Application Status of erp in China (Application and Development of ERP in China)

(A) China ERP market status

Since 1990s, MRP has been further developed and perfected, and an enterprise resource planning ERP system has been formed. Compared with MRP ⅱ, ERP not only contains and strengthens the functions of MRP ⅱ, but also faces the global market, with more powerful functions, more enterprise resources, supports mixed production methods, wider management coverage, involves enterprise supply chain management, and carries out business and production planning from the overall perspective of enterprises. It is an integrated management system for manufacturing enterprises.

The computer technology used in ERP is also more advanced, forming an integrated enterprise management software system. It should be said that there was some moisture in the growth of ERP market before 2003, which seems understandable in the initial stage of ERP market. Today's growth is essentially different from the inflated market a few years ago, that is, the benign growth based on the real needs of enterprises themselves, with less market speculation and impetuous elements. By June 2003, the domestic ERP market had completely walked out of the predicament. The enterprise informatization strategy led by ERP application has become an inevitable choice for most domestic enterprises to improve their management level and competitiveness. Especially after the severe test of SARS, the domestic ERP market has not been affected, but has shown a more vigorous demand trend. The demand of enterprises for ERP continues to grow. Due to the continuous maturity of ERP software, the satisfaction of enterprises with the return on investment in informatization has been continuously improved. According to the China Software Industry Association's 2002-03 China Software Industry Development Research Report, the survey results of 100 enterprises that have implemented informatization show that 82% enterprises are satisfied with the investment income of informatization. In addition, 96% of enterprises reduced their costs, 94% reduced their inventory, 89% increased their liquidity turnover rate, 87% improved their ability to deliver goods on time, shortened their production cycle and operation time, and 82% increased their product sales revenue.

(B) The main features and problems of ERP software products in China.

Although the ERP software industry in China started in 1980s, it only flourished in the last two years. According to CCID's report CCID 2000, there are about 40 foreign manufacturers and 20 domestic manufacturers competing for the ERP market in China. Due to different backgrounds, global strategies, market levels and application fields, completely different market strategies have been formed. Driven by the application demand of manufacturing informatization, through the application practice and continuous improvement in recent years, the ERP software products independently developed in China have made great progress in technology. Through the evaluation of localization ERP software organized by the Ministry of Science and Technology in 2002, we can see that:

1. Domestic ERP is fully functional and can meet the needs of most enterprises. The ERP software products of 12 companies that passed the evaluation of localization ERP software of the Ministry of Science and Technology in 2002 all have the basic functions of ERP, including manufacturing data management, production planning management, workshop production task management, inventory management, material supply management, sales management, financial management, human resource management, production equipment management, quality management, electronic supply chain management, business decision management and so on. Some ERP software also adds extended functions.

2. Because most of the domestic ERP software products have been developed in recent years, the development tools are more advanced and practical, which is not much different from foreign software. For example, most of the 12 ERP software products participating in the above evaluation use development tools supporting the open system client/server structure, which can run on various system platforms; Most software provides data interfaces with CAD, PDM system and major domestic financial software. Some softwares provide browser/server query interface and various data analysis functions under the Web environment.

3. Most domestic ERP software products consider the national conditions to varying degrees; Some ERP software vendors have done meticulous work in implementation, operation and training, which has improved the success rate of ERP implementation. It is precisely because of a lot of efforts to adapt to the national conditions that the success rate of ERP software implementation and the sales volume in China have been greatly improved in recent years.

(3) The in-depth application of ERP and the vigorous development of ERP industry.

Since 2000, with the strategy of "promoting industrialization by informatization" put forward by the central government, the pace of informatization and modernization of enterprises in China has obviously accelerated. In particular, the "manufacturing informatization project" proposed by the Ministry of Science and Technology and the "enterprise informatization" proposed by the Economic and Trade Commission have promoted and set off the climax of ERP application in Chinese enterprises. In the past two years, many enterprises in China have been actively implementing ERP system, and now thousands of enterprises have applied ERP system. Some enterprises that implemented MRPⅱⅱ in the early stage are upgrading their systems to ERP systems, and are deepening their applications, with more powerful functions and higher integration. Advanced ERP management system has improved the market competitiveness of enterprises and achieved remarkable economic benefits. The huge ERP market has also stimulated the deepening of the application of ERP products in China and the rapid development of ERP software industry in China. At present, there are dozens of ERP software manufacturers in China. The Tenth Five-Year Plan 863 is also vigorously supporting and promoting the research of ERP management system, and focusing on supporting the research and development of 0 ERP software products, which has great influence and promotion on the implementation of ERP applications and industrial development. The upsurge of application and implementation of ERP system is being carried out in various provinces and cities all over the country, which has played a positive role in promoting the information engineering of manufacturing industry.

(4) ERP and China Enterprise ERP, as a management concept, are a new management model; As a management tool, it is also an advanced computer management system. But not all enterprises are suitable for ERP projects. Only those enterprises whose top managers have clear goals, advanced management ideas, effective implementation of enterprise policies and stable market are enterprises that urgently need to improve their operating efficiency, but they can't achieve their goals by increasing resource investment and allocation, which are more suitable for ERP projects and deserve great efforts. These enterprises are often confused that they can't meet their own and customer satisfaction requirements through existing resources and management methods, such as the timeliness and rationality of supplying customers, which is a problem of the whole customer service system; Internally, it is manifested in the problems of supply service system and other business links service system, and so on. Those small and medium-sized enterprises that are still struggling for their livelihood, enterprises with unclear management ideas, chaotic management or even no management ideas, enterprises with middle and senior managers unable to unite as one, and enterprises with poor quality of all employees are not suitable for ERP projects. Even if they grit their teeth, there can only be one result-they will eventually fail.