Ch3_ERP_China_Japan_Korea

*,Tae Soo Moon,Dongguk Univ.,*,*,*,*,*,Tae Soo Moon,Dongguk Univ.,ERP Industry Developmentin Japan,and China,Moon,Tae SooProfessor,Dept.of Information Management Dongguk University at Gyeongju,Korea,Enterprise Resource Planning,Chapter 3.,Contents,ERP Market in China,2,ERP Issues in Asia,1,3,ERP Market in Japan,1981-1997 1997-2004 2004-,Developing Age,Spread Age,Domestic vendors grow up rapidly and exceed global vendors,ERP system is pushed by domestic vendors,ERP development,Complicated product,、,long term,、,high cost,Enterprise management and IT fundament weak,Few large-scale enterprise,Implemented,Entry Age,Leading by global vendors,Domestic ERP have gone mature,Service capabilities of software vendors grow up,ERP has experienced its success in more and more clients,Fast Implementation,Lower TCO,Innovation in Application&Business,Business Platform,1.ERP Market in China,2005 Annual Growth Rate in ERP Market of China is 26.8%(CCID,2006),2005 Market Size in China is similar to Korea,but rapid increasing.,1.ERP Market in China,Market Size,100M RMB,Application,04-05,Growth Rate,CRM,20.8%,EAM,24.2%,ERP,26.8%,FM,21.8%,HRM,18.4%,SCM,18.8%,Others,13.0%,ERP market share in 2005 China SW industry is more than 50%(CCID,2006),Market Size in China is similar to Korea,but rapid increasing.,1.ERP Market in China,ERP Market in China consists of 3 parts(Large,Medium,Small Business),Big ERP Market in China is for Medium Business,Second for Large Business.,SMB ERP Market is bigger than Large Business Market in China.,1.ERP Market in China,Major players in China ERP Market are UFIDA,SAP China,Kingdee,Inspur.,Local ERP vendors have distinctive advantages in SMB market of China.,Global Vendors SAP,Oracle have only one-fifth market in China ERP market.,-several problems in language translation,accounting,human resource mgt.,1.ERP Market in China,ERP Forum Japan surveyed 484 companies in Japan.,DM sent to 4,000 companies and received 484 in February in 2006.,Large 1,400,Medium 2,000 and Small 600.,31.9%companies in Japan used ERP(2006),it is increased by 5.3%,(1)Market Survey in Japan ERP Industry(Japan ERP Advanced Forum,2006),2.ERP Market in Japan,ERP Implementation Rate(N=589,Survey in 2005),-ERP Adoption Rate in 2004 :19.8%,-ERP Adoption Rate in 2005 :26.6%(6.8%increase),-ERP Adoption Rate in 2006 :34.8%(8.2%increase,forecasting),Growth Rate by Corporate Size(forecasting),-Over 3 Billion USD,43.8%(2005)-51.6%(2006):7.8%increase,-1 Billion 3 Billion USD,31.7%(2005),-42.0%(2006):10.3%increase,-300 M-1 Billion USD,25.0%(2005)-35.8%(2006):10.8%increase,-100 M 300 M USD,23.0%(2005)-31.6%(2006):8.6%increase,ERP Adoption Rate by Industry,-Manufacturing and Construction 31.2%(2005)-42.1%(2006):10.9%increase,-Service and Others 34.2%(2005)-39.7%(2006):5.5%increase,(2)Survey Results in Japan ERP Industry(Japan ERP Advanced Forum,2006),2.ERP Market in Japan,SAP is No.1,but decreased by 3.3%.Fujitsu GLOVIA-C is No.2,3rd Oracle E-Business Suite,2.ERP Market in Japan,Over 50%in Large Companies,48.1%in Large Middle Companies,42.3%in Medium Middle Companies,31.7%in Small Medium Companies,8.2%of Users stopped to use ERP.,1)no more use in business,2)complex and not fit to processes,8.8%of Users want to Change ERP.,-Reasons,1)42.5%,-more functions in ERP application,2)37.5%,-not fit to business,3)35.0%,-high Upgrade Cost,4)others,-maintenance cost,4.4%,User d,ecided and planed to change,(3)Survey Results in Japan ERP Market(Japan ERP Advanced Forum,2006),2.ERP Market in Japan,3-1.Technical and Managerial Issues,Openness,Interoperability with any system,any Platform,To transform Client/Server Architecture into Web Service(SOA),Web Infrastructure according to Internet Standard such as XML,Web Service,Functionality,To support the Collaboration with Employee,Trading Partner,Customer,To minimize Total Operating Cost through Use of ERP,To provide Extended ERP Modules to support the Process of SCM,CRM,Integration,To Integrate Collaborative Process between trading partners,To Use Common Component,by Code,Data,and Process Standard,3.ERP Issues in Asia,3-2.Technical and Managerial Issues for Asian ERP industry,3.ERP Issues in Asia,1.Standardization Issues,Open Platform:Interoperability,Web Service(SOA)Architecture,Internet Standard such as XML,Web Service,2.Function and Module Issues,Upgrade in Multi-national Enterprise,To adopt IT Governance to minimize Total Operating Cost of ERP systems,To upgrade Extended ERP Modules with SCM and CRM,3.Upgrade Issues,To upgrade new version of ERP Systems,To integrate with Common Code,Data,and Process Standard,Thank You!,