Chapter 2 Enterprise An Overview Alexis Leon


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Chapter 2 Enterprise An Overview Alexis Leon

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