Enterprise

Sabita Mishrasabita_mishra@yahoo.com

What is an Enterprise?

The term Enterprise is often used in generalbusiness situations to describe as a corporateentity, anything form a sidewalk espresso cart toan Enterprise as large as Microsoft. It comprisesof a group of people with a common goal, whichhas certain resources at its disposal to achievethis goal. In the traditional approach, theEnterprise is considered as a system and all thedepartments are its subsystems. The informationabout all the aspects of the Enterprise is storedcentrally and is available to all departments.

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Enterprise

Goals and ObjectivesResources

People

Enterprise and its Internal EnvironmentEnterprise

Ethical

EconomicPolitical and Legal Human Relations

Management

Technological

Workforce

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Enterprise and its External Environment

Enterprise

Ethical

Economic

Political and Legal Social

Technological

Competitors

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Management Combines Business’s Resources To Produce Goods and Services

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Management

Financial Resources Natural Resources Human Resources

Production Process

Product & Services

Real World and the Business Model

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Plant

Customer Order Contract Invoice

Material

Real World

Business Model

Processes Interrelationships & Interdependencies

Data Model and its Relationship with the Real World

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Plant

Customer Order Contract Invoice

Material

Real World

Business Model

Processes Interrelationships & Interdependencies

Data Model

- Tables- Fields

- Views- Domains etc.

Data & Program Model Program Model

- Program- Function

- Display Screens, etc.

Enterprise as an Open System

Transformation of Energy

(Throughput)

Output of Products, Ideas,

Services (Export)

Input of Information,

Energy, Materials (Import)

Environment

Environment

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Enterprise

• The term enterprise is used because it is generally applicable inmany circumstances, including

– Public or private sector Enterprises– An entire business or corporation– A part of a larger enterprise (such as a business unit)– A conglomerate of several Enterprises, such as a joint venture or

partnership– A multiply outsourced business operation– Many collaborating public and/or private Enterprises in multiple

countries

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Enterprise

The term enterprise also includes the wholecomplex, socio-technical system, including:

• People• Information• Technology• Business (e.g. operations)

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Factors Affecting the Structure of an Enterprise• Environment1.

• Culture2.

• Task3.

• Technology4.

• Strategy5.

• Size6.

• Span of control7.

• Form8.

• Managerial characteristics9.

• Employee characteristics10.

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Environmental Key Factors

Legal Factors

Economic Factors

Social & Cultural Factors

Competitiveness

Political Factors

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While every Enterprise must define its own relevant environment, some key environmental factors which should be addressed are :

Enterprise Structure – Tall Enterprise

1.Decision Making Centre

(Authority Base)

2. Enterprise Levels

3. Enterprise Levels

4. Enterprise Levels

Tall Enterprise Implies:

a) Distance from top to bottomb) Extended communication linesc) Impersonalityd) Narrow span of controle) Centralization

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Enterprise Structure – Flat Enterprise

1

2

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Flat Enterprise Implies:a) High levels of decentralizationb) Extremely wide spans of control determined on the basis of each superior’s interpersonal skillsc) Less extended communication lines

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Business Functions and Business Process

• Managers and Enterprises have now started thinking interms of business processes instead of businessfunctions.

• A business process is a collection of activities that takesone or more kind of input and creates an output that isof value to the customer

• Thinking of business functions as business processeshelps managers to think of their Enterprises from acustomer’s perspective

• The difference between a business function and abusiness process is that a process cuts across morethan one business function to get a task done

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Business Functions and Business Process (cont’d)

• Sharing data effectively and efficiently between andwithin functional areas leads to more efficient businessprocesses

• Information systems can be designed so that accurateand timely data are shared between functional areas

• These systems are called integrated information system• Today an information system is an organized

combination of people, hardware, software, communications networks and data resources that collects, collates, transforms and disseminates in an Enterprise

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Different Departments that comprise an Enterprise

Procurement

Production/Manufacturing

Engineering

Research and Development

Marketing

Sales

Finance

Accounting

Human Resources

Shipping

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Procurement

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Purchase Contract

Requisitions

Warehouse Orders

Sourcing Information

Schedule Definitions Planning/ Sales/Shop floor

Request for Quotation/Schedule

Definitions

Production/Manufacturing

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Receiving

Shipping Quality Control

Production/Process

Engineering

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Problem?(Yield, Throughput,

Defects, Quality)

Report Troubleshooting

Root Cause Failure Analysis

Collect Data Analyze Data

Research and Development

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Define Problem/Background

Research

Internal/External Evaluation

Provide Solutions

Analyze Data

Bench Scale/Pilot Scale Testing Collect Data

Implementation

Report

Marketing

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Market Research and Evaluation

Advertising Communication

Lead Generation Events, Product Service Launch

Public Relations

Promotion

Sales

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Inquiry

Financial Accounting Picking and Delivery

Order

Quotation Contracts

Materials Management

Finance

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Cash Management

Business Planning & Budgeting

Executive Information System

Enterprise Controlling

Treasury Management

Market Risk Management

Profit Center Accounting

Accounting

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Purchasing(Quantity & Volume)

Business Planning & Budgeting

Employees (Salary & Wages)

Customer Receivable

General Ledger Sales (Order & Bill)

Profit Center Accounting

Human Resources

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Enterprise Structure and Modeling

Benefits/Payroll Orientation

Placement

Manpower Planning Recruitment/Selection

Workforce Management

Shipping

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Order

Delivery NotePicking and Delivery

Scheduling

Warehouse

Shipping Point Shipping Document

Goods Issue and Transportation

Typology of Enterprises according to Blau and Scott

• Enterprises which benefit their owners. All business Enterprises fall under this category1.

• Enterprises which benefit their members. Wide class of unions, cooperatives and clubs2.

• Enterprises which benefit their clients. e.g., insurance companies, private schools etc.3.

• Enterprises which benefit the whole society such as governmental Enterprises, commonwealth, etc4.

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Key attributes of a virtual Enterprise

1.• Technology

2.• Opportun-

ism

3.• No borders

4.• Trust

5.• Excellence

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Virtual Enterprise – Primary Benefits

• Its ability to save on lease rentals of office space and employee commuting costs

1.

• Its ability to focus on core competence as a result of outsourcing of all non-essential activities

2.

• Its use of synchronous technologies such as audio and video conferencing which allow members to interact t the same time or in real time

3.

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Virtual Enterprise – Drawbacks

• There is a phenomenal increase in the daily number of e-mails if its executives.

1.

• Its employees miss the opportunity of meeting their coworkers. They also fear that their lack of interaction with superiors may not bode well for their careers

2.

• It is common for some employees to have conference calls during off hours spanning mid-day in Bangalore, early morning in Norway and close to mid-night in California.

3.

• Some customers do not like to deal with the Enterprise through web site which lacks emotional pitch and body language associated with verbal communication

4.

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Conclusion

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