1. ENTERPRISE MODELLING KSI 1404
(Chapter 1: Business Function and Business Process of Enterprise)
Dr. Saiful Bukhori, S.T., M.Kom
Oktalia Juwita, S.Kom., M.MT
Beny Prasetyo, S.Kom., M.Kom
Department of Information Systems – University of Jember

2. KSI 1404 Enterprise Modelling
Introduction
Enterprise Resource Planning (ERP) System : Core software used by companies to coordinate information in every area of business
Help manage companywide business processes
Use shared database and management reporting tools
Business Process : Collection of activities that takes some input and creates an output that is of value to the customer
To understand ERP, you must understand how a business works
Functional areas of operation
Business Function of Functional area
Business Processes
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

3. Functional Areas of Operation
Marketing and Sales (M/S)
Supply Chain Management (SCM)
Accounting and Finance (A/F)
Human Resources (HR)
Business functions: Activities specific to a functional area of operation
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

4. Functional Areas of Operation
Functional areas are Interdependent
Each requires data from the others
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

5. KSI 1404 Enterprise Modelling
Business Process
Collection of activities that takes one or more kinds of input and creates an output that is of value to customer
Thinking in terms of business processes helps managers to look at their organization from the customer’s perspective
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

6. Business Process (cont..)
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

7. KSI 1404 Enterprise Modelling
Business Process
Businesses must always consider customer’s viewpoint in any transaction
Successful customer interaction
Customer (either internal or external) is not required to interact with each business function involved in the process
Successful business managers view business operations from the perspective of a satisfied customer
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

8. KSI 1404 Enterprise Modelling
Business Process
Customer doesn’t through purchasing function
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

9. The Examples of Functional Areas & Business Function (Coffee Shop)
Marketing and Sales
Developing products
Determining pricing
Promoting products to customers
Taking customers’ orders
Helping create a sales forecast
Supply Chain Management
Making the coffee (production
Buying raw materials
Packaging: cups, straw , napkins
Accounting and Finance
Recording raw data about transactions (including sales), raw material purchases, payroll, and receipt of cash from customers
Human Resources
Recruit, train, evaluate, and compensate employees
Sales Forecast
Sales Records
Sales Forecast
Sales records are important component of sales forecast
Sales forecast is used in making staffing decisions and in production planning
Sales forecast is used to plan personel needs
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

10. The Examples of Functional Areas & Business Function (Coffee Shop)
Wee Need to Modeling all of Business Process (include Functional Areas and Business Function) as preliminary step to integrate all data and information !
ENTERPRISE MODELLING
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

11. KSI 1404 Enterprise Modelling
A model is a generalized representation of a piece of reality, with only relevant real‐world properties taken into account during modeling.
Characteristics of a general model:
• Mapping: models are mappings or representations of real or abstract originals, which may, in turn, be models themselves.
• Reduction: models contain only those attributes of the corresponding original which are relevant for the purpose.
• Pragmatism: models are not inherently assigned to a specific original. They are utilized by a model‐using subject within a particular timeframe “and within the constraints of certain conceptual or actual operations.”
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

12. Model as Representation
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

13. Modelling : Definition
Modeling means essentially to describe a set of abstract or concrete phenomena in a structured and, eventually, in a formal way. Describing, modeling and drawing is a key technique to support human understanding, reasoning and communication
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

14. Enterprise Models : Definition
• An enterprise model is a consistent set of special purpose and complementary models describing various facets of an enterprise to satisfy some purpose of some business users. (Vernadat) • In this case, the purpose of business users mostly deals with describing, designing, analysing, deciding or controlling operations and components of this enterprise. • The contents of the enterprise model is whatever the business user considers important to describe.
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

15. Enterprise Modelling : Definition
A computational representation of the structure, activities, processes, information, resources, people, behaviour, goals and constraints of a business, government, or other enterprise. (Fox & Gruninger)
Enterprise modelling is the set of activities or processes used to develop the various parts of an enterprise model to address some desired modelling finality. (Vernadat)
A collective name for the use of models in Enterprise Engineering and Enterprise Integration. (Bernus)
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

16. Enterprise Modelling : Points of View
Enterprise Modelling has been of interest to several research areas, and they all bring in different perspectives to the subject.
Business Modelling
Artificial Intelligence (AI)
ENTERPRISE MODELLING
Business Strategy
Software Engineering
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

17. What do we use Models for ?
Model as Representation of Current Conditions (As Is)
For Understanding
For Evaluating
For Designing
For Implementing
Model as Guidliness for Action (To Be)
To do the right things
To do the right things in the right sequence
Focus attention
Quality assurance
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

18. Enterprise Modelling : Purpose
To represent and understand how the enterprise works.
To capitalise acquired knowledge and know-how for later use.
To rationalise and secure information.
To (re)design and specify a part of an enterprise (functional, behavioural, information, organisational or structural aspects).
To analyse some aspects of the enterprise (economic analysis, oranisational, qualitative, etc.)
To simulate the behaviour of some parts of the enterprise.
To make better decisions about enterprise operations and organisation
To control, coordinate or monitor some parts of the enterprise.
It’s all about ENTERPRISE, not just an IT System!
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember

19. Thank You.. See u on Chapter 2!
Chapter 1 : Business Function and Business Process
KSI 1404 Enterprise Modelling
Department of Information Systems – University of Jember