to make data insights accessible even to non-technical users.

Business processes are structured sets of activities or steps that an organization follows to complete a specific task, such as order-to-delivery or purchase-to-payment. These processes often span multiple departments and require clear coordination. Systems like ERP help standardize and automate business processes, improving efficiency and reducing errors.

CRM (customer relationship management) is a system used to track and manage interactions with customers and prospects. It focuses on sales leads, communication history, follow-ups, and customer service, helping businesses build stronger relationships and improve conversion rates. Unlike inventory or order systems, CRM centers on people and relationships.

A citizen developer is a non-IT professional—such as someone in sales, marketing, or operations—who builds applications or automations using no-code or low-code platforms. They create tools to solve business problems without needing formal programming skills, allowing faster development and reducing reliance on traditional IT resources.

A cloud-based system is an information system hosted on remote servers and accessed via the internet, eliminating the need for local installation or server maintenance. Compared to on-premise systems, it offers faster deployment, scalability, and support for remote work, making it ideal for distributed teams and growing businesses.

Consignment inventory refers to goods stored at a customer’s or distributor’s location while ownership remains with the supplier. The customer is only billed when the items are sold or used. This model reduces inventory burden for the buyer and increases exposure for the supplier. Systems must be able to track consigned stock and usage history accurately.

Customer segmentation or tiered customer management involves classifying customers based on criteria such as purchase volume, frequency, or relationship history. Common tiers include VIP, regular, or potential customers. This helps businesses tailor services, allocate resources more effectively, and apply differentiated policies such as payment terms, discounts, or dedicated account support.

Customer tags are multi-select menus used to categorize customers, enabling companies to quickly filter and manage them based on characteristics or behaviors. For example, tags like “VIP Customer,” “Prospective Customer,” or “High Return Rate” can group customers with similar attributes for marketing campaigns, customer support, or sales analysis. Compared to fixed data fields, tags offer far greater flexibility in how they can be combined.

In the context of information systems, customization refers to modifying system features or interfaces to meet specific business requirements. This may include adding custom fields, changing workflow logic, or developing tailored modules. While customization allows for a closer fit to real-world operations, it can also introduce higher maintenance complexity and upgrade challenges.

A database is a structured system for storing and managing large amounts of data, typically composed of multiple related tables. It supports relationships between data, querying, updating, and access control. Databases help businesses move beyond scattered spreadsheets by centralizing data for greater efficiency and consistency. Common systems include MySQL, PostgreSQL, and Oracle, as well as built-in databases in no-code platforms.

Enterprise Resource Planning (ERP) is an information system that helps businesses integrate their operational processes, avoiding duplicate data entry and enhancing efficiency and transparency. Many people use "ERP" as a general term for a company’s main information system, but by formal definition, ERP mainly refers to inventory and accounting systems. Other systems such as CRM, production management, and HR are generally considered add-on modules and not part of the ERP core. Well-known ERP systems include SAP and Oracle.

Expiration tracking involves tracking and controlling the shelf life of perishable products such as food, medicine, or cosmetics. Systems record the expiration dates of each batch and issue alerts for upcoming expirations to support timely sales, recalls, or disposal. It’s often used alongside lot tracking and FIFO method to minimize waste and ensure compliance.

First-in-first-out (FIFO) is an inventory management method where the oldest stock is issued or sold first. It’s especially useful for perishable goods like food or pharmaceutical products to reduce the risk of expiration. In inventory systems, FIFO helps automate cost calculations and maintain a logical, timely stock rotation.

A Gantt chart is a scheduling tool that displays project timelines using horizontal bars. The horizontal axis represents time and the vertical axis lists tasks. Each bar shows a task’s planned start and end dates, making it easy to track each task's progress and schedule. Gantt charts are commonly integrated into project management systems to give teams a clear overview of overall progress and task dependencies.

In the context of information systems, implementation refers to the process of deploying a system into actual business operations. It includes steps such as requirement analysis, system setup, data migration, testing, user training, and deployment. The quality of implementation significantly impacts system effectiveness and user adoption, making it a critical phase in ERP or software projects.

An information silo refers to a situation where data is stored in isolated systems or departments that don’t effectively share information with each other. This can lead to duplicate entry, communication gaps, and slow decision-making. Eliminating information silos is a key goal when implementing ERP or integrated business systems.

An information system is software that automatically collects, organizes, analyzes, and delivers data, enabling users to quickly access accurate information, streamline workflows, and boost productivity. These systems come in many forms, such as: ERP for enterprise resource planning, CRM for customer relationship management, inventory and order management systems, HR management systems, library lending systems, hospital appointment systems, and online booking systems for flights or movie tickets.

Integration refers to connecting two or more systems so they can automatically share data and work together. Common examples include linking a sales order system with payment gateways, shipping services, or invoicing tools. In ERP or business software, integration is essential for automating cross-platform workflows and improving efficiency.

Inventory aging analysis is the process of categorizing and evaluating stock based on how long items have been held in inventory (e.g., 0–30, 31–60 days). “Aging” refers to the length of time an item has been in storage. This analysis helps businesses spot slow-moving or overstocked items, take timely action to clear old stock, and reduce holding costs and inventory risk.

Inventory counting refers to physically tallying the quantities of goods in a warehouse and comparing them with the system’s recorded figures to identify any shortages, damages, or discrepancies. A shortage is termed “shrinkage,” while an excess is called “overage.” Inventory counting is a vital operation for maintaining stock accuracy, helping to uncover management gaps, adjust accounting records, and optimize replenishment strategies.

An inventory management system is a tool used to record and track the receipt, storage, transfer, and shipment status of goods or raw materials. It helps businesses monitor inventory levels, locations, and movement history to prevent stockouts or overstocking. When integrated with procurement and sales modules, it streamlines overall logistics and represents the “stock” component of an inventory, procurement, and sales system.

Coding, or item coding, assigns unique identifiers to products, customers, or suppliers for easy tracking and management. Product codes, for example, may indicate category, size, or model. A clear, consistent coding system reduces errors, prevents duplicates, improves searchability, and supports accurate data handling in ERP and inventory systems.

Kanban is a visual management method and tool for handling projects. It uses a board where processes are organized into columns such as “To Do,” “In Progress,” and “Done," while tasks are represented by cards that move across the board between columns as they progress through the workflow. Originating from the pull-production concept in manufacturing, Kanban is now widely used in software development and project management to track workflow progress and balance workloads. Popular Kanban-based tools include Trello.

Kit inventory (also called bundled product inventory) manages stock for packages made of multiple items. For example, selling a gift box set requires tracking the box shipment and deducting each item inside. This works like a BOM explosion, where creating the kit automatically reduces the inventory of all its parts. Kit inventory is common in promotional packaging and custom bundles.

A LIMS (Laboratory Information Management System) is designed to help laboratories manage samples, testing workflows, data tracking, and reporting. It is especially useful in high-volume or regulated environments like pharmaceutical, food, or clinical labs. Unlike general ERP systems, LIMS focuses on traceability and control within lab-specific processes.

In IT, a line of business (LOB) application is a software solution tailored to support specific operational needs of a department or vertical industry—for example, hospital scheduling, logistics dispatching, or hotel reservation systems. Unlike ERP systems that span multiple functions, LOB systems are specialized and focused, offering in-depth features that align closely with industry-specific workflows.

Lot or batch tracking assigns identification codes to groups of products made or received together. It’s widely used in industries like food, pharmaceuticals, and chemicals to ensure traceability, quality control, and efficient recalls. This method offers more detailed control than standard inventory tracking.

Low code is a development approach that combines visual interfaces with minimal hand-coding, enabling faster application creation. Compared to no code, it offers more flexibility and customization, making it suitable for users with some technical skills. It's often used to build internal tools, automate workflows, or develop custom business applications.

Marketing automation, often part of a CRM, uses software to automatically handle repetitive marketing tasks like sending newsletters, push notifications, and lead-nurturing workflows. Unlike sales or customer-service automation, it focuses on efficiently sending large volumes of messages. Actions (e.g., emails after clicks or form submissions) are triggered based on user behavior, saving time and improving conversions and customer experience.

Master data refers to core, reusable information in a system that remains relatively stable over time, such as products, customers, suppliers, warehouses, or chart of accounts. It is not tied to a single transaction but is referenced by many other forms and processes. Accurate master data is essential for ensuring consistency and reliability across business processes.

Membership management is the process of keeping track of customers who sign up, such as their profiles, membership levels, points, purchase history, and rewards. It helps build customer loyalty and encourages repeat purchases. This system is commonly used in retail stores, gyms, and subscription services.

A module in ERP or information systems refers to a self-contained functional unit, such as purchasing, accounting, or inventory modules. Each module handles a specific business process and can operate independently or integrate with others. This modular structure allows businesses to scale and customize their systems based on their needs.

No-code refers to platforms that allow users to build applications or systems without writing any code. Using drag-and-drop interfaces, visual workflows, and form builders, non-developers can create tools for tasks like inventory tracking, data collection, or process automation. It's especially useful for small to mid-sized businesses seeking fast and flexible solutions.

Off-the-shelf or out-of-the-box software refers to ready-made, standardized solutions that can be deployed with minimal setup. These systems are designed to meet common business needs—such as accounting or reporting—and are known for quick implementation and lower costs. However, they may offer limited flexibility for highly specialized processes.

An on-premise system is an information system installed and operated on a company’s own servers and infrastructure. Unlike cloud-based systems, it offers greater control over data and customization, but often involves higher upfront costs and ongoing maintenance. It is commonly used in industries with strict security or compliance requirements.

An order management system (OMS) is a tool used to manage the entire customer order process—from order receipt and confirmation to shipping and invoicing—all in one place. Its key feature is the ability to integrate with inventory, logistics, and accounting systems to ensure that every order is shipped on time and nothing is missed. It is part of the "Sales" function within a PSI (Purchase, Sales, Inventory) system.

A purchase order (PO) is a document that a buyer sends to a seller to place an official order based on an approved purchase requisition. The document typically includes item details, quantities, prices, and delivery dates. The PO serves as the basis for the supplier’s shipment and invoice reconciliation.

Purchase requisition is often the first step in a company's procurement process. It is where employees submit a request to buy goods or services, usually through a form, and subject to management's approval. This process is usually found in ERP and procurement systems of large organizations to help control budgets and prevent fraud. However, it is sometimes skipped in smaller businesses for simplicity purposes.

Purchase, sales, and inventory management (PSI) covers the three essential operations of a business: Purchasing, selling, and inventory control. These processes are closely connected and affect cash flow, stock levels, and cost management. A PSI system helps unify and streamline these tasks, offering real-time visibility and control—especially important for small and medium-sized businesses.

A procurement system (or purchasing system) manages the process of ordering goods and services from suppliers. It tracks purchase requests, approvals, order statuses, and receipts, and is often integrated with inventory and finance modules. This system is especially useful for businesses with complex supply chains or high-volume purchasing.

A project management system is a tool used to plan, assign, track, and coordinate project tasks. It typically includes features such as task assignment, progress tracking, Gantt charts, schedule control, and team collaboration. It is especially well suited to cross-departmental collaboration or time-sensitive projects and, compared with general workflow systems, places greater emphasis on timeliness and clear delineation of task responsibilities.

A quotation or sales quotation is a document provided to a customer outlining the price and terms for goods or services. It typically includes item descriptions, unit prices, totals, payment terms, and delivery conditions. While not legally binding, it can be converted into a sales order upon the customer's acceptance, serving as an early step into the sales process.

A request for quotation (RFQ) is a document a company issues to one or more suppliers to ask about prices and terms for goods or services. It forms part of a company's price comparison or confirmation process before procurement. While it is not legally binding, it helps businesses evaluate costs and specify requirements. RFQs are common in manufacturing, especially in make-to-order (MTO) workflows.

Receiving inspection is the process of verifying the quantity and quality of goods upon delivery to ensure they match the purchase order. The inspection result decides whether items are accepted into inventory, invoiced, or returned. In business systems, it acts as a crucial link between procurement and inventory control.

A return order or sales return is a document used to record products returned by a customer, typically due to defects, incorrect shipments, or cancellations. It affects both inventory levels and accounts receivable. In business systems, returns are usually linked to the original sales order and trigger automatic adjustments to stock and financial records.

Sales automation or sales force automation (SFA) is the sales-related component of a CRM system. It uses software tools to help sales teams automate daily tasks, such as logging visits, tracking contact records, scheduling callbacks, and generating quotes. This automation reduces time spent on manual entry, allowing salespeople to focus on closing deals, while giving managers real-time visibility into sales progress and customer status.

In inventory management, an SKU (Stock Keeping Unit) is the smallest distinct unit used to differentiate and manage products. Each SKU represents a specific product configuration—such as differing brand, model, color, or size. Using SKUs helps accurately track stock levels, sales, and replenishment needs. SKU is typically custom-coded by companies to facilitate product movement tracking and categorization.

A sales order (SO) is a formal record created after a customer places an order. It records information such as the products purchased, their quantities, prices, and delivery terms. It initiates the sales process and triggers downstream actions such as shipping, invoicing, and inventory updates. Unlike a quotation, a sales order serves as a confirmed agreement ready for execution.

Safety stock is extra inventory kept to protect against unexpected demand spikes or supply delays. It’s not for regular use but held “just in case.” For example, with 100 daily units demanded and 10% safety stock, a company keeps 10 units as a buffer. Proper safety stock reduces stockout risk but too much increases holding costs. It’s vital for items with variable demand or long lead times.

Self-service analytics primarily refers to a workflow and trend that differs from traditional data analysis. In the past, organizations depended on IT teams to produce business intelligence reports on a periodic, batch-updated basis, which couldn’t respond to business needs in real time. Self-Service Analytics enables ordinary users to explore data independently and build visual dashboards on demand using tools like Microsoft Power BI and Google Looker Studio.

Serial number tracking assigns a unique ID to each product unit, enabling full traceability from purchase and production to sales and service. It’s commonly used for high-value or warranty-covered items like electronics and machinery, helping manage product history, ensure accountability, and simplify returns or repairs.

Service automation refers to using system tools to automatically handle customer service or internal workflows—such as auto-responding to FAQs, dispatch notifications, and progress alerts. It reduces manual work while improving efficiency and consistency. Common examples include online chatbots, after-sales repair processes, and work-order management systems, allowing customers to get immediate help without waiting for human support.

A shipping note is a document sent with the shipment that lists the items being delivered, which typically includes product names and quantities. Unlike an invoice, it usually excludes product prices. It serves as a receipt for the customer and helps with order verification, returns, and shipment tracking in the logistics process.

Social CRM is a CRM approach that integrates social media platforms such as Facebook, Instagram and WhatsApp into customer interactions and management. It lets businesses gather comments and messages from these channels in one interface for real-time replies, customer tagging and audience analysis, improving response times and loyalty management.

A System Administrator manages and maintains an organization’s IT systems and servers. Tasks include managing user accounts, setting permissions, performing backups and updates, and troubleshooting issues. Unlike regular users, System Administrators have higher access privileges and play a key role in keeping systems stable and secure.

A table is the fundamental structure in a database used to store data of the same type. Each row represents a record, and each column represents a field (data attribute). For example, in a "Customer" table, each row is a customer and columns might include name, phone, and email. Unlike spreadsheets, tables in information systems are often relational, allowing for complex data links and workflows.

In project management, “task dependency” refers to the relationship in which one task must wait for another to finish before it can start or finish. For example: Task A must be completed before task B can begin. This logic is crucial to prevent schedule conflicts and is often organized using Gantt charts or project management systems to automatically calculate timelines and adjust durations.

A third-party application is software developed by an external provider, not the original system vendor. It enhances core systems with added features—like reporting tools, payment gateways, or logistics platforms. These apps are often integrated via APIs or plugins to extend system capabilities without rebuilding from scratch.

Transaction data refers to the operational records generated from day-to-day business activities, such as orders, shipments, invoices, payments, and returns. These entries are time-sensitive and directly impact related modules like inventory, finance, or CRM. Unlike master data, transaction data is dynamic and reflects ongoing business activity.

A virtual warehouse is a concept opposite a physical warehouse: although all goods are stored in the same location, the information system divides inventory into separate, “virtual” zones to manage different uses or statuses. For example, you might create virtual warehouses “Shopify” and “Amazon,” or separate consignment stock and scrapped items into their own virtual locations. This approach enhances flexibility and clarity in inventory control.