Breakthrough in the domestic high-end ERP market

High end ERP (Enterprise Resource Planning) is considered the "nervous system" of enterprises, which is the core application platform for business operation and management of large enterprises, supporting real-time operations in human resources, finance, research and development, supply chain, production and manufacturing, and other aspects.
"The white paper comprehensively analyzes the application needs of domestic high-end ERP empowering large enterprises' digitalization, summarizes the characteristics of high-end ERP in the digital era, deeply analyzes the core demands and first-class business management practices in key areas of China's industry, and looks forward to the future development of domestic high-end ERP in China." Li Jun, Chief Expert and Director of the Exchange and Cooperation Department of the National Industrial Information Security Development Research Center, said that in the future, innovative applications represented by high-end ERP not only meet the digitalization needs of large enterprises, ensure the security of core systems and data of large enterprises, but also provide a solid foundation for the construction of Digital China.
High end ERP is the nervous system of enterprises
In recent years, there have been heavyweight news in China's high-end ERP market. Not long ago, China Petroleum Kunlun ERP, developed by Shanghai Boke Information Co., Ltd. and others, successfully operated on a single track at Daqing Petrochemical Company, making China Petroleum the first state-owned enterprise in China to use domestically produced high-end ERP.
In April of this year, Huawei collaborated with its Chinese ecosystem partners to successfully develop MetaERP, covering 100% of Huawei's business scenarios and 80% of its business volume, and completed a large-scale switch of 88 subsidiaries worldwide in 15 hours.
Experts say that these landmark events indicate that Chinese local software companies are fully capable of developing high-end ERP. Moreover, Chinese companies have broken through the monopoly of foreign companies in the high-end ERP market and will continue to promote the upgrading, innovation, and breakthrough of China's high-end ERP.
Unlike ordinary enterprise ERP, high-end ERP is called "high-end" first and foremost because its customers are mainly large or ultra large enterprise groups. These enterprises usually have a business scale of tens of billions, hundreds of billions, or even trillions, covering the whole country or the world. They have a long industrial chain, multiple business segments, and obvious characteristics of diversified operations. High end ERP focuses on the integrated operation of the industrial chain, which can support the flexibility and convenience of enterprise organization and business process settings, respond to the rapid adjustment of enterprise transformation needs in a timely manner, use multiple languages, currencies, and accounting standards, and can be adjusted according to the laws and regulations of different countries. The difficulty can be imagined.
Secondly, high-end ERP fully absorbs the best business practices of many industries and enterprises, with vast and complex functions, suitable for various environments. To ensure that enterprises can build different business scenarios, high-end ERP products and solutions require refined and complete functions, especially mature and complete core functions, which can achieve high internal cohesion and external decoupling, to ensure flexibility, agility, and configurability. In addition to standard configurable products and solutions, it also supports the rapid development of extended functions, namely the "configurable core functions+customizable extended functions" service model.
High end ERP may seem like an application software, but it is difficult and complex, and also faces a bottleneck. It is reported that in the high-end ERP market in China, SAP, Oracle, and IBM account for over 60% of the market share. Considering that large enterprises are often leaders in various industries and fields, playing a leading and supportive role in the industrial chain, and serving as the foundation for expanding, strengthening, and optimizing the digital economy, the "Overall Layout Plan for Digital China Construction" issued by the Central Committee of the Communist Party of China and the State Council clearly points out the need to promote the deep integration of digital technology and the real economy, accelerate the innovative application of digital technology, first build a self reliant and self strengthening digital technology innovation system, and second build a reliable and controllable digital security barrier. This also means that the future of China's high-end ERP market still has a long way to go.
Empowering digital upgrading of industries
As an important component of the digital economy, large enterprises not only play a leading and supporting role in the industrial chain, but also represent the competitiveness and upgrading direction of the industry. The digital upgrading of large enterprises and the restructuring and reform of large central state-owned enterprises have stimulated a large demand for the high-end ERP market.
Taking Kunlun ERP as an example, the Chinese Petroleum it serves not only has a large enterprise scale, but also complex business processes and multiple management levels. From upstream oilfield exploration and extraction, to crude oil processing and petrochemical product production, transportation, and sales, and then to the control, analysis, and decision-making of the group headquarters, it can be said to cover the entire industry chain.
"As a leading enterprise in the petroleum industry, China Petroleum must have both advanced management knowledge accumulation and industry professional knowledge accumulation in its management software. If it is not a high-end ERP that runs through the entire industry chain, it cannot meet the needs." Zhao Qian, a well-known domestic enterprise management consulting and information technology expert, said that high-end ERP carries the entire production factors and process of the enterprise, supports the operation of enterprise business processes and the implementation of management models, covering all aspects of enterprise management. "It provides real-time, dynamic, and complete information, meets highly complex enterprise operation needs, scientifically plans enterprise business layout, optimizes internal resource allocation, and continuously improves the overall operational level of the enterprise.".
For the development of high-end ERP, the white paper believes that regardless of how technology and industry change, the best practice for large enterprise core systems is still the "industry best business practice+business management consulting+industry solutions+ERP management software products+professional implementation delivery" model. At the same time, the new generation of information technology, represented by cloud computing, big data, artificial intelligence, etc., accelerates the reconstruction of traditional management software. In order to meet the requirements of Internet based distributed elastic computing and other modes, Chinese local high-end ERP software enterprises have planned innovative breakthroughs in combination with their own characteristics.
It is reported that during Huawei's independent research and development of MetaERP, UFIDA was responsible for the financial general ledger, Kingdee was responsible for human resources, and Wuhan Tianyu was responsible for product lifecycle management. Through project collaboration, Huawei achieved breakthroughs in product modules. Shanghai Boke Information, which has always focused on high-end ERP, has created a new technology platform and ERP core system by digesting and absorbing successful practices of global enterprise management software, combined with the characteristics and innovation of Chinese enterprises, and achieved breakthroughs in the application of solutions in multiple industries. Due to accurately grasping market demand, the high-end ERP products developed by Shanghai Boke Information are favored by the domestic large enterprise market.