Enterprise modeling is the process of improving the enterprise performance through the creation of enterprise models. This includes the modeling of both business processes and information technology.

An enterprise model is a computational representation of the structure, activities, processes, information, resources, people, behavior, goals, and constraints of a business, government, or other enterprises. Thomas Naylor (Naylor,T. 1970) defines a model as . . . an attempt to describe the interrelationships among a corporation s financial, marketing, and production activities in terms of a set of mathematical and logical relationships which are programmed into the computer. These interrelationships should (according to Gershefski) represent in detail all aspects of the firm including . . . the physical operations of the company, the accounting and financial practices followed, and the response to investment in key areas (Gershefski,G. 1971 : 44).

The modeling of the enterprise network could facilitate the creation of enhanced understanding of the business processes of the extended enterprise and relations that extend across the boundaries of the enterprise.

This way a fast understanding can be achieved throughout the enterprise about how business functions are working and how they depend upon other functions in the organization.

There are several techniques for modeling the enterprise such as Active Knowledge Modeling, Process modeling (CIMOSA, PERA, LOVEM and DYA etc.), Object oriented modeling and modeling the enterprise with Multi Agent Systems.

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