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ERP BUDGET & ENTERPRISE SIZE
Sample Image WHEN SHOULD WE INVEST IN ERP?
With regard to kind of business and size, Mr Nguyen Huy Cuong mentions 4 groups:
  • • Foreign-invested companies, esp. branches of global groups
  • • State-owned enterprises on the equitization process.
  • • Domestic companies with many branches in Vietnam and wishes to extend their activities into the global market.
  • • Small and midsize companies
With regard to business management requirements , Mr Phi Anh Tuan pays attention to the following groups:
  • • Board of managers can not make a timely and right decision when scope of activities and trading volume increase, information absorption is overloaded
  • • Competition increase when enterprise’s revenue decreases.
  • • Business operation grows rapidly, profits increase, budget for IT management system equipment is sufficient.
  • • One company’s products are exported to other countries and it is required to be equipped with a management model corresponding to international rules.
  • • Finally, companies recognized with ineffective activities and operation restructuring.

DEFINING ERP SOLUTION SCALE

According to Mr Nguyen Anh Nguyen, wholesale and retail dealers with turnover of over $ 1 million per year need simple systems of ERP: income and expenditure accounting, ledger, financial report, price and promotion control, orders, delivery, import, export, stores, purchase…. Minimum investment is over 30 million VND including installing.

In Mr Vuong Quan Ngoc’s opinion, the decision about ERP’ scale should base on each enterprise’s specific norm. And, after the solution is chosen, answers to the following questions must be satisfactory:
  • • Can this solution properly handle problems our enterprise is encountering?
  • • Are managers themselves able to control the whole operation process at any time (after implementing this solution)?
  • • Can ERP solution deal with enterprise’s future problems with the current growth rate? Finally, it is time for budget determination.

 INVESTMENT RATE FOR ERP, HOW MUCH IS RATIONAL?

 Mr Nguyen Van Khuong supposes that we can define this rate in two ways
  • 1: Investment rate for ERP = ½ total expenses of enterprise in one month
  • 2: Investment rate for ERP
  • - ERP investment should be carried on in strict processes.
  • - Experienced, enthusiastic and dedicated consultants - Determination of Managers and employees
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