Analysis of the gap between the actual and expecte

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Analysis of the gap between ERP actual income and expected income

ERP application will have great development

since the introduction of Shenyang first machine tool plant from the German Association of engineers in 1981, the market of recycled plastic granulator has become more and more optimistic about China's first set of MRPII software. Today, China's ERP market has gone through 25 years

in the early stage, due to the weak management foundation and low informatization level of Chinese enterprises, ERP, an information technology product from developed countries, was a little "acclimatized", and the application of ERP in enterprises was once in a dilemma

nevertheless, with the continuous development and maturity of ERP products, the rapid formation of service capabilities of manufacturers and consulting companies, as well as the continuous improvement of management ability and information technology application level of Chinese enterprises, ERP system is gradually adopted by more and more enterprises

practically speaking, the current ERP application level of Chinese enterprises can not be generalized, whether from the business module analysis or from the implementation stage

The financial management module of ERP is the most widely used module in Chinese enterprises (accounting for about half of the total software license revenue of ERP), which has driven the rapid growth of China's ERP market to a great extent; Most manufacturing enterprises favor product manufacturing modules; Equipment asset management module is the preference of large power and telecom enterprises; Supply chain management module is a tool for circulation and retail industry to effectively manage costs

in the process of ERP implementation, the proportion of Chinese enterprises' investment in ERP consulting services is far lower than that in developed countries, and many enterprises do not seek consulting services until the implementation stage

ibm business value research institute combined with IBM's consulting and implementation experience in hundreds of ERP projects at home and abroad in recent years, cooperated with the school of economics and management of Tsinghua University, and carried out a lot of research and analysis, especially for the retail industry. We find that the ERP application of Chinese enterprises is still in its infancy on the whole, but it is expected to have great development in the next five years

China's economy has continued to grow at a high speed in the past 25 years and has gradually integrated with the world. Chinese enterprises have achieved unprecedented development, but also face increasingly fierce domestic and international competition

for example, the transformation and listing of large state-owned enterprises, mergers and acquisitions, or the establishment of branches at home and abroad, all need to combine existing management with international industry best practices; Emerging state-owned enterprises with rapid growth and private enterprises seeking to break through the bottleneck of growth urgently need modern methods and standardized management to enhance international competitiveness; Wholly owned enterprises and joint ventures in China need to reasonably deploy their branches in China to give full play to the effect of value chain and supply chain integration

no matter what type of enterprise, in order to improve its business ability and comprehensive management level, and realize the successful strategic transformation of the enterprise, it is necessary to rely on ERP, which has been proved to be an effective tool

however, the experience of domestic and foreign enterprises shows that not all ERP implementation ends successfully with a sudden break. Especially in China, the informatization foundation of most enterprises is far inferior to that of developed countries, and enterprises are still in the transitional period of establishing a modern enterprise system, which may hinder the successful implementation of ERP projects

in addition, some enterprises regard ERP as a simple technical project and do not pay full attention to its business. Although some enterprises attach equal importance to the two, they lack effective implementation methods to manage ERP, such a comprehensive project with large scope, wide coverage and complex degree

erp returns to its essence

after more than 20 years of misunderstanding between "omnipotent" and "useless" in Chinese enterprises, the word ERP gradually returns to its essence - a management platform based on information technology with systematic management ideas, which provides decision-making and operation means for enterprise decision-makers and employees

in view of the different expression requirements of the management, information and enterprise circles, ERP has its specific connotation and extension, and adopts three expression methods: "ERP management idea", "ERP software" and "ERP system": it is a supply chain oriented management idea developed on the basis of MRPII; It is a software product that comprehensively applies the achievements of information industry such as client/server system, relational database, object-oriented technology, graphical user interface, network communication, and takes ERP management thought as the soul; It is an enterprise resource management system that integrates enterprise management concepts, business processes, basic data, human and material resources, computer hardware and software

erp usually includes six core functions, namely finance, human resources, sales/marketing/customer service, product manufacturing, internal supply chain and enterprise knowledge base

the financial function module includes financial management, accounting and reporting, budget and planning, cost accounting, cash management, etc; Human resource function modules include human resource management, salary system, career development, etc; Sales/marketing/customer service functions include customer information, sales analysis, call center, customer service, etc; The product manufacturing module includes production planning, inventory management, equipment maintenance, etc; The supply chain module includes procurement, warehouse management, contract management, product delivery, etc; Enterprise knowledge base includes decision support, business information, operation and intellectual assets, etc

through these six core modules, ERP can effectively integrate the internal resources of enterprises. ERP is the basis of e-commerce. It is combined with SCM, CRM and other management systems to form a complete set of enterprise solutions. Enterprises can share electronic information with customers, dealers, suppliers, public institutions, etc., integrate external resources of enterprises, and realize the transformation of business models

with the increasing maturity of ERP application, enterprises will gradually increase their investment in SCM and CRM

in 2004, the total revenue of Chinese enterprise solutions was 846 million US dollars, of which ERP accounted for 53.6%; In contrast, the global and U.S. ERP markets account for 46.3% and 43.9% of total enterprise solution investment, respectively. This shows that China's ERP market is still in a relatively preliminary stage, and Chinese enterprises still have a strong demand for ERP for a long time

through interviews and research, we found that when Chinese enterprises implement ERP, the proportion of choosing external consulting companies or software manufacturers to cooperate is much higher than the proportion of relying on internal independent development

among the ERP software applied by Chinese enterprises, the market share of the five ERP software manufacturers, UFIDA, sap, Kingdee, Oracle and Renke, is as high as 73%, of which UFIDA and SAP are the most widely used, accounting for 24% and 22% of the ERP software market respectively

current situation of Chinese enterprise operation and ERP application

with the opening of China's economy and the deregulation of industry regulation, more and more industries are involved in the increasingly competitive market torrent. Not only traditional manufacturing industries, such as personal computers, automobiles, household appliances and other industries, but also emerging service industries, including banking, insurance, telecommunications and so on, are beginning to feel the pressure of international competition

according to China's WTO commitments, by the end of 2006, China's banking industry will be fully opened, and foreign banks will compete with local banks in various business areas. In other words, Chinese enterprises should not only keep an eye on their domestic counterparts, but also target international competitors

international leading enterprises usually have advanced business models and are in a dominant position in decision-making, management level, performance assessment and it operation

taking decision support as an example, managers of foreign enterprises have real-time and accurate data support to assist in making management decisions. In contrast, Chinese enterprises are often at a disadvantage in the realization of operation mode, brand image and customer value. In order to improve market competitiveness, Chinese enterprises urgently need the tensile modulus of 294gpa, make good use of all resources and means to reverse their disadvantages and successfully transform

ERP market environment and application trend

the process of ERP application in Chinese enterprises can be divided into three stages: the first stage of ERP application was from 1985 to 1998. MRP software for manufacturing enterprises to manage supply, marketing and inventory, as well as financial management modules, were widely used in this stage; The second stage of ERP application was from 1998 to 2005. Supply chain management, customer relationship management and human resource management modules were gradually applied during this period; After 2006, ERP application in Chinese enterprises entered the third stage

it is estimated that by 2008, the scale of China's ERP market will grow to 720 million US dollars. Compared with 418 million US dollars in 2003, the compound annual growth rate will be as high as 11.5%, and the growth rate will exceed that of most countries in the world. From 2003 to 2008, ERP growth in Singapore, Japan and the United States will be 7.3%, 5.6% and 3.7% respectively

despite the strong growth of China's ERP market, the proportion of ERP expenditure in total it expenditure is still much lower than that of developed countries. Taking the figures of 2004 as an example, China's ERP expenditure accounted for 1.7% of it expenditure, while the ratio of Japan, the United States and the United Kingdom was 12 in the same period. The temperature range: 0 ~ 40 ℃ cases reached 2.5%, 3.3% and 4.2% respectively, indicating the huge growth potential of China's ERP market

at present, Chinese enterprises have different levels of application of ERP functional modules, and the proportion of Chinese enterprises' investment in ERP projects in the four stages of consulting services, development and integration, it management and software support is also unreasonable

the proportion of market revenue of ERP consulting services in China is far lower than that in developed countries. In 2004, consulting services accounted for 13.3% of China's ERP market revenue, while the proportion of consulting services in the U.S. market was as high as 21.7% in the same period

According to the analysis of IBM Business Value Research Institute, the depth and breadth of ERP application in Chinese enterprises will reach a new level in 2006

commercial banks, telecom operators and petrochemical enterprises are expected to continue to implement ERP within the scope of provincial branches or branches in the future; The investment in ERP in the rapidly deregulated industries such as distribution, retail and transportation will grow rapidly; The application rate of ERP in manufacturing industry will also increase significantly

analysis of the motivation and income expectation of Chinese enterprises implementing ERP

the overall objectives of enterprises implementing ERP projects can be summarized as strengthening management ability, improving financial control, improving the efficiency of organizational structure, and enhancing cooperation

however, the driving factors for different types of enterprises to implement ERP are different: large state-owned enterprises have developed rapidly in recent years. They have set up overseas branches, implemented M & A strategies, and listed on the agenda. Such enterprises need to rapidly improve their business and management capabilities; Emerging state-owned enterprises and private enterprises with a certain scale after several years of development and seeking to break through the bottleneck of growth urgently need to refer to the best practices of the international industry and adopt modern methods to standardize management, so as to enhance international competitiveness; Chinese foreign joint ventures in China should ensure that the business processes and management of their branches and overseas parent companies are consistent, and give full play to the effect of value chain and supply chain integration

enterprises' expected results of ERP projects are slightly different due to different industry characteristics

manufacturing enterprises aim to improve production material management capabilities, reduce inventory levels and costs, and reduce procurement costs; Banks and insurance/securities companies expect to supervise assets, liabilities and core businesses in real time, achieve more effective risk control and management, and improve performance through more effective asset portfolio management; The telecom and energy industries expect to improve the management level of accounts receivable, improve the management level of assets and equipment, and reduce the loss of income caused by fee recording errors through the implementation of ERP; Excited by competition

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