What is ERP? Simply put, ERP is an enterprise resource planning system. ERP is a complete set of enterprise management system standards proposed by garter group, a famous American computer technology consulting and Evaluation Group. It is based on information technology, this system aims to improve enterprise resource efficiency and provides enterprises with resource management solutions during business integration and operation.
What is ERP? The scientific definition of ERP is: ERP-Enterprise Resource Planning system refers to a systematic management philosophy based on information technology, A management platform that provides decision-making operations for enterprise decision-making and employees.
ERP is not only a software, but also a management philosophy. It integrates internal and external resources of the enterprise. Through software, enterprises are closely integrated with people, finance, things, production, supply, sales, and the corresponding logistics, information flow, capital flow, management flow, value-added flow, etc, to achieve resource optimization and sharing, this is ERP.
After learning about ERP, let's look at the history of ERP in Chinese enterprises.
In China, enterprise informatization and ERP applications have weathered through more than 20 years. When Shenyang No. 1 Machine Tool Plant introduced the first mrpⅱ software from the German Engineering Association in 1981, few people know what ERP is. over the past two decades, the application and promotion of ERP in China has gone through a journey from initial exploration to maturity.
As early as 1986, the vast majority of Chinese enterprises did not know what ERP was. from 1985 to 1990, many management experts and scholars, including Chinese entrepreneurs, have begun to study what advanced management models are and how they can help Chinese enterprises improve their management competitiveness, during this period, some pilot ERP application enterprises were born. By 1990s, many famous ERP vendors around the world have moved into the Chinese market, with more
Enterprises have tried or purchased ERP products. However, we are disappointed that the success rate of ERP in Chinese enterprises is not very high, and this result has been a huge blow to Chinese enterprises. As a result, many enterprises are still worried, dare not mount the ERP application. With the entry of WTO and the rapid development of enterprise informatization
At the stage of widespread popularity, more and more people know what ERP is. ERP applications are more pragmatic, the business scope is wider, and the Business depth is gradually strengthened. ERP is expected by a large number of Chinese enterprises. However, the current domestic ERP application is not satisfactory. As a whole, China's ERP application shows an unbalanced development trend. There are not many enterprises that are able to fully implement the ERP management system. The reason is: 1. the ERP industry lacks an in-depth understanding of the majority of Chinese enterprises. At the same time, the mature ERP standards lack in-depth practices in China, leading to the disordered ERP selection and uncontrolled implementation risks. 2. Some software vendors are arrogant about their own products, making the ERP market a perfect match, which directly leads to customers' doubts about ERP products. 1. Lagging enterprise management levels will severely restrict the use of ERP
The development of ERP is a combination of management ideas and computer technology.
The maturity of ERP is completely in line with the process of theory, practice, and then theory to practice. Over the past 20 years of development, with the continuous application and innovation of management theory, its System Connotation and basic model have been very clear. However, the maturity of ERP cannot only depend on how popular the Management Idea of the software is, but more importantly, whether the management theory contained in ERP has been applied in practice, the successful use in developed countries proves that their ideas are successful.
In China, the level of enterprise management lags behind that of Informatization for a long time. Many enterprises suffer from incomplete basic data and information distortion. At the same time, a large number of enterprises have not yet established a modern enterprise system. The motivation of enterprises to use information technology for management innovation is insufficient. The adoption of information technology is passive, and information management institutions are generally not sound, poor information management systems, inadequate implementation, non-strict on-site management, non-standard information equipment utilization, etc. The existence of these problems will severely restrict the application of ERP in China.
Ii. Immature enterprise vertical management will seriously affect the application of ERP
The Application of ERP provides a broader space for enterprises to improve their management level. ERP application
It has a range of scalability and gradually forms industry-specific solutions to meet the needs of different industries
Special business needs. The premise for all this to become a reality is that the management perspective and Management height
. In particular, the financial system in ERP should be able to receive trigger information from all business processes, analysis systems and cross-function subsystems in real time, and execute monitoring functions to make quick decisions. Only in this way can ERP be more integrated for Enterprise Operation Support and diagnosis. At present, Chinese enterprises are seriously disconnected from each other in terms of sales, procurement, production, and finance. This is a common phenomenon, especially for fast-growing enterprises. For example, coordination between procurement and production often leads to suspension of service; sometimes the connection between finance and sales is poor, leading to the inability to clear accounts receivable. The reason for this situation is that enterprises lack overall consideration, especially because they cannot integrate the "three streams" (capital flow, logistics, and information flow), which leads to a lack of unified planning and control, the business of each department cannot be coordinated. This is the second test of ERP development in China.
Iii. Defects in ERP software life cycle will severely restrict the use of ERP
ERP is a comprehensive application of the C/S or B/S system, relational database structure
Such as technology, graphic user interface, fourth-generation language (4gl), network communication and other information industry achievements, with the modern management idea as the soul of the software products. Mature ERP products should provide functions such as fully integrating data by logic, providing business process models, developing interfaces, and realizing custom configuration. The perfect combination of technology and application should be a manifestation of ERP maturity. However, the following three problems of ERP software in China will seriously affect the survival cycle of ERP software, this restricts the use of ERP. Since Shenyang No. 1 Machine Tool Plant introduced the first mrpⅱ software from the German Association of Engineers in 1981, the application and promotion of mrpⅱ/ERP in China has gone through 20 years of development and maturity. According to incomplete statistics, there are about
700 enterprises have purchased or used this advanced management software. However, the effect of its application is unbalanced, and there is a large gap between enterprises. 1. problems existing in the development of ERP in Chinese enterprises since the emergence of MRP, the predecessor of ERP in 1970, in the past 30 years, enterprise information management has started from the initial MRP, it has evolved to MRPII and today's ERP. Before and after 1990, China began to introduce and use mrpⅱ to help enterprises carry out information management and auxiliary design, but until 1999, only when there were attempts made by companies represented by Kath and Lima on ERP software. Domestic ERP software has just passed its fifth year. With the successful implementation and application of ERP by a group of well-known domestic enterprises such as Lenovo, Haier, and Sinopec, the advanced management ideas brought by ERP implementation for enterprises are being learned and imitated by enterprises in the same industry. In addition, some small and medium-sized enterprises, such as Baodao glasses and Hangzhou jiebai, that were previously considered to be "forgotten corners of ERP", have also begun to introduce ERP to help enterprises with their own information management reform. To understand what ERP is, you must understand the advantages of ERP.
1. 1 advantages of ERP management
With the expansion of the enterprise scale, the information related to various types of production is also very large. If the information is not collected and processed in a timely manner, the operation of the entire enterprise will be affected, if the cost information lags behind, the quotation will be affected. If the inventory and workshop inventory information is not timely, it will easily lead to the completion of the production plan and a large amount of material backlog and waste, inaccurate procurement plans will affect the timely delivery of materials, which will directly affect the efficiency of enterprises. The ERP system collects various types of information and performs processing, statistics, and analysis in a timely manner to ensure the timeliness and accuracy of the information, so that the enterprise's decision makers can understand the operation status in real time and make accurate decisions. ERP not only processes information, but also organizes reasonable management processes in the system to reduce human errors and improve the efficiency and efficiency of production and operation. Therefore, ERP is not only a set of software, but also contains the concept of modern enterprise management. As technology advances and product updates keep accelerating, competition among enterprises is becoming increasingly fierce, these competitions are ultimately reflected in efficiency competition, product development efficiency, production efficiency, procurement efficiency, and capital flow efficiency. Through the implementation of ERP, the internal process of the enterprise is improved, the enterprise structure is optimized, the management level is reduced, the efficiency is improved, the cost and inventory are reduced, and the management level of the enterprise is improved from all levels, this is our goal to improve customer satisfaction. Now you know what ERP is!
1. 2 Problems in ERP implementation
In the past 20 years, the development of ERP in China has not been smooth, and the actual application is far from satisfactory. In this regard, we must see two facts and two thought-provoking phenomena. The first fact is that the basic equation of the manufacturing industry is widespread. As we all know, the basic function of MRP is to, according to the main production plan (A: Describe what to produce), the bill of materials (B: Describe what to use for production), the inventory record (C: description) generate the material demand plan (D: description of what should be obtained ). MRP simulates the so-called "basic manufacturing equation", which can be expressed as a conceptual formula: A × B-c = D. It is pointed out that the basic equation of manufacturing industry is like gravity, so that enterprises can only face and cannot change it. The second fact is that using computer technology to improve enterprise management is the only way. So what is the result of the combination of basic equations and computer technology in the manufacturing industry? The answer is ERP! The development of ERP in China over the past few years can be described in an image: companies with good benefits cannot think of ERP, while enterprises with poor operating conditions cannot consider ERP. The basic situation is: ① The company lacks funds. ② Lack of management and IT technology application experience. ③ Objective internal and external environments make the boss's decision-making impossible to be completely replaced by software. The history of Chinese Enterprises "governance by people" over the years proves that the vitality and advantages of small and medium-sized enterprises are not scale or monopoly, but fast and flexible. After ERP is fully implemented, the software only needs to provide reference data, and it violates the rules to make decisions by the boss. ④ The business scale that urgently needs to be expanded cannot be stopped because of information implementation. Based on our practical experience, it is not easy for most small and medium-sized private enterprises in China to achieve one-step implementation due to lack of resources, experience, and even understanding, however, at least from the top of the enterprise to give enough attention and support, this is the most basic requirement for successful implementation of ERP projects. After knowing what ERP is, let's look at the application of ERP system in Accounting. Accounting mainly records, accounting, reflecting and analyzing the change process and results of funds in the enterprise's economic activities. It is composed of the general ledger, payable, payable, cash, fixed assets, multi-currency system and other parts. Therefore, from a physical perspective, the ERP accounting module, it involves the general ledger module, the accounting module, the payable module, the cash management module, the fixed asset accounting module, the multi-currency system module, and the wage accounting module. Taking the cash management module as an example, it mainly controls the inflow and outflow of cash flows, and accounts for petty cash and bank deposits. It includes the management of coins, currency notes, cheques, currency orders, and bank deposits. In ERP software, it generally has functions related to cash, such as Bill maintenance, Bill printing, payment maintenance, bank list printing, payment query, bank query, and check. In addition, it is integrated with the modules such as revenue collection, payment payable, and general ledger to automatically generate creden。 and transfer them to the general ledger.
