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7/3/2010




                     2. Enterprise- An
                         Overview

                           Sonali Chauhan
                            UDIT 2009-10




                                                                Topic
    Introduction
    Integrated Management Information
    Business Modeling
    Integrated Data Model




University Department Of
Information Technology            Sonali C.                            2




                                                    Introduction
What is Enterprise?
            Enterprise is a group of people with a common
            goal, Which has certain resources at its disposal
            to achieved that goal.
            Enterprise acts            PEOPLE        GOAL AND
                                                     OBJECTIVE
             as an entity.
            Traditional system
                                                               RESOURCES
                                              The Enterprise


University Department Of
Information Technology            Sonali C.                            3




                                                                                 1
7/3/2010




                                                                             Cont…




                                           Organization where there is no or little
    Traditional Approach                    communication betw departments
    Each of this
     department are
     compartmentalized
     and have their own
     goals and
     objectives, (from their
     point of view are in the
     line with organization’s
     objective
University Department Of
Information Technology                 Sonali C.                                  4




                                                                             Cont…




    Work in isolation
    Has their own system of data collection and analysis.
    So information is available only TOP Management (only
     summary) and not to other department.
    Ultimately, various department end up in different direction
     instead taking orgniz towards common Goal.
    Coz other department does not know what other department
     is doing.
           Eg sales n market people want more product variety to satisfy
            needs of customers, but production department wants to limit
            the product variety to cut down costs.



University Department Of
Information Technology                 Sonali C.                                  5




                                                                             Cont…




    For Enterprise
           Entire organization is
            ONE SYSTEM,
            department is
            SUBSYSTEM
           Information is store
            centrally n available to
            all department




University Department Of
Information Technology                 Sonali C.                                  6




                                                                                            2
7/3/2010




                                                                    Cont…




    Each subsystem knows what other is
     doing, and why they r doing and what
     should be done to achieve common goal.
    In ERP, information is integrated with
     smooth and seamless flow of information
     across department



University Department Of
Information Technology               Sonali C.                          7




                           Integrated Management Information
    In information system there is logical flow of
     information, that is
                  Input           Processed             Output

     data supplied to system – manipulated –
     transformed into information


University Department Of
Information Technology               Sonali C.                          8




                                                                    Cont…




    Management Information System is an integrated
     information system
    One of the popular subsystem/ technology used in
     ERP
    It provided information system for decision-
     making in organization
    MIS elements
           Transaction process (collecting, storing, processing)
           Reporting System (gives reports. Charts, graphs)
           Decision support system

University Department Of
Information Technology               Sonali C.                          9




                                                                                  3
7/3/2010




                                                                 Cont…




    This satisfies the need of managers at
     operational level.
    But they work at departmental level.
    Each department has its own db and inf
     system
    This will produce its own report.


University Department Of
Information Technology              Sonali C.                           10




                 DISADVANTAGES OF INTEGRATED
                       MANAGEMENT INFORMATION:

    People in one department do not have any
     information what is happening in other department
    Top level mangers will circulate the report to other
     department but that department will fail to capture
     real picture.
    These system gives only the information which is
     predetermined and processed on given data
           Eg. A manger fails to have extra information which report
            does not contain n MIS cannot help


University Department Of
Information Technology              Sonali C.                           11




                                     DISADVANTAGES OF INTEGRATED
                                     MANAGEMENT INFORMATION: (cont)




    These system lacks integrated approach.
           Accounting department-Account Managmnt
            System, finance department-Finance Managmnt
            System etc.
           Work in isolation
           If person wants report from 2 deprtmnt he has to
            go thru both system n correlate them and
            combine the data


University Department Of
Information Technology              Sonali C.                           12




                                                                                   4
7/3/2010




                                   DISADVANTAGES OF INTEGRATED
                                   MANAGEMENT INFORMATION: (cont)




    As system works in isolation , analysis of
     data from various department is difficult
    Causes stress in decision making…
     basically tedious job
    If no effective and efficient mechanism for
     decision –
           will affect working of organization
           Lost valuable time


University Department Of
Information Technology            Sonali C.                    13




                                                           Cont…




    INFORMATION - key resource of
     organization
           Accuracy
           Relevancy
           Timeliness
    Organization should have mechanism to
     automate information gathering and
     analysis process will beat the competition.

University Department Of
Information Technology            Sonali C.                    14




                                              Business Modeling
    Creation of business model is must in ERP
     systems- First activities in ERP.
    It should be mirror the business process.
    It is built on the basis of organization’s goal,
     objective and strategic plan.
    Business model is built based on business
     processing which is handled by individual to
     achieve common goal
    Representation of business as 1 large system
     (interconnection and interdependency of various
     subsystem)

University Department Of
Information Technology            Sonali C.                    15




                                                                          5
7/3/2010




                                                 Business Modeling (cont…)




    Based on business model ERP is designed.
    In BM, model a business as integrated system
    Information is important resource
    Business Model is basically represented as
     graphical form using flow chart or flow diagram




University Department Of
Information Technology               Sonali C.                               16




                               Integrated Data Model
    Critical step in ERP implementation- creation of
     Integrated Data Model
    Organization can use ths integrated data for
     analysis n decision making
    No departmental information system and no
     departmental database
    Has to be in integrated database.
    Approach will reduce redundancy n provide
     update information to entire organization.

University Department Of
Information Technology               Sonali C.                               17




                                                  Integrated Data Model (cont…)




    For integrated database to be effective
           Clearly Depict organization
           Reflect day to day transaction
           update continuously
           Should give snap-shot of organization any time
                  Eg. Order is entered, sale is done, goods is
                   dispatched, db shld reflect those changes.
                   Inventory shld be reduced and account shld be
                   increased. (reflect instantaneously and
                   automatically)

University Department Of
Information Technology               Sonali C.                               18




                                                                                        6
7/3/2010




                                                  Integrated Data Model (cont…)




    Integrated model is
     derived from business
     model
    Major Constituents
           Information integration
           Process/procedure
            automation




University Department Of
Information Technology                Sonali C.                              19




                                                                                        7

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Chapter 10 Future Directions In Erp A Lexis Leon

  • 1. 7/3/2010 2. Enterprise- An Overview Sonali Chauhan UDIT 2009-10 Topic  Introduction  Integrated Management Information  Business Modeling  Integrated Data Model University Department Of Information Technology Sonali C. 2 Introduction What is Enterprise?  Enterprise is a group of people with a common goal, Which has certain resources at its disposal to achieved that goal.  Enterprise acts PEOPLE GOAL AND OBJECTIVE as an entity.  Traditional system RESOURCES The Enterprise University Department Of Information Technology Sonali C. 3 1
  • 2. 7/3/2010 Cont… Organization where there is no or little  Traditional Approach communication betw departments  Each of this department are compartmentalized and have their own goals and objectives, (from their point of view are in the line with organization’s objective University Department Of Information Technology Sonali C. 4 Cont…  Work in isolation  Has their own system of data collection and analysis.  So information is available only TOP Management (only summary) and not to other department.  Ultimately, various department end up in different direction instead taking orgniz towards common Goal.  Coz other department does not know what other department is doing.  Eg sales n market people want more product variety to satisfy needs of customers, but production department wants to limit the product variety to cut down costs. University Department Of Information Technology Sonali C. 5 Cont…  For Enterprise  Entire organization is ONE SYSTEM, department is SUBSYSTEM  Information is store centrally n available to all department University Department Of Information Technology Sonali C. 6 2
  • 3. 7/3/2010 Cont…  Each subsystem knows what other is doing, and why they r doing and what should be done to achieve common goal.  In ERP, information is integrated with smooth and seamless flow of information across department University Department Of Information Technology Sonali C. 7 Integrated Management Information  In information system there is logical flow of information, that is Input Processed Output  data supplied to system – manipulated – transformed into information University Department Of Information Technology Sonali C. 8 Cont…  Management Information System is an integrated information system  One of the popular subsystem/ technology used in ERP  It provided information system for decision- making in organization  MIS elements  Transaction process (collecting, storing, processing)  Reporting System (gives reports. Charts, graphs)  Decision support system University Department Of Information Technology Sonali C. 9 3
  • 4. 7/3/2010 Cont…  This satisfies the need of managers at operational level.  But they work at departmental level.  Each department has its own db and inf system  This will produce its own report. University Department Of Information Technology Sonali C. 10 DISADVANTAGES OF INTEGRATED MANAGEMENT INFORMATION:  People in one department do not have any information what is happening in other department  Top level mangers will circulate the report to other department but that department will fail to capture real picture.  These system gives only the information which is predetermined and processed on given data  Eg. A manger fails to have extra information which report does not contain n MIS cannot help University Department Of Information Technology Sonali C. 11 DISADVANTAGES OF INTEGRATED MANAGEMENT INFORMATION: (cont)  These system lacks integrated approach.  Accounting department-Account Managmnt System, finance department-Finance Managmnt System etc.  Work in isolation  If person wants report from 2 deprtmnt he has to go thru both system n correlate them and combine the data University Department Of Information Technology Sonali C. 12 4
  • 5. 7/3/2010 DISADVANTAGES OF INTEGRATED MANAGEMENT INFORMATION: (cont)  As system works in isolation , analysis of data from various department is difficult  Causes stress in decision making… basically tedious job  If no effective and efficient mechanism for decision –  will affect working of organization  Lost valuable time University Department Of Information Technology Sonali C. 13 Cont…  INFORMATION - key resource of organization  Accuracy  Relevancy  Timeliness  Organization should have mechanism to automate information gathering and analysis process will beat the competition. University Department Of Information Technology Sonali C. 14 Business Modeling  Creation of business model is must in ERP systems- First activities in ERP.  It should be mirror the business process.  It is built on the basis of organization’s goal, objective and strategic plan.  Business model is built based on business processing which is handled by individual to achieve common goal  Representation of business as 1 large system (interconnection and interdependency of various subsystem) University Department Of Information Technology Sonali C. 15 5
  • 6. 7/3/2010 Business Modeling (cont…)  Based on business model ERP is designed.  In BM, model a business as integrated system  Information is important resource  Business Model is basically represented as graphical form using flow chart or flow diagram University Department Of Information Technology Sonali C. 16 Integrated Data Model  Critical step in ERP implementation- creation of Integrated Data Model  Organization can use ths integrated data for analysis n decision making  No departmental information system and no departmental database  Has to be in integrated database.  Approach will reduce redundancy n provide update information to entire organization. University Department Of Information Technology Sonali C. 17 Integrated Data Model (cont…)  For integrated database to be effective  Clearly Depict organization  Reflect day to day transaction  update continuously  Should give snap-shot of organization any time  Eg. Order is entered, sale is done, goods is dispatched, db shld reflect those changes. Inventory shld be reduced and account shld be increased. (reflect instantaneously and automatically) University Department Of Information Technology Sonali C. 18 6
  • 7. 7/3/2010 Integrated Data Model (cont…)  Integrated model is derived from business model  Major Constituents  Information integration  Process/procedure automation University Department Of Information Technology Sonali C. 19 7