BEIJING, Nov. 5 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released an article on the management trend of China's group enterprises.
Group enterprises are China's national economic pillar force. National Bureau of Statistics of China's data shows that China's large group enterprises in 2006 reached 2,856, up 11 units over 2005; the income reached 18,963.8 billion Yuan, up 21.95% over 2005; total profit reached 1,307.6 billion Yuan, up 25.84% over 2005. In 2007, State-owned Assets Supervision and Administration Commission of the State Council released Guidance on Strengthening Central Enterprises' Informatization, which aims at speeding up group enterprises' comprehensive management information system construction, also to improve central enterprises' international competitiveness. This set up a standard for the whole group enterprise informatization market.
Amid challenges in the economy -- RMB appreciation, high raw material cost and high international energy cost, the investment trend for group enterprises has changed course towards a cut down in expense for new projects, instead, they choose to further strengthening the original informatization system functions.
Compared with monomer enterprises, group enterprises enjoy the benefit of large scale, huge corporate entities, and extensive network. There are various holding relations in one group; what's more, group enterprise' businesses are cross-industry and cross-regions, so they have different requirements for informatization, which also put forward high requirements for group enterprises' informatization implementation and deployment.
China's group enterprises' informatization could be divided into three phrases: the first stage is fundamental platform construction, which considers OA as the main part; the second phrase is business system construction, which includes ERP, CRM and HRM; the third phrase is platform application construction, with an emphasis on business system integration.
The Development Course of Group Enterprises' Informatization
CCID Consulting's research shows that the size of group management software market in 2007 reached 1.533 billion Yuan, up 19.4% over 2006. The impetus comes from group enterprises' large investment in informatization. It is forecasted that the size of group enterprises' management software market will reach 3.243 billion Yuan in 2012. Judging from group enterprises' investment direction, the major investment will focus on group finance, but increasing enterprises' attention to integrated strategic management performance, group supply chain, HR management, especially BI, internal control and risk management are becoming new investment highlights.
Figure 1: China's Group Management Software Product Structure
http://www.ccidconsulting.com/upload/13920.jpg
Source: CCID Consulting, May 2008
China's comprehensive manufacturers are China's group management software market's main force, such as Inspur, UFIDA and Kingdee; these manufacturers have accumulated abundant management experiences in the group management field, their software products have covered group finance management, group HR, group supply chain, group BI and group risk management. The leading manufacturer-Inspur's products have the largest market shares in the fields of group finance, group supply chain and group BI, and Inspur lists the first in the whole group management software market. Inspur's products also penetrate into industrial development, its high-end ERP product -- GS has advantage in medicine, chemical, military and petroleum, it also provides industrial high-end group clients software and services. Based on many years of experience in high-end market and industrial advantage, Inspur has high product popularity and reputation in group management software market. The competition between local manufacturers and foreign manufacturers is heating up.
Management's Optimization and Upgrading
Group supervisors are in the need for efficient enterprise operation system to master business operations on the basis of abundant business data, on which they have to depend on informatization means to construct enterprises' management decision-making level on the basis of business management, process complicated data through BI and risk management. After many years' of informatization construction, group finance centralized management is common. Over the next five years, group supply chain management and HR management will replace finance management and becomes a new growth point. In the future, group enterprises' investment direction will transfer from former business management software to higher level management decision-making software so as to provide better service for enterprises' management level.
Figure 2: Group Enterprises' Information Flow
http://www.ccidconsulting.com/upload/13921.jpg
Source: CCID Consulting, May 2008
Business Strategic Collaboration
Currently, compared with China's enterprises, transnational corporations' largest progress is centralized management. The essential difference between transnational corporations and domestic corporations lies in the success in achieving strategic collaboration. In fact, the most advanced management innovations of transnational corporations are designed for strategic collaboration.
In the future, centralized management will be a common choice for most group companies. Centralized management is the method for strategic collaboration, and strategic collaboration is the target of centralized management. Hence, strategic collaboration should be a kind of awareness for group company informatization at first. Strategic collaboration basing on centralized management means not only that China's group company has set a higher target for company management, but also that the group company has defined clear thoughts for centralized management.
Global Resource Integration
Resource integration in the scale of whole world is an inevitable trend in the development of group companies. In order to realize global resource deployment, information technology is a necessary condition. After many years of informatization development, group enterprises' information system has penetrated into each business unit of enterprises to become an important tool and resource. Global resource integration trend requires group enterprises should have advanced informatization system so as to adapt business development requirements; with business structure's adjustment, enterprise's system should rapidly adapt enterprises business change. In order to realize resource integration, building up shared service center in group enterprise becomes a part of group enterprises' global resource integration. Shared service could help enterprises to realize the authenticity of branches' business information; it also could real-timely process declaring dutiable goods. Besides, enterprises could construct shared IT service center, HR center and financial shared center. Shared service centers could provide services for different branches.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
