Draft information construction of XX Company

Document directory

• Abstract
• Current Situation of Enterprise Informatization
• Problems
• Informatization suggestions

Abstract

Current Situation of Enterprise Informatization

Problems

Informatization suggestions

Principles

Target

Planning

Return on Investment

Construction Period

Description

Abstract

In order to better clarify the informatization status of enterprises, gain a deep understanding of Informatization Construction objectives, improve the informatization level of enterprises, and provide enterprises with real-time dynamic control over the whole process of data, including Intranet office and production in two factories, this draft information construction is specially prepared for discussion to improve office and production efficiency, effectively reduce inventory, accelerate capital turnover, and improve work efficiency and management level.

 

Current Situation of Enterprise Informatization

Based on the preliminary understanding of the two companies in branch 1 and branch 2, combined with interviews with relevant personnel of the two companies, we can see that the IT architecture of the two companies is clear and the system settings are reasonable, considering the applicability, feasibility, and cost effectiveness of various hardware and software configurations.

In terms of network structure, branch 1 and branch 2 are both fixed IP addresses of the optical fiber public network, ensuring the smooth internal network speed of the two companies from the source. Both companies have local servers and use IBM rack-mounted servers to ensure the speed and security of servers, at the same time, this server is also used as a file server, financial server, and database server (tytel ). At the same time, there is also a network sharing printer, the company's internal network structure is the use of the Second-layer mainstream switch (TP-link 1024 S), and each internal client PC has a fixed IP address, fixed IP addresses make O & M and Management of PCs more convenient.

In terms of software usage, apart from commonly used office software, there is also an office platform developed by the company itself, including most of the daily work, which solves many problems of daily office, it is widely used for convenience and flexibility. At the same time, Kingdee K/3erp management software is also used within the company 2 of the Branch, taking finance as the core, including financial accounting, Supply Chain Management (procurement management, sales management, warehouse management, inventory accounting) the human resources module has a good foundation for optimization management.

Problems

Some problems were also found during the visit to the two companies, as shown below:

Information is isolated from each other

Currently, Shanghai Corporation, branch 1, and branch 2 have their own systems and platforms, including financial software (yonyou and Kingdee, however, the three companies cannot operate on the unified operating platform, forming a relatively isolated information island, and cannot better summarize the production and office information of several companies, therefore, information and feedback cannot be better handled and integrated.

Inadequate applications

At present, the Office platform is the most widely used by Shanghai Corporation, basically solving most office needs. The internal system used by branch 1 is Kingdee K/3erp. Most of the systems are currently used by the finance, warehouse, and procurement departments, and the applications of other departments are relatively small, there are only four concurrent points. However, the entire production process, including "sales-procurement-warehouse receiving-production-finished product warehouse receiving-warehouse receiving", cannot effectively form a closed loop, it cannot be well developed and applied within the company.

Branch 2: shortly after the new factory was moved, the financial software used yonyou u8 products. In addition to a file server, the company had no internal collaborative office platform, there is no management system involving the entire production process. Most of the information is processed and managed in the traditional way, this method may cause problems such as inefficiency, intime and smoothness of information, failure to promptly supervise and archive various work information.

Information Integration and personalization

Due to the loose production information of each branch in various systems of each company, the direct impact of various file archiving, searching, management and sharing, and the inability to effectively integrate the information, it is impossible to make in-depth analysis on the summary of such information in a timely manner, further identify problems, and conduct system evaluation on the data of various companies. It is impossible to uniformly deploy the company, which may affect the company's decision-making.

For each role in the company's organizational structure, the focus of each role is different, and the information to be concerned is naturally different, but because the information is loose, the current information cannot be effectively classified and organized based on the role, and different information cannot be displayed for different roles. According to the general rule, the company's information grows in multiples every month, and the information that each role needs to search for is getting longer and longer. This will affect the company's efficiency.

Informatization suggestions

Principles

At present, the company's network planning is complete and the information system has a certain application basis. It is recommended to adopt the "overall planning, step-by-step implementation" principle, according to the enterprise at different stages for different information construction, based on the actual situation, we will implement it gradually by modules and sub-systems. We will not take the initiative and speed up, and establish "image engineering ".

Objective

The purpose of informatization construction is to use software to serve enterprise management. Therefore, informatization construction should include improving enterprise management, organizing enterprise management forms and processes, and making them run smoothly.

Branch 1 has a complete network and file server foundation because of its new factory deployment. However, the internal network administrative offices, various contracts, procedures, and approvals of enterprises are still under improvement, however, the whole process of monitoring involving enterprise production management is still relatively weak. You can first implement an intranet Office Platform internally to establish various daily office and production processes for approval and other management, implement paperless office, monitoring of various production processes, and then combine financial software upgrades, select appropriate ERP software and modules to summarize, integrate, and process data related to various stages of production management, it allows different roles to view the data of the focus and intuitively shows the data in pivot tables and perspectives to improve enterprise management.

Due to the existing Kingdee K/3 ERP in branch 2, the ERP software has various supply chain modules, including procurement management, sales management, warehouse management, inventory accounting, and financial accounting modules, at present, the software can basically meet the production management needs. The software can be fully used in all stages of production, and can be transferred based on normal production stages. After full application by each department, the interface with OA should be considered, provides perspective management for various data within the company. The cost of implementing the data pivoting function on the OA and ERP interfaces and the OA collaboration platform is much lower than that on ERP.

For foreign trade companies, the self-developed application platform has basically met most of the requirements, and most foreign trade companies are familiar with the platform, in the early stage, you can consider running your own platform in parallel with the Platform purchased from the outside to reduce the inadaptability.

Planning

According to the current situation of enterprise informatization construction in China and the actual implementation of informatization, there has been approximately 20% failure rate every year in the informatization construction of enterprises in recent years. In these failed cases, there are many problems, such as the enterprise's expectation for software implementation and the software's own problems, there are also problems that implementers are not serious about enterprise management and processes during the implementation process, and software is not used after the enterprise goes online to form zombie software. The reason is related to the evaluation and promotion of software by the enterprise. Therefore, risk control is an important factor that must be taken into account in the process of enterprise informatization.

In order to effectively reduce risks and combine the current situation of our company's "centralized management and decentralized operation", we need to implement the "top-level" project from the management perspective, which requires the support and promotion of the highest-level leadership of the company. For information construction, we can consider adopting the "Three Steps" strategy-from simple to complex. The first step is to first launch the OA collaborative office platform. The OA system reviews and approves various processes, forms, and production processes within the company, including simple functions such as CRM and HRM, and focus on promotion. Step 2: implement paperless office in the company, and integrate the company's internal financial system based on actual conditions to implement a unified operating platform. Step 3: After the financial software platform of the group company and each company is integrated, a unified external data interface will be formed, and some ERP modules will be added, the modules added to the ERP system are mainly used to store various data generated during the production process. After ERP is launched and promoted, ERP-related data is connected to Oa. The decision-making layer can view the data on the OA system platform. The Business Intelligence Bi system is formed to effectively integrate various internal data of the enterprise, effectively avoiding the risks and hidden dangers of "taking the lead with experience, the real implementation of data can provide secondary decision-making basis for the company's top management. At the same time, after the OA system, CRM system, financial system, and ERP system are launched and run, you can develop some personalized software systems as needed to supplement the above software systems.

If informatization construction follows the law of human cognition in three steps to effectively solve software launch risks, the implementation and promotion of Informatization Construction with high risks can adopt the "from point to point" approach. Point: after the company's various processes, forms, and management systems can be established and promoted on the OA collaborative platform, after a lot of work problems are solved, it can accumulate some useful experience and then be promoted to other companies in the group. The actual administrative and production data is paperless, data management is centralized, and data analysis is transparent.

According to the overall information construction plan, to ensure data security, the Network Plan adopts the "Group Company-VPN-subsidiary" model. That is to say, each company has an independent server, and the group company sets up a total server. The group company and its subsidiaries are connected through VPN. Oa, ERP, and other programs and data servers are stored in the group's data centers. Subsidiaries connect to Oa and ERP servers through VPN (with network acceleration function. According to the 8 m fiber bandwidth of the Group Company, branch 1 and branch 2 are both optical fiber access networks. The two companies access the servers of the group company quickly with only a small delay, it won't be difficult to close the page, and so on. At the same time, VPN connection can solve the security problem of sensitive data during data transmission. The specific network topology is shown below:

Ø ROI Analysis

Any investment of the company is expected to be rewarded, and the higher the better, the informatization construction is no exception. However, compared with the "Real Money" investment of IT projects, the return is a "soft return" that is difficult to use digital computing ". It is characterized by the difficulty of measuring the investment income, the uncertainty of the income period, the intangible income, the need for continuous investment and the benefits are easily affected by the external environment. Some are quantitative, while others cannot. Quantifiable data includes:

U reduces Inventory (inventory occupation, inventory capital turnover, inventory error );

U reasonable use of resources (shortening the production cycle, order turnover days, procurement costs, improving production efficiency, reducing inventory areas, and reducing overtime );

U on-schedule delivery to improve customer service quality (on-schedule delivery rate );

U reduces costs, purchase fees, overtime, and profits;

U reduces financial revenue and expenditure errors and reduces economic losses.

Quantifiable data includes:

U company's senior management and management personnel are responsible for controlling the marketing, production and financial operation status;

The appearance and quality of enterprise employees have greatly changed;

U management personnel are freed from transactional work and committed to standardized and substantive management work;

U regulates company management and ensures product quality.

In general, IT project investment can bring about three levels of return to the company: the basic first layer is to improve efficiency, that is, to accelerate the existing process and save a lot of money; the second layer, productivity can be improved, that is, more work can be done by reducing manpower and material resources. The third layer can improve or change the business model of an enterprise to gain a competitive advantage.

According to the company's current hardware infrastructure, investment in IT projects includes three costs: 1. The cost of computer application infrastructure mainly covers various computer systems and network equipment, which is about 30% of the total investment; 2. Development, purchase, and integration costs of application system software account for about 40% of the total investment; 3. Implementation, maintenance, upgrade, and promotion costs of application systems, accounting for about 30% of the total investment. Specific Investment and costs mainly include: (1) project preparation; (2) Project System Selection investment; (3) IT hardware investment; (4) it software investment; (5) It network investment; (6) it and related technology and management training investment; (7) project consulting investment; (8) project system testing investment; (9 Project System Conversion investment; (10) project system installation investment; (11) project system operation investment; (12)
Project system management investment; (13) project technical support investment; (14) project internal maintenance investment; (15) Project Opportunity costs; (16) project hidden costs. Some of these costs can be digested within the company, not counted.

However, it may take some time to show the benefits of investment. It takes 3-6 months for a small software system to be displayed after it is put into operation, while the economic benefits of large systems, such as ERP systems, are generally displayed after 6-12. Our company's IT project investment costs (estimated) include:

Project	Fee (unit: RMB)	Remarks
Hardware	0.12 million + 60 thousand	Computer hardware systems and network devices
Software		Including OA, CRM, ERP, etc.
Maintenance		Post-O & M

 

However, based on the IT project construction experience and industry standards, the indirect economic benefit indicators are within a certain range, as shown in the following table.

Indirect benefit indicators of information construction	Industry Statistical Scope
Inventory turnover increases	20-40%
Increase in receivables turnover	Reduction of receivables by 6-7%
Lower sales costs	8-11%
Reduced manufacturing costs	12%
Reduced management costs	4-12%

To calculate the ROI of IT projects, consider the following financial data: sales revenue, average inventory balance, average receivables, sales expenses, management costs, manufacturing costs, procurement costs, product sales costs, sales interest rates, and capital costs. The specific data needs to summarize the "old data" before the system goes online, and the "new data" after the system goes online for a period of time to better analyze and compare the ROI. However, the ROI is generally as follows (the specific time of the payback period needs to be calculated, and the figures in the table indicate the approximate range ):

 

Project	Unit	Data and metrics	Remarks
Indirect Economic Benefits	RMB	TBD	5-year average construction and operation period
ROI	%	TBD	Construction and Operation Period: 5 years
Internal financial return rate	%	TBD	Construction and Operation Period: 5 years
Net present value of investment (discount rate 10%)	RMB	TBD	Construction and Operation Period: 5 years
Payback Period	Year	3.5-4.5	Construction Period: 3 years

 

Construction Period

Complete the informatization construction of OA, CRM, HRM, MRP, ERP, and other management processes including administrative office and production. The initial construction and operation period is expected to be 5 years, and the planned use period is 10 years.

Note:

The above data and rationale are only applicable to the situations of branch 1 and branch 2. If you do not have in-depth understanding, you will inevitably be biased. The planning and construction will be subject to the actual it five-year plan of the company. This article is for your reference only.

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