What is the way for ERP to mature in China

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What is the way for ERP to mature in China

erp is a complete set of enterprise management system system standards proposed by Garter group, a famous computer technology consulting and evaluation group in the United States. It refers to the system idea of improving enterprise resource efficiency based on information technology and providing enterprises with resource management solutions in business integration and operation. The system integrates information technology and advanced management ideas, and has become the operation mode of modern enterprises. It reflects the requirements of the times for enterprises to reasonably allocate resources and maximize the creation of social wealth, and has been proved by the successful application of enterprises in many developed countries

with the accession to the WTO and the rapid development of enterprise informatization, ERP has also entered a stage of widespread popularization in China. ERP is no longer just a management decoration for giant enterprises, nor a luxury theory. "In the old days, Wang Xietang and Qianyan flew into the homes of ordinary people". ERP, which is more practical, has a wider business scope and involves a deeper business, is expected by the majority of Chinese enterprises

however, we regret to find that the current domestic ERP application is not satisfactory. An important reason for this phenomenon is the lack of in-depth understanding of Chinese enterprises in the ERP industry and the practice of ERP mature standards, which leads to the disordered ERP model selection and the implementation of risk control. Some software manufacturers boast their products recklessly, which makes the ERP market confused, and directly leads to customers' doubts about ERP products, In particular, those enterprises that realize the great contrast between product expectations and practical effects have directly become the denouncers of the ERP market. Their denouncement is completely correct, because today's enterprises need a working system that can actually improve their capabilities, rather than a "white mouse" of new technology experiments

enterprises are calling for ERP mature standards, and software manufacturers with long-term development aspirations are also calling for ERP standards to be strict. Government departments in charge need of ERP standards to manage and standardize the market. "Green mountains cannot be covered, after all, the East flows away". The cluster of three forces is promoting the brilliant debut of ERP mature standards in 2002

1. ERP is a complete set of enterprise management system standards proposed by Garter group. Its maturity is first reflected in the maturity of theory, software and application practice:

1. Maturity of management thought: supply chain management, as the guiding ideology of ERP system, is not an isolated theory. It is based on a series of advanced management ideas, such as logistics logistics, Harvard University Professor Porter's value chain, agile manufacturing, MIT's lean production method based on agile manufacturing, Professor hammer's enterprise business process reengineering, total quality management proposed by professors Deming and Juran, American Israeli expert E. gerdrat's constraint theory and the latest theory of management accounting, Developed with the help of Internet technology

The development of ERP is a combination of management thought and computer technology. From the perspective of the production process of ERP, the maturity of ERP fully conforms to the process of theory, practice, theory and practice. It has been more than 20 years since the emergence of ERP. Although it does not completely depend on a certain college management theory, its system connotation and basic model have been very clear through the continuous application and innovation of practical management theory. In the essence of ERP software, we can find Taylor's scientific management theory, Fayol's general administrative management theory, Hawthorne's human resources method, operations research and quantitative management method

erp's robust development began with SAP's c/s technology in 1992. If the birth of domestic ERP software was in 1998, then the birth interval between domestic software and international sap is only 6 years, which is far from enough. In fact, ERP really began to enter the rapid popularization after 1992, However, the maturity of ERP does not depend on how popular the management idea of the software itself is. More importantly, it depends on whether the management theory contained in ERP itself has been applied in practice. The successful application in developed countries proves the success of its idea

2. Maturity of function depth: from MRP to ERP, from BOM to MPs, software functions and management objectives have already been synchronously extended beyond the BOM and production scheduling, distribution, finance, assets and decision support. Various functional logic is gradually finalized, and the application scheme is becoming increasingly clear

3. Maturity of management breadth: ERP needs to break the limitations of the traditional manufacturing industry of MRP-II, extend its tentacles to all walks of life, truly reflect the expansion of ERP application scope, and gradually form industry-specific solutions to meet the special needs of different industries, providing a broader space for enterprises to apply ERP to improve management level. The comprehensive management perspective and highly integrated application enable ERP to support and diagnose enterprise operation more comprehensively. Constraint theory and Jim's management "know-how" can also play a role in highly integrated

it means that the enterprise changes from caring about local efficiency to caring about overall efficiency. For example, the financial system in ERP should be able to receive the trigger information from all business processes, analysis systems and cross functional subsystems in real time, implement the monitoring function, and make quick decisions quickly; ERP should also have decision analysis functions, such as market decision analysis, product line decision analysis, investment and financing decision analysis, risk analysis, enterprise M & A analysis, etc. ERP should be able to provide enterprises with real-time analysis capabilities for purchasing materials and product quality control, adapting to market and policy environment changes, improving customer satisfaction, performance and other key issues within the scope of enterprise level. Only when the business functions of the enterprise are mature in depth, can the enterprise go beyond the production and operation management category with material demand as the core, and can more effectively arrange its own people, finance, materials, production, supply and sales, so as to realize the customer-centric business strategy

maturity of supply chain expansion: the supply chain within the enterprise has developed into an industry wide and cross industry supply chain. After China's entry into WTO, the Chinese market has become a part of the international market. The domestic competition of enterprises has become the competition in the international environment. The core competitiveness of enterprises has become the most important pursuit of enterprises. They pursue the combination of upstream and downstream industries and enterprises, and create a supply chain with close business relations, linked economic interests, shared regional resources and complementary overall advantages to adapt to the competition in the international environment and enhance market competitiveness. At this time, the concept of supply chain is expanded from the narrow sense of enterprise internal business process to the broad sense of industry wide supply chain and cross industry supply chain

in the specific application, the supply chain of mature ERP is a network formed by the supply chains of some enterprises and departments that obtain materials and process them into middleware or finished products, and then send the finished products to consumers to conduct cross regional and cross industry operations, so as to provide consumers with products and services more effectively to complete the market functions that a single enterprise cannot afford. In this way, the management scope of mature ERP is correspondingly expanded from the internal of the enterprise to the raw material supply, finished product processing, product distribution, commodity circulation and value transfer to the final consumers of the whole industry

II. Maturity of adaptability to living environment mainly refers to the integration performance of enterprises in vertical maturity, horizontal maturity and cross maturity

1. vertical maturity: according to the Research Report of an enterprise management consulting company, Chinese enterprises will encounter six different management crises in different development scales, that is, the enterprise development will experience a ladder like leap from key technologies (such as specific production and services) to strategy and even culture

therefore, the enterprise management information related to these crises is also the most critical business quantitative reflection for the development and survival of enterprises. Therefore, enterprise informatization must design the basic contents of the system according to different development stages of enterprises

the development of information technology is closely related to the leading factors and business scale of the enterprise. When the enterprise is before the top 30million business scale, it corresponds to business informatization; When the business scale is between 30million and 5billion, management informatization has become the focus of the enterprise, and the most prominent one is ERP; After the business scale of the enterprise reached more than 5billion yuan, the enterprise began to put forward comprehensive informatization requirements. The maturity of this informatization demand echoes the summary in the book "survive through change": the major adjustment of the enterprise has enhanced the ability of the enterprise to adapt to environmental changes, improved the competitiveness of the enterprise, and brought an extremely bright prospect. The mature reform in the previous stage has promoted the reform in the next stage to mature, This gradual maturity is the vertical maturity of enterprise informatization

the demand for enterprise management informatization follows a process of phased and gradual deepening, which is a process of vertical maturity. If we blindly pursue one-step implementation, it will not only bring a waste of capital and manpower to the enterprise, but also cause an insurmountable "huge gap" between the quality of employees, management foundation and the corresponding needs of software. Therefore, this "shock fish" enterprise management informatization strategy is rash and undesirable. Someone once inquired about the secret of SAP's success of Dr. konghanning, chairman of sap: "grow with the growth of customers"

sap started as a financial software. With the growth of customers and the demand for management informatization, SAP launched R3. When these world-wide enterprises began to succeed, SAP R3 also matured. Therefore, R3 maturity is the result maturity based on process maturity, which is vertical maturity. Some domestic financial software enterprises have provided a large number of successful customers in the field of financial informatization, which has completely surpassed the role of providing business informatization for enterprises. With the development of customers' business scale, some manufacturers began to launch manufacturing modules, demand chain modules, supply chain modules, etc., which have met the needs of enterprises' business scale stage and reached a vertical process maturity. It is unscientific and one-sided to label the early financial software companies as financial software companies forever, and it still needs to get to the bottom of the matter

2. horizontal maturity: for ERP, it is not enough to only consider the scale, but also the industry characteristics, because the industry characteristics often determine the focus of enterprise competition. Therefore, a mature ERP system should also support different competitive forms of enterprises due to the characteristics of industry competition, including support for resource competition forms, product competition forms, sales competition forms and strategic competition forms. For example, for an enterprise in the form of resource competition, its characteristics are basically multi-layer distribution mode, complex sales channel structure, fast turnover of logistics and capital flow, and complex customer demand. Its demand information basically includes channel performance assessment, inventory coordination control, sales strategy effect analysis, market sales and customer demand change trend, etc, For an enterprise with this kind of resource competition form, resources, assets and human resources are the key elements of the enterprise. For ERP products, there will be corresponding characteristic requirements. The core module needs to have the functions of financial management, asset management and human resource management. The auxiliary core module needs to meet the functions of purchase, sales and inventory, distribution, customer relationship management and decision support; For the three competitive forms, ERP products also need to have corresponding coreKey points of bagging technology of instant corn cob
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