An enterprise is the group of people with a common goal, which has certain resources at its disposal to achieve the predetermined goals. Its acts as a single entity. Its Roles are: Enterprise needs to play the role of facilitator. It also need to act as an integrator.
Organization External Low TOP MGMT [Strategic Decisions] Source of Structured MIDDLE Information Information MGMT [BUSINESS DECISIONS] OPERATIONAL MGMTInternal [Operations Decisions] High
The organization was divided into different units based on the functions performed by it. Departments : Manufacturing Production planning Purchasing Sales and Distribution Finance Research and Development
Departments were compartmentalized and had their own goals and objectives. Departments functioned in isolation. Had their own system of data collection and analysis. Information only to top management and not other departments. Departmental objectives conflicted. No transparency Departments ended up pulling in different directions.
It is a collection of activities that takes one or more kinds of input and creates an output that is of value to the customer.
Sharing data effectively and efficiently between and within functional areas for more efficient business processes. Information systems designed to accurately and to timely share data between functional areas.
An IS is an open, purposive system that produces information using the “input- process-output” cycle. IS consists of three elements: People Procedures Data
ERP systems should be the mirror of the business processes. A business model in addition to mathematical model is also a representation of the business as one large system showing the interconnections and inter-dependencies of the various sub-systems and business processes.
A business model consist of the business processes developed on the basis of organization’s goals, objectives and strategic plans. ERP systems are developed on the basis of the business models, with the aim of providing the required information and necessary assistance to the various individuals to perform their business processes more effectively and efficiently.
The ERP systems facilitates in the sense that all the employees from the different departments get access to the data- the integrated data. The company uses this integrated data for its analysis and decision making. No isolations Development of integrated database.