KẾ HOẠCH ỨNG DỤNG CÔNG NGHỆ THÔNG TIN TẠI CÔNG TY CỔ PHẦN NAM DƯỢC PLANNING APPLICATIONS INFORMATION TECHNOLOGY IN NAM DUOC COMPANY I REALITY OF INFORMATION TECHNOLOGY IN NAM DUOC History of Formation: Nam Duoc Joint Stock Company was incorporated on st January 2004 In September, 2006, the Company completes construction of pharmaceutical manufacturing plant under such standards as GMP - WHO, GSP, GLP Its Charter Capital is VND 56,800,000,000 (Fifty six billion, eight hundred million dong) The Company is specialized on purchasing, sales, consignment of pharmaceutical products, cosmetics, foods, medical instruments; Consultancy, training and transfer of technology in pharmaceutical and cosmetic fields; growing, purchasing, processing and trading of medicine Analysis of Reality a Reality of awareness: In spite of active updating and application to take full advantages of development of technology information, the Company’s leadership has not released overall and consistent strategies on application and exploitation of information technology to the Company Plans on applications are only limited to solutions b Reality of infrastructure: Nam Duoc Company has recently facilitated the works of entire officers and staff with computers, including personal computers and laptops; 100% of management officers are offered with laptops 100% of computers are connected to internet via ADSL or Dcom – Management information systems in Nam Duoc company Page 3G However, Nam Duoc Company has not owned a server to save database which is controlled by servers or rented hosts of external partners c Reality of software application: about 50% of computers are equipped with Window XP copyrighted operating system; In addition, 100% of computers are installed with BKAV antivirus or Kapersky The other software applications are provided sufficiently to meet requirements and to improve performance and their work d E- information portals and website of the Company: Nam Duoc Company is currently one of the companies with the largest website in pharmaceutical industry The websites, in addition to purpose of brand advertisement of the Company, are information connection channel between the Company and consumers and daily consulting place for consumers There are tens of thousands of accessing turns into Nam Duoc’s websites • www.namduoc.vn http://viemxoang.vn • http://tienmankinh.vn http://www.yeusinhly.com.vn • http://benhtri.com.vn http://hamengan.com.vn e Reality of the human resource: At present, Nam Duoc Company has only one website administrator who is in charge of information technology affairs meanwhile other websites are controlled by Brand Managers The website administrator assists departments in monitoring, management, maintenance of computers and internet connection f Reality of e-commerce application: Nam Duoc Company has been reconstructing its proper website system to apply e-commerce and online sales However, its activities are in shortage of strategic vision, not implemented drastically and associated with the overall marketing strategies g Reality of application of ERP software system to management work: at present, Nam Duoc is coordinating with FAST Software Company to construct accounting software management system between the Holding company and subsidiaries It is expected to officially put the system into operation on 1st January 2013 In addition, the Company is negotiating to continually construct sales administration system Evaluation of weaknesses and strengths of SWOT model- based products Management information systems in Nam Duoc company Page Strengths Equipping computers and other key facilities to The Weaknesses leadership does not have all officers and staff In particular, 100% of comprehensive visions to the system management staff are provided with laptop for so decisions and visions are limited working Future using level of computers has Application of copyrighted software to common not software been considered so their configuration may be out-of-date as Construction of websites of the Company and the synchronous application of new prestigious and aesthetic brands, meeting software demands on information of clients Specialized and advanced software Young personnel who have basic knowledge and has not been applied quick approach to information technology E-commerce software has not been applied Opportunities Challenges The State is approaching and issuing so many The finance invested in the plan on information technology application assistance information technology application programs to companies Nam Duoc is developing in years is quite high meanwhile it a large strategy to implement a synchronous is easily asynchronous if being strategy equipped from time to time Analysis and making comparison with competitors in the industry Criteria Companies Nam Duoc Traphaco Thai Hau Giang Duong Infrastructure Software installation 5 internet-marketing Applications 7 IT Personnel qualification E-commerce application 5 Construction of Information Portals Management information systems in Nam Duoc company Page ERP software construction Analysis of experience and lessons from other domestic and foreign companies a Vietnam is making the best efforts to become the regional center for assembling electronic, telecommunication equipment and computers, production of several types of accessories, parts, and design of new equipment Information technology industry become key economic industry with the average growth rate of 20 -25%/ year with the total revenue of about USD -7 billion in 2010 Personal computers, mobile phones, and Vietnam brand software is controlling the domestic market shares, and the export value is over USD billion (Source: Vietnam Telecommunication and Information Technology Development Strategies by 2010 and orientation to 2020) b Reality shows that the companies with strong development of information technology application in corporate management and control promptly gain success, effectiveness and firm developments The most typical lesson that is deserved to be review is from Vinamilk Company: it has faced with so many difficulties in connection to study to acquire technology; change in procedures of the Company to be in line with software procedure and to avoid risks in accounting works at the same time during its development process The clear decentralization facilitates its accounting and financial work much more than it used to The Company controls inventories, distribution, corporate operation, relations with clients, production better and reduces risks significantly; there is more smooth coordination between sales and distribution; monitoring functions are implemented on basis of real time Information technology qualification of personnel in Vinamilk Company is improved significantly in comparison with it in the past Information technology infrastructure is consolidated, synchronous, standardized, and promoted Solutions to information technology application in the industry Management information systems in Nam Duoc company Page a Pharmaceutical companies are basically late in application of information technology b Some companies start to construct good online information system So many companies establish their websites without proper care from time to time to become dead information channels to which there is unavailable viewer and innovated information c E-commerce application in the industry is simple and insufficient Some companies establish online sales pages However due to bad infrastructure, online sales procedure is not good enough Online transaction quantity and direct delivery are little so effectiveness is not high as it was expected d Application of software and construction of database to manage and decentralize are not good enough Most of companies have not owned client database management software Some advanced companies own software of client care, personnel management, supply, inventories, etc II INFORMATION TECHNOLOGY APPLICATION STRATEGIES IN NAM DUOC COMPANY E-commerce and information technology application strategies • ERP software integrates general functions of an organization into the unique system In stead of parallel and independent use of accounting software, personnel- salary software, production management software, etc, Nam Duoc targets to construct an ERP system consisting of all in unique software in which functions are connected to each others • ERP helps increase productivity, sufficient and timely concentration and sharing information of the Company In addition, the information is protected absolutely ERP enables to re-organize operations of the Company under professional procedures Management information systems in Nam Duoc company Page It is possible to summarize ERP’s advantages as follows: • An entirely integrated information system • Sufficient management sub-systems with varied functions, meeting different requirements on production, business, professions, and scope • Working under the standard and modern management procedure of leading companies in the world ERP owns overall and diversified management functions, meeting comprehensive demands on corporate management in all departments, which are designed into modules in organic relations to form a closed procedure with automatic median steps Accounting – financial management: consists of financial – planning modulus, General Ledger, Cash Management, Accounts Receivables; Accounts Payables, Fixed Asset Management, cost accounting, civil construction accounting and account reports, financial management reports, and other reports under provisions issued by the Ministry of Finance such as balance sheet, income statement, VAT and cash flow statements Other sub-systems Other resources Reviewsing Revising General Ledeger Recognizing Analysis and Processing Accounting transactions are integrated with other management sub-systems such as inventory management, purchasing management of goods – materials, production and sales management Accordingly, as professional transactions happen, responding accounting entries such as increase, reduction of inventories (from inventory management sub-system), account receivables (from sales management sub-system), Accounts Payables (from purchasing management sub-system), cost accounting (from production management sub-system), are created automatically and recorded into the Management information systems in Nam Duoc company Page accounting subsidiary ledgers The integration system permits minimizing time to entry data with exact arising accounting figures The specialized staff shall close the general ledger at end-term to complete accounting work of the period The sub-system supplies reports as required by the State or management reports as required by the corporate management demands - PO – Purchasing Order: ERP supplies the Information management procedure from sales to payment, including such functions as management of purchasing requests, management of orders, bills, payment documents and accounting records for purchasing and payment The procedure permit comprehensive purchasing management from initial request for order until receipt of shipping and payment The procedure is implemented via subsystems of purchasing, inventories, accounts payables, general ledger The procedure permits managing such information as Material demands Purchasing Order Source Requests for Quotation Supplier Quotation Payment Order s Receipt of goods + Purchasing orders: thanks to integration of the system, purchasing orders can be created automatically from the production management sub-system (As the system calculates materials and goods insufficiently to support production and sales out to the market) The users enable to create purchasing orders manually from arising purchasing orders of goods and materials + Order / Contract Management: the function helps save information in connection to purchasing orders or contracts with sufficient information related to purchasing profession such as suppliers, date of purchasing, date of shipping, effective date, goods, quantity, unit price, payment terms, etc Management information systems in Nam Duoc company Page + Goods receipt monitoring: the system has functions on receipt of goods and making comparison among orders on basis of available orders In addition, it is possible to control returns of sold goods (in case of redundant receipt or dissatisfactory purchased goods, etc) +Bill management: the system allows creating bills automatically on basis of the purchasing orders or manual entry of accountants into the system The functions are implemented with accounts receivables sub-system +Payment: it belongs to accounts receivables sub-system and functions filing documents related to payment against sales + Book keeping operations: the book keeping operations are related to purchasing procedure that automatically creates such transactions as inventories, returns of sold goods, entry of bills, and payment The entries are saved into the subsidiary ledger and updated into the general ledger as required by the General Accountant - Order Management: manages the information in connection to sales contracts or order, clients information, shipping to clients, comparison with orders and accounts receivables The sales management sub-system permits entry and processing of orders, tax on revenue/ Value Added Tax, shipping plan, transportation, direct purchasing and sales (rather than via warehouses), suspending orders, credit tests, policies on price and discount, returned goods, etc Sales management Entry of orders Shipping Storage of goods Goods export Delivery Automatic creation of bills Accounts Receivables Money receipt Bills Banking record comparison + Procedure: monitors comprehensively since receipt of orders until shipping to clients, issue of bills, money receipt and book keeping operations Management information systems in Nam Duoc company Page +Sales: controls orders or Contracts The sub-system allows the Company to file all contracts, orders The information of the orders consists of information on sold goods, quantity, unit price, date of delivery, payment terms, clients, designed address for shipping, etc In addition, order management function permits the Company to disclose policies on sales such as discount, devaluation, transportation management, etc + Shipping: the function helps monitoring information related to shipping to clients The output information of the process is export goods from the warehouse and clients’ receipt + Creation of bills and payment: the system permits creating bills automatically or manually to monitor debts of clients on basis of the information in the Contract/ Order In addition, the system functions payment (receipt of cash) as clients pay against goods The transactions are implemented with Accounts Receivables sub-system + Book keeping operations: the book keeping operations arising from sales procedure such as export, bills and payment are accounted automatically and saved into the subsidiary ledger Then, they are updated into the general ledger as required by the General Accountant - Customer Relation Management: CRM allows comprehensive client management in entire process from potential clients, sales opportunities, sales transactions to warranty service, client care after sales CRM consists of sub-systems: management of client documents, management of sales opportunities, management of calendar and activities, management of client services - INV – Inventory: this ERP-based corporate management solution supplies inventory management sub-system to meet demands on complicated inventory management with so many physical inventories, varied types of goods and materials + Inventory organization: the function allows to report inventory ERP permits to report inventory organization in varied plants, stockpile of materials, warehouse of finished products, etc The function helps share information related to inventories in varied inventories to concerned people - MFG - Manufacturing: PP – Production Plan, MRP – Material Resource Planning, Bills of material, Costing, management of production, value and quantity in progress (WIP – Work in Process) Production Management Integration Modulus Management information systems in Nam Duoc company Page Capacity evaluation Production Capacity Orders Material ratings and manufacturing phases Material demand planning Sales management Quality Control Manufacturing phase management Sales management Costing Management of warehouse, materials and goods Management procedure from demands on production to sales is illustrated in the following diagram: Material ratings Manufacturing Order Purschasing Anticipation (Plan) Inventory Demand generalization Manufacturing Plan Sales Information Material Demand planning Material purchasing request Manufacturing Order Finished products/ semifinished products Delivery Major functions of the Production Management Sub-system in ERP-based Corporate Administration Solutions meet requirements on production management of the Company as follows: • MDS: Master Demand Schedule • MPS : Master Production Schedule: • MRP – Material Resource Planning • BOM - Bills of material, Routing: • WIP- Work in Process: • Costing • Integration with other sub-systems • Automatically accounting Management information systems in Nam Duoc company Page 10 - Personnel and Salary Management: manage information on the officers, personnel such as curriculum vitae, general information, working affairs Salary calculation under varied methods such as on basis of time, productivity, etc automatically shifting salary cost to other sub-systems The sub-systems are integrated to each other under the following diagram: Salary Personnel Purchasing Accounts Payables GENERAL LEDGER Cash Inventory Manufacturing Accounts receivables Fixed assets Other business Sales Integration Map of ERP based – sub-systems GENERALIZED TABLE OF SUB-SYSTEMS, MAIN FUNCTIONS OF ERP Stt I Main Modulus Functions Accounting – Accounting – Financial Management Financial General Accounting Management Capital accounting (Cash, deposits, loans) Accounts Receivables Accounts Payables Cost Work in progress Tax Financial statements II Purchasing and Purchasing Order Management information systems in Nam Duoc company Page 11 Supply Orders/ Contracts Management Monitoring shipping/ bills/ payment Supplier management III Sales and Quotation Distribution Order/ Contract Management Monitoring shipping/ bills/ payment Credit level/ Discount Clients IV Customer Relation Accounts Management Opportunities Calendar & Activities Customer service V Inventory and Inventory plan Goods Management Goods, materials, accessories Inventory import/ export/ shifting Inventory management VI Production Ratings/ structure of products Management Production planning Planning material demands Production order Production progress monitoring VII Personnel and Personnel files Salary Management Timekeeping Proposal on Software Salary calculation Learning improvement configuration requests Action Plan and specific targets Data change 1- Basic periods in implementation of ERP based- solutions: Monitoring & Assistance Official use Test reproduction Management information systems in Nam Duoc company Training users Page 12 Expected budget: WORK ITEM EXPENSE Servers in the Company and its member VND ,000 ,000 ,000 Hardware companies Software Financial – Accounting management VND ,000 ,000 ,000 Distribution and sales management VND ,000 ,000 ,000 Supply management VND 500 ,000 ,000 Customer relation management VND 500 ,000 ,000 Warehouse, management Personnel management VND 500 ,000 ,000 Customer relation management VND 500 ,000 ,000 Manufacturing management VND 500 ,000 ,000 materials and goods VND 500 ,000 ,000 Personnel recruitment of an IT Company VND ,000 ,000 ,000 Gross expense VND 16.000.000.000 Personnel: • Regular personnel in the Company: 12 • Seasonal personnel: 20 Time: Period Work Time Period 1: Writing plan and calculation of feasibility months Management information systems in Nam Duoc company Page 13 Period Period Period Period Total Outsourcing software design Purchasing hardware and trial application of software Implementation application Correction and improvement 18 months months months 12 months 47 months Solutions to selection of suppliers: ERP market is currently varied and companies face with difficulties to select ERP products Any ERP suppliers warrant their best quality which is proved by their application in A Company, B Company, use of modern tools, etc In addition, costing method of each supplier is varied Foreign ERP suppliers argue that their products are satisfactory to international standards and tested for years in the world meanwhile the domestic ones persuade companies with “softer” price, easy use, interface in Vietnamese language, which is suitable to context and conditions in Vietnam Should preparation be implemented carefully in term of evaluation criteria and evaluators, companies shall be confused to attractive advertisements of ERP products Some companies are hurried to sign the Contract on Purchasing ERP products with partners regardless name, valid time of the solutions, name and years of formation and development of the supplier, information on ERP via newspaper and books Companies are advised to have a thorough grasp of requirements on management, business features to point out specific evaluation criteria that are classified and arranged in priority order to make comparison among suppliers to chose the most suitable products Some useful criteria for companies before selection: - Functions: features and functions of the products, satisfaction to the specific company, adaptation capacity to meet new requirement, compatibility to the existing system - Management capacity of the system: reviewing general management capacity of the system via accessing, entry of data, processing and outputs - Assistance function consists of assistance in training, friendly interface, easy use, assistant language, detailed and sufficient guidance diagram; reporting assistance under external requirements - Capacity of the suppliers: is shown via their experience in implementation of the projects, assistance capacity to the companies, costing methods, etc Management information systems in Nam Duoc company Page 14 + Implementation experience: it is advised to pay more attention to the suppliers’ experience in implemented projects in both aspects: quantity and quality + As learning about the suppliers, it is advised to learn about history of development, assistance in case of any incidents, training course, as well as updating and new version of the applications + It is necessary to review trial version of varied solutions and exchange with the suppliers the present and future requests + Costing method: each supplier has own costing method So it is advised to clarify costing method of the targeted suppliers and making comparison with total expense of ERP based project + In addition, it is advised to learn experience and issues faced by some companies in application of ERP, consult objective comments of the companies which used and is using ERP to help reduce risks and expense: Hereinafter are selections to be reviewed: Some of the top ERP sellers are as follows: Microsoft The ERP products of Microsoft are sold under the following four tags: • Microsoft ERP Navision Software • Great Plains • Solomon • Axapta Microsoft is a giant when it comes to the IT market However they don't occupy a comfortable position in the ERP market They continue to be among the list of top ERP sellers They don't cater only to larger companies Infact their services are ideally suited to the requirements of small and medium enterprises They attract a large user base because they manufacture the products from the view point of a vendor who is supposed to know the practical difficulties than any manufacturer or end user because he sees the whole process of installation and deployment rather carries it for the companies Microsoft has been constantly restructuring its products and upgrading the versions so as Management information systems in Nam Duoc company Page 15 to make it compatible in the market In other words the company adopts a very liberal policy in dealing the needs of the customers The company has even allowed its sellers to recommend and sell the services of third party companies for functions that are not offered by Microsoft for e.g supply chain management Microsoft needs to bring more innovative features and add functions so as to make their products user friendly and enable them to attract great demand in the market as well This has to be followed by ERP software companies in general and Microsoft in particular Oracle ERP Oracle is another top player in the ERP market that has always made the competitors to go down the spine with numerous strategies and background work Oracle has become the subject matter of United Nations development program's initiatives for mass campaigning Oracle's take over of Peoplesoft's ERP related products and the subsequent merger of Microsoft and SAP has thrown lot of speculations in the market and it has been widely guessed that the customer will benefit from the services The combination of Oracle and People soft has helped customers in using the best features of these two products which would not have otherwise been possible but for this common platform In addition Oracle has also tied up with sun Microsoft systems in consolidating system servers sharing other applications and platforms and thereby realizes unimaginable benefits to the user SAP ERP SAP ERP is a software program that is aimed at providing solutions to the users in overcoming their technical and managerial problems with regards to data handling and transformation This software has become the favorite choice of corporates as it renders valuable services to companies by redefining the way business should be done The characteristics of MYSAP ERP software are as follows: • Transparent and flexible application • A comprehensive solution • Helps to achieve good governance • Helps to manage Operations and manpower Management information systems in Nam Duoc company Page 16 Some of the advantages of MYSAP ERP are as follows: • Facilitates quicker and better decisions • Overall business transformation • Reduction in Costs and Risks • Following Modern Practices • Specialty • Strategic Plan of JSC year period 2011 - 2015 • Handbook of information and communication technology for businesses by VNCI & VCCI released • Website: ERP softwave, Enterprise Resource Planning,ERP Vendors, ERP • Systems,ERP Guide: http://www.erp.com/ Website ERP Việt Nam http://erpvietnam.wordpress.com/ The end -V Management information systems in Nam Duoc company Page 17 ... VCCI released • Website: ERP softwave, Enterprise Resource Planning,ERP Vendors, ERP • Systems,ERP Guide: http://www.erp.com/ Website ERP Việt Nam http://erpvietnam.wordpress.com/ The end ... using ERP to help reduce risks and expense: Hereinafter are selections to be reviewed: Some of the top ERP sellers are as follows: Microsoft The ERP products of Microsoft are sold under the following... figures The specialized staff shall close the general ledger at end-term to complete accounting work of the period The sub-system supplies reports as required by the State or management reports