Management upgrade and application life cycle of ERP

After summarizing the management informationization reform practice of more than 400,000 Chinese companies over the past 18 years, and based on an in-depth analysis of the classic management theories of all parties, Asia’s No. 2 and China’s largest ERP (enterprise management software) UFIDA company for the first time The whole production cycle of growth has scientifically proposed the phase standards for enterprise management upgrades, and pointed out the ways and tools needed to achieve this management compliance. This will enable companies to focus on information construction from the functional state of “headaches and headaches” to the ERP application life cycle that will benefit the long-term healthy development of the company.

Corporate development has undergone five major management stages

The American management thinker, Ichak Mediz, visually compares the life cycle of a company to the growth and aging of people. The company's life cycle is subdivided into the gestation period - infancy - the toddler - adolescence - the prime - - Stable period - noble period, the characteristics of each stage are very clear. Combining with the actual situation in China, UFIDA believes that the development process of Chinese companies from small to large or from weak to strong will generally experience continuous upgrading from basic management to standardized management, fine management, performance management, and strategic management.

Medisett believes that different stages of the company's management needs are different, and they should be given food suitable for their age. In the process of upgrading an enterprise from one management stage to another, in the face of the crisis caused by the change, the adjustment of management methods has become the key to survival, and the operation of appropriate management software tools has become a necessary means to speed up this transition process. As an essential tool for modern enterprises to achieve management goals, companies also need different software to help enterprises achieve management goals in different management stages.

In the early days of the venture, the scale of the enterprise was small, the structure was simple, and the management power was often concentrated in the hands of one or a few founders. There was no standardized management process, and the situation of people setting things was very common. At this time, the management objective of the company is to improve the basic management. The assessment criteria are whether to establish accurate financial calculations, uniform material codes, standardized inventory management, and be able to quickly provide external reports.

With the gradual expansion of the scale of the enterprise, entrepreneurs can no longer be as good as foreign and domestic leaders as early as the start-up, directly concerned with all aspects of corporate operations. At this point, it is necessary to introduce a standardized management model, conduct a preliminary division of labor, and give appropriate authorization. Therefore, simple basic information technology can no longer meet the needs of enterprise management. Instead, it needs to realize the integration of financial services, the dynamic control of capital flows, the soundness of credit management systems, and the integration of all employees through higher-level information construction. The construction of office platforms and the establishment of a multidimensional planning system.

With the help of standardized management, companies will expand rapidly in a year or two. At this time, for enterprises to achieve greater development, it is necessary to establish a standardized management system and budget system, attach importance to operating costs, attract a large number of talented people, pay attention to customized management. To achieve this goal, companies must establish a comprehensive budget system, sophisticated cost management, multi-angle quality control, production management automation and customer life cycle management. These are the management standards for the fine management stage. The realization of this management goal is also inseparable from the application of information technology.

Since then, the company's business scope has expanded rapidly, the division of labor has been refined, and management has gradually matured. Business managers have begun to place great emphasis on budgeting, cost, and performance management, and have paid attention to employees' ability to upgrade. As a requirement of performance management in this period, using information technology, we must achieve a complete target assessment system, a sound business intelligence platform, and a personalized application portal, and we must move around the office and build competency models anytime, anywhere.

With the diversified development of enterprises and the virtualization of the organizational structure, higher requirements are placed on enterprise management: emphasis on the coordination of the industrial chain, the search for the balance between centralization and decentralization, and the establishment of a favorable forecasting system are all at this stage. Can not face the challenge. At this time, the goal of informatization construction is to establish a sound strategic goal management, build a predictable business model, achieve dynamic enterprise architecture adjustment, industrial chain collaboration, and centralized management and sharing services.

Management upgrade is the eternal theme of the growth of Chinese companies. The development process of Chinese companies from small to large will generally experience continuous upgrading from basic management to standardized management, fine management, performance management, and strategic management. In different management stages, matching information management tools are needed to match.

Enterprise Application ERP Life Cycle

Qinhuangdao Pengtai Flour Co., Ltd. is a small and medium-sized enterprise with annual output value of RMB 500 million. Over the past ten years, Pengtai has managed to upgrade with the help of continuous upgrading of information technology tools. In the flour industry with an average profit margin of only 0.8, it has always been the industry leader:

From 1995 to 1999, Pengtai began to use UF financial software to solve the financial and accounting issues of the enterprise and meet the needs of the company's basic management.

From 2000 to 2004, the UFIDA ERP-U8 series was introduced to achieve synchronous management of financial services, which greatly improved delivery accuracy and customer satisfaction. The company's standardized management was realized.

From 2005 to now, UFIY U861 has been fully upgraded and an efficient operating platform has been established. It has realized the application of information technology to all employees, delivered information in a timely manner, greatly improved the speed of business processing, and led the company to fine management.

Peng Jiaxing, head of informationization at Pengtai, proudly pointed out: "The timely upgrade of management software has ensured Pengtai's management and management upgrade. Now we are not only 'living' but also 'living'."

Pengtai's ten-year information process is the best evidence for the enterprise application ERP life cycle. The so-called application life cycle of ERP means that enterprises need to adapt to different information management tools that are suitable for different management stages, especially when they are in the process of upgrading to a higher management stage, they urgently need to use corresponding management software to solve problems. The management crisis brought about by the upgrade will enable rapid management upgrades.

Under the guidance of this theory, UF no longer strictly follows the “management issues at the current stage” as a single measure of the enterprise's informatization needs. Instead, it uses the organization’s age and organization scale as two reference latitudes to judge that an enterprise is in What stage of development is to provide enterprises with the phased goals of informatization construction, and integrate the five-phase information construction goals of basic management, standardized management, fine management, performance management, and strategic management with UF products.

This is a process that changes from quantity to quality. In the past, the understanding of management informationization by enterprise users and software vendors was often considered through two static latitudes: one was enterprise management issues, and the other was improvement measures (or software products). Solving the problem through the two latitudes of the problem and means, although simple and effective, is conducive to the rapid improvement of business management. However, due to attention to the solution of the immediate problems, it has overlooked that the company is a subject of continuous development and change.

This is also the reason why China's informatization construction has a large number of palliative symptoms. If several single modules are successfully put on the line, it will bring great improvement to the enterprise management in a short period of time, but over time there will be various unsuitable places. . In this way, companies will encounter problems again, and then conduct internal research, and then find system software vendors to solve ... so cyclical, companies have been in the cycle of "labor pain, treatment, interval recovery health".

Other companies often start to think of ways to solve problems after the economic losses caused by the problems occur. The reporter learned that in 2000, a pilot enterprise for informatization that was widely promoted in China was also found to have introduced advanced technologies because of the unfavorable management of warehouse information, which caused a large number of outdated new components to remain intact in the warehouse for several years. Parts warehouse management system.

UFIDA has always followed the company's lifecycle growth process. At present, it has three mature business lines: UFIDA, UFIDA ERP-U8, and UFIDA ERP-NC. It provides software products and services for large and medium-sized small and medium-sized enterprises. Comprehensively covering the complete life cycle of the company from start-up, growth to maturity, it can provide all kinds of enterprises with applicable information-based solutions to meet the management needs of enterprises of different scales at different stages of development. In particular, the newly released UFIDA ERP-U8 Enterprise Application Suite v8.61 (International Edition) fully implements the "fine management of agile management" business management thinking, fully integrates enterprise information management, and brings enterprises "total application, on-demand deployment , quick results "Apply value, while helping companies continue to enhance their core competitiveness.

The biggest benefit of enterprise application ERP's life cycle management is to focus on the enterprise's information construction from the perspective of "a headache, a cure for the foot" and a comprehensive pursuit of the whole life cycle of the enterprise.

Standard Guide Management Upgrade

Only by preventing it, can we minimize the damage caused by the crisis. Just like a good rider, you need to know when the sports car should change the oil for the car, and when the damping system is updated, you can continue to get better results and make the car more durable.

Transposition to the operation of the company, in the most appropriate stage of the transformation of internal processes, internal management systems, and supplemented by information technology, it is possible to enable companies to achieve the best operating performance. For the enterprise's informatization construction, it is only before the problem arises that a blueprint for informatization construction is planned to effectively help the enterprise achieve management upgrade.

However, Mr. Zhuge is rare after all. In the automotive industry, automakers provide public users with a use experience form that lists the number of kilometers that need to be serviced for the first time, the second and third times, and so on. Although the specific conditions of each person's car are different, they can be safely driven as long as the maintenance is done in accordance with the instructions in the form.

In the infant and baby food industry, nutrition experts will provide different milk powder drinking guidelines for children of different ages, systems, and development. Even young parents will not have major problems if they follow the instructions.

In February 2006, with the launch of the "Management Upgrade, Beyond the Tour - UFIDA'2006 old user management upgrade theme series of activities," UFIDA will officially publish the "Enterprise Information Management Upgrade Standard." This standard, just like the warranty proposal of the automotive industry, will guide our companies in the informationization process to be targeted and easily implement information-based management and upgrade services.

We have reason to believe that with the deepening of people's minds of the concept of management upgrade and the upgrade of compliance standards for information management, it is bound to promote the informatization process of a group of Chinese companies, thereby deepening the popularity of ERP in China.
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