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What is Enterprise Modelling?

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  • Written By: Mary McMahon
  • Edited By: O. Wallace
  • Last Modified Date: 11 November 2016
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An enterprise model is a type of extensive representation of a system, and is aimed at providing a detailed and complete understanding of a business or organization. Enterprise modelling incorporates all of the knowledge about an organization, from the officers of the organization to resources, products, and the ways in which the organization networks and communicates. Enterprise modelling is used strategically by a wide variety of businesses, because it provides a comprehensive picture of the organization.

Enterprise modelling takes two forms: static and dynamic. A static model is a snapshot of the company at a particular moment in time. Static enterprise modelling looks at where the company is in the market, what kind of opportunities it has for advancement, how it is structured, and what the current objectives are. Dynamic enterprise modelling looks at the way a company changes over time. Dynamic models are often used when companies are trying to make major decisions, and are interested in knowing how these decisions will affect the company on an organization wide level.

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Modelling is often used to create projections used in information technology planning. In this instance, the model looks at how technology is being used in the company currently, how the company structure supports the use of information technology and the ways in which information technology could be better integrated. Perhaps, for example, a company is trying to justify the cost of a new computer system. Modelling determines whether the acquisition of a new computer system is compatible with the stated goals and needs of the company.

Enterprise modelling is also used to improve business strategy and organization. By providing a complete picture of the entire organization, modelling allows companies to see how their systems might be refined to better meet goals, counter external threats, and eliminate internal weakness. This knowledge can be used to improve management techniques, develop better internal procedures, and assure long term quality for the business.

Businesses also use enterprise modelling to project into the future, looking at the changing relationship of a company to its external environment. This type of modelling considers what types of products the company could develop to expand, how the market is going to change, and how the expansion of the company could be made smooth and efficient.

Enterprise modelling promotes efficient, well run companies by building a comprehensive and integrated picture of the company along with its goals, resources, and climate. Business from small to large can benefit from enterprise modelling, with a variety of firms offering professional consultancy services to facilitate the creation of an enterprise model.

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