ERP Internet opportunities reshape the sales model of small and medium-sized enterprises
if everything goes well, alibaba will soon encounter another competitor in the field of B2B e-commerce. At the end of July, 2006, golden abacus Software Co., Ltd., which has been known as the third largest ERP market in China, launched its "whole process e-commerce platform". Different from ordinary products released in the past, this platform is almost related to the future lifeline of golden abacus. Yang Chun, its chairman and President, announced that since then, golden abacus will turn into an Internet company, and its previous main business ERP will be integrated with e-commerce
Yang's experimental machine can be used to carry out the pin plate or ball plate experiments pointed out in the Standards ASTM g 99, DIN 50324 and iso/dis 7148 (2). Spring calls the business model of the golden abacus "the real full process e-commerce solution", including the full process supply chain management system, e-commerce station (golden abacus's Yixi) and e-commerce tools. It disassembles the traditional ERP software with functional modules as units, Build a highly integrated e-commerce platform, including business application modules such as information release, payment and integrity certification, as a one-stop work platform for users of small and medium-sized enterprises
although emphasizing that this model is "the third way between UFIDA, Kingdee and Alibaba", Yang Chun also said that he was looking forward to the day of dialogue with Alibaba CEO Jack Ma
the survival crisis of small and medium-sized ERP
after learning about the transformation mode of the abacus, a senior person of a domestic software company said with great emotion: "no matter what the result, the abacus has finally taken the step of change". In his view, in the past few years, several domestic ERP manufacturers look shiny and clanking. Although they have been adjusting, they "actually have no sense of direction more and more"
Yang Chun said frankly, "if the golden abacus continues to maintain the traditional ERP approach, it will undoubtedly die", and his experience in Singapore in early 2005 made him aware of the survival crisis of the golden abacus. During this period of time, Yang Chun has been in contact with some fund companies and investment bankers. He is busy with the listing of the abacus in Singapore, but in the end, the valuation given by the investment bank to the company gave him a big blow. "Those investment bankers directly told me that the traditional ERP model is not worth money."
also feel that "traditional ERP is not worth money" is Suda software. This software manufacturer, which has been positioned in the domestic small and medium-sized enterprise market from the beginning, announced its delisting from the Hong Kong GEM in November 2005. Cen Anbin, chairman of its board of directors, told that the real reason for the delisting is that Suda's difficulty in reflecting its real value on the Hong Kong GEM in China
coincidentally, before and after the announcement of delisting, Suda's acquisition of the domestic old e-commerce brand 8848 showed its attitude of entering e-commerce, which was also regarded by the industry as "increasing chips for smoothly entering the new capital market with the help of the network concept"
Yang Chun also admitted that there were factors to look for the concept of listing when golden abacus chose to transform to the Internet, but he also believed that the direct pressure from the market was the main driver of the transformation
compared with the perfect sales network of large enterprises, small and medium-sized enterprises lack trade channels, and how to "sell products" is more important than internal management. Now the fact is, "many small and medium-sized enterprises are facing the challenge of integration externally, and the challenge of comprehensive business manageability internally, and horizontal industry competition is also intensifying." Yang Chun said, "but the traditional ERP cannot adapt to the changes of the external situation". Because it is limited to the management of internal resources of the enterprise, it cannot effectively support the external expansion of the enterprise. Facing the informatization between supply chain enterprises, the traditional ERP is helpless
in addition, for ERP companies, there are still many risks in the implementation of traditional ERP. "Every order needs continuous investment, including implementation, service and other follow-up costs." Yang Chun said that not only the golden abacus, most domestic ERP manufacturers will encounter such an embarrassing situation - because the implementation process is an "unquantifiable process", it is difficult to ensure the absolute success rate, Some customers, especially many small and medium-sized enterprise customers, can easily find a variety of reasons to "default in payment or even refuse to pay."
in fact, accounts receivable have become a major "worry" of many ERP companies, which has also brought heavy financial pressure to small and medium-sized ERP manufacturers. In April, 2006, Shenzhen gelilai company, an ERP manufacturer that was once popular in South China, was acquired by Kingdee company for 10million yuan. According to insiders of the company, the financial pressure caused by the customer level is one of the main reasons for the sale. Another software company, Hangzhou Xinzhongda, which was once popular in the domestic ERP market, also announced in March 2006 that it would completely abandon medium and low-end products and take the high-end route
in this situation, the senior executives of the above software companies believe that there are only two choices for a software company such as golden abacus, which mainly faces small and medium-sized enterprise customers: either go up and "do high-end ERP", but even if it can cross the technical threshold, it will also be a huge test in implementation ability and business resource integration. This road "PE and PP are not only full of hardships, but also may be doomed"; Or get out of the cage of ERP and start from the original foundation to find a new way
Alibaba's success in e-commerce touched Yang Chun. In his view, jinabacus and Alibaba overlapped in terms of customer positioning, "both are small and medium-sized enterprises", but jinabacus had obviously ignored the substantive business needs of this customer group. If the internal management ability of ERP is integrated with the external e-commerce needs, Yang Chun feels that there is a huge market potential, so he decides to bet on the transformation of the company
erp and "Golden Disc" direction
this is obviously a process that requires constant self denial
the first is the sales model. Traditional ERP Sales generally adopt the license mode. In this mode of peak value and time, 80% or more of the revenue of software enterprises