Enterprise resource planning (ERP) systems are software applications that integrate internal business processes and automate routine back-office tasks. An ERP system can integrate everything from production, marketing, human resources (HR), sales, and payroll into a single database and user interface.
Choosing to deploy an ERP system in China can be a difficult decision. A poorly deployed ERP system can become a major liability and even disrupt the workflow it is meant to streamline. Problems in the implementation process typically occur because of insufficient knowledge regarding local regulations or because of weak internal controls that were left unchanged during implementation.
However, the value of a well-deployed ERP system cannot be overstated. With a few proactive steps, businesses can effectively implement a cost-effective ERP system that improves productivity and transparency.
China Briefing spoke with Phoebe Yan, Dezan Shira & Associates’ IT Applications Manager, who was responsible for overseeing Dezan Shira’s own internal ERP implementation, to better understand the benefits and challenges of deploying an ERP system in China.
China Briefing: Why should companies consider an ERP system in China?
Phoebe Yan: In China, foreign businesses often struggle with productivity, transparency, and internal controls. ERP systems synchronize a company’s internal processes, allowing for greater standardization in routine tasks, real-time data, and compliance with local laws. These are especially important when management teams are not based in China.
ERP systems make a company more agile while organizing and stabilizing their long-term growth. An ERP system optimizes business processes and then – importantly – formalizes these improvements. This ensures that employees follow best practices and creates a clear, reliable picture of a company – allowing management to make accurate forecasts and informed decisions.
China Briefing: When should companies consider ERP implementation?
Phoebe Yan: ERP systems have changed greatly in the last 10 years. ERP systems can now be hosted online and businesses can ‘subscribe’ to the service, paying a monthly or annual fee proportionate to the number of employees and volume of work.
Article Credit: China Briefing
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