Three principles for the hottest enterprises to ch

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The three principles for enterprises to choose ERP software

enterprise resource planning (ERP) system, as a mature information technology system, can improve the operation efficiency of enterprises, enhance the integration and real-time of information, and enhance the competitiveness of enterprises. Therefore, for many enterprises, it is not a problem that they can not get on ERP. The key is when and how to get on ERP. However, once an enterprise decides to launch an ERP project, the first headache is: how to choose the ERP system software that is suitable for itself? In the face of various IT software suppliers in the market, it is almost dazzling. Even if experts in the industry want to distinguish several software in the same camp, it is not easy. For most enterprises that lack professional knowledge, it is indeed a painful task to choose a software that is suitable for them, but enterprises cannot avoid this problem. Whether the ERP system is properly selected has an important impact on the enterprise

(1) applicability is king

when we choose any durable commodity, we must consider the factors such as function, ease of use and price. Choosing ERP software is no exception, but ERP system software is different from ordinary commodities. It can be replaced if it is not satisfied. It not only requires complex implementation and configuration, but also is difficult to replace once it is used by 2020, which will have a long-term and far-reaching impact on the business. Therefore, the selection of software must be cautious. It is necessary to put the applicability in the first place, sort out and optimize the business process, determine the key functional requirements and the improvement goals and prospects, and then evaluate and select the software

the so-called applicability includes two meanings: first, we believe that the business strategy, operation system, management architecture and business process of an enterprise are very different in different development stages. Therefore, there are different requirements for it systems. ERP software must meet the needs of the enterprise's existing business operation and cannot go too far beyond the existing business development stage; Secondly, it should be able to meet the business development needs of the enterprise in a certain period of time in the future and have certain expansibility. Correspondingly, there are two misunderstandings that enterprises are most likely to fall into: one is to aim too high and "be greedy for foreign countries". Many enterprises, regardless of their actual needs, buy the best (and most expensive) software and hire "foreign consultants", which costs a lot, but the actual effect is not necessarily good. This situation often occurs in some state-owned enterprises or listed companies. The reason is related to the corporate governance structure. The actual implementation depends on the actual environmental protection action personnel or decision-makers of consumers. They are afraid of taking risks and do not fully consider the relationship between investment return and go into the misunderstanding of "coveting the world". The second common problem is short-sightedness. It only emphasizes the electronization of existing business and lacks overall planning and certain foresight. As a result, the software selection cannot meet the needs of the future development of the enterprise, and even constrains the development of the enterprise business. It is either constantly repaired or forced to replace the system, resulting in huge waste and losses

(2) considering the overall cost of ownership

erp software, as a special commodity, its installation, implementation, maintenance and development are very complex, requiring enterprises to invest a lot of human, material and financial resources. Therefore, different from ordinary commodities, the cost elements of ERP software mainly consist of the following six parts: basic software cost (excluding database cost), third-party software cost, development tool cost, installation cost, software system implementation cost and the first year maintenance cost. In addition, the costs closely related to the system implementation may also include the costs for the enterprise to purchase hardware products such as PC, server, printer and network equipment, as well as operating system and database products, personnel training costs and many intangible hidden costs, such as personnel costs involved in the project implementation, business interruption losses, operation and maintenance after the system implementation, upgrade costs, etc. Therefore, it is necessary to systematically consider the total cost of ownership (t for short, which makes the market quotation fluctuate little CO), rather than just looking at oneortwo quotations

(3) selecting services is as important as selecting software

because enterprise management informatization is a complex work with high knowledge content and great risks, it is difficult for people who have not experienced the actual project to effectively grasp the promotion of the whole project and avoid risks; If the enterprise gropes by itself, it is likely to fall into the "it quagmire". At the same time, most suite management software needs to be configured, debugged and installed. Therefore, most enterprises need the help of a third-party consulting service organization - that is, with the help of a professional IT application consulting company. From a certain point of view, choosing professional service providers is more important than choosing specific software products. Many IT service providers' services include it strategy design, business process design, function analysis and requirement design, software selection and system implementation. The reasons for choosing a service provider also include: the implementation of IT application system should not only be proficient in software products, but also be proficient in management theory and practice, and be familiar with industry management mode. In practice, it system manufacturers are generally good at products and technology, but neglect management practices; However, the enterprises' self implementation is often limited to the traditional and habitual management mode and thinking as well as the internal obstacles. As a third-party consulting company, it can coordinate and organize the implementation of IT application systems to help enterprises achieve the expected goals of IT applications. In fact, the success of many large IT application projects can hardly be separated from the help of professional consulting companies, such as Lenovo, Changhong, Konka, etc. Therefore, we should be good at borrowing the external brain, not behind closed doors


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