Or, to express the same thing differently:

Bringing subjects together so as to form a class.

A catalogue so made is called a classed catalogue.

3. Bringing classes together so as to form a system.

A catalogue so made should be called a systematic catalogue.

The three steps are then

The dictionary stops in its entries at the first stage, in its cross-references at the second.

The alphabetico-classed catalogue stops at the second stage.

The systematic alone advances to the third.