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ERP Deployment – A Challenge for Medium and Small Enterprises in Vietnam
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Business and Integration Magazine – October, 2008
ERP (Enterprise Resources Planning) is a complete software system for enterprise business management. ERP solutions are a set of management modules for a business which include Accounting, Sales, Import/Export, Supply Chain, Warehouse Management, Human Resources and Payroll Management, and Production Management. Vietnamese enterprises, especially small and medium businesses, are aware of the importance of applying information technologies (IT) in business, and many understand that complete ERP solutions typically require a large budget for software packages and licenses. Many enterprises accept this reality as an investment but most of those that invest into ERP in Vietnam have had to face failure. This brings about a question that is increasing in intensity: “Why do most Vietnamese enterprises fail in deploying ERP solutions?” In order to find an appropriate answer, a reporter from the Business and Integration Magazine interviews Mr. Nguyen Ai Huu, CEO of WORLDSOFT Vietnam. |
Reporter: Applying IT solutions, especially in regards to deploying ERP systems into Vietnamese enterprises, is a pressing demand to improve management capabilities and efficiencies, reduce production and labor costs, and increase the competitive strength in the market. This has become a great challenge for many enterprises especially as Vietnam has already been approved to join the WTO. What is your opinion about this issue?
Mr. Nguyen Ai Huu: Yes, it’s true. In recent years, Vietnamese enterprises have all realized ERP deployment challenges. Deploying ERP into a business helps reduce the costs for separate software packages. But, in my opinion, enterprises still hesitate as there are still a big obstacles. The investment for an ERP system is even greater than the cost to build a small factory in Vietnam. Additionally, they are concerned with the effectiveness of the system when investing to deploy a practical ERP system.
Reporter: When attempting to include an ERP solution as a part of strategic business plan, most Vietnamese enterprises have had to face unsuccessful deployment. In your view, what is the main cause of this?
Mr. Nguyen Ai Huu: I think there are many reasons that lead to unsuccessfully deployed projects. In my opinion, there are two main causes. Firstly, it is essential that ERP providers understand the working process in the Vietnamese enterprises where they want to deploy their products. Not only that, they need to be excellent and persuasive consultants with professional and technical knowledge of the enterprise’s business, so that they can help the enterprise to grasp each management process to be changed. With that being said, ERP products also need to be compatible with the specific management process within the Vietnamese enterprise and have flexible modifications and adjustments to fit the diversity of the business. Secondly, the Board of Directors in the enterprises need to lead and to supervise the whole ERP system deployment process so that they can provide efficient decisions during the deployment.
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Reporter: Let’s look at the tendency of using foreign software solutions and Vietnamese enterprises’ prejudice towards domestic products. What is your judgment and evaluation on the effectiveness that domestic software solutions could offer to domestic enterprises, in particular to the macro environment of IT in Vietnam?
Mr. Nguyen Ai Huu: Of course, in consideration of technologies and technological experiences in general and software engineering in particular, Vietnamese companies cannot compare to foreign providers. Therefore we need to build a creative combination of strengths and advantages so that we could master the newest technologies. Based on this approach, Worldsoft has made perfect a combination of world-class technological experts in the US with Vietnamese colleagues who have a good command of Vietnamese traditions; in addition to that, there are also talented, professional, and enthusiastic developers to exchange technical experiences as well as design and implement large project structures. This is the most essential issue that every software company is striving to build towards – and Worldsoft has been developing for the past 7 years upon this foundation. In my opinion, to offer the best efficiency to domestic manufacturers, software solution providers not only need to master the experiences to build large systems but also have to offer professional consultancy and services. And no less importantly, the software products need to fit in well with Vietnamese enterprises financially and operationally.
Reporter: As the provider for “complete solutions” for enterprises, what does Worldsoft cover in its plan to assist small and medium enterprises in Vietnam to successfully deploy ERP system?
Mr. Nguyen Ai Huu: With thorough understanding of Vietnam, my colleagues and I have spent years in building the ERP-Worldsoft product for small and medium enterprises in Vietnam, not only to indirectly assist enterprise in deploying the ERP-Worldsoft system but also to help to build their pride of owning high-tech ERP solutions at a low cost, with the best efficiency they deserve. It is with great joy and pride to be able to do this, not only for me but also for all of Worldsoft Corporation.
Reporter: Thank you very much. The achievements attained by Worldsoft and yourself are going to be a great contribution to the development of the economy and an overall pride for software engineering in Vietnam.
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| By QUỐC VINH - QUANG TỨ |
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