Differences between ERP and invoicing Software

Invoicing and ERP are complementary and fall into two fundamentally different categories. They have different purposes, different domains and objects, different business nature, and different processes. The required solution structure and system implementation methods are also different. Although many very difficult problems need to be solved during the implementation of ERP, they are still basically internal problems of the enterprise. In the implementation of the invoicing process, apart from the internal problems of the relevant enterprises, people will also face a series of problems, such as who is the sales and inventory manager, who is the sales and inventory executor, how to reflect the system implementation effect, who is the actual beneficiaries of the system, who is responsible for system-related fees, and how to share. The core of the problem lies in the main purpose of the ERP system to solve the internal management needs of specific enterprises, the invoicing system must solve the common and personalized requirements of a group of enterprises related to specific production supply and sales Circulation Fields, meeting the information sharing and exchange requirements between upstream and downstream enterprises, logistics service entrusting, and contractors. Therefore, the purchase, purchase, sales, and inventory systems require the combination and coordination of different systems, which is much more complicated than the ERP system. Current enterprise system solutions, IT service systems, and commercial models that have been successful are basically supporting the provision of ERP system services; the system implementation service system that serves the construction requirements of the invoicing system has not yet been established. As a result, the customer cannot plan to build the invoicing system or choose wrong solutions and inappropriate IT services during the construction process. Essential differences between ERP system and invoicing system "ERP is self-interest, and its optimization target is the internal implementation of the enterprise. The Implementation scope involves the implementation of the enterprise itself and some peripheral units; while the purchase and sale of goods are altruistic, it is ideal for optimizing all aspects of the entire invoicing process. Invoicing is a system implemented by rule makers and compliant with the rules. The purpose of invoicing is to solve the problem and ERP is to solve the problem; the implementation of invoicing is a continuous process, while the implementation of ERP is closer to the project." In Qu Lidong's view, ERP and invoicing are even "Opposite" in their ideas. The starting points and expected effects of enterprise invoicing and ERP are also quite different. "ERP is a property system, which is usually reflected in the balance sheet as an asset and amortized in the sales management fee. In principle, there is no inevitable relationship between the enterprise scale and the cost of the ERP system. As long as the enterprise's business scale is large enough, the effect of implementing ERP is sufficient to cover the cost of implementing the ERP system, therefore, enterprises that use the ERP system should choose the best solution and implementation service provider based on their own strength; while inventory purchase is a cost system, the regions covered by enterprise activities, the increase in business complexity, and the increase in the length of invoicing (cross-country collaboration) lead to a significant increase in the implementation and maintenance costs of the invoicing system, therefore, the invoicing cost should be reflected in the profit and loss statement of the enterprise as the direct business cost." This is somewhat "shocking "! In the opinion of many "IT people", today's ERP system has already been very important to integrated systems, and it is not just concerned about the Enterprise! Among all the leading vendors that currently provide ERP, there is almost no system function that does not include inventory management. Even so, Qu Lidong thinks it is two completely different "world views "! Although the appearance seen in the eyes is somewhat similar, the entire theoretical system of thinking is far away! Roles and their system requirements in invoicing IT systems support business processes, including internal processes and collaboration processes between enterprises. Most enterprises have their inherent position and are connected with each other. The first thing you need to understand is whether you are a "rule maker" or a "customer-served" in the entire purchase/sales process ". As a "rule maker", both the ERP system and the invoicing system are required. Through the implementation of ERP, the internal business and management processes of the enterprise can be optimized, and information can be managed in a unified manner, forming a transaction advantage compared with "rule-compliant. Rule makers use these advantages to develop rules, change rules, and force rule providers to follow these rules in various forms. Invoicing is a tool for "rule makers" and "rule-makers" to purchase and sell goods. Invoicing can be roughly divided into three parts: the invoicing Plan Management System, the invoicing information and the collaborative management system, and the invoicing business execution system. As a rule maker, the plan management system is required, and the inventory management system has enough comprehensive information to support the function of the Plan Management System. As a "rule-based user", the invoicing and execution system should be used during business execution. What is important for the business processes supported by the system is not to meet internal management requirements of the enterprise, it is in line with the rules set by the "rule makers" and can adapt to changes. The invoicing execution system works with the invoicing information and collaborative management system to exchange information and form an effective collaboration process. In this way, the invoicing information and collaborative management system can work effectively. Many small and medium-sized enterprises (including large circulation, import and export trade, logistics and various service enterprises) are "rule-compliant". The first thing they need is a business execution system that meets customer needs and business process requirements, rather than the popular concept ERP system.

In the future, there will be another role between "rule makers" and "service providers", that is, "invoicing managers" or "invoicing Management Service integrators ". This role has provided the invoicing Management Service for rule makers through the invoicing information and collaborative management system.

In the purchase/sales process, enterprises that follow the rules can have three options. The first is to meet the customer's needs and do a good job of "rule service", the second is to become an integrated seller of the invoicing Management Service, and the third is to become a "partial rule maker" who can bargain with rule makers ".

There is no doubt that in the world of Qu Lidong, everything is in the chain! You are either a "rule maker", a downstream distributor or upstream supplier of "rule maker", or a logistics service provider of "rule maker, it is either the "invoicing Management Service Integrator" of the "rule maker" invoicing management ". Every enterprise is in the sales and inventory, and no one can find its right, thus forming the entire value chain (VC ).

Based on this, you can accurately answer: Do you really want to go to the ERP system? Or is it the purchase/inventory system? What do you need in invoicing? Or inventory information and collaborative management system? Or is it the invoicing business execution system?

Implementation of transnational invoicing management needs and practical embarrassment

Qu Lidong's theoretical thought comes from the real environment he experienced. During frequent exchanges between Japan and China, Qu Lidong saw more of the Online Invoicing network woven by international giants in the world, and also had a profound understanding of the many problems and embarrassment they face in their global layout.

With the advent of the "Multi-variety", "small batch", "Short Cycle", "Pay attention to service", "unpredictable market changes", and the globalization of enterprise business activities, the proportion of surplus inventory and circulating inventory in the enterprise's assets and costs is getting higher and higher.

International giants, as rule makers, have greatly improved their internal operational efficiency through global operations, non-core business outsourcing, production transfer, and ERP implementation, however, the pursuit of "zero inventory" also pushes inventory risks to suppliers, dealers or other service providers as much as possible. A large amount of inventory information is not in the hands of "rule makers", but is distributed in various aspects such as international trade, logistics, sales circulation, production and processing in transnational invoicing. A large number of business outsourcing and cross-border collaboration have resulted in a series of problems in quality management and monitoring, circulation tracing, and enterprise control. The recall of toys in China in the United States and the poisonous dumplings in Japan are examples. To solve these problems, it is imperative to visualize the information on the purchase and sale of goods and the collaborative management between enterprises (purchase and sale of goods.

The implementation of the ERP system of large and medium-sized enterprises in the world has basically been completed (to the Optimization stage), and the implementation of invoicing, through integration of overseas businesses, improvement of the Collaboration processes and mechanisms between related enterprises in the invoicing process, and inventory sharing (I .e., optimization between enterprises through invoicing management ), especially in the context of rising resource prices and increasing awareness of environmental protection, enterprises that implement invoicing are expected to achieve remarkable results in the future. However, in reality, the construction of the invoicing system by international giants is just the beginning and there are few success stories.

Why is it difficult to build an inventory store? Qu Lidong believes that the problem mainly comes from three aspects. First, the traditional IT service model has greatly increased the it cost for enterprises to apply, resulting in a high cost for invoicing, and even very large enterprises are also discouraged; second, as a number of "rule service providers", enterprises cannot afford to pay or obtain benefits through the implementation of the invoicing system. Third, many enterprises do not have a clear positioning and confuse ERP with invoicing, incorrect system solution and incorrect IT service provider are adopted.

The enterprise IT application industry has decades of history and should be regarded as a traditional industry. However, the rapid growth of the industry, the rapid development of IT technology and the lack of talent make the IT industry have no time to reflect on itself, service Prices only increase or decrease! The cost of an ERP consultant is sometimes offset by the one-year salary of a general manager or nearly 10 workers. If the target of the Implementation System is an asset system (ERP), the enterprise can withdraw the investment from the system implementation effect. However, if the implementation system is a cost system (purchase/sale ), the investment in IT costs should be fully reflected in the cost of the enterprise. The higher the it cost, the weaker the enterprise's competitiveness. Originally, invoicing was intended to improve enterprises' competitiveness, but the result was that the implementation of invoicing led to a decline in enterprises' competitiveness. This is why most enterprises (including international giants) are daunting to purchase, sell, and sell goods!

ERP improves the internal management capability of the enterprise, while invoicing improves the "dominance" capability of the enterprise's external resources. The management capability (ERP effect) is proportional to the quality of the solution used (or the total it cost), while the governance capability (invoicing) the price is inversely proportional to the price of the solution adopted (the unit price when the quality is satisfied. The "price is King" when the prerequisites are met, which is the conclusion Qu Lidong has drawn from years of practice.

 

Even rule makers are daunting about the implementation price of purchase, sales, and inventory. Therefore, enterprises that act as Rule providers cannot afford expensive IT services. Although many IT enterprises offer relatively low-cost ERP systems for small and medium-sized enterprises, there are also many solutions based on service concepts, such as ASP or SaaS (software is a service, but they cannot fundamentally solve the problem. The Business Process of "rule-serving" has to adapt to the passive nature of the rules set by "rule makers", so that they cannot do without it services, at the same time, the expensive IT service prices make them unable to afford the costs incurred by the system to adapt to changes in external needs.

If no "rule-compliant" is an execution system that meets the requirements of the invoicing management, other systems that support invoicing will become "castle in the air" and "deaf" or "blind ", it is impossible to achieve the expected effect.

In the ideal world of Qu Lidong, all "rule-compliant" enterprises are of course users of the invoicing (invoicing Execution System, however, the "altruistic attribute" of invoicing makes the biggest beneficiaries of invoicing actually "rule makers". Therefore, "rule makers" should bear the cost of invoicing and execution systems on some or most "rule service providers" Enterprises!

Is this a fantasy? "This is possible! If a distributor as a 'Dell 'is willing to share important information such as inventory and sales, so as to optimize its production scheduling and logistics management, 'Dell 'is very likely to make a profit of 1% to the distributor." Qu Lidong vowed to believe that this innovation model is possible.

Necessary conditions for establishing an IT service system for transnational invoicing Management Systems

Even if a "rule maker" pays for the IT expenditure of a "rule-compliant" enterprise, IT practitioners need to create it service models that meet the requirements of the invoicing system, IT service costs can be greatly reduced!

Qu Lidong believes that the construction of this new cross-border invoicing (G/invoicing) service model must meet the following conditions:

First, it costs can be greatly reduced. From the perspective of the cost of the invoicing system, it cost reduction is a required condition. Only by significantly reducing it costs can we change the current situation of invoicing and building only the privileges of super large enterprises and gradually transition to medium-sized enterprises.

Second, the accumulation of talents and experience. G/invoicing is a mechanism for establishing information coherence between logistics service functions, business flow logistics, international, and enterprise departments. Personnel training in the g/invoicing system field requires a high degree of proficiency and understanding of on-site business, good communication skills (business knowledge, multi-language ing skills), and the driving force for traveling around the world. To allow talents to accumulate experience, they must provide opportunities and stages for talents to accumulate experience. To make full use of accumulated experience, the management process of service quality and the establishment of the training system are essential conditions for service providers. In order for talents to play a role for customers, a wide range of talent reserves and relative talent cost competitiveness are indispensable.

Third, cross-country capability (especially important in China and Southeast Asia ). Because systems use enterprises distributed all over the world, as service providers, to establish a g/invoicing mechanism, they must have the ability to correspond to transnational businesses. At present, the biggest problem customers face is the systematic correspondence of production, sales, trade, and logistics outlets located in China and Southeast Asia. In addition to system import, as a service provider, you must also have system maintenance and application capabilities from a global perspective.

fourth, the system architecture, implementation method, and solution system matching the invoicing requirements. The existing solutions developed for the construction of the ERP system are far from the requirements of invoicing. Therefore, a new invoicing solution is required to effectively match the nature of invoicing. New system implementation, service management methods, and technical architecture are also necessary.