The purpose of decision-making on priority projects of informatization of housing enterprises is to find the most feasible informatization projects for housing enterprises, which are most conducive to consolidating or developing competitive advantages. The decision-making process is to identify the key value activities of real estate enterprises and the key links between them, then select the key projects of real estate enterprise informatization, and finally decide the informatization priority projects according to the optimization criteria of informatization priority projects.
Professor Michael Porter of Harvard Business School put forward the concept of value chain in his book Competitive Advantage, and used it as a basic tool to judge competitive advantage. Since then, the value chain analysis model has been widely used in the theory and practice of competitive strategy. Although the value chain of each real estate enterprise has its own characteristics, it is similar in general. In this paper, the value chain model of figure 1 is used for analysis.
1 analysis of the value chain model of housing enterprises
The types of enterprise value activities are divided into two categories: supporting activities and main activities.
The supporting activities in the value chain of housing enterprises include: enterprise infrastructure, human resource management, procurement management and technology development. The main activities in the value chain of real estate enterprises include: obtaining land resources, planning and design, construction application, project construction management, project cost management, market sales, housing delivery and after-sales service.
The value chain is not a collection of independent activities, but an interdependent activity system. In this system, there are certain connections between various activities. For example, careful project acceptance before delivery can reduce customer dissatisfaction and the cost of handling customer complaints. Investment in human resource management can improve customer satisfaction. Efforts in market research can shorten the sales cycle and speed up the withdrawal of funds.
The relationship between value activities exists not only in the value chain of real estate enterprises, but also between the enterprise value chain and the supplier or buyer value chain. By influencing the structure of supplier value chain or improving the relationship between enterprise and supplier value chain, both enterprises and suppliers will often benefit. For example: provide refined decoration rooms for buyers and connect with suppliers' e-commerce.
2 the key value activities of housing enterprises and the identification of key links between value activities
The key value activities of real estate development enterprises and the key links between value activities refer to the activities and links in the value chain of real estate enterprises that are most conducive to consolidating and developing their competitive advantages. Every real estate enterprise has its own characteristics, and it can determine the key link between its own key value activities and value activities by comparing the value chain of its competitors.
This paper uses the key factor method of industry success to identify the key value activities of real estate development enterprises and the key links between value activities.
As far as the key factors of the success of the real estate industry are concerned, different experts and scholars have different views, but from the success or failure of many real estate enterprises, we can generally get the following understandings: land resources are the lifeblood of almost all real estate enterprises, and investment analysis, approval and construction application are the most critical value activities of most real estate enterprises. The real estate industry is a capital-intensive and high-risk industry, which requires housing enterprises to have strong capital management capabilities. Financial management, project cost management and sales management are naturally regarded as key value activities by many housing enterprises. In addition, the long product development cycle and many links are the remarkable characteristics of the real estate industry, so the ability to integrate and coordinate various resources is also one of the important competitiveness of housing enterprises, so supplier management and time limit management are generally considered as key value activities. Of course, planning, design and market research are also the keys for housing enterprises pursuing differentiated advantages. The key links of real estate enterprise value activities are finance and sales, finance and project cost management, design and sales, sales and customer service, procurement and project construction management, procurement and project cost management, etc.
3. Selection of key projects of housing enterprise informatization
There are two tasks in the selection of key projects for informatization of housing enterprises. Firstly, the corresponding informatization projects are mapped out through the key links between key value activities and value activities, and then some projects with little informatization significance are excluded.
Information technology affects the value chain by changing the way of value activities. Information technology can penetrate into all the value activities of an enterprise, and basically every value activity can map out the corresponding information items. However, not all value activities have the significance of improving performance mode with the help of information system. Even if this value activity is a key value activity, it does not necessarily have the necessity and possibility of informationization. In order to screen out key informatization projects, we must first eliminate projects that do not have the necessity and possibility of informatization, such as land resource value identification and government affairs handling.
Generally speaking, the key projects of real estate enterprise informatization include financial general ledger management system, cost management (budget management) system, project cost management (project contract management) system, sales management system, supplier management system and market information management system.
4. Selection of priority projects for informatization of housing enterprises
The choice of priority project of housing enterprise informatization is to choose one project as the priority project among the selected alternative projects. At different stages of the market-product life cycle, real estate enterprises with their own resources or ability advantages should proceed from reality and make "satisfactory" choices in combination with the characteristics of enterprises.
In the decision-making process, the most important task is to judge the priority of several key information projects to be promoted, and the judgment of priority depends on certain sorting standards. This paper suggests that at least the following three aspects should be considered when formulating standards.
4 1 Correlation between priority projects of enterprise informatization and enterprise objectives
Enterprise informatization serves enterprise goals, and only under the guidance of clear enterprise goals can enterprise informatization have the right direction. For example, the annual plan of real estate enterprises is to expand their business to many cities in China or even overseas, so a sales management system that can support cross-regional centralized management of building receivables is highly related to the expansion strategy of enterprises. For housing enterprises that only want to complete the development of a single project, the fund management system, cost management system and marketing management system will also be regarded as redundant.
The correlation between enterprise informatization priority projects and enterprise goals should be regarded as an important variable of the standard. When the informatization process is highly consistent with the enterprise goal, the informatization project will get the attention of enterprise leaders and get more support. When choosing the priority project of enterprise informatization, we should pay special attention to its correlation with the short-term goal of the enterprise.
4.2 Contribution value of information projects to competitive advantage
It is difficult to quantitatively and accurately calculate the contribution value of informatization projects to the competitive advantage of enterprises, and qualitative analysis is often used in practice. To investigate the contribution of an information project to the competitive advantage of an enterprise, we should start from two dimensions: cost reduction and differentiation. On the one hand, analyze its contribution to a specific value activity; On the other hand, through coordination and optimization, it analyzes its contribution to related value activities.
Professor Michael Porter believes that cost advantage and business differentiation advantage are two competitive advantages that an enterprise may have. If the accumulated cost of enterprises engaged in value activities is lower than that of competitors, the cost advantage will arise. When an enterprise can provide some unique things for buyers, its value is not only low-priced, it has operational differences with its competitors. If the premium obtained by enterprises exceeds the extra cost for business differentiation, then business differentiation will make enterprises achieve excellent performance. Any kind of value activity is a potential source of uniqueness.
When the activities in the value chain are interrelated, changing the performance mode of one of them can reduce the total cost of both. Intentionally increasing the cost of one activity may not only reduce the cost of another activity, but also reduce the total cost. The management of various relationships is more complicated than the management of various value activities themselves. Because it is very difficult to understand and manage these connections, this ability often becomes an inexhaustible resource for competitive advantage.
4.3 Maturity of project promotion conditions
The promotion of information projects is influenced by many factors, and information projects that do not have mature conditions will only bring burdens to enterprises. Generally speaking, the promotion conditions of housing enterprise informatization projects mainly include:
(1) Software system maturity. Hardware conditions are not a problem for housing enterprises, but the maturity of software systems often restricts the realization of housing enterprises' good wishes. There are many productized software systems available for housing enterprises to choose from, among which there are many top software products. Some software systems have been successfully used in thousands of housing enterprises across the country. Pursuing the maturity of software system should avoid delaying the opportunity of informatization in order to wait for the realization of a non-critical function of software products.
(2) The strength of the implementers of information projects. Attention should be paid to the implementation of information engineering. There is a saying in the software industry that "software scores three points and achieves seven points". The implementer of informatization project can be a software system supplier or a third party with rich management experience and project implementation experience in the real estate industry. Mature implementation can reduce the investment of time, energy and manpower of real estate enterprises, and dig deeper into the benefits of software systems.
(3) The depth of understanding of enterprise leaders on the information projects to be introduced. Enterprise leaders' understanding of the information projects to be introduced will determine their attitude.
(4) Coordination among relevant functional departments. The implementation of informatization projects often crosses the traditional organizational boundaries and involves multiple functional departments. The disharmony between related functional departments will often cause resistance to the implementation of information projects. Business leaders should pay attention to straighten out the relationship between functional departments, especially when the project implementation results involve the adjustment of functions and powers.
(5) Information talents of real estate development enterprises. Due to the lack of suitable talents, it is very common for real estate development enterprises to implement information projects. There are few informatization talents who are familiar with the affairs of housing enterprises, and the growth cycle of such talents is long, and some housing enterprises turn to outsourcing.
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