Purpose of Modelling an Enterprise:

An ERP system is targeted at modelling and integrating the enterprise. Enterprise modelling is, therefore, the most important pre-requisite before the selection/implementation of an ERP system. It encompasses total understanding and detailed mapping of the firm's business functions and decision-making process, both independently and interactively. Enterprise integration leads to following:

• More agile enterprise
• Removal of redundant or non-value added activities
• More efficient system after being enabled by IT
• Streamlining of five flows in the enterprise are following:

1        Information             2. Material

3        Money                     4  Control, and

 5    Intangibles, such as customer satisfaction and quality improvement

• Empowerment of workers to take action

Based on Hansen (1991), there are five reasons of building the workers motivation becaus e of integration:

o   Whereas people understand the vision or larger task of an enterprise and are given the right information, resources, and responsibility, they shall do the right thing.

o   Group of empowered people with good leadership shall effectively participate in the decision making process.

o   The existence of a comprehensive and effective communications network leads to distribution of knowledge and information. This embraces the openness and trust that permits the individual to feel empowered to deal with the "real" problems.

o   The democratization and dissemination of information throughout the network in all of directions, irrespective of organisational position, ensures true integration of the enterprise.

o   Information freely shared with empowered people, who are motivated to make decisions, shall naturally distribute the decision-making process throughout the entire organisation.

The integration of the enterprise helps in building an efficient and effective information network across the enterprise. Hoffman (1992) recognizes the following reasons for integration :

o   Recognition of the major functions to be included in a program management organization.

o   Describing the scope and content of the information systems' architecture and related metrics as a management guide.

o   Providing guide and/or roadmap through the procedure of developing such an organisation to manage a large-scale integration program.