Implementing ERP in China Tips & Traps June, 2011 Eberhard Hoffmann Jeanette Yu Eberhard_hoffmann@abic-is.com Juan_yu@abic-is.com www.abic-is.com

1. 2. 3. 4. 5. 6. Contents About the speakers WHAT system to implement? 2. WHO to choose as system supplier? 3. WHEN to implement an ERP system? 4. HOW to achieve a successful ERP project? 5. Q & A 6. 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Eberhard Hoffmann 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Jeanette Yu Profession area: Work experience: ERP consulting and implementation project management Work experience: 7 years experience of Kingdee ERP consultation and implementation 200+ projects for consultation 30+ projects for implementation Project manager of reference foreign customers of Kingdee One of the pioneers to design, develop and implement standard cost functions at Kingdee 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Trap 1: WHAT What system should I implement in China? Maybe I can take the one from HQ… 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Tip 1: Find one suitable for China operation Unified global application PRC tax & GAAP consideration Cost -effective? Local user acceptance? Too complex? … Easy consolidation 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Trap 2: WHO Who should I select as my ERP partner in China? Really perplexed by those sales’ razzle-dazzle… 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Tip 2: Work out a sound selection procedure Clear requirement definition Live demon Industry reference visit Interview with consultant Quality vs. cost 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Trap 3: WHEN When shall I implement an ERP system in China? Wait until I cannot handle with excel… 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Tip 3: Get prepared before overwhelmed Enough time to input into ERP Begin to understand system-based management Operation and management well supported by ERP 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Trap 4: HOW How to achieve a successful ERP system in China? I have never managed an ERP project… 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Traps to a successful ERP project Fail to communicate with local users Deviations due to lack of control Unsupportive and uncooperative users Exceeding budget in terms of time and cost Objective Motivation Resources Process control 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Tip 4-1: Stick to your objective Clear definition of project objective and boundary Manage users’ expectations Rank requirements Guard budget in terms of time and cost 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Tip4-2: Motivate everyone Involve all relevant parties in kick-off meeting Give users a vision of benefits of using a system Listen and understand Trust people with appropriate power of making decisions 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Tip4-3: Be aware of cultural differences Reluctant to say ‘NO’ in the face of someone Hesitant to ask questions Afraid of ‘losing face’ in public The concept of ‘relationship’ The barrier of language 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Tip4-4: Effective process control Timely and informative documents, eg. visit report, progress report, decision log, open issue log, etc. Regular, and ad hoc when necessary, review and update of project timelines Deviation identification and countermeasures Potential risk evaluation and preventive measures 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

ABiC Information Systems Shanghai Co.Ltd. Established in 2009 Currently 15 consultants, 30 for 2011 HR plan The only authorized platinum partner of Kingdee software specializing in foreign enterprise market Founded and managed by German partners with long and profound experiences in ERP systems Service covers: management consulting product features evaluation implementation project management and consultation customization and maintenance 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Q&A 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd

Thank you Eberhard Hoffmann Jeanette Yu 2019/1/15 Senior consultant | juan_yu@abic-is.com | www.abic-is.com 2019/1/15 ABiC information systems (Shanghai) Co.,Ltd