The hottest Lenovo ERP is a transparent revolution

2022-08-12
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Lenovo ERP: a transparent revolution

in 1999, Lenovo did not have to do ERP. For this rapidly developing large enterprise, there were just many small problems

for example, with the average annual sales growth rate of Lenovo reaching 43% from 1994 to 1998, the time interval between Lenovo's financial deadline and the statement date is getting longer and longer, from 15 days to more than 30 days

but is it worth paying 30million? In fact, Lenovo has been annoyed by such problems. In 1992, Lenovo began to develop its own MIS system, completed the electronization of sales tickets, and began to use machine printing instead of manual invoicing. "But at this time, the sales, inventory and financial systems are separated. During the peak period, sales receipts and inventory documents should be sent to the finance department in gunny bags." Yang Jinghai, deputy general manager of Supply Chain Management Department of Lenovo Group, recalled

by 1995, Lenovo had developed into a "big ship". Due to the intensified competition in the PC market, Lenovo, which was rushing through the market storm, was no longer facing technical problems in internal operations, but more adaptability challenges from changes in the market environment

first of all, the price of upstream raw materials in the IT industry began to decline at an alarming rate, which directly led to the market price of a large number of overstocked inventories of manufacturers being far lower than the book value, which would virtually increase the inventory value of enterprises; Secondly, it is the risk from the sale of a large amount of arrears. The delay of these two issues will shake the confidence of enterprise decision-makers

personalized needs from downstream customers have become another major challenge for PC manufacturers. Lenovo faces two new topics - how to arrange production plans according to customers' personalized needs? What is the basis of the procurement plan? Lenovo needs ERP to solve the problem. ERP in the imagination is a crystal ball of the business world: it accurately reflects the unified management of Lenovo's capital flow and business flow, and describes the whole business operation process from the beginning of the customer's order to the end of the delivery

A/R, a/P, in transit and inventory funds caused by a business have real-time dynamic control points, and the fund status of each link is under the control of the system. An enterprise user can immediately answer the status of every link in the business operation process through ERP system. For example: is the product required by the customer in transit? Can the inventory be met at present? Is there any product in process on the production line that customers need? Has the shortage of materials been purchased? When can the purchased raw materials arrive

but Liu Chuanzhi himself also said, "going to ERP is looking for death, but not the excellent humanized description of Er makes the experimental operation more concise. P is waiting for death." In the first wave of ERP in China, because there is a big gap between the advanced concept of ERP and the application of Chinese enterprises, the development of ERP in China has the phenomenon of "frying hot, eating cold". The difficulty of ERP implementation has deterred many manufacturers, and its success rate is only 20% in China. But Liu Chuanzhi is very sensitive to those small problems that are constantly emerging. He has a premonition that they are connecting into a cancer. Is that enough to crash Lenovo's entire management system? He didn't want this crisis to wait for him later. Instead of hesitating, he might as well make a decision now. Liu Chuanzhi invested 30million yuan for this purpose

"every procurement and production planner turns on the computer early in the morning every day, and he can get a hint of what he is going to do today. This is actually the original idea of enterprise resource planning system, that is, ERP. This is the decision-making, but sometimes there will be some other key informatization according to the needs of customers." Yang Yuanqing said

in November 1998, Lenovo decided to adopt the ERP software of SAP - r/3 system as the basic platform of Lenovo. The first wave of Lenovo ERP implementation mainly focuses on the above three types of businesses. Lenovo ERP system planning is composed of five modules: financial accounting (FI), management accounting (CO), sales and distribution (SD), material management (including procurement and inventory) (mm) and production (PP)

deadlocked

before the implementation of the system, Deloitte Consulting Company once did the overall consultation of the project for Lenovo, and provided it with a set of Deloitte's FastTrack implementation methodology and process transformation and design template

Lenovo chose the best resources to ensure the success of ERP. In fact, it is full of ambition and believes that it has excellent management experience. With tens of millions of investment, the service life of its products will be shortened. The cutting-edge SAP company's software integrates sap, Deloitte, one of the five largest consulting companies in the world, and Lenovo, the largest IT enterprise in China. Four months after its implementation, Lenovo ERP fell into a deadlock

Lenovo's problem was later attributed to "unrealistic expectations", "the action of process reorganization was too big, and it was not prepared by itself"

on January 26th, 1999, the consultant left Lenovo, and the ERP project was actually forced to terminate

at this time, Lenovo really knows what ERP is

it is either a hard heart operation or a pile of expensive and beautiful documents

after efforts, the project resumed in March, 1999. In early April, Wang Xiaoyan, who was then the deputy general manager of Lenovo computer company, was appointed as the project director, and the business development department of the group participated in increasing the promotion of the project. She reflected on the problems in the implementation of ERP. Lenovo overestimated its management level in the past; What's more, it depends too much on the consultant. This is actually a way of standing still, rather than the process reengineering of ERP in the real sense - what about reengineering without in-depth exploration? The scalpel missed the point

Lenovo began to change from passively relying on consultants in the early stage to "focusing on me". They "stored" enough knowledge and know-how of Deloitte people, and there was a "knowledge transfer"

in fact, they realize that how to combine methodology, system and Lenovo process has become a real difficulty. After the large-scale adjustment of the organizational structure and the formation of the production, supply and marketing mechanism of the business division, a thorough transformation has begun. It is completely market-oriented. The market can sell as much as it can produce and purchase. The flexibility remains behind, the difficulty of control remains behind, the latter adapts to the front, and Lenovo suppliers should also maintain flexibility to us. But how to ensure that the back end can accurately grasp the information of the front end in terms of means, so as to ensure rapid supply without overstock? This is what information ERP is good at

erp essentially breaks the existing pyramid and flattens it into a management assembly line. The financial rights of the original general manager or department manager are deconstructed into a process connected by multiple links, and black boxes and greasy things cannot exist. For example, procurement is broken down into bidding - purchase orders - Approval - placing orders with suppliers - receiving - quality inspection - payment and other links, and everyone has the right, Procurement is naturally transparent, and it is impossible to be both a referee and an athlete. Money and goods flow in two systems. Functional departments work, and the finance department operates funds, and all things and money need correspondence

the open and transparent "free man"

Lenovo has ushered in the stage of "free man". At the beginning of Lenovo's decision to implement ERP, it was very hard to promote in every department and business. At this time, the whole company is like a robot, which mechanically completes the e-ization of various departments. When all businesses of Lenovo have completed this process, and all departments are working together more and more smoothly to improve efficiency tenfold or tenfold, the benefits of informatization begin to emerge. Lenovo suddenly finds itself becoming free and coordinated on the informatization platform

on February 14th, 2000, Lenovo ERP system operated independently; On May 8th, 2000, Lenovo ERP reengineering system was successfully launched (Lenovo Group and digital China were separated into two systems). On August 15th, 2000, Lenovo Group officially announced that Lenovo ERP project was successfully implemented and fully entered the normal use stage

in the management line of Lenovo ERP, the right of general managers and department managers to make full use of their advantages in technology, talent, capital and other aspects is more reflected in the size of the regulatory scope. In short, Yang Yuanqing has the right to supervise the behavior of all 8000 Lenovo people in the whole process from procurement to sales. Lenovo has become a crystal ball

"the open and transparent ERP platform is very in line with the spirit of Lenovo." Yang Yuanqing said. In the past, Lenovo had 30 technology center stations, each of which had financial personnel. Now they only need one person to input and send back with a line

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