Luận văn some applications of openerp odoo an erp system in enterprise business and finance management a case study of vietnam mikgroup joint stock company

UNIVERSITY, HANOT INTERNATIONAL SCHOOL GRADUATION PROJECT SOME APPLICATIONS OF OPENERPODOQ — AN ERP SYSTEM IN ENTERPRISE BUSINESS AND FINANCE MANAGEMENT: A CASE STUDY OF VIETNAM MIK

'VIRTNAM NATIONAI UNIVERSITY, HANOT

INTERNATIONAL SCHOOL

GRADUATION PROJECT

SOME APPLICATIONS OF OPENERP(ODOQ) — AN ERP SYSTEM IN

ENTERPRISE BUSINESS AND FINANCE MANAGEMENT:

A CASE STUDY OF VIETNAM MIKGROUP JOINT STOCK COMPANY

Student’s name: Vu Le Minh

Hanoi - Year 2020

SOME APPLICATIONS OF OPENERP(ODOO) ERP SYSTEM IN

ENTERPRISE BUSINESS AND FINANCE MANAGEMENT:

A CASE STUDY OF VIETNAM MIKGROUP JOLNT STOCK COMPANY

SUPERVISOR: Assoc Prof Dr Nguyen Hai Thanh STUDENT: Vu Le Minh

STUDENT M: 15071562 COHORT: MIS2015A MAJOR: Management Tnformalion System

Hanoi - Year 2020

LETTER OF DECLARATION

1 hereby declare that the Graduation Project “Some applications of

OpenERP(Odoo) — an ERP system in enterprise business and finance management: A

case study of Vietnam MIKGroup Joint stock Company” is the resulls of my own research and has never been published in any work of others During the

implementation process of this project, T have seriously laken research ethics, all

findings of this projects are results of my own research and surveys; all references in

this project ars clearly cited according 1o regulations

Take full responsibity lor the fidelity of the cumber and data and other contents

of my graduation project

Hanoi, 04/06/2020

Student

ACKNOWLEDGEMENT

Firstly, I am using this opportunity to express my deepest gratitude and special thanks to Assoc Prof Dr Nguyen Hai Thanh who dircetly instruct and guide me beside of his busy schedule during 9 weeks of graduation thesis period Without the

teacher's instructions, I think that it would be very difficult for me to accomplish my

Finally, I would also like to extend special thanks to the staffs of MEK for their

full co-operation and supporl during my graduation thesis

Ihe thesis with the specific case of MiKGroup was a great chance for me to learn and professionaly develop Therefore, I consider myself a very lucky individual who have been helped.| am also grateful for havmg a chance to meet wonderful people

and professionals who supported me through this graduation thesis period.

1.1 The necessity of the topic

1.2 The goals of the thesis

2.1.3 Deinition of business plan and planning, si se, "

2.1.4 Definition of BRP method "

2.2 Optimization and Customization of an ERP system

2.2.1 Overview

2.2.2 ERP classification

2.2.3 Factors in ERP selection

2.3 Advantages of ERP system

2.4 Applying an ERP adoption

3.1.3 Current system situation of MIK Group

3.2 Current situation of ERP in Vietnam and MIKGroup

3.2.1 Current silualion of ERP in Vietnam

3.3 Research process

3.4 Problem statement

3.5 Proposed ERP system

3.5.2 Constructing to replace current system

3.5.3 Constructing comprehensive system

Chapter 4 RESULTS AND DISSCUSION

4.1 Results

TABLE OF NOTATIONS AND ABBREVIATIONS

MIKGroup Vietnam MIKGroup Joint stock Company

LIST OF TABLES

Table 2-1 Potential cffocts of ERP adoption (Carlo and Sara,2018)

‘Table 3-1, Business result of MIKGroup 2016-2018 (Unit: Million VND) Table 3-2 Source of revenues of MIKGroup 2016-2018 (Unit: Million VND) Table 3-3 List of projects has been carried out by MIKGroup

Table 3-4 Main partners of MIKGroup

Table 3-5 Current soflware of MIKGroup

TIST OF CHARTS AND FIGURES

Tiigure 2-1 Plan level HHu re

Figure 2-2 Flow of information in planning (Raphael, 2008)

Figure 2-3 Planning process (Armstrong, 1982)

Figure 2-4 The full lifecycle ERP adoption reference model (Chuck, 2019) Figure 3-1 Organizational structure of MIKGroup

Figure 3-2, Research process ¬—

LIST OF PICTURES Picture 3-1 Module for human resource management, (OpeuFRP)

Picture 3-2 Accounting module intertace (OpenERP)

Picture 3-3 Document-storage interface (OpenERP)

Picture 3-4 Real ostatc and building management module (OpenRRP)

Picture 3-5 Users setting (OpenERP)

Picture 3-6 Gronp creation (OpenITRP)

Picture 3-7 User creation and modification (OpenERP)

Picture 3-8 Employee information by IIR department (OpenBRP)

Picture 3-9 Comprehensive system with full of modules (OpenERP)

Picture 3-10, Menu of accounting user (OpenERP)

Picture 41-1 Expense creation (OpenERP)

Picture 4-2 Cash reporting in Accounting module (OpenFRP)

Picture 4-3 Sign module with signing a contract (OpenRP)

SUMMARY OF GRADUATION THESIS

Supervisor: Assoc Prof Dr Nguyen Iai Thanh

Student: Vu Le Minh

Code: 15071562

Cohort: MIS2015A

Major: Management Information System

Keyword: Enterprise Resources Planning, ERP, management system, information

2 ‘The goals, the research subject and the research scope of the thesis

‘The thesis examines business and system situation at MIKGroup Joint stock

Comparry, slales the problems and finds out the optimal solution from ERP provider, so

that in order to construct it with purpose to improve the quality of management and operation of the company

3 Methodology

The research methodology used in the thesis is the case-study analysis

4 Main content and the novelty of the author

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‘the main contents of the study include a review of ERP system and related appheations, research about the IT system and operational status of MIKGroup Joint stock Company, data analysis, and applications of the recommended ERP system

‘The novelty of the research is a practical research to a specific business in Vietnam, so that it proposes specific solutions to improve the business performance at management and operation of the company

5 Conclusion

In this thesis, the author clarifies business issues and factors to choose and build

an BRP system for the case study by Odoo/OpenBRP

However, duc to the limitations in time and knowledge, the goal is to constructing a comprehensive and integrated system with the purpose to faster the business processes and help the company to manage its resources better

ABSTRACT

In this technological age, every company would ty to automate and systemize its

processes to easily manage and find new opportunities in business Vietnam is no

exception where moslly enterprises are able to apply technology and information system in management and operation, However, most of business are small and mid- size, and many still cannot figure out a solution for managing, and optimizing the business processes, so that the mumber of enterprises suspending operation and dissolution is quite high

‘The research is motivated by the real world problem statement, especially in Vietnam The thesis makes a research on enterprise resource planning (ERP), which has existed

for a few decades and has nol been 4 strange lerm [or most business m the world or i

Vietnam Beside popularity of HRP, it seems like this system is not widely applied in

Vietnam Through this thesis, the FRP relaled problems are investigated and tackled by the selection and construction of an ERP software for a specific company

However, duc Lo the hrsilations in lime and knowledge, the thesis only aims Lo sclect

an ERP software, construct and customize an ERP system which lead to the better

performance of business in management and operation.

Chapter 1 OVERVIEW

1.1 The necessity of the topic

Management, operation and development have always been the top concems for

businesses in all ficlds “Information Technology (IT) innovations, the advent of the Intemet, and the ease of finding and sharing information are ail elements that contribute to obtaining overwhelming amounts of data and information” (Carlo and

Sara, 2018)

Now, the competitors become more and more powerful, businesses expect

technology, that all allow them to be more productive, inmmovative, and accessible with

more opportunities, especially when compared to prominent competitors in the field

“In order to sustain and grow further, an organization must deal with all sales holders

such as employees, stakcholders and the enviroumonl The organization must design an information system that would collect information as well as provide required

information lo all these stakcholders.” (Anbuudayasankar, Ganesh, Mohapatra, and

Sivakumar, 2014)

In Vietnam, systematization and synchronization are no longer new concepts, but

mosh orgarivalions use a Jot of different platforms for different departments and

functions that seem difficult to be integrated and optimized At the same time, not all

operation phases are systematized, there are manual processing and storage stages,

which can affeet the optimization of the business process and management leading Lo underdevelopment and difficulty in finding and recognizing new opportunities

So, there is a necessity for applicalions of ERP system in enerprise business and

finance management, that aims to support controlling and optimizing in enterprise

resource management, thus helping organization to make optimal decisions, increase prolils and alse reduce eosls for management and oporalions in the business “An BRP addresses the abovementioned problems by bringing together all those involved in the

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value chain through integrating the application modules used by various functional and business units.” (Chuck, 2019)

1.2 The goals of the thesis

‘This graduation thesis has a goal about the design, theoretical investigation and

practical investigation of ERP system which can be identified base on the main ideas

Firsily, to understand aboul resources controlling and planting, the importance of those concepts and how it relates to decision making and management operations

Secondly, to leam about the ERP with the question: “How to evaluale and select an

ERP system?” Also to conduct research to identify problems to solve in a company

which could use ERP

Thirdly, to collect data aru) understand the real case of business then identily methods

for solution

Finally, to propose an optimized ERP system for the business

1.3 Research subject

Vietnam MIKGroup Joint Stock Company (MIKGroup)

The problem to be solved in this research is selecting, applying an optimized ERP

system and the way it benefits to a business

Due to the limitation of knowledge, time and data collection, the thesis has only

conducted research on the business process, 17 and financial aspect

1.4 Scope of research

Space: Vietnan MIKGroup Jomt Stock Company (MIKGroup)

Time:

Business data has been provided by the company from 2016 tp 2018

Investment data has been provided by the company since 2616 counts 2018

Management application or system in use and the performance has been provided by the company from 2016 to 2018

Content:

To research the organizational, managerial activities and also the management and storage systems of the company

To study the application ERP system in the company

1.5 Methodology

This study has applied the case study methodology that can be understood as a

method of using data or information, which are real or formuated [rom a real situation,

in purpose to prove or solve a problem This methodology foouses on phenomena that

are happening in the actual context Tn order 1o prove the research results, it is

necessary to use a lot of evidences (source documents, observations, interviews, .) i

combination with the necessary data collection and analysis

Case sludy: Viotnam MIKGroup Joint Slock Company (MIK Group)

1.6 Main content

‘The topic layout consists of 5 chapters

Chapter 1: Overview of the thesis

Tmrodueng the research topic, identifying the objeclives, scope and research methods

to implement the thesis

Chapter 2: What are ERP systems and their applications

Tutrodueing theorctical basis relaled lo the research lopie

Chapter 3: Business activities of MIK Group and research design

Presenting the current slate of business process, TT, finance and management of the

company (MIK Group)

Collecting data, identifying issues and constraints, optimizing purposes, presenting research methods, roscarch processes, build ERP system in the company

Chapter 4 Results and discussion

Reporting the results of application after rmning the BRP system, and discussing the

Inmilalions

Chapter 5: Conclusions

Summarizing key findings of the thesis and research contributions

SUMMARY OF CHAPTER 1 Chapter 1 introduces an overview of the research topic ‘he author presents the reason

of the research that leads to the direction and the scope of the research The topic uses case study methodology to analyze and elarily the problem Through chapter 1, the

author defines the practical meaning of the research topic

Chapter 2 THEORETICAL FOUNDATIONS AND RELATED

WORKS

2.1 Definition terma

2.1.1 Definition of business resources

Business resources is every factor which provide the means for a company to carry its business processes or activities ‘Ihose factors are human, financial, physical and knowledge which are also necessity to create value for the customers

Business resources ean be divided into Cour types:

‘Physical resources: Tangible assets of a company which are used to create value offering to its customers such as raw materials, buildings, vehicles,

inventory

‘ Human resources: Employees or staffs with knowledge required who provide scrvives or direelly produce product as value offering for the customers Example: engineers, developers, business analysts

‘Intellectual resources: Nonphysical and intangible assets such as brand, copyrights, patent or database of the customers

‘© Vinancial resources: Money asset such as fund, cash, credit

Depending on the field of business, department and business function, necessity business resources will be specified Through business resources, a company can have their own compelitive advanlages compared to other vompany For example: Beller knowledge employee, imovative patent of product, modern factory It’s important for

managers or administrator to understand business resources of their company so that

they can make the most of resources to bring maximum profit

2.1.2 Definition of business functions

Business functions are “specialized tasks performed in a business organization, including manufacturing and production, sales and marketing, finance and accounting, and human resources” (Kenneth and Jane, 2017)

It refers to a group of processes or activities which are performed regularly to carry out

a part of organization’s mission

Business fumetion can be divided into several arcas:

Depending on the type of business, business functions are struckured differently 1 will

be separated to departments with specific focus in order to ensure that important activities are performed effectively Specific areas also take responsibility for supporting specific lypes of objectives, for example: IT support will be involved in upgrading system or improving the usability of end users Understanding the business functions is a basis but major necessity of manager or administrator especially when they are in need of plarmting,

2.1.3 Definition of business plan and planning

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2.1.3.1 Business plan

“Business plan is any plan that works for a business to look ahead, allocate resources,

focus on key points, and prepare for problems and opportunities” (Berry, 2004), It’s a

document which describes the business goals, the methods of how to achieve these

goals and the time frame for these goals to be attained

Figure 2-1 Plan level

+ Strategic plans: consider the entire organization with the document about strategic goals, the determination of actions and resources to achieve the goals

% Tactical plans: are specific plans relevant to a distinct area of an

organization, which are concerned with the responsibility and functionality of lower-

level department, with the purpose of supporting strategic plans

* Operational plans: are the highly detailed plan of day-to-day tasks

required to run a company, which focused on the specific procedures and processes

that occur within the lowest levels of the organization

2.1.3.2 Business planning

According to the overview of Berry about business planning in “The book on business

planning” (2004), business planning is the process of identifying resources,

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determining the activities required and deciding the best way to accomplish a desired goal

Information flow from strategic to operational planning (Raphael, 2008)

Figure 2-2 Flow of information in planning (Raphael, 2008)

Step of planning process (Armstrong, 1982)

Figure 2-3 Planning process (Armstrong, 1982)

` Step 1: Set Objectives for the long run

“Step 2: Generate Altemative Strategies

% Step 3: Evaluate alternative strategies by comparison

s Step 4: Monitor strategies implementation and results

“= Step 5: Obtain a high level of commitment among the Stakeholders during each

step of this process

Planning is important and also the most basic function of an administrator It establishes the basis and direction for the implementation of organizational, leadership

and inspection function, which are based on business field, company’s commitments,

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assessment of euvironment’s opportunity and threat, strength and weakness Although the administrator has all the resources: finance, people, technology, but without the understanding of what his/her business will achieve, where to go or who to become, all those resources will be useless On the contrary, organization which has good planning will able it to recognize new opportunity, foresee and avoid future uncertainty, outline cflective actions, be aware of the operational risks and improve, innovate to enhance competiveness Thus, it ensures the organization operates effectively in an ever-

d

mging environment

2.1.4 Definition of ERP method

“Enterprise resource planning (ERP) systems refer to suites of application systems

comprising multiple inlegraled soflware modules thal help organizations to manage

their resources With the HRP, the same worker is empowered with information to do a

lot more in a more effective and efficient manner In short, the ERP helps the company realize the benefits of eliminating data entry errors, reducing order fulfilment cost and cycle time, enabling speedy delivery of goods and services, and raising customer

satisfaction levels Generally speaking, ERP deployment is not solely a game of system

implementation and process automation, Its potential benefits can be maximized only if

those involved are willing and committed to take advantage of system capabilities to

database.” (Hany and Abmed, 2017) This a unified, multi-functional software that links

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all business activities, from planning, statistics, control to supporting the in-depth analysis reports in order to help a business operate effectively

“ERP systems are treated as indcpondent products capable of initiating socio-technical organizational change process affecting the organizational actors’ practice and structures.” (Hany and Ahmed, 2017) ERP system can be customized base on specific process of a business Typically, an ERP system can cover many key business processes which are based on various modules:

Human resource management, (HRM)

Featured tools such as time tracking, limesheel, dalabase for employee records,

performance evaluation, payroll system, etc

It inchide accounting and finance transactions such as expenditures, tax management,

payments, etc

* Sales and marketing

This module carries sale business processes like orders, sales invoiees, cle Thinay also feature taxations rule and shipping tracker

+ Customer relationship management (CRM)

It’s a module which provide a multi-information profile of customer by using data such

as purchase history, feedback or past interaction in order lo improve customer services

and profit per customer

In purpose of managing product flow from production to customer, SCM module is

about automatic processing, streamline supply chain to be able to adapt with any

sudden change of the market

# Invenlory

Inventory module, which generally uses serial numbers to track and locate items, helps

the company to ensure the stock measurement, replenishments determination or other inventory goals

* Purchasing

Including supplier listing, purchase order, stock updates, etc., this module control the processes of materials procurement

In addition, there will be more advanced ERP systems which include asset

management, e-commerce or more Basing on specific business, ERP can be vertical

with specific features In order to select an ERP software, an organization also needs to

know about ERP classification and many necessity factors to consider an ERP system

2.2.2 ERP classification

The flexibility of ERP functions and the diversity of factors which make it difficult to

classify the category of ERP software It can be grouped by functional levels, business

size, and deployment To simplify it, ERP system can be grouped as four types (Louie,

+ Generalist ERP

Including legacy and cloud ERP software, they adapt to business processes in many

fields and industries, This solution of ERP system is the most expensive one It can be strongly customized and integrated to meet the requirements in different industries

This is the largest type of ERP system because it has broad application when it is able

to adapt to processes in various industries One example of this ERP type is NetSuite

ERP (Oracle).

“Open-source ERP

Just like its name, it is a software system which has publicly source code Companies

are able to access to it for free and custamize the system by themselves without the

relying on the vendor Generally, for this solution, i requires that orgamzalions must

have IT department and staff with ERP development and programing skill Example

Odoo (openBRP), OpenBravo, Axelor ERD

* Vertical ERP

This is industry-specilic FRP which are buill as a specific software lo meet the nead of

a particular industry This solution supports ouly defined business process which are unique in a field Rather than possessing various generic features, this system focus on handle specific business problem with the minimum required customizations Au example of this solution is BtueCherry RP which focus on fashion retail industry

% Small business ERP

Typically, small business ERP is a SaaS (software as a service) model This ERP

solulion is modularized wih reduced fealures Tt serves maybe one or two business

process which are likely add-on features to fit the need of companies For example: PeopleSol (oracle) — an ERP sofiware which can be used for single modules such as HEM or accounting

Otherwise, business also need to concern about infrastructure or database for LRP system Mostly every ERP software now are available to storage and operate as two ways:

* On-premise ERP

ERP system wilt be installed on hardware and server which belong to its company

Organization must have an mfrastruclure which are strong enough to be able Lo mstall

and maintain an on-premisc ERP,

KỈ Cloud ERP:

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Generally it is a SaaS (Software as a service) ERP In this case, ERP system and

individual data of organization will be managed on cloud computing by the ERP

provider Company's user can access to the system through web browser or specific

application everywhere with internet Organization does not need infrastructure to

install and maintain ERP system while the provider is the one who carry it

The classification of ERP system is relative, some ERP software can be more

than one type when they are applied in different business Not just about understanding

the classification, in order to determine which ERP system is suitable for the company, the business also have to understand their business considerations

2.2.3 Factors in ERP selection

Basing on business field, size, functional level and even the existing system, an organization have to define their way to choose an ERP software These are various

factors to consider before select an ERP system To simply it, main factors can be

defined as 6 considerations (Louie, 2017):

# Cost (Up-front & maintenance)

On-premise ERP will cost a company greater at the up-front stage because they also

have to carry their infrastructure such as network hardware, servers, data storage and

backup going along with any cost of customization, installation and implementation

Even after up-front stage, a company will need a team to operate and maintaining the

system Otherwise, with cloud solution, the up-front cost will be lower while every

data is carried by the provider Cloud ERP’s pricing is generally based on subscription and a company will have to pay monthly fee for additional user and features as they

need

“Upgrade vs Replacement

A company have to define if they need a new ERP system or just an upgrade Many

ERP solutions nowadays are modularized, which mean a business can integrate

yD a

necessity module with the current application By this way, the disruption and costs will be reduced But if an organization have no ERP system and use various single applications or just the ERP system is old, they really should replace it

‘Training and set up

With On-premise ERP, an organization will need an technical team to install If a

company does not have it, they will have to understand the service level agreement (SLA) Otherwise, cloud ERP solution can be sciup so much easier that you only have

to install base on necessity fanctions and activate accounts to access to provider’s

server ERP is complex so with each solution, user training will always be necessily

Company have to concern about their yendor if they provide this service The training should be enough for average users to operate the system

% Integration

ERP system should work seamlessly with existing business applications A company have to consider various integration point include of system-to-system, module-to-

system and file transfer capabilities (export/import PDF, DOC, etc file) For example

LRP with existing CRM A flexibility URP system will able a business to work with

existing application, expand or scale its functionalities or even replace the existing infrastructure while ensuring fit: migration

+ Customization

A company has to make sure the ERP processes meet the requirement of key business

workflow Aside of if, there is more than just about business processes Kach department of a company may have different priorities and culture For example Marketing will spend but accounting will Gy to save Tk leads lo a problem thal

different workflows won’t fit into one-size solution An organization should consider

an ERP with customized tools to be able io configure workflow or localize dashboard

That will help performance of cach department becorne belter

# — Reporting

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More than just PDF export or spreadsheet Many ERP solutions nowadays possess advanced reporting may help you to generate financial statement with the rules and compliance based on region Furthermore, ERP software allow in-system quorics and smart filter go along with real-time data It helps to create agile and ad hoc reporting so that an organization can adjust quicker to develop business and prevent disruption

Those considerations combine with classification of ERP system will help a

company to wisely choose an ERP system which are suitable for their business An

ERP system may cost a lot of time and budget to build, but it will benefit a lot for the development and expansion of a business

2.3 Advantages of ERP system

ERP system requires large initial investments and considerable time for the implementations “Ilowever, in most cases companies are positive about BRP and consider their implementations successful According to academic research, ERP adds financial value as well: productivity in the organization will increase, as well as the return on investment compared to similar organizations that have not implemented ERP.” (Lineke, 2014)

An ERP system can effect to both financial and non-financial performance More than just easier collection and construction management dala, FRP open the way lo data manipulation

Table 2-1 Potential effects of ERP adoption (Carlo and Sara,2018)

ROA, ROI, ROS, ROE, Cost of Social ratios, corporate governance,

goods sold over sales, imployee to customer satisfaction, employee

sales satisfaction, employee productivity

internal process, innovation and

learning

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“ERP improves the productivity in two ways: (1) by bringing in best practice to its modules thereby increasing cfficioncy of the existing processes and (2) helping to retrieve information in a timely manner for effective decision making” (Anbuudayasankar, Ganesh, Mohapatra and Sivakumar, 2014)

A business can benefit a lol from aulomation of ERP An ERP system can gerieralc

automatically activities which used to be manually carried It saves more than just time

and money, an ERP software enables a company lo remodify or improve ils business

processes The different between using many modules as a single application and an

ERP system is the integration In an ERP system, those modules share the same

database so thai the data and record will be synchronized and umified All of’ i can

benefit an organization to improve business processes, management control, decision

making which will be the promise for competitiveness, development and adaptation in

an ever-changing market environment

2.4 Applying an ERP adoption

“ERP adoption requires the co-operation of many organizational units of the fill in

order to be able to streamline the business processes and to simplify the interface between one team of business users and the next” (Chuck, 2019)

For a detailed lifecycle ERP adoplion, these are sevent phases to implement an ERP

system:

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Figure 2-4 The full lifecycle ERP adoption reference model (Chuck, 2019)

o Phase 1: Assess & Plan: Planning project and assessing business include

system needs, capabilities, limitations

s Phase 2: Elaborate: Detailing business processes, data requirements

system requirements, functional requirements

& Phase 3: Select: Considering potential ERP vendors and choosing an

ERP software that suit company’s requirements

% Phase 4° Design: Determining the functionality of the ERP system

Setting up features parameter values Adapting or customizing the processes for both

business and ERP software Identifying data models include of data sources, data migration approaches Also considering the infrastructure for the ERP system This

phase will affect to change and update the first plan

% Phase 5: Build: Configuring, customizing, integrating, testing the ERP system Besides, company have to identify and formulate support document, user

guide, system administrator guide, operation procedures for the ERP software.

Phase 6; Transition: Implementing, the HRP system and new business

processes to production Clearly defining roll-out plan, contingency plan and the best approach way to minunize risks and disruptions

Phase 7: Operate & Improve: ‘Troubleshooting appeared problems Maintaining system and upgrading functions, modules as necessary Enhancing and

updaling now reloases from ie ERP provider in order to keep the system up ta

standard

The adoption of an ERP system will be costly and time consuming Simply we can

summary the lifecycle in three main stages

* Project planning stage: Defining business scope, business need, to be

process and any related document, Ustimating cost and selecting project team

% Project execution stage: Clarifving and validating requirements, selecting

provider, finalizing KRP solution, defining unplementation strategy, establishing changing, and training plan

% Go live slage: Tesling and applying syslem, training end user, migrating

data, maintaining and upgrade in need,

It’s necessary that the company have to have a team with ERP, IT, programming experts so that the implementation and post-implementation can operate smoothly and cfliviently Tn order to prevent the risks and disruptions for the organization, the planning to implement and the identifications of necessary factors is can’t be skipped The adoption of the ERP system is always the most expensive and difficult part, but its benefits and values will help the company to stand and have a long-term development

in ever-changing market environment

2.5 Literature review

% Enterprise resource planning — Implementation and management

accounting change in a transitional country (Ahmed, Magdy and Micheal, 2018)

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‘This paper identifies the unique nature of I! implementations in Egyptian organizations It analytically presents the comparison between ERP system and custom software in purpose to change management accounting rules and routines This research is able to provide empirical evidences of LRP implementations and the

changing in management accounting in highly regularized organizations in Egypt

Thus, the results of this book could be useful for World Bank and International

Monetary Fund (IMF) to recommend to countries which have a problem with their

experidilures controlling

* Enterprise Information Systems Design, Implementation and

Management Organizational Applications (Maria, 2010)

This book is a research of the creation and implementation of orterprise

information system Inckuding of many topics, such as information system outsoureing,

ERP system utilization and advanced planning system, this paper can be the essential reference source for researchers or professionals to understand strategic impact of EIS

on global business and world economy This paper presents wide range of topics,

models, solutions, tools and case studies which could contribute to figure out a new

way te identify opportunities, trends and challenges of HIS selection, application, and

exploitation

+ Enterprixe Resource Planning und Business Intelligence Systems for

information Quality (Carlo & Sara, 2018)

This book analyses the role of Fnterprise Resource Planning (ERP) and Business

Intelligence (BI) systems through an cmpirical analysis Under the perceived of the Italian manager, the paper presents application of EP and 131 in reducing or managing information overload/underload, so that improving the information quality Tl also

considers if the combined adoption of ERP and BI system could be more effective in

dealing with information overloadimderload than an adoption of only one system

Furthermore, the book presents the examination of affection that ERP and BI system

3L

may cause in information flow, such as information processing capability, communication and reporting, information sharing which is consider im both information flow and information quality

% Managing Enterprise Resource Planning Adoption and Business

Processes (Chuck, 2019)

This book lends to address ERP adoplion and management with many business and organization issues The paper aim to help tackling the problems about ERP adoption

of readers, such as MIS praclitioners, business professionals, and advanced university

students It presents quite detail about the concept of ERP system, critical factors of

ERP adoption, ERP lifecycle, organizational issues with ERP deployment, issues of

1managing change in ERP adopting organizations, supporl aclivilies and maintenance,

sơ that reader could understand quite deep about the HRP and facing issues while implementing Not only theoretical topic, the book has two in-depth case studies of company which are Asia Pacific operations of American multinational conglomerates

practical issues m different fields.

Chapter 3 BUSINESS ACTIVITIES OF VIETNAM

MIKGGROUP JOINT STOCK COMPANY

& PROBLEM STATEMENT

3.1 Overview of the company

3.1.1 General information

* Company name: Vietnam MIKGroup Joint Stock Company

% Abbreviatedname: MIKGroup

$ Headquarters; 6th Floor, Hong Ha Center, No.25, Ly Thuong Kiet Street,

Phan Chu Trinh Ward, Hoan Kiem District, Ha Noi City, Vietnam

% Taxcode 0106558919

Charter capital: VND 3,500,000,000,000 (Five trillion five hundred billion)

4 Company size ~ 450 employees

+ Business activities: Real estate investment, real estate consulting, real

eslale broker, constructing, etc

* Victnam MIKGroup Joint Stock Company (MIKGroup) specializes in real estate investment, trading and development in Vietnam With a team of

experienced managers and experts, MIK Group is cooperating with many leading

domestic and international partners in real estate design, supervision, construction and management to develop high-standard real estate projects such as: Imperia Garden,

Tmperia Sky Garden, Valencia Garden in Hanoi, The Waterfront Sargon, Villa Park,

Park Riverside, River Park, RioVista in lo Chi Minh City, Sol Beach House Phu Quoc, Mavenpick Resort Waverly Phu Quoe, ete

3.1.2 Business activities

3.1.2.1 Business goal

33

Aiming to be the leading real estate development corporation in Vietnam, MIKGroup focus on creating ultimately valuable products, service and living experience in beautiful and civilized living space with intematioual standard

constructions

3.1.2.3 Overview of the company’s activities

MIKGroup is a new company, established in 2014, winch specializes in real estate

investment, trading and development Within a few years, MIKGroup now is the tepulable wame in real estate business Up to now:

* MiKGroup already has 14 projects stretching from south to north

* Collaborating with 13 main partners which are big company in different

field such as construction contractors, design consultants, financial sponsors,

management & operating firms

“ Owning major representative offices in Hanoi and many branches in

different cities

$ Improving the value and quality of life of Vietnamese people,

contributing to the development of the country through projects and a large amount

of taxes

3.1.2.3 MIKGroup Finance in 2016 to 2018

Even lately starting from 2014, MIKGroup has proved itself as a business with very high financial capacity compared lo a new company The period from 2016 to

2018 is the most growing time of the corporation

‘Table 3-1 Business result of MUXGroup 2016-2018 (Unit: Million VND)