Executive Summary: Digital China Holdings Ltd. ERP Platform
Digital China Holding Limited is China's pioneer on ERP development and implementation;
a vital strategy that will create a competitive advantage for the future. Digital China's culture
and market position were favorable to undertake a monumental project such as the employment of an Enterprise Resource Planning system (ERP). The company possessed three distinct important factors that enable them to accomplish a reengineering endeavor of such magnitude.
These factors are:
- Tradition of continuous organizational change
- Extensive experience on large IT projects
- Sufficient capital to support a project of this magnitude.
These three characteristics placed Digital China in an advantageous position of timing for
successful accomplishment of an ERP launch. Some of the operational advantages that Digital
China enjoys with the ERP system include:
- Order to delivery process shortened from 2hrs to 5min
- Financial process reduced from 15 to 3 days; allowed management to lead operations
- ERP system ability to integrate data across functional modules
On the other hand, Digital China did encounter some difficulties.
Early in the
implementation process, the project team composition was changed from IT staff to vicemanagers from business departments. This change of team was adequate to better match the true requirements of the ERP system however; top leadership missed the opportunity to make sure all managers were aware of the management vital role and the importance of a successful implementation. This setback could have been devastating nevertheless, it was quickly fixed by Li Zong, chairman of Digital China, through a persuasive meeting with all business department managers, help them understand their role and the full benefits of the system once implemented.
However an interesting extrinsic situation that could affect their progress surfaced. China was
set to become a member of the World Trade...