Paris Graduate School of Management Thai Nguyen University INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM THESIS TITLE: INFORMATION SYSTEM DEVELOPMENT STRATEGY FOR JAT UP TO 2020 Student’s name: MAI ANH HONG Intake I 2012 TABLE OF CONTENTS Table of Contents List of Tables List of Figures INTRODUCTION Chapter 1: The Rationale 11 1.1 Strategy Management 11 1.1.1 Corporate strategy 11 1.1.2 Competitive Strategy 18 1.1.3 Functional strategy 19 1.2 Information management and information technology 19 1.2.1 Theory 19 1.2.2 The roles of Information management and Information 23 1.2.3 Strategic options for information technology applications 25 Chapter 2: Analyze the Business Invironment and IT Status of JAT 27 2.1 Overview of JAT 27 2.2 Analysis of the external factors affecting to JAT 34 2.2.1 Macroscopic environment 34 2.2.2 Analysis on the industry premise 39 2.2.3 Analysis of competition, matrix model CPM 43 2.2.4 Matrix model EFE 44 2.3 IT Status 46 2.3.1 Management information systems 46 2.3.2 Implementation of IT applications of JAT 48 2.3.3 SWOT analysis 50 Chapter 3: Conclusions and Recommendations 3.1 Vision and Mission Mai Anh Hong – B01 53 53 3.2 Strategic recommendations for JAT 53 3.3 Implementation (solution) 55 3.3.1 ERP Solutions 55 3.3.2 Action plan 69 3.3.3 IT strategic implementation 73 CONCLUSION 77 REFERENCE DOCUMENTS 78 Mai Anh Hong – B01 List of Tables Table 2.1: Growth speed of revenue and profit 2008-2012 27 Table 2.2: Structure of chartered capital 31 Table 2.3: Structure of employees in the company JAT 32 Table 2.4: Summary of machine and equipment at JAT 32 Table 2.5- Analysis of competition, matrix model CPM 43 Table 2.6: Matrix model EFE 44 Table 2.7: SWOT Analysis 50 Table 3.1: IT strategic implementation 73 Mai Anh Hong – B01 List of Figures Figure 1.1: Types of Information systems 20 Figure 2.1: Organization chart 29 Figure 2.2: JAT website 47 Figure 3.1: The ERP 54 Figure 3.2: ERP in production process management 68 Mai Anh Hong – B01 INTRODUCTION The Urgency of the subject: Internet has created a whole new atmosphere in the business world, with the advantages and challenges In Vietnam, the business environment is increasingly competitive, the enterprise early in the management process improvement through the application of IT shall be deemed to have grasped in the hands of an effective competitive tool An ICD recent survey showed that, as of quarter 1/2012, Vietnamese enterprises are ranked top in the growth area of the laptop (31.8%), followed by Indonesia and Singapore This shows that this is a good environment for the application of IT in the enterprise management to increase performance While many SMEs use computers to perform simple office tasks, a significant number quickly apply business management software to help businesses reduce the time and labor savings This business agility in setting up the website to marketing and sales tools, operating via internal network, perform electronic transactions, online data sharing The obvious advantages of IT that helps product development through automation technologies that help improve the services and products; through IT can develop new markets, the sale of new low cost efficiency Many SMEs over time "digitized" admitted: by applying IT in management, company resources are used effectively There are now operating an online store is very smooth, the invoice, tax reporting and payment of orders is done online, so the company's human resources "micro" - only in the number of - but promote strength twice the normal operating IT applications in management also help to create a more professional style, better confirm the brand in the eyes of customers IT not only contribute to the expansion, but also support its brands in creating and promoting the professional image of the brand to consumers Mai Anh Hong – B01 IT applications for small and medium businesses to consider the following aspects: - Internal business systems including customer relationship management, is a set of management, care and building relationships between customers and businesses, help businesses access method and communicate with customers in a systematic and efficient management of customer information such as account information, demand, communication and other issues in order to better serve customers The overall goal is to find, attract and win new clients confidence, maintaining the partnership has, entice former clients back, reduce marketing costs and to expand customer services The measurement and evaluation of the relationship with customers is very important goals implemented war luoc.He the internal business management system document management, finance and accounting; human resource management force - Communication and collaboration through VoIP; Content Management System; E-mail; Voice Mail; Workshop Web; business process management - Implementing E-Commerce - Business to Business (B2B) or Business to Customer (B2C) through Internet shop; supply chain management; Online Marketing; Marketing offline JAT is the name of the joint stock company manufacturing automobile parts and industrial equipment began to take shape in 2000 At first a group of engineers working in the joint venture company producing motorcycle parts separated established factory specializing in the manufacture of mechanical equipment, fixtures, test fixtures offer for companies satellite companies In 2003, the mechanical workshop to expand the manufacturing sector a number of motorcycle spare parts (lever, hand held, tripod after, need brakes) for cheap motorcycle company private in writing male Production of JSC Industrial Parts and Equipment JAT (JAT Company) is established on the basis of the above mechanical workshop, in order to catch the trend of localization of motorcycle companies Japan's Honda, Mai Anh Hong – B01 Yamaha The company operates primarily in the areas of manufacturing parts, motorcycle parts, automotive, industrial equipment and other mechanical products Since its inception, the company has determined to survival and development company to build yourself the most advanced management model based on the selective integration model management companies Venture , 100% foreign owned company so streamlined and more efficient, with the strategy: high stable quality Delivery time hourly meet - Leading market peers on the lowest cost However, in the process of understanding, developing research strategies of JAT, researchers found that JAT is very weak in the application of IT in business operations, from production management system deployment production, customer care to participate in the process of e-commerce, marketing management not been implemented well Therefore, the deployment of construction a JAT and information system towards e-commerce activities is extremely imperative in the development strategy of the company in the current period The purposes of research: Research status of IT applications in the process of production and business activities of the Company, from strategy development through the construction company, promoting the development and management of information systems JAT The object and scope of the study: Learn about stock companies manufacturing auto parts and JAT industry equipment including history and development, enterprise resource elements of the current operational status; external factors affect the business; internal business analysis; SWOT analysis The rationale and methodological practices: Combination of theoretical knowledge of the course management information system; actual deployment of information systems for small and Mai Anh Hong – B01 medium enterprises; situation applicability of the enterprise; policies to e-commerce development for small and medium enterprises in Vietnam today The contributions of the thesis: Offer applicable solution set, construction and management of information systems applied to the company JAT Structure of the thesis: The thesis consists of 03 chapters: Chapter 1: The rationale Chapter 2: Analyze the Business Invironment and IT Status of JAT Chapter 3: Conclusions and Recommendations Mai Anh Hong – B01 10 Chapter 1: The Rationale 1.1 Strategy Management: Strategies can be formulated on three different levels: Corporate level; Business level and funtional or departmental level 1.1.1 Corporate strategy: The art of building a long-term objectives and policies implemented to guide and generate competitive advantage of enterprises Characteristics of corparate strategy of an enterprise: - Long-term orientation: corparate strategy set objectives and determines the development direction of the enterprise in long-term period (3 years, years, 10 years in order to orient operation for the enterprise in a business environment - Objective: Strategy often determines clearly the basic objectives The business orientation of each enterprise in each period and policies in order to implement correctly the objectives set out - Relevance: this requires enterprises when building strategy need to evaluate correctly the factual situation of their business activities At the same time they must regularly review and adjust to be suitable for environmental changes - Continuity: strategy must be reflected during process continuously from the elaboration, implementation, inspection and evaluation to strategic adjustment - Strategy in current conditions cannot be separated from the competition because corparate strategy ensures competitiveness of the enterprise in the market In the current globalization process, the business operations are connected all over the world creating the influence and interdependence Since then it creates fierce competition among enterprises in the industry as well as the industry in the economy Corparate strategy plays an important role for the existence and development of each enterprise The right strategy will create a good direction for the enterprise, Mai Anh Hong – B01 11 The receipt and expenditure will be managed strictly under the required manner This procedure includes: * Prepare the request for receipt and expenditure with the permission of suspending, canceling, restoring, deleting and adjusting the request *Approve the request for receipt and expenditure * Allocation of receipt and expenditures to the items of the budget plan * Implementation of receipt and expenditure request including implementation of regular receipt and expenditure requirements and receipt and expenditure for projects * Check whether the request has been approved during the term or from day to day * Check whether the request has been implemented during the term or from day to day * Update the schedule of receipt and expenditure In special cases, the receipt and expenditure operations are carried out immediately without review This form of receipt and expenditure is conducted more simply * Make the instant receipt and expenditure sheet * Allocate the items to the budget Resource management * View and update the balance of resources: cash, bank money, goods, property, securities and so on * Check your balance when using the financial resources * Convert between resources * Evaluate the balance of the financial source through the periods * Assess the storage of optimal financial resource * Set alarms * Display the time chart of the balance of resources over time Follow-up of advance payment * Make advance payment and withdrawal request Mai Anh Hong – B01 64 * Approve the advance payment request * Implement the receipt and advance payment * Check the advance balance of staffs * Reload the balance of employees to the company * Set reminders * Follow-up of the balance of the employee's debt to the company Follow-up of customer debts * Record and track customer information * Search customers from the list of customers Debt information * Payables and receivables liabilities are established when creating the receiving or payment requirements related to our customers * View overdue liabilities and receipts / expenditures related to customers * Adjust the balance of customer liabilities * Set the reminding mode (debt) for customers * Comparison Chart for liabilities of customers over time * Compare the total debt and balance among consumers * The payment ability of customers over time Make financial statement * Prepare the receipts and expenditure reports * See the solvency parameters * Analysis of financial indicators (for users creating indicators from items) * Analysis of the function (for users creating functions from the items) * Budget Analysis * General analysis * More than 60 detailed reports relating specifically to the functions Mai Anh Hong – B01 65 The important thing is that ERP integrates the accounting software for the unit of production Therefore, applying ERP based on the software to minimize the new investment cost c) Application of ERP in sales activity: For ERP, orders follow a procedure automatically from the time the agent receives orders with delivery time and delivery on board or financial bill For sales managers, all the most important and interesting of the business will be managed effectively by leaders At the same time, the module will help the sales and marketing department shall make their best Increase or decrease in sales performance will be compared at any time Selling modules ERP Management must meet the following basic requirements: - Monitor and record the order of execution - Management orders of the form of the transaction is set by the user module - Sales support information - Record and store information related to the products and services of companies such as changes in price, functionality and features of the product Search, sort and filter all of the information needed for everyday work product, price and partners - Support, the conversion currency exchange rate - Send an email to a number of customers at the same time from the module - Subscribe to the changing market situation - Statistics of the contract include ongoing contracts, futures contracts and contract liquidation - Link the documents related to the contract agreement Information Management Customer Relationship Mai Anh Hong – B01 66 - Monitoring customer information: Name, address, phone number, agent and so on Store customer information in the hierarchy in the customer group, sales area Statistical allows customers in various aspects - Customer Management: Based on the accounts receivable / payment to the customer at the time of payment, then the debts of the client will be automatically calculated - Record the feedback and requirements of the customer, then the corresponding solutions Business planning Business plan in the sales management module consists of the following components: - Sales Planning: record the information specified in revenue by region, time period and by type of goods - Marketing plan: to determine the marketing strategy and marketing costs on each item, which allows registration of sales targets for sales staff and customers, the provisions of the sales commission and money reward - Cost allocation plans (based on budget allocation for the sales department) - Update the implementation plan - Compare the plan with reality - Create and develop a business plan Reporting system and analysis of the business (sales, selling the debt and costs, etc.) - Revenue Statistics, the cost of different criteria such as customers, products and services - Analysis of business performance in a number of different criteria - Analysis of the work of the staff - Automatic output of reports and statistics in the form of data or chart with the options according to the needs of the user: Mai Anh Hong – B01 67 Thus, the sales management system will help the leaders in sales, cost of sales activity in each area, for each product and each salesperson, dealer coordinate, then plan and implement sales plan are reasonable in the appropriate areas of policy support This software also helps to build a CRM database is strong enough to provide timely customer care policy d) Application in production management: ERP software Manufacturing companies, especially companies who want to joint venture together often find that business units of the same company are using the different working method and computer systems ERP systems provide the standard methods to automate the steps of the production process The standardization of the above processes and the use of same dedicated integrated computer system can save time, increase efficiency and reduce the work volume ERP in production process management: Figure 3.2: ERP in production process management Production planning Production planning is often one of the key objectives of an ERP software Planning software makes use of materials, labor and machinery both in quantity and Mai Anh Hong – B01 68 quality to easily compare with the actual data Therefore, the software should allow planners to arrange i) the capacity demand and existing capacity to meet customer requirements; ii) make use of machinery and labor; and iii) production scheduling In addition, the software should set up different production progress reports and a function of this report is to alert the production manager in a timely manner Normally, the software developed in the country not have the ability to notify the user when the production reaches to a limited number for a particular order Integration with inventory and sales module The production module must integrated with the inventory module, and in some software, they combine to become one Also, it would be helpful if the sales management module connected to the module inventory and production management module Such as the sales department may need to regularly check the progress and existing production capacity so that they can inform this to customers Production progress report: ERP software is capable of notifying users about the completion of certain stages in the production process for a particular order 3.3.2 Action plan: Training human resources To achieve the objectives set at the beginning of this chapter, The training courses for entire JAT staff should be applied to achieve a certain level IT staff are regularly updated knowledge, new technology The training of human resources of the JAT will be carried out according to the following program: - Training program for the entire production department, entire office staff, consumer companies, domestic and international branches by 2014 so that they can be proficient in the application of Words, Excel, and use of computer equipment for the meeting reports online Mai Anh Hong – B01 69 - English Program of communication (Certificate A) for the office staff, B certificates for the market staff, engineers in the design and agency heads parts, or more managers in 2015 - Training Program proficient use design software including Core photoshopAutocad-CAD / CAM and CNC programming to meet the needs of new product design - Training of staff dedicated to the care of advertising, customers in 2015 - Selection of 01 senior staff in the company for further training in IT He will be a CIO in charge of IT in 2015 Serving ERP application, JAT will have a specific training program for staff and business finance, accounting and production ERP remove personal computer systems in the Finance Department, Human Resources, Production and Warehousing and replace them with a unified software program divided according to the different software modules is approximately the same system for older individuals Department of Finance, Manufacturing and Warehouse will still have their own software except now the software is linked to employees in the Finance department can look into the warehouse software to see if it has been delivered or not However, training employees to use ERP and change the way they work is a long way because the Finance staff and warehouse staff will use the same software, and they will affect information to employees other parts To perform correctly, they must have a deep understanding of how the work of other employees in the company IT Infrastructure Enterprise IT infrastructure to build comprehensive and modernized to meet the performance goals stated in the development of open-source system, in accordance with the standards of open systems to allow for expansion easily upgrade the scale and technology Mai Anh Hong – B01 70 By the year 2015, the IT infrastructure system must be completed at a basic level in four areas Management: - Internal - Provide seamless service for its employees, users Use server to share information - Implementation of HR management software to ensure functionality - Automatic test involved using fingerprints instead of income tax, and insurance payments All units are equipped with a computer system connected to the internal network with high speed, the director of personnel in the country and abroad are equipped with mobile companies and individuals facilitate the use anywhere To implement ERP, the customer must meet the following requirements: • The minimum operating system of Windows 2000/XP • Pentium IV 256 MB RAM minimum Request service Serving contains all the data of the Company and for the operation of a large number of people working on different places for different purposes Therefore, the service must meet the following requirements: • The system must provide a continuous working environment with high availability • Ensure data security • The process and return results to the user in an acceptable time (do not create obstacles to work and waste of time for users) • Easy operation and maintenance of the system • can be extended and upgraded • There can be recovered in the event of force majeure • Client provides an interface that allows the user to enter data, request, report printing Mai Anh Hong – B01 71 • The server application to receive and process requests sent from the client • Server database contains all of the application information system, receipt of the request, process the request and returns the result, for the application server job • Develop a system Server-Location It is that JAT professional use sales management software system to share national-scale databases The use VPN to connect to the user's information to the server where the database of the company will help leaders to closely monitor sales as well as constantly updating information for business people and plants back To build on the system, these requirements are analyzed as follows: - SERVER: The server is a dedicated server, the server is currently being used at the plant is a computer with powerful configuration as a feature server This will help save costs, but performance is not high and can only be applied to small scale with only the relative safety data with manual data backup With the use of management software sales as well as other features are used for remote connections (traveling employees can update and retrieve information as well as send the data collected through trips) such as data, documents, decisions and so on JAT need a server to run continuously Server system is configured according to standard operating system using RAID 1, DATA and RAID to ensure data security RAID is used to configure the operating system partition, for the purpose of continuous HDD image backup RAID is configured with three hard drives to store company data in this partition In the case of server hardware is broken, we can replace the hot-swap device and run normally until the new hardware is installed, it will automatically create the partitions instead The server is located in room air conditioning average 13.5 celcus degrees System equipped with UPS and power back-up Mai Anh Hong – B01 72 Server is supported with the firewall vendor We can make use of the service is web hosting for JAT, JAT hired FPT storage with limited bandwidth and capacity (