Posts mit dem Label China werden angezeigt. Alle Posts anzeigen
Posts mit dem Label China werden angezeigt. Alle Posts anzeigen

Dienstag, 4. Januar 2011

Going to China with ERP

Globalization is having a far-reaching impact on the business world. In a business environment marked by globalization, the world seems to shrink, and other businesses halfway around the world can exert as great an impact on a business as one right down the street. SMEs (Small and Medium-sized Enterprises) are going through a transition phase and are generally restructuring their strategies and capabilities to remain competitive and grow in the emerging world trade environment. Companies have to follow this trend and operate on a global base, e.g. with subsidiaries and factories in China. We have been observing the trend of German-speaking and other European SMEs moving to China for quite a while. One of the main challenges for companies moving abroad is the need to establish an efficient ERP system. The IT department has to provide solutions for the guiding principle “system follows strategy”.

The reasons why enterprises expand to China are mainly:

- Resource seeking
- Market seeking
- Efficiency seeking

For SMEs, two prime areas of the global economy are ripe for picking: selling to new markets and setting up operations abroad. Once the exclusive domain of large manufacturing enterprises, these opportunities are also available to SME manufacturers.

Take for example selling to new markets in developing nations in Asia and the former Soviet-bloc states. While conventional wisdom says that these regions are most likely to be the origin rather than the destination of manufactured products, increasing consumer demand in these markets cannot be met by domestic manufacturers. Foreign supply relationships are the most common forms of internationalization, while exporting is the next, and some establish foreign subsidiaries and branches.

We observe four main obstacles that German speaking companies are facing with their IT / ERP strategy:

- Projects take too long to cope with the fast-changing market conditions in China
Companies in China are growing much faster than in Europe – and management is not used to handling such fast growth
- IT (especially license costs and maintenance) are more expensive than the Chinese employees operating IT
- Cultural differences between a Chinese and a European workforce complicate HR management. Chinese employees are usually well educated but lack experience of Western business behavior.

If German, Austrian, or Swiss companies want to globalize their business, the strategy “we do it like home” has to be questioned. In Germany, Austria, or Switzerland there seems to be a lack of understanding and knowledge concerning these topics. Large vendors with a long history of international business and production plants outside of Europe typically have that sort of knowledge – yet for common SMEs this information is not very helpful because they usually lack the organizational back-office capacities of large enterprises. Typical Swiss characteristics like perfection and quality might not be the ideal driver for a rapid globalization and a proper alignment of the IT systems.


We found that several dominating factors influence the success of an ERP project in China. These are language, report and table format, Business Process Reengineering (BPR), economic reform impact, and human resource problems. The failures of foreign ERP implementations should encourage a more localized strategy.
A tactic for Western companies should be to use a local ERP service company or a consulting company that is more familiar with the Chinese culture (to guide firms who implement their systems). By switching to domestic service providers or international service companies familiar with the Chinese culture, user companies can mitigate the pressures exerted by Chinese culture, which values personal relationships.
A proper software evaluation process is critical for ensuring that the appropriate software is chosen to meet the business's needs. As part of the evaluation process, it is important to ensure that the software meets Chinese regulatory requirements and local language requirements, and that it is well-supported in China.

You can find more information at www.erpgoeseast.info

Donnerstag, 28. Oktober 2010

ERP goes China - a new i2s study

Globalization is having a far-reaching impact on the business world. In a business environment marked by globalization, the world seems to shrink, and other businesses halfway around the world can exert as great an impact on a business as one right down the street. SMEs (Small and Medium-sized Enterprises) are going through a transition phase and are generally restructuring their strategies and capabilities to remain competitive and grow in the emerging world trade environment. Companies have to follow this trend and operate on a global base, e.g. with subsidiaries and factories in China. We have been observing the trend of German-speaking and other European SMEs moving to China for quite a while. One of the main challenges for companies moving abroad is the need to establish an efficient ERP system. The IT department has to provide solutions for the guiding principle “system follows strategy”.

The reasons why enterprises expand to China are mainly:

Resource seeking
Market seeking
Efficiency seeking

For SMEs, two prime areas of the global economy are ripe for picking: selling to new markets and setting up operations abroad. Once the exclusive domain of large manufacturing enterprises, these opportunities are also available to SME manufacturers.

Take for example selling to new markets in developing nations in Asia and the former Soviet-bloc states. While conventional wisdom says that these regions are most likely to be the origin rather than the destination of manufactured products, increasing consumer demand in these markets cannot be met by domestic manufacturers. Foreign supply relationships are the most common forms of internationalization, while exporting is the next, and some establish foreign subsidiaries and branches.

We observe four main obstacles that German speaking companies are facing with their IT / ERP strategy:

- Projects take too long to cope with the fast-changing market conditions in China
Companies in China are growing much faster than in Europe – and management is not used to handling such fast growth
- IT (especially license costs and maintenance) are more expensive than the Chinese employees operating IT
- Cultural differences between a Chinese and a European workforce complicate HR management. Chinese employees are usually well educated but lack experience of Western business behavior.

If German, Austrian, or Swiss (GAS) companies want to globalize their business, the strategy “we do it like home” has to be questioned. In Germany, Austria, or Switzerland (GAS) there seems to be a lack of understanding and knowledge concerning these topics. Large vendors with a long history of international business and production plants outside of Europe typically have that sort of knowledge – yet for common SMEs this information is not very helpful because they usually lack the organizational back-office capacities of large enterprises. Typical Swiss characteristics like perfection and quality might not be the ideal driver for a rapid globalization and a proper alignment of the IT systems.

You can order or download a summary of the study at www.erpgoeseast.info

Author: Frank Naujoks, i2s

Dienstag, 21. September 2010

i2s Studie: ERP goes China

Ein weltweit einheitliches ERP-System ist der Anspruch. Doch in China treffen europäische Unternehmen auf die eine oder andere Besonderheit, die beachtet werden muss. Sonst drohen den Anwendern vermeidbare Verzögerungen und ausufernde Kosten.
In vielen Fällen ist der Schritt ins Ausland am Anfang eher ein Abenteuer als ein straff geplantes Vorgehen. Zwei Drittel der vom Zürcher Analysten- und Beratungshaus i2s im Rahmen der Studie „ERP goes China“ befragten 106 deutschsprachigen Anwenderunternehmen mit einem Engagement in China geben an, dass sie wegen der Nähe zum Kundenmarkt eine Niederlassung in China eröffnet haben. 62 Prozent haben eine eigene Produktionsniederlassung in China, ein Drittel möchte näher am Lieferantenmarkt China sein.

Mit der Zeit spielen Kosten- und Prozesseffizienz auch in den vermeintlichen Billiglohnländern eine erhebliche Rolle. Damit gewinnt das Thema ERP-Einsatz an Bedeutung, führt jedoch auch zu erheblichen Problemen. Die Mehrheit der am Schweizer Markt präsenten ERP-Anbieter gerade im KMU-Segment ist noch immer eher national ausgerichtet. Sie sind weder für einen internationalen Mehrstandort-Betrieb mit durchgängigen Prozessen ausgerüstet, noch werden die Lokalisierungsanforderungen vieler Länder erfüllt. Es fehlt an getesteten Sprachversionen und allzu häufig auch an entsprechenden Supportangeboten.

Ziel eines ERP-Einsatzes in China ist es an erster Stelle, die Anbindung der chinesischen Tochter an das Mutterunternehmen und seine Prozesse zu gewährleisten, lautet eines der Ergebnisse der Studie. Ziel muss es sein, auch in China jene Zuverlässigkeit und Güte für die Geschäftsprozesse sicherzustellen, die man von einem Schweizer Unternehmen erwarten kann. An zweiter Stelle steht die Herausforderung, die chinesische Tochter in das eigene Controlling einzubinden. Dies ist umso wichtiger, da sich eine China-Expansion auch schnell zu einem finanziellen Risiko auswachsen kann. Zwar bestehen immer noch erhebliche Kostenvorteile, die Kostenzuwachsraten sind aber ebenso immens.

Erfolgsfaktoren
Für ERP-Projekte ist es erfolgsentscheidend, globale Strategien an China anzupassen. Dies schließt mit ein, standardisierte globale Prozesse vor ihrem Transfer nach China auf ihre Übertragbarkeit zu prüfen, da es nicht zwingend auch die besten Prozesse für China sind. Der enorme Zeit- und Kostendruck in China macht eine gründliche und detaillierte Projektplanung erforderlich. Nur so ist eine kosteneffiziente, schnelle Durchführung des Projektes möglich. Bei der Auswahl eines geeigneten Systems sollten Systeme von lokalen Chinesischen Anbietern kein Tabu sein. Unabhängig davon, welches System eingesetzt wird, sollten in der Planung lokale Ressourcen berücksichtigt werden, die bereits Erfahrung mit der Umsetzung der spezifischen lokalen Anforderungen haben.

Die Studie soll neben der empirischen Untersuchung Anwenderunternehmen eine Hilfestellung bieten, wenn diese sich neue Standorte im Ausland erschliessen wollen. Dabei fungiert China als ein extremes Beispiel an räumlicher Distanz, sprachlichen Hürden und regulatorischen Hindernissen. Die Studie kann zum Preis von 200 Euro beziehungsweise 290 CHF bei der i2s direkt bestellt werden.

Eine Zusammenfassung der Studie kann unter 222.erpgoeseast.info heruntergeladen werden.

Autor: Frank Naujoks