2.2.2. 1 value of ERP system
As a modern enterprise management mode based on computer information management system, ERP integrates and synthesizes the logistics, information flow, capital flow and workflow in enterprise management activities, realizes the optimal allocation of resources, and accelerates the response speed of enterprises to the market, thus improving the efficiency and level of enterprise management and ultimately improving the economic benefits and competitiveness of enterprises. The statistics of APICS show that the benefits that ERP system can bring to enterprises include reducing inventory, reducing delayed delivery, shortening procurement lead time, reducing manufacturing costs, reducing management personnel and improving production capacity. Considering the implementation of ERP in China enterprises, it may be more about competitive position and supply chain management (SCM), as shown in Table 2.7 [20].
Table 2.7 Benefits of ERP System Implementation in China Enterprises
Through the implementation of ERP system, it will not only bring direct economic benefits to enterprises, but also bring intangible benefits, such as the improvement of customer satisfaction and office efficiency. However, the intangible benefits of ERP system are indirectly realized through value connection, value acceleration, value reorganization and value innovation, and its value not only has obvious lag effect, but also is difficult to be measured by direct monetary amount, so that many scholars have done a lot of research on the benefit evaluation of ERP, and comprehensively analyzed the commercial benefits of ERP from five aspects: operational benefits, management benefits, strategic benefits, it benefits and organizational benefits. Therefore, the implementation value of ERP system is obvious and huge.
2.2.2.2 lacks ERP system.
It is precisely because ERP system can bring great tangible and intangible value to enterprises that ERP has been widely used in the world. According to relevant data, 80% of the global top 500 enterprises have implemented ERP, and thousands of enterprises in China have purchased or used ERP software, involving manufacturing, chemical industry, service industry and other industries. Based on the ERP investment of $ 1999, some western scholars predict that the ERP investment will rise to $50 billion in five years and $10 billion in 20 10, while AMR thinks that the global ERP market revenue has reached $52 billion in 2002 [2 1]. Figures 2.5 and 2.6 show the growth trend of ERP software in China and the application of ERP in American enterprises.
From this point of view, with more and more enterprises implementing ERP system, even enterprises that can implement ERP system quickly and effectively can only maintain a temporary competitive advantage. In fact, the purpose of many subsequent enterprises to apply ERP system is to survive and not lag behind, not to gain competitive advantage. They regard ERP system as a means to maintain their competitive position. It can be seen that ERP system is difficult to become a scarce resource or ability of enterprises.
Imitation of ERP system in 2.2.2.3
As an enterprise information system, ERP is not only a technical system, but also a social system. Its implementation process is not only the update of computer system, but also involves business process reengineering (BPR) and the adjustment of organizational structure and enterprise personnel. In view of this complicated implementation process, many scholars began to explore the ERP implementation method system, and successively put forward a series of method models, such as three stages (project establishment stage, trial stage, positive and upward stage), six steps (start-up, analysis, adaptation, acceptance, habit and promotion), BPR+ERP model and so on. The failure of each step will lead to the failure of the whole system implementation. Only when the system implementation is completed and matched with the enterprise process can ERP system play a leverage role as an advanced resource or capability.
Figure 2.5 China ERP market sales in 2003 and 2005, CCID consultant market survey report.
Figure 2.6 the use of ERP by American enterprises: Rutner S.M. et al., 2003. Influence of integrated logistics system on e-commerce and enterprise resource planning system. Transportation research part e, 39: 83 ~ 93.
The complexity of the implementation process will affect the imitation of competitors to some extent. On the other hand, enterprises that implement ERP system later will learn from the experience and lessons of the former. In addition, it is possible to implement ERP system faster and more effectively by hiring consulting companies and software suppliers with accumulated practical experience, which will greatly weaken the "first-hand" advantage of ERP system. It is worth noting that some system suppliers regard ERP software as "best business practice", and enterprises need to constantly adapt to their designed processes during the implementation process, so that enterprises will never gain long-term competitive advantage. As shown in Table 2.8 [22 ~ 23], the market shares of major suppliers in China market and global market are listed, which explains the difficulty of imitativeness of ERP system to some extent.
Table 2.8 Comparison between China and Global ERP Market Suppliers
Organization of ERP system in 2.2.2.4
In practice, a large number of ERP projects can not be completed within the budget, which is often attributed to the low level of enterprise managers, too many customized functions, and complex legacy systems or data. The prerequisite for the success of an ERP project depends on the rational reorganization of business processes, the support and participation of senior managers, the friendly cooperation between suppliers and the rich knowledge and experience of the project team. This is why many scholars at home and abroad spend a lot of energy to investigate the implementation of ERP, aiming at finding the key success factors of ERP implementation, some of which are recognized as business process reengineering and the skills of enterprise managers to adapt to and learn to use the new system to complete their work.
On the other hand, compared with the traditional management information system, the investment risk of ERP system is greater, which may come from the external environment of the enterprise (such as the ability of system developers, the reputation of consulting companies, the management status of upstream and downstream enterprises), the internal factors of the enterprise (such as corporate culture, organizational structure, management level and personnel skills) [24], and may also exist in the secondary development or customization of software. Some western scholars, after investigating and studying many enterprises that implement ERP, believe that the risks of implementing ERP are different for enterprises of different industries and sizes, even for the same type of enterprises, which are not only related to the historical period of the enterprises themselves, but also directly related to the adaptability, strategic positioning and cooperation degree of consulting companies. Therefore, the organizational management ability influenced by complex factors such as organization, management, technology and politics directly determines the quality of ERP project implementation. At the same time, this ability plays an irreplaceable role and may bring sustainable competitive advantages to enterprises.