Business Modelling for ERP
Business modeling is a precursor to business process reengineering, ERP implementation, etc. A business model is a diagrammatic representation of different business systems and processes, and their interconnections and interdependencies. The purpose of business modeling is to provide a general overview of the operations of a business without going into the technical details of the processes and systems. It defines the activities performed and workflow structure in a broad manner. Figure illustrates the basic components of a business system.
Figure: Business as a System
A good business model should be comprehensible, coherent and complete. It should define clearly the different systems and subsystems of a business system. A business model is developed on the basis of an organization's goals, objectives and strategic plans. Further, the model illustrates how various business processes exchange information among themselves and the underlying database.
An ERP system is implemented to provide requisite information to individuals to enable them to perform business processes more efficiently and effectively.
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