ENTERPRISE SYSTEM
Assignment No.2
Submitted by: M. Zain-Ul-Abdin
Class: BSIT 5th Semester
Roll No#: F22BINFT1E02050
Subject: Operating System
Submitted to: Mr. Hafiz Aamir Hafeez
Department of Information Technology
The Islamia University of Bahawalpur Pakistan
1. What are functional silos, and how did they evolve in organizations?
Ans:
Functional Silos:
Functional silos refer to divisions within an organization where departments or
teams work independently and often fail to collaborate effectively with one another. Each "silo"
typically focuses on its specific functions or goals, leading to a lack of communication and
integration across departments. This can result in inefficiencies, duplication of work, and reduced
overall organizational performance.
Key Characteristics of Functional Silos:
1. Limited Communication: Departments primarily focus on their tasks, often ignoring or
minimizing interaction with other teams.
2. Departmental Goals Over Organizational Goals: Individual team goals take precedence
over the organization's overarching objectives.
3. Reduced Collaboration: Teams may be unaware of how their work impacts others,
leading to inefficiencies or conflict.
4. Data and Information Barriers: Critical information is often not shared freely, causing
delays or incomplete decision-making.
How Did Functional Silos Evolve?
1. Growth of Organizations:
o As organizations expanded in size and complexity, they began to group activities
based on functions such as marketing, sales, finance, operations, and IT. This
structure enabled specialization and efficiency in specific areas.
2. Industrial Revolution:
o The Industrial Revolution emphasized mass production, creating a need for distinct
functional expertise. Organizations adopted hierarchical structures to manage these
functions effectively.
o Departments were created to handle specialized tasks, such as production,
procurement, and quality control, which naturally led to functional separation.
3. Management Theories:
o Early management theories, such as those by Frederick Taylor (scientific
management), encouraged division of labor and specialization, reinforcing the
siloed approach.
o The "command-and-control" management style further strengthened the
hierarchical, siloed structures.
4. Technological Advances:
o As technology developed, organizations created specialized IT, HR, and finance
teams to manage specific technological and administrative functions. These
advancements often isolated departments further.
5. Geographic Expansion:
o With globalization, many organizations spread across different locations, leading
to a physical separation of teams. This geographic spread often compounded
functional silos.
2. What is the relationship between organizational functional silos and IS
functional silos?
Ans:
Organizational functional silos and Information Systems (IS) functional silos are interconnected
phenomena that stem from similar issues of isolation and lack of integration. Both represent a
fragmented approach to achieving organizational goals, which can hinder efficiency and
collaboration.
Organizational Functional Silos
Organizational silos occur when departments or teams within an organization operate
independently, prioritizing their own objectives over the collective goals of the organization. For
example, the marketing department may focus on lead generation without aligning with the sales
team’s strategies. This lack of coordination can result in inefficiencies, duplication of work, and
misaligned priorities.
IS Functional Silos
IS silos, on the other hand, refer to isolated technological systems or platforms that are designed
to meet specific departmental needs but do not communicate effectively with other systems. For
instance, a company may use separate databases for customer management, financial reporting,
and supply chain operations, creating barriers to data sharing and integration.
The Relationship Between the Two
Organizational silos often lead to the creation of IS silos. When departments work in isolation,
they tend to adopt technology solutions that are tailored to their specific needs without
considering how these systems integrate with others across the organization. Conversely, IS silos
reinforce organizational silos by preventing seamless communication and collaboration, as
critical data remains locked within departmental systems.
Key Challenges
This interplay between organizational and IS silos results in several challenges:
1. Limited Collaboration: Both silos restrict the flow of information and teamwork
between departments.
2. Data Inconsistencies: Disconnected systems lead to duplication and errors in data
management.
3. Operational Inefficiencies: Processes become slower and more costly due to fragmented
workflows.
Breaking the Cycle
To address these issues, organizations must take steps to integrate both their teams and their
technologies. Promoting cross-functional collaboration, implementing enterprise-wide systems
like ERP solutions, and using middleware to connect isolated IS platforms can help bridge the
gaps. Additionally, leadership should emphasize shared goals and foster a culture of
communication and cooperation.
In summary, organizational and IS silos are deeply interrelated and mutually reinforcing.
Addressing one requires simultaneously addressing the other to create a cohesive and efficient
organization.
3. Compare and contrast centralized, decentralized, and distributed IT
architectures. Which do you think is most appropriate for ERP and why?
Ans:
Comparison of Centralized, Decentralized, and Distributed IT Architectures
IT architectures determine how computing resources, data, and decision-making processes are
organized within an organization. Centralized, decentralized, and distributed architectures each
offer distinct benefits and drawbacks.
1. Centralized IT Architecture
In this model, all IT resources and decision-making are managed from a single central
location.
o Advantages: Centralized systems ensure consistency in data, simplify
management, and provide cost-efficiency through economies of scale. Security
and compliance are easier to enforce, and data integrity is better maintained.
o Disadvantages: The system is vulnerable to a single point of failure, and response
times for remote locations may be slower. Additionally, it limits flexibility for
regional or departmental needs.
2. Decentralized IT Architecture
Here, individual departments or locations manage their IT systems independently.
o Advantages: It allows greater flexibility to meet local needs, faster decision-
making, and better responsiveness. Localized issues are isolated and do not affect
the entire organization.
o Disadvantages: This approach can result in higher costs due to resource
duplication and difficulties in maintaining data consistency, standardization, and
security across the organization.
3. Distributed IT Architecture
A hybrid approach, distributed architecture combines central control with decentralized
components, enabling resource distribution while maintaining connectivity.
o Advantages: It offers scalability, fault tolerance, and a balance between central
control and local flexibility. Performance for remote locations is enhanced due to
proximity to resources.
o Disadvantages: It is more complex to design and maintain, requiring robust
networking and governance to ensure consistency.a
Best Fit for ERP Systems
For Enterprise Resource Planning (ERP) systems, centralized IT architecture is often the most
appropriate choice. ERPs integrate various functions like finance, supply chain, and HR into a
unified system, requiring consistent data and centralized management. A centralized approach
simplifies maintenance, ensures data integrity, and provides cost efficiencies. Additionally, it
allows for streamlined compliance and security measures.
However, for large organizations with global operations and varying regional needs, a
distributed architecture may be more suitable. Distributed ERPs balance central integration
with local responsiveness, enabling performance optimization while maintaining organizational
coordination.
4. List the horizontal and vertical levels of systems that exist in organizations.
Ans:
Horizontal and Vertical Levels of Systems in Organizations
Organizations use various systems to manage operations and decision-making. These systems
can be categorized into horizontal and vertical levels based on their functionality and hierarchy.
Horizontal Levels of Systems
Horizontal systems span across different functions or departments, promoting coordination and
integration within an organization. Examples include:
1. Enterprise Resource Planning (ERP) Systems: Integrates core business processes like
finance, supply chain, HR, and manufacturing.
2. Customer Relationship Management (CRM) Systems: Manages interactions with
customers across marketing, sales, and support.
3. Supply Chain Management (SCM) Systems: Coordinates procurement, production, and
distribution across departments.
4. Collaboration and Communication Tools: Platforms like email, instant messaging, and
project management tools facilitate organization-wide communication.
5. Business Intelligence (BI) Systems: Provides data analysis and reporting capabilities for
multiple departments.
These systems focus on horizontal integration, ensuring that all parts of the organization work
together effectively.
Vertical Levels of Systems
Vertical systems are structured based on the organizational hierarchy and address the needs of
different management levels. They include:
1. Operational-Level Systems:
o Support day-to-day activities and transactions.
o Examples: Point of Sale (POS) systems, inventory management, payroll systems.
o Users: Frontline employees and operational staff.
2. Managerial-Level Systems:
o Provide information for monitoring, controlling, and decision-making at the
middle management level.
o Examples: Management Information Systems (MIS), dashboards, and
performance monitoring tools.
o Users: Departmental managers and supervisors.
3. Strategic-Level Systems:
o Support long-term planning and high-level decision-making.
o Examples: Executive Support Systems (ESS) and strategic analytics platforms.
o Users: Top executives and decision-makers.
Integration of Horizontal and Vertical Systems
Organizations achieve maximum efficiency when horizontal systems (like ERP) integrate with
vertical systems (like MIS or ESS). For instance:
• An ERP system can provide real-time data to operational-level systems while generating
reports for managerial and strategic decision-making.
• BI tools often operate horizontally but provide insights tailored to vertical levels, such as
operational metrics for frontline staff and strategic forecasts for executives.
