An enterprise consists of people working towards common goals using available resources. It acts as a single entity, facilitating and integrating roles. Organizations traditionally divided into departments like manufacturing and sales that functioned in isolation with separate data collection and conflicting objectives. An information system is an open system that produces information from input, processes, and output involving people, procedures, and data. ERP systems mirror business processes and the interconnections between sub-systems based on a business model to provide integrated information for effective decision making across departments.

2.  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.

3. Organization
External Low
TOP
MGMT
[Strategic
Decisions]
Source of Structured
MIDDLE
Information Information
MGMT
[BUSINESS DECISIONS]
OPERATIONAL
MGMT
Internal [Operations Decisions] High

4.  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

5.  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.

6.  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.

7.  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.

8.  An IS is an open, purposive system that
produces information using the “input-
process-output” cycle.
 IS consists of three elements:
 People
 Procedures
 Data

9.  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.

10.  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.

11.  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.