 |
Legend Upgrades Command
PC vendor Legend Group has become the first domestic IT company to successfully adopt the enterprise resources planning (ERP) system, according to Chinadaily.
"Legend is moving closer to its target of becoming one of the top global 500 firms via upgrading management,'' said Li Qin, vice-president of the group.
ERP is a set of management systems and ideas based on the supply chain. It links suppliers, manufacturers, sales agents and consumers to improve efficiency and reduce costs.
Legend invested more than 30 million yuan (US$3.62 million) in the management system upgrade and worked nearly two years with software provider SAP and Deloitte Consulting.
"ERP greatly improved our operation efficiency,'' Li said.
He said the closing account time has reduced from 20 days to just one, and a job which required 70 people now can be done by seven. The company's balance sheet can be done in 12 days instead of the original 30.
Present operation costs are only one-tenth of the original level, according to Li.
Efficiency can quicken the operation circle and reduce costs, achieving more profits, he said.
The management tree is very horizontal at present which can save much time in decision making, said Li.
Getting special items illegally through the "back door'' used to be very popular in China, Li said, severely obstructing improvement of efficiency and healthy operation. With the new system, the "back door'' is shut.
Legend achieved on average yearly revenues growth of 43 per cent from 1994-98. But the growth was based on the severely backward management level, Li said.
In late 1998, Legend announced trial operation of the ERP system even though the successful adoption rate is below 20 per cent worldwide.
"We may be severely hurt with unsuccessful adoption of ERP due to the high risk, but we cannot wait for death without improvement in management. And we will succeed,'' Li said.
Legend is aiming for world-class status with top management level, said Hsueh Sung, vice-chairman of Goldman Sachs (Asia) Co Ltd.
The group benefited from management upgrading and utilization of capital market. It was chosen as one of 33 Hang Seng Index composites in Hong Kong earlier this month, underlining the group's importance in the global capital market.
Legend said the ERP system will help it achieve the US$3 billion revenues target for the year and US$10 billion in 2005.
In This Section
|