Experts predict that with the development of information technology, and increased competition among enterprises, in the the enterprise management in the future, enterprises which will not use ERP management will no longer exist, those do not use e-commerce sales and trading enterprises will not exist, either. Since ERP can be reduce the cost of management within enterprises, and e-commerce can reduce the external marketing and transaction costs of enterprises. When the competitiveness between two single costs is to a certain stage, the management cost of enterprises will become a key element of competition in the supply chain of enterprises.
About the competition trends, the future of e-commerce companies will extend backward, to continue to provide management software, and companies doing management software will also be extended forward to form their own unique e-commerce model. Various signs show that the competition among enterprises in the future is not just strategy and resources competition but will be competition of differences among means of management.
A big difference between management software and e-commerce software is that management software plan is the enterprise resource optimization system using plan as the prerequisite, it has concepts of efficiency and cost, and optimize the resources utilization through enterprise computing model. E-commerce is based on Internet technology to enable enterprises not constraint to the time and space resources from time to geographical, and it doesn't have the resources plan. A combination of both, will be a qualitative leap for enterprise management technology.
B2B Research Center of China has been studying China's SME ERP. In the study, it's found that the coordination problems in the implementation of enterprise management software are same with supply chain coordination between the procurement. Supply chain management is based on the corporate synergy of supply chain; synergy is the only driving force to maximize interests of each corporation. When the profits of supply chain is fixed, the first game's result will be that supply chain enterprises is satisfied and the balance might be a "Prisoner's Dilemma." Internal management of the game is the department; maximize interests of department will minimize the interests of smallest enterprises, and when enterprises encounter problems in the implementation of ERP, the boss will expense the interests of the sector while ensuring the interests of enterprises, by executive order. The overall interest of supply chain is the result of the market mechanism, and the coordination cost will increase here, uncontrollable variables in the procurement coordination model will increase. With carefully consideration, if consider the whole supply chain as a business, doesn't each in the chain likes each sector in our enterprises, and doesn't the e-commerce in the supply chain like the way we use the corporate ERP system? Now in-house ERP system will subvert the management of the business logic, and e-commerce will subvert our business logic of each enterprise in supply chain. There is a lot of e-commerce businesses, some so-called traditional companies, in the future, there's almost no enterprise without e-commerce, like there's almost no enterprise without the use of ERP.
The entire process of e-commerce will be the inevitable choice of information for SMEs, which is because in the future, there will be no company which do not use e-commerce, and there will be no enterprise without using ERP business management, and there will be more intense competition among SMEs. From the economics point of view, to determine their choice is like this:
Economics explain a certain economic phenomenon has two assumptions: 1. People are rational economic man, people are selfish, 2. Resources are limited, because of limited resources, and rational use of resources selfish is the most effective allocation in economic Study. SMEs are mostly private enterprises, and legal persons of private enterprises are natural cooperators, chairman and general manager in most private enterprises is the same person. Under the management of private owners, the choice of enterprises basically meets the basic assumptions of the rational economic man. Capital and talent of private enterprises are also limited, so in these circumstances, enterprises must use an information management of their own enterprises. Whether enterprises will choose to buy or rent, depending on whether price is decline or hikes. As we all know, products of software and hardware decline will depreciation soon, if you choose to buy, it will not only affect the current cash flow, but also affect overall profit. Moreover, the full e-business has both e-commerce and ERP, the software's hardware will have high requirements and the cost of software and service fees will be high, so that an excellent decision is to rental but not buy.
SaaS is the software rental model, in particular it is based on the full B2B e-commerce products, and rational enterprises will choose this software service (SaaS) model. In fact, software development is also a service that is not face-to-face, but indirect services through the software as a carrier. Like many e-commerce industries were changing, the Internet will change the majority of software enterprises survival method.
According to the ERP software, almost 80 percent of the software company is authorized by selling software to survive, but there are also exceptions, its products are almost the same with Oracle, but what's different is that it only sells services and annual fee of software use. Advantage is that although software is complex, but it is simple to use for the users, because users buy software with the intention of buying services and effectiveness. Its mode of service is that, users should first pay costs of implementation and training, and on-line users pay annual fee to software companies. This is often called as the ASP model, that is, software application outsourcing model. Recently, the Jin Suanpan Company plans a full launch of e-commerce software which ingeniously make solution to the user's habit of confidence in those issues: software is on the Internet, data are at users'; its charging system has also undergone a number of changes, in addition to the traditional way of sale license, but also use the rental software service outsourcing approach. This has greatly reduced software application cost of SMEs, and help SMEs build a one-stop information technology applications and services.
