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Chapter 2 enterprise an overview - alexis 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
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Information Technology Sonali C. 3
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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
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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.
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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
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Information Technology Sonali C. 6
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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
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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
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Information Technology Sonali C. 9
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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.
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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
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Information Technology Sonali C. 12
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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
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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.
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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)
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Information Technology Sonali C. 15
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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
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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.
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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)
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Integrated Data Model (cont…)
Integrated model is
derived from business
model
Major Constituents
Information integration
Process/procedure
automation
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