Enterprise Systems System Integration BY: RAEENA TAUQIR L a h o r e G a r r i s o n U n i v e r s i t y 1
Learning Objectives Understand the impact of organizational structure on information systems. Find out about the types of functional silos in organizations. Learn about the evolution of information systems technology generations and architectures and its influence on silo environment. Know what systems integration is and why it is important for organizations. Understand the role of Enterprise Resource Planning (ERP) systems in systems integration. Lahore Garrison University 2
Preview Systems integration means that you allow a heterogeneous (hodgepodge) IS to communicate or integrate and share information (or data) seamlessly with one another. Systems integration is a key issue for an organization for its growth - Management needs to pay close attention to this issue. ERP systems are a major kind of enterprise information system allowing organizations to integrate different systems into one organization-wide application with an integrated database management system. Lahore Garrison University 3
Functional Silos Silos are basically compartmentalized operating units isolated from their environment. Horizontal Silos The POSDCORB (Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting) categorization by Luther Gulick led to a set of formal organization functions such as control, management, supervision, and administration starting in late 1930s. Classification of organizations into departments like Accounting and Human Resources, reflects the breaking of complex tasks into smaller manageable tasks that could be assigned to a group of people who could then be held responsible. Lahore Garrison University 4
Figure 2-1 Functional Model of Organization (POSDCORB) Lahore Garrison University 5
Functional Silos (Cont’d) Vertical Silos Organizations also divided roles in hierarchical layers from strategic planning to management control and operation control. CEOs and Presidents plan long-term strategy, midlevel management focuses on tactical issues and on the execution of organizational policy whereas the lower-level management task is to focus on the day-to-day operations of the company. As organizations get big and complex they tend to break functions into smaller units and assign staff the responsibility for these activities allowing them to manage complexity as well as specialize in activities that enhance productivity and efficiency. Lahore Garrison University 6
Figure 2-2 Hierarchical Model of Organization Lahore Garrison University 7
Business Process and Silos The problem of functional silos gave birth to business process re- engineering (BPR).
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- Fall '17
- Lahore Garrison University