ERP development in China so far, almost in trouble: the high failure rate, the endless project development will enable manufacturers to physically and mentally exhausted, on the mere mention of the user, how to solve?
ERP development in China so far, almost in trouble: the high failure rate, never-ending project development, making firms physically and mentally exhausted; and expensive acquisition costs, long implementation cycle, complex and cumbersome process of learning, rigid fixation of the work flow has allows customers to "talk about ERP phobia", and even become a "frightened."
Software platform-based, component-based, modular dilemma is undoubtedly a good way to release is a major trend in ERP development, but these concepts do not know how many years crying, never been any substantive breakthroughs and progress in recent years the ERP market is apathetic.
September 6, the Hai Boke Information Co., Ltd. to "meet the third ERP wave" as the theme, held a news conference in Beijing, proudly known as "the world's first ERP (enterprise resource planning) independent platform" a new generation of Enterprise Information Product MyERP. Deputy editor of this newspaper the first time and the setting Sun Haibo Ke Shen Akashi Information Co., Ltd. CEO dialogue on how to bail out ERP vendors, ERP market forecast change in the situation, for ERP vendors continue to development.
Difficulties faced by the four ERP
Sun set: Some say the industry has recently circulated, it was said that the Chinese software is dead, it was said that this year is the Year of Disaster software. I and many software companies in exchange friends, they all talked about and business is very difficult to earn money. ERP vendors not only the price continued to decline and gradually diluted the profit was shouting like to sell cabbages sold as ERP. Journal of the total, as the industry experts who will comment on this?
Hong Shen: China is indeed a very difficult road to ERP, companies suffer, users suffer. High failure rate, high acquisition costs, long implementation cycle, complex and cumbersome process of learning, rigid fixation of the work flow so all the ills of China's ERP. I think the issue of China's ERP market is mainly concentrated in four areas; First of all, the evolving business and software can not resolve the contradiction between the relative curing; Second, ERP implementation process, as people, processes, technology and other reasons which cause serious hollowing phenomenon, advanced management concepts can not be reflected in the efficiency of every enterprise; Third, the process of ERP customers, business participation is very low, not really for their own ERP system, "the decisions"; Fourth, ERP on-line since the late maintenance process variables result in application of the high uncertainty. The existence of these contradictions and increasingly intensified, making the Chinese ERP caught four "unfinished project" situation.
Fortunately, the majority of Brocade and take a different path ERP vendors, we do two things very beautiful. The first is that after 1998 years ago, we all swarmed enthusiastically participated in the ERP, we have a low profile cut into the supply chain management. Now we are the first brand of domestic logistics sector, has become an overseas giant's archrival. According to statistics of China Association of Purchasing, logistics supply chain management in Brocade accounted for 20% of the market, our customers, including China Petroleum, Bright Dairy, Baisha tobacco, large enterprises in China petrochemical lubricants, etc. for our products are very satisfied.
The second is that we cut into the ERP market in time, not dove into the state-owned enterprises which, instead choose a good basis of information foreign customers, especially Japanese companies. The reason we do this because: First, the localization of Japanese companies is very stress, with the Japanese enterprises to expand business in China, their demand is very strong localization of ERP; Second, Japanese companies are unwilling to accept the Western concept of ERP, They also want to maintain their own ERP features and unique management ideas, and Japanese enterprises in the manufacturing manager is often true of ERP experts, their strong technical strength, we need only do according to their technology or design ideas available, this combination gives us a very high success rate of projects done.
Sun set: From your description, we understand that many of the early Brocade ERP customization projects should be considered. Now many manufacturers of "customization" are terrified, because in this mode, the project development are endless, sales balance due is usually forgotten, and some even 30% of the projects have no way to recover the balance due to, in this regard Brocade is how to do it?
Shen Kang: I think the "custom development" is in line with customer demand. Previous ERP practice is client to go along with the software product standardization process, once the company's business processes do not meet product design ideas, consultants, requires companies to change their business processes to adapt products and enterprises in China, where this approach does not work . First, the Chinese enterprises, especially SMEs, the owner, has its own unique way of doing business, the business way to stand out inside the ERP system in order to maintain firm-specific characteristics and the competitiveness of enterprises If all the processes are standardized, causing thousands of people the way side, then the company's unique business philosophy, there is no, which is fatal for the business.
Second, some so-called "senior consultant" is not to give customers the improvement of management, ERP is an enterprise real owner. We see some consulting firm to recruit students through the six months after the training, they braved the title of senior consultant to customers earn 1,000 U.S. dollars a day there, consulting fees, they have not even been to shop and telling customers about management thinking and process re-engineering, ERP is not so successful.
Therefore, enterprises must satisfy customers "custom development" requirements, to ensure that customers can implement ERP successfully, you need to make a fool the best product, easy to learn, but also have the flexibility and scalability can more easily satisfy customer demand, to what and what customers can do themselves, and this is our ERP platform "MyERP" R & D mind and the ultimate goal.
Industry usher in the third wave
Sun set: we have seen, ERP software platform of a trend, including UF, Kingdee, SAP, etc., have announced major ERP vendors have developed their own software platform; but we also understand that each vendor design and software architecture are different, Brocade ERP software platform means that?
Shen Kang: Brocade "MyERP" The most outstanding feature is that platform, it is the Brocade 10 years to implement ERP projects of more than 1,000 business model derives. Brocade own three-tier ERP system. The first is the service layer to support DB2, Oracle, SQL Server and other mainstream databases. As the platform on the extraction of business data abstraction, making cross-platform database becomes relatively simple. The second is the middle layer, based on independent research and development of BK Brocade independent middleware technologies that can operate in a variety of operating systems, various business rules can be processed in this, and can achieve load balancing, free configuration. In the user layer and the middle layer we use XML for data exchange and use of the modified front-end interface and back-end processing procedures is accomplished through XML parsing. While the user program can be developed through the second plug in the platform, without having to modify the original program or the middle layer of packaging in the middle layer. The third is the user layer, as needed using fat client or thin client in the form of deployment, use of the system provides a rich graphical configuration tool, users can request free configuration and design.
Brocade ERP "independent platform" consists of three levels of meaning: first, business users can configure their own business needs and business process management module, and can change according to business and market adjustment at any time, corporate users of the ERP system, all adjustment and development can be completed independently without any technical support; Second, ERP channel providers can be based on independent platform, completely divorced from the software vendor environment, with local businesses and industry characteristics of the region, to provide fully independent channels are manufacturers their own value-added services; Third, enterprise information technology management consultancy and Zhuanjiawuxu Renhe IT technical guidance, fully capable of ERP Zizhupingtai on Dajiantixian management consulting Sixiang of Gexing of enterprise ERP 绯荤粺, Jiang Di enterprise 瀹炴柦 ERP of Fengxian. Our ERP implementation is "99 +1", that is, in our business platform to meet 99% of the basic processes required, the remaining 1% is independent of individual recycling companies.
Sun set: In fact, the concept of ERP platform, has called out two or three years there has been no breakthrough. Having heard the general description Shen, feeling "MyERP" has a more molded products, which seems to indicate "ERP Platform" of the substantive phase. If so, do you think it will bring to the current ERP market, what impact?
Shen Kang: Throughout the history of the development of domestic ERP has on the whole has experienced two waves: the first wave began in the early 80s of last century, with SAP ERP software Corps, led by foreign Fortune 500 companies carrying the standardization process, the ERP introduced into China, setting off a ERP market, "Western Wind"; then, the domestic group of software vendors to catch up on foreign ERP software ideas and technology to absorb and follow, forming a domestic ERP software camp, but also set off the development of the domestic ERP second wave. Today, Brocade "ERP platform independent" Innovation in a completely open, can shape the growth-oriented channel partners, management consultants and business users in the ERP distribution, implementation, application and maintenance of totally ERP system changed the traditional conceptual model and architecture to achieve low-cost, fast implementation, easy to maintain, can grow to meet the information needs of SMEs in China. I think that this product forms the fundamental change would trigger a new ERP application requirements, will lead the third wave of ERP in China.
Proposed "ERP third wave" is not our Brocade insolent, but not our concept of the hype. First, we see that, because UF U8, Kingdee K / 3 ERP products such iconic train hundreds of thousands of customers, the completion of the cultivation of ERP market, ERP is also open the customer demand for the arrival of the third wave foundation. Second, we believe that Brocade "Zizhu platform" ERP product launch, will lead to a lot of ERP 鍘傚晢's after another to follow inevitably lead to ERP product forms, marketing model, the market structure and so a series of changes and breakthroughs, ERP market will be a In recent years, the boring of the sweep gas, the formation of the third wave.
SMEs are the main users
Sun set: As the General said Shen, ERP software platform will bring ERP of product forms, marketing models, such as changes in market structure, ERP vendors will begin a new round of competition in such a situation, how positioning can Brocade invincible?
Shen Kang: Brocade ERP target customers will be targeted at SMEs. We define small and medium enterprises output value 50 million yuan to 1 billion yuan between the size of the project in the 100,000 yuan to 30 million a year business. About 10 million SMEs in China, I expect the next 5 years in the SME ERP market users in the sales volume will reach 50 million units, according to the average price at 67 yuan terms, this market is very impressive.
Brocade to win in the new round of competition, the first to rely on innovative products, is "platform independent" of the ERP product. Currently on the market, domestic and international well-known ERP enterprise cohabitation similar products, but really to meet the demand for information technology products for SMEs are not many. Almost all of the ERP products are based on the traditional business management and information technology services, business model, and it is this rigid thinking 鍜?application mode, leading to the many SMEs in information technology into "over and over is the project" Ban pause deadlock . But the real products to meet the needs of SMEs should be a higher degree of product maturity, with easier to train up more simple, less costly, more streamlined service products.
Brocade ERP basic idea is "to make complicated things simple, all rights return to the user." Based on the self-platform enterprise ERP system, business users can configure their own business needs and business process management module, the degree of difficulty will not greater than the Excel table to learn; ERP manufacturers can channel to enterprise customers based on autonomous platforms provide complete their own value-added services; In addition, the enterprise information management consulting agencies and experts will have the opportunity to make full use of their management experience easily into ERP solutions providers and service providers.
Second, innovation in business models. For instance, we will launch "an individual member agency" system, in our agent architecture, as much as possible to get rid of the middle layer, to maximize customer's benefits. The so-called "individual member agency" can be part-time staff of enterprises, it can be a consultant, as long as through our training and get the appropriate certification, you can join our "individual members of Club". I hope that China's hundred counties, each county or even every town has an individual member of our agency. I am confident this strategy, confidence in our products, therefore, I believe that there are many like a shark smells blood, as do our agents crossed.
Sun set: I remember the relevant report, in the Jiangsu and Zhejiang coastal area, over 100 million yuan on revenue of private enterprise on ERP ratio has reached 30-40%, that is in a state of relative saturation; and now a lot of export business SMEs in the United States, Europe set the barriers and into suspension or semi-shutdown state, the demand seems to shrink, Brocade how to deal with these problems?
Shen Kang: The better products to expand the market still adhere to our strategy. We believe that the vast SMB market, I also have a discovery, recently I went to Wuxi, Zhangjiagang and other places and found that there are many hundreds of billion of business revenues are not on the ERP, a business owner told me that because of "fear of the ERP" On the one hand it is worried that spent the money but not achieve the desired results, on the other hand are afraid because of the ERP, the core leaked trade secrets.
This made me realize that the management of large enterprises is a strategic type, they need is a strong organization system to protect the effective implementation of the strategy, so it's ERP needs and international standards, requires standardized processes; the majority of SME management is tactical, they must be in the jaws of a market niche in the competition for living space, they need the quick attack and flexible adaptability. Therefore, the SMEs the most important feature of information is to satisfy the constant 'change'.
ERP vendors are now in trouble, not because demand is shrinking, but because our product is not a true customer satisfaction products. I believe that once a good product launch, customer, or is willing to pay for. ERP products are bigger and we want cheaper, so that our users like to use the same easy to use and fool the camera, so that agents can be easy to make money. I believe that this market is needed.
Sun set: indeed, ERP vendors are not difficult to do business because there is no demand, but there is a demand, but the client is no longer as obedient manufacturers will, all the rhetoric before the ERP vendors, more and more is not working for users a growing number of customers requiring manufacturers to follow their lead. In such a situation, do you think Brocade challenge what is it?
Shen Kang: Brocade challenge is not the customer more "harsh", not the pressure of competition, but our own. With the platform of Brocade products in, with the innovative business model, with clear strategic direction for Yi Hou, really face the test of our ability to execute, such as our training system how to build our channel structure to change Our "individual member agency" system to control risks during the execution so.
In fact, China's ERP companies now take a calm look for and find their own characteristics and advantages, because the Chinese ERP market, not a take-all. According to the Chinese market to judge me, ultimately left behind several ERP vendors do not, I hope we look longer term, not to price competition. All aspects of corporate demand, we have to re-position, grasp the business opportunities. Brocade is positioned to meet the needs of business growth and expansion, is like they are cutting, and we are followed by farming.
Sun set: Brocade what the next plan will be?
Shen Kang: We have successfully introduced this year, 20 million yuan of overseas capital, and we have plans in the overseas market. In addition, keep MyERP own platform, we will bring more shocked the industry: financial software such as 64-bit, low-cost business intelligence platform independent products will be available, in addition we will also introduce domestic first J2EE and NET-based technology combined Himalaya (Himalaya) to open architecture platform for growth. I believe this will bring surprises to the customer.
Character image
Lunch, Junqi and ERP
Shen Kang is a smart Shanghai, but he's talkative but very few people in Shanghai. Reporters traveling with him from West Third Ring Road on the way to the Kunlun Hotel, Shen general practitioners from the early experience of speaking of eating lunch, talking about climbing from under the flag game industry from the ERP ambitious about Brocade, laughing , his humor.
Alleged, Shen Kang favorite meal is a few dollars working lunch. Brocade growth of nearly 10 years, 4,000 days, he ate the lunch box no less than 7000. Journal of the total in the interpretation of Brocade's product development carried out on the image with a lunch box metaphor. Lunch in addition to convenience, there are standardized, modular features, meals can choose according to their own preferences and flexible variety of meat dishes, vegetarian dishes to mix and match, the enterprise software market, there are so vastly different character requirements; lunch the other major attractive place is cheap, consistent with the public appetite for consumption, meet the needs of Chinese-style fast food, "Brocade's software in China was born in China's development, but also the same as the lunch line with China's business applications demand and price needs." Obviously, Shen Kang will now be "lunch box theory" is a live transplant to the new ERP Brocade own platform.
Journal of the total spare time greatest hobby is Junqi, especially Siguotaizhan, in his spare time, he had a habit of drawing people to catch on Sisha. Under the four countries, it is necessary to take into account the fight against opponents, but also need to take into account the cooperation with rivals, the test is careful observation and a keen judge, but also need determination and courage, these are competitive in the market have in common. Journal of the total time in the choice of partner is very special, he did not choose, and he matched the person in order to achieve strong combination, but to find strength and weakness of people like to make partner, when partners will soon be destroyed, he alone against the two a strong competitor is the most straightforward thing. This can see Shen Kang, belligerent, on the other hand we can see his alternative strategy. Take ERP market, what he called "people mowing, Brocade farming."
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