Chapter 2 Enterprise An Overview Alexis Leon Presentation Transcript

1. 2. Enterprise- An Overview Sonali Chauhan UDIT 2009-10 2. Topic I ntroduction I ntegrated M anagement I nformation B usiness M odeling I ntegrated D ata M odel 3. 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 as an entity. Traditional system PEOPLE GOAL AND OBJECTIVE RESOURCES The Enterprise 4. Traditional Approach Each of this department are compartmentalized and have their own goals and objectives, (from their point of view are in the line with organizations objective Organization where there is no or little communication betw departments Cont 5. 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. Cont 6. For Enterprise Entire organization is ONE SYSTEM, department is SUBSYSTEM Information is store centrally n available to all department Cont 7. 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 Cont 8. I ntegrated M anagement I nformation In information system there is logical flow of information, that is data supplied to system manipulated transformed into information Input Processed Output 9. 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 Cont 10. 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. Cont 11. DISADVANTAGES OF I NTEGRATED M ANAGEMENT I NFORMATION : 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 12. 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 DISADVANTAGES OF INTEGRATED MANAGEMENT INFORMATION: (cont) 13. 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 DISADVANTAGES OF INTEGRATED MANAGEMENT INFORMATION: (cont) 14. I NFORMATION - key resource of organization Accuracy Relevancy Timeliness Organization should have mechanism to automate information gathering and analysis process will beat the competition. Cont 15. B usiness M odeling 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 organizations 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) 16. 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 Business Modeling (cont) 17. I ntegrated D ata M odel Critical step in ERP implementation- creation of I ntegrated D ata M odel 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. 18. 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) Integrated Data Model (cont) 19. Integrated model is derived from business model Major Constituents Information integration Process/procedure automation Integrated Data Model (cont)

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