ENTERPRISE: AN OVERVIEW

ENTERPRISE:

 An enterprise is a group of people with common goals having certain resources to

achieve these goals.
 An enterprise is viewed as a single entity.
 Two approaches of entity – Tradtional and Modern
Tradtional Approach:
 Divided into several units on the basis of functions – marketing, operations, finance, IT,
R & D, HR etc.
 These departments have their own goals and objectives and function in isolation.
 They have their own system of data collection and analysis.
 The information so generated are available only to the top management and not to the
other departments.
Modern Approach:
 Entire organisation is considered as one system and all departments are considered as its
sub-systems.
 Information is stored centrally and is available to all departments.
 More transparency and flow of information from one department to another.

INTEGRATED MANAGEMENT INFORMATION:

 An information system is an open system that produces information using “input-process-

output” cycle.
 Three minimum elements : people, procedures and data.
 People follow procedures to manipulate data to produce information.
 Today IS is a combination of – people, softwares, hardwares, communication networks
and data resources.
 MIS provides information to the management for day-to-day decision making.
 MIS helps in structural type of decision making situations.
 This method of information gathering has two major disadvantages:
1. Information of one department is not available to the others.
2. Provides only pre-defined informations
 These systems lack integrated approach since they work in isolation.
 Thus to overcome this problem, a new concept of Integrated Management Information
came into picture.
 Information is the key resource of organisation.
 Key characteristics of information: Accuracy, Relevancy and Timliness.
 Three levels for need of information: Operation level, Executive level and Management
Level.

BUSINESS MODELING (BM):

 A BM is a set of planned activities designed to result into profit.

 It is a set of activities and interrelationship between them.
 BM is the representation of the business as one large system, reflecting the
interconnections and interdependencies of the various sub-systems and business
processes.
 The model describes the various sources of revenue and potential benefits to the business
partners.
 A BM is developed on the basis of goals, objectives and strategic plans of the
organisation.
 It provides the broad perspective, necessary for identifying appropriate solution which
should be sustainable in terms of revenue and capable of realising the stated objectives.
 BM or creating a business model is one of the first activities in any ERP project.
 ERP system is developed with an aim of providing the required information and
necessary assistance to the various individuals to perform their business processes more
effectively and effeciently.
 Business Modeling in Practice:
 The major task involved in BM is defining the business modeland identifying the various
processes that drive it.
 Various control processes are added to these processes depending on the organisation’s
policy which include:
1. Document generation process
2. Authorization process
3. Authentication process
 A BM answers vital questionsabout the fundamental components of the business such as
–
 Who are our customers?
 What do our customers value?
 How much will it cost to deliverthat value to our customers?
 How do we make money in this business?

A BM specifies:
 What value to offer to customers?
 Which customers to offer this value?
 Which products and services and at what prices?
 How the business will organise and operate to fetch the benefits?
 BM plays a pivotal role in selecting ERP package as it is possible to identify th package
which actually fits into business model.