Enterprises need to seriously invest in ERP systems
Enterprises with a turnover of about VND 500 million/month should deploy a multi-function software (ERP) solution.
Enterprise Resource Planning (ERP) systems are a type of multi-function management software solutions that can be used by an enterprise or an organization to collect, store, manage and analyze data. Data from its business operations, including product planning, costs, production or service provision, marketing and sales, delivery and payment.
ERP is no longer a strange term for Vietnamese businesses, especially in the past decade. ERP is increasingly being used by large businesses, however, Vietnamese business owners are still quite cautious when it comes to this issue. The reason is because in the past, many businesses of all sizes have failed to access ERP.
Successful experience from Mat Bao and An Cuong Wood Company:
“Many medium-sized businesses in Vietnam always ask themselves whether or not to deploy ERP? In my opinion, businesses with a turnover of about VND 500 million / month should deploy ERP, “said Huynh Ngoc Duy – CEO Mat Bao at the seminar topic:” Implementing Enterprise ERP – Exist or Good takes off?” Organized by 2030 Business Club.
From the reality in Mat Bao, which is a technology company, it is not difficult to deploy and apply ERP. In addition, Mat Bao used to use self-written ERP software before, just that it is not as standard as the products that professional partners provide later.
In 2017, when Mat Bao officially launched Odoo’s ERP software – one of the world’s largest ERP companies, the operation process was forced to self-adjust and change accordingly.
Mr. Duy said that deploying ERP applications is not really that difficult, small businesses will take about a month to be able to apply ERP in their business activities.
When implementing ERP, enterprises do not necessarily have to implement all the modules at the same time, but they can go step by step. First, Mat Bao deployed ERP for the finance and business department, then came to the human resources and customer service.
In order to implement the ERP smoothly, the business owner should be the project owner, if he is hesitant and assigns to the people below, the probability of failure is very high.
“Vietnamese business owners do not be afraid, it is okay to deploy ERP to leaders, just have the spirit of learning. When I intend to use Oracle or Odoo, I also ask everywhere. After two weeks of asking However, he finally understood what he needed to do to implement ERP successfully. The right understanding is very important, because the right understanding is right and vice versa, “said Duy.
Another point of attention when implementing ERP is to follow the necessary sequence. Businesses should communicate and transfer it to the department head, then the department head will do it to their subordinates. The first month will sum up the mistakes of all departments when deploying the ERP and send it back to them. The following month, the results of the ERP implementation will be included in the KPI to encourage employees to try to get it right.
CEO Mat Bao said that although he had previously used “growers” ERP and also had fully prepared it before applying Odoo’s ERP, it took a year before everything went into order. The process of deploying and applying ERP is like that, applying new technology, new skills need to be continuously trained, to succeed, it takes the determination of the whole enterprise.
After 17 years of using SAP ERP, Mr. Le Duc Nghia – Chairman of An Cuong Wood Joint Stock Company affirmed: “If you want your business to operate and develop well, business owners need to seriously invest in ERP”.
Implementing ERP according to Mr. Nghia is not difficult, just follow the order of steps and clear strategic planning from the beginning.
The business manager should be the head of the project management board, the one who decides everything. In two implementations of ERP systems of Bravo and SAP, Mr. Nghia was the head of project management. Must be under close supervision of the top leader or business owner, then do nothing wrong.
Second, the nature of ERP implementation is almost transparent, unable to hide negative things. Therefore, ERP can in some ways detect employees who are the most deceitful and most obscure, because they will be opposers of the implementation.
Third, businesses should consider using Vietnamese instead of international ERP products such as An Cuong Wood. For many reasons, this largest Vietnamese wood enterprise has to use SAP software from 2003 to now.
Currently, according to Mr. Nghia’s observation, Vietnamese businesses in the ERP segment have grown strong enough to meet the needs of different types of businesses, not like before.
“The reason I emphasized many times is that Vietnamese enterprises should not rely on foreign investors because investing in ERP systems of international giants such as SAP, Oracle costs a lot of money and is not too compatible with Vietnamese enterprises, so the rate of successful implementation is only 50 – 50. We had to scaly and peel off the skin without any pre-existing loss of gill “, Mr. Nghia affirmed.
In 2003, before investing in ERP, Wood An Cuong did not hire professional consultants to implement ERP, but only hired people to come to general consultancy. At that time, the consulting company advised them to switch to the international ERP system if they wanted to call for international investment, because if they had international standard ERP, the business would be valued at more than 10%.
However, before applying international standard ERP, An Cuong Wood needs to restructure the business to conform to the regulations of these systems and they have spent half a million USD for that.
International ERP systems emphasize standardization, so if Vietnamese enterprises do not have international standard structures and do not hire restructuring consulting companies like An Cuong Wood did, the risk of implementation will be very high. high.
Leading furniture enterprises such as AA or Dai Dung Mechanical are good examples of the failure to implement international ERP systems, despite a lot of money.
“If you are an SME, don’t waste your money on international ERP if you don’t want to die. In my opinion, Vietnam ERP software will be more suitable, because most Vietnamese ERP developers are quite fond of businesses, so it is almost 100% successful. However, pampering too much is not good! Because of that, the torn-down ERP systems damage the overall and standard structure of the software. While international ERP software cannot be repaired, Vietnam’s can, causing a high risk of negative occurrence, ”said Chairman of An Cuong Wood.
In terms of cost, international ERP systems are much more expensive than Vietnamese ERPs. After spending half a million USD to restructure the business in accordance with international standards, An Cuong Wood continues to spend another million USD to buy SAP ERP software, each year it costs several billion more for money. copyright, cost for IT team to operate the system …