The Board of Directors assigned a mission to your group to set up “the overall plan to improve the application of information technology and electronic commerce to enhance the efficiency of management and business” The plan established on the basis of study of at least 03 ERP solutions of the world's leading firms (or the specific solution in the industry) Funding, personnel, time, and the target has been proposed specifically from that INDEX Page Enterprise Introduction The reality IT, IS, e-commerce applications a The reality IT & IS applications b The reality of e-commerce applications SWOT analysis (related to IT, IS, e-commerce) Comparisons with competitors and business environment analysis a Identify and assess your competition b Business environment analysis 11 Analysis of experience and the lessons to be learned 11 Find out the solution for IT applications 12 a Analysis of the solution 13 b Comparison between domestic and foreign ERP solution 14 The IT and e-commerce application strategy to 2013-2020 15 The goals 16 a Overall goals 16 b Specific goals 16 Plan of action 17 a Deployment plan 17 b Plans for the duration 19 c The total investment costs 21 d The elements ensuring success 21 THE CONCLUSION 23 REFERENCES 23 THE OVERALL PLAN TO IMPROVE THE APPLICATION OF IT AND E-COMMERCE IN ORDER TO ENHANCE THE EFFICIENCY OF MANAGEMENT AND BUSINESS The development of science and technology are making increasing use of technology in the operation of the business This means asking about the quality of the product, the information technology services (information technology) should also be adequately advanced, applications must support more diverse, more fully the activities of the business However, with the wealth of valuable resources on their customers, most businesses not care about how to manage and exploit the most effective How to get a comprehensive view of its customers? How to exploit the data warehouse has about its customers to search more new customers and forecast or evaluate market trends? How to assess the level of effectiveness of the Sales Department? … Lots of questions left open affecting the sustainable development of enterprises The combination of information technology and management experience which has allowed managers to optimize the operation processes as per standard management system A system with network, thus requiring the development people must have deep huge vision, generalization is not only about information technology but also strategic vision in management Enterprise introduction Company name: VIPCO HALONG COMPANY LIMITED Trading name: VIPCO HẠ LONG VIPCO Ha Long Company Limited (formerly Branch of Waterway petroleum Transportation Company I "VIETPETROCO") based in Halong city with industries to provide marine services to ships In 2006, VIPCO was founded with the model is a subsidiary of independent subsidiary (directly belongs to the Vietnam Petroleum Transport Joint Stock Company - VIPCO) Currently, VIPCO Halong concentrated in two main business areas are marine fuel supply services (bunkering) and maritime agency services The total number of employees have 60 people in that office with 20 people including: the Director, Deputy Director, Business Department, Shipping Agency Department, finance and accounting, General and 40 employees working on 05 bunkering barge, The vision Become one of the leading service providers in Vietnam in the field of bunker and is the hub of the ship agent for transport companies Mission VIPCO Halong has the mission to build the brand through the fuel supply services and the maritime agency services with professionalism, quality and highefficiency, eco-friendly environment Core Values • Diligent and thoughtfulness in providing services • To provide the services in accordance with with international environmental protection laws as well as in local • Appreciate the time value of customers when planning services for ships Key to success Based on the criteria always improve the quality of services and long-term business history with good reputation makes the current success of VIPCO Halong Organizational model diagram Board of Directors Chairman Director Deputy Director Business Dept Shipping Agency Dept Financial and Accounting General Dept Barges TH 01 TH 08 TH 09 TH 10 H 24 Status of applications of information technology, information systems, electronic commerce (e-commerce) in the company a The status of applications of information technology, information systems All staff working on the office of the company is equipped with low configuration computer due to equipped in 2009 The company has built an intranet with the server having the Exchange email system The staff recruited to work at the corporate offices are in informatics for office, Internet using skills, communication proficiency in English, reading, listening, writing, pretty or more depending on the position work (For example: Business and Shipping Agency Dept.) Information technology applications, enterprise information system as follows: • Informatics in office: MS Word, Excel, Exchange, digitized documents for business, management and storage service • Information processing dealing with customers via email, Skype, Yahoo Messenger • Data mining (via the internet): partners, customers, competitors, conferences, journals, reference information, research materials, expertise, etc • Administration: statistics, data reporting, business operations management of goods, import exists, the accounting profession, the fixed assets The company is currently using dedicated software PBM - Accounting Business Administration petroleum by Petrolimex Informatics Center (now is informatics and telecommunications Petrolimex JSC) deployment • There is also the mandatory application of the tax authorities, Customs, port authorities (shipping procedures), Border Guard and other state authorities b The reality of e-commerce applications • So far the company posted the promotion of company information on some the websites as http://doitac24h.com http://www.thuongmai.vn ; ; http://www.quangninh24h.vn http://diachitot.net ; ; http://quangninh.vietnamnay.com • The company has registered the domain name http://vipcohalong.com.vn/ ; http://vipcohalong.com/ but not to build a website to promote the company's image, services, products as well as not applying Infomation technology strategy in implementing B2B e-commerce, eMarketing, customer relationship management, supply chain management and human resources management • The company is in the development stage information Trade (i-Commerce) • No person in charge of recruitment plans Infomation technology SWOT analysis (related to information technology, information system, ecommerce) SWOT analysis is one of the five steps of the business strategy of an enterprise To establish the development strategy of information technology, information systems, e-commerce,businesses have analyzed the strengths, weaknesses, challenges, and opportunities from which to build model suitable for the application of information technology in inmanagement and business Strengths Weaknesses • Most of the officials and employees • Top management companies not of the company have qualified pretty have management experience or evenly, responsible, dedicated and experience inappropriate, understanding passionate about the work The Information technology and English too relevant skills, experienceare well- little hospitality management formal educated training, basically • Director broad has solid relationships • Restrictions on the relationships with with PETROLIMEX Group and • The company lacks direction, no clear partner companies • Capable of quick response sensitivity for the job and market • Computer system foreign customers goals, no specific strategy in times of crisis synchronized, • Professional skills of the Business stable operation Manager are not high • The financial situation is difficult because of the prolonged debt clients, or inability to pay (due to the shipping industry is going down, low rates ) • No officers are dedicated to the field of information technology Challenge Opportunities • For several years information • The merger and restructuring technology is one of the industry to organizational model achieve the highest growth rate in the generate more surplus labor companies economy of Vietnam During the • Transport market is quiet; this difficult past decade, the average growth rate situation can last for a few years of the industry is 20 - 25%, in the • The competition of professional field of software growth of 30 - 35% brokerage companies in the same During the current crisis, the demand industry, even suppliers for applications in production and • Customers in countries not yet ready for Information technology business is the technological development of not affected, even more favorable by cognitive psychological habit information technology is one of the • Rare bank or business that stands out as effective measures to cut costs, a financial guarantee of the seller and improves efficiency of production and buyer, to prevent risk in trading e- business activities commerce • Promotional information on the • Legal corridor is uncompleted, difficult internet is widely popular Demand to implement for payment of the products or services through the network are growing • The company is approaching the foreign clients therefore e-commerce is also one of the factors that create trust, convenience for the clients in transactions and is a trend in the integration period • The Government of Vietnam has many incentive policies to promote the development of e-commerce Compare with other competitors and Business environment analysis a Identify and reviews competition: The Vietnam Ocean Shipping Agency (VOSA) • VOSA is the oldest Maritime Agency (established in 1957) has much strength in business lines with long experience in the market of transport and has the support from senior state management organs in the field of marine affairs As the hub agent is known by many ship owners and have branches in most of the ports • Their computer system is modern and just uses the email for transaction • Website of VOSA company: http://www.vosa.com.vn Website with introduction of information, little update on the status of the market, the deal may reasonable be some internal information Fratelli Cosulich Bunkers (HK) Ltd • This is one of the big brokers in the industry for bunkering The company inherited the customer relationship from the parent company that is based in Italy The parent company is the family company was founded 150 years ago with a lot of experience and multidisciplinary activities in the field of transport • There are branches in the U.S., Hong Kong, Singapore, India and Vietnam • Internal IT system is rather good, in business applications such as receiving orders, order processing at all branches • The company has no own Website but often promote on specialized sites, including http://www.bunkerworld.com; http://www.bunkerindex.com; http://www.vesseltracker.com • The Website of the company Fratelli Cosulich: http://www.cosulich.it 10 11 B12 Petroleum Company (B12) • B12 is a very big company in the petroleum business on land with long experience in the oil industry is the most supplier of the northern region (B12 Company - founded in 1973) • Abundant resources, the computer system is equipped and upgraded regularly The application of information technology to manage the business, with PETROLIMEX- ERP and implementing by FPT Company • Has high competitive ability due to they can adjustable their sale price • Website: http://b12.petrolimex.com.vn/ Website of B12 is updated regularly on the status of the market, business and internal information 12 b Business environment analysis Transport situation in the short term is difficult to forecast, with high risks In 2012, the international transport continues to have problems because of many reasons It is the European debt crisis has not ended; the signals have difficulty in finding financial resources to get rid of the risk of recession, in addition to being the heavy impact of the public debt crisis The economy is still in a State of slow growth (especially the slowdown of the Chinese economy) According to economic experts, in 2013 is actually a difficult year for the global economy Marine transport market continues to weaken, freight rates continued to decline in the long periods Oversupply situation of the world market is still expected to extend through 2013 Consequently, the current market situation greatly affected the revenue of the company not to mention stiff competition from companies that have the same field of activity Analysis of experiences, lessons learned from other companies at home and abroad So far the demand the application of information technology in business operations, analysis, monitoring customer needs, receive orders, process orders is essential - Vietnam Petroleum Corporation (PETROLIMEX) system has been operating successfully Petrolimex - ERP and implemented in most of the member companies nationwide The system helps corporate leaders understand the situation of goods, market demand assessment thereby making the right decisions and accuracy in business and management - Adaptec Group improved production activities through e-commerce.When buyers purchase requirements, the program will launch their new system and send orders to suppliers The process takes only a few minutes compared to 4-6 days as before Annual savings of inventory costs up to $ 10 million, giving the company the ability to change the technical standards easier, improve business relations (References - Information Systems Management - PGSM) - In addition, foreign bunkering broker firms have succeeded in the application of information technology 13 Search the solution applications of information technology in the industry According to research conducted on a global scale, in addition to three common solutions for large and medium companies are SAP, Oracle and Microsoft (the segment I), is also the solution for small and medium companies (segment II): Baan, Epicor, IFS, Infor, Lawson, Exact, Netsuite, Syspro, Sage and many other solutions The ERP brands are on the market today is the SAP, Oracle and Microsoft More than 70% of companies have deployed ERP segment I, while 23 percent chose the solutions of the segment II The average time to implement an ERP project is from the 18 to 22 months ERP implementation costs depend largely on the elements: the solution, the level of customization, deployment size, scope, complexity of production processes, and implementing strategies According to the survey, there is a significant difference between SAP, Oracle (the largest cost) versus Microsoft and solutions in segment II (minimal cost) The total cost of the average deployment of the ERP project is about 8.5 million USD (about 148 billion local); in which the difference between SAP, Oracle and the solutions segment II up to 10 million dollars (about 175 billion local) (see table below) The figures not include the cost of deployed in multinational organizations with large scale, estimates of the average deployment cost in these organizations up to 34 million USD (about 595 billion) Summary results study ERP solutions SAP Duration (months) Oracle Microsoft Segment II On average 20 18.6 17.8 19.8 19.8 16.8 12.6 2.6 3.5 8.5 Satisfaction (%) 73.0 62.0 69.0 70.0 67.0 The level of risk (%) 50.0 56.9 57.7 61.8 54.0 The cost to deploy (million US $) 14 a Analysis of the solutions SAP-On July 30, 2008, SAP has become the supplier accounts for the largest share (35% market share on the market of SALE) SAP has extended development time – 20 minutes compared to other solutions Spread in time to deploy for each SAP project also great compared to all the other solutions (except Microsoft) However, the cost and time to deploy the greatest degree of satisfaction and the actual interest gained by using SAP solutions is biggest Oracle eBusiness Suite (EBS)-Oracle are holding 28% of market share of ERP, stands 2nd after the SAP The average deployment cost of Oracle's 12.6 million USD (about 220 billion) The average duration of the Oracle is 18.6 months, spread in time to deploy for the different project not many (stable) Microsoft Dynamics-According to the research, Microsoft are 14% market share of ERP, equivalent to the total market share of of Baan, Epicor, IFS, Infor, Sage and solutions in segment II combined The popularity of Microsoft related software pricing fit small and medium companies Total cost of ownership (TCO) Microsoft's average is 2.6 million USD (about 45 billion dollars) The average duration is 18 months for an the ERP project Solutions segment II A study including the ERP solutions in segment II: Baan, Epicor, IFS, Infor, Lawson, Exact, Netsuite, Sage, Syspro and other solutions The total market share of segment II is 22.7% In that divided as follows: Infor (2.9%), Baan (2.3%), Epicor (1.7%), IFS (1.7%) and Sage (1.3%) The average deployment cost 3.46 million USD (approx 10 billion) lower than SAP and Oracle but higher than Microsoft However, this cost is the huge difference, can vary from less than 0.1 million to 65 million, the result of the customized solution for each project The average duration of the segment II is shortest (18 months) The domestic ERP solution (Vietnam - ERP) Until the middle of 2006, the market had appeared the ERP solution The accounting software development and modifications should be friendly and easy to use But yet there are international standard operation procedure should start not inherited is the advanced management experience, besides programming 15 technology is also essential to integrate with other systems when the need is very difficult Price This is the biggest advantage of the internal ERP system for the Vietnamese market compared with foreign products Manufactured in place should the internal ERP implementation consultants typically is also the manufacturer of the software business should only have to outlay costs only for a single partner for both royalty and money advice and implementation of this was also just a fraction of the cost of buying foreign exchange solutions The Vietnamese accounting system One of the strengths of the internal ERP solution is the process of accounting processing on software are all easily comply with the accounting system, according to the Vietnamese regime The introduction of the circular, the decision on the change of the accounting regime also influence to enterprises to adopt foreign software when not supported in time Dynamic and easy to modify software Because produced in Vietnam and are deployed by major manufacturers should work actively to change the software in case of necessity of the internal ERP solution proved superior to the external solution Businesses and vendors can easily unite when there are differences between the procedures are applied and the process on the software and thus facilitate successful ERP projects Some typical ERP solution in domestic FPT.Success Software Solutions Fast Business ERP Software Solutions Perfect ERP software Solution EFFECT-ERP Software Solutions AccNet ERP Software Solutions b Comparison between domestic and foreign ERP Advantages and disadvantages with the Vietnam market The price is the first block because of the extremely expensive foreign ERP systems In addition to the cost of advice, software deployment, enterprises have to pay large royalties to foreign manufacturers more approximated, the ERP 16 amount equal to the amount for software development consultant For mid-sized enterprises in Vietnam, this cost can be up to several hundred thousand dollars The project has the lowest foreign ERP also is worth several tens of thousands of dollars Now the price may be the biggest hurdle for foreign ERP software in Vietnam The difference in the accounting system and accounting system software The ERP products always have a module is integrated accounting module The accounting modules often receive a lot of data from the other modules of the ERP software and put the automated accounting This automated accounting Chief create incompatibilities with Vietnam accounting mode of ERP software The differences are also reflected in the account system of accounting, processing and financial management accounting as the accounting mode taxes, regulations on the transfer, distribution costs and defined business results Consultant cannot entirely proactive technology for ERP The foreign deployment of ERP products have to have professionalism and very high informatics Unlike the ERP implementation consultants of foreign firms is inability to proactively change the software in terms of the programming platform of products Application strategy of information technology and e-commerce to the 20132016, 2020 - The company will mobilize from many different sources of capital to implement it applications in business operations effectively and cost savings - The application, the falls IT effectively, develop their full potential, the advantage to advance to the GREAT STRIDES development in order to enhance the competitiveness of enterprises, the implementation of the promotion, referral and search the market for the goods, products in social international economic - Scheduled to end in 2015 will renovated line, computer network companies for all departments under uniform standards IT training, e-commerce and foreign - language for the field staff involved Establish business strategy in line with the market situation, establish and implement it strategy and technology-oriented business Study, learn and 17 regularly updated information technology trends in the future to invest in the right direction IPhone of year2020 Follow the principle: "Thinking Big - Start Small - Quick Action" 2017 - To fulfill the application of ERP systems and the application of new technologies to serve company business and management Goals a Overall goal: - Every step of the wide application of information technology in the company activities to enhance the capacity, performance, management, fast, convenient, save, more efficient - Investing in information technology infrastructure, use the operating management software, CRM, eMarketing improve operating capacity, management and business b Specific goal: - The investment to upgrade the company computer system Expected the end of 2015 will complete establishment new computer network system for all departments according to unified standards Recruiting qualified staff with understanding of information technology and e-commerce - Training in information technology and e-commerce for team leaders to raise awareness about the role and the position of information technology in the service of business, economic development, leadership training, 18 information system management information technology-oriented business strategy and information technology - Website construction, exploitation, promotion on various magazines and specialized websites - Invest to HR management System, CRM to improve competitiveness - Investing in technology, development and improvement of the quality of the service, to maximize benefits, build competitive advantage, make a difference Plan of action a Deployment plan ERP software needs to show all of the business cycle, which can manage the resources of the company The essential function of the resource planning software companies including: - Sales management and customer relations - Financial and accounting management - Management of purchasing and supply management - Human resource management - Fixed asset management, physical facilities Organizational project management, personnel deployment Project Management Board expects 20 people includes the following parts: the Board of the project, the project management group, main group, group engineer, test group, representative of the user modules Process of ERP solution Selection It is important for businesses to consider carefully before choosing a solution suited to the peculiarities of business of the company The cost for deployment depends very much on the scale of business as well as job requirements Step 1: determine the ERP implementation project goals To determine the objectives of ERP projects, we usually start from practical difficulties in managing the business of the company The deficiencies of the current management system will help the company identify the targets and 19 requirements needed for the ERP system Besides, the objective of the project is determined based on the overall business strategy of the company, including the development strategy in the short term and the long term Step 2: determine the current state of the system To determine the current state of management information systems, we often reviews based on basic elements: business processes, organizational structure, systems, and business policies Depending on the case, the company can expand the survey organization; evaluate the system's performance so far Step 3: Preparation of tender documents required Based on the project's goals and current status details of the system are determined in step above, ERP project review group will hold discussions, prepare tender dossiers This profile includes main contents: - Listing, description of the business requirements - Listing, describes the technical requirements, the system Step 4: build the evaluation criteria In addition to the criteria for the functional requirements, the criteria for requesting phi functions such as budgeting, power suppliers and project schedule was also considered In parallel with the evaluation criteria are the weights indicate the level of importance of each criterion Table of software evaluation criteria and evaluates suppliers is important to the company is the ERP selection decisions impartially, fairly and promptly Step 5: perform reviews of the ERP system After the tender dossiers are sent, usually several weeks after the provider will file the table answered for requesting bids and tenders ERP selection evaluation team will conduct analysis, reviews and gave the answer of the supplier based on the evaluation criteria from the table (as outlined in step 4) Based on the results of this calculation, ERP evaluation team will pick out from to ERP vendors to offer to perform software (demo) This is the chance of exposure, direct questioning between the ERP Evaluation Group with ERP providers in order to identify more clearly potential response of the ERP system 20 for the business requirements, technical specifications and other requirements have been determined company Finally, the ERP Evaluation Group will form the comparative tables, charting capabilities meet the requirements between the vendors together, from which the ERP selection proposes matching Step 6: the proposal and decided to choose ERP Based on the results in step 5, the ERP Evaluation Group will have text presented the proposals, submitted to the Board of Directors to approve the poll To end the evaluation, selection of ERP and the opinion approved by the Board of Directors, the ERP project evaluation team will embark on the preparation of the agenda of the ERP project The points to keep in mind when applying the process Meet the people that can work with them in the ERP deployment projects and view the facilities of their work Whether they have sufficient resources and talent necessary for implementing ERP in company or not? Besides, the selection of ERP needs to have the participation of the individuals representing the room, Board and a member of the company The company can make the process reviews, ERP selection or independent consulting firms hire outside assistance to implement this process b Plans for the duration The landmark is just assumed and depends on the requirements for the progress of the owner as well as the capacity of the contractor Phase I Expected deployment in 12 months - Deploy server systems and network devices - Deploy the modules software  Sales management and customer relations  Managing finance-accounting  Management reporting system provides to leaders Phase II Expected deployment in months with the following modules  Human resource management 21  Management of purchasing and supply management  Fixed asset management, physical facilities Deployment schedule Projected deployment schedule of phase I as follows: STT The work I Deploy I.1 Preparing the project, survey I.2 Design analysis I.3 Build and deploy the system Month In 10 12 2015 (hardware and software) I.4 Operation II Warranty and support Projected deployment schedule of phase II are as follows: STT The work I Deploy I.1 Preparing the project, survey I.2 Design analysis I.3 Build and deploy the system I.4 Operation II Warranty and support Month In 2016 The calculation of costs is based on the criteria as outlined above 22 c The total investment costs On the basis of tenders of the provider, deploy ERP solution in Vietnam as well as the actual reference cost of implementing ERP solutions for other businesses and expected cost of ERP project implementation corresponding to each stage of the company are as follows: STT A The content The total cost of implementing phase I Value (USD) 107,000 The costs of purchasing hardware 40,000 The costs of purchasing software copyright 60,000 Hardware deployment costs 2,000 Cost of software deployment 5,000 B The total cost of implementing phase II The costs of purchasing software copyright Cost of software deployment 43,000 40,000 3,000 C Other costs 10,000 D Prevention costs (A + B + C) * 10% 16,000 E The total cost of the investment project (A + B + C + D) 176,000 d The elements ensuring success - The first element is the determination and direct observation of the highest leadership of the company with a project related to the sensitive business processes, requires much has changed even in how to think, how to manage will definitely be more difficult - Prepare enough resources This is a system that the implementation requires a high concentration of both human and financial Moreover, while the other projects are implemented within the company also requires resources - Existing business processes will still be respected in the course of implementation, however, requires changes in keeping with professional systems Consequently, the need to have preparation, have the necessary compromise 23 - Timely settlement or in the deployment process Good governance change, especially change of thinking, professional thinking in both the Organization and the individual - The good coordination in the project group, among firms with consultants as well as with units deployed - The company's project team is qualified and experienced in terms of application, software, system management and development, have knowledge of financial management 24 THE CONCLUSION Understanding and proper application information technology will help managers to have proper directions and decisions to achieve the desired results REFERENCES Management Information Systems lecture References - Information Systems Management http://vi.wikipedia.org http://tamnhin.net http://doc.edu.vn http://www.vnson.com http://vantai24h.vn http://www.tapchitaichinh.vn http://bientoancanh.vn 10 Internal document of VIPCO HALONG 25 ... Vietnam The difference in the accounting system and accounting system software The ERP products always have a module is integrated accounting module The accounting modules often receive a lot of... automated accounting This automated accounting Chief create incompatibilities with Vietnam accounting mode of ERP software The differences are also reflected in the account system of accounting, processing... convenient, save, more efficient - Investing in information technology infrastructure, use the operating management software, CRM, eMarketing improve operating capacity, management and business