KẾ HOẠCH ỨNG DỤNG CÔNG NGHỆ THÔNG TIN tại CÔNG TY cổ PHẦN NAM dược e

Application of copyrighted software to common software Construction of websites of the Company and the prestigious and aesthetic brands, meeting demands on information of clients Young p

KẾ HOẠCH ỨNG DỤNG CÔNG NGHỆ THÔNG TIN TẠI CÔNG TY CỔ PHẦN

NAM DƯỢC

PLANNING APPLICATIONS INFORMATION TECHNOLOGY IN

NAM DUOC COMPANY

1. History of Formation:

Nam Duoc Joint Stock Company was incorporated on 1st January 2004 In September, 2006, the Company completes construction of pharmaceutical manufacturing plant under such standards as GMP - WHO, GSP, GLP Its Charter Capital is VND 56,800,000,000 (Fifty six billion, eight hundred million dong) The Company is specialized on purchasing, sales, consignment of pharmaceutical products, cosmetics, foods, medical instruments; Consultancy, training and transfer of technology in pharmaceutical and cosmetic fields; growing, purchasing, processing and trading of medicine

2 Analysis of Reality

a Reality of awareness: In spite of active updating and application to take full advantages of development of technology information, the Company’s leadership has not released overall and consistent strategies on application and exploitation of information technology to the Company Plans on applications are only limited to solutions

b Reality of infrastructure: Nam Duoc Company has recently facilitated the works of entire officers and staff with computers, including personal computers and laptops; 100% of management officers are offered with

laptops 100% of computers are connected to internet via ADSL or Dcom – 3G However, Nam Duoc Company has not owned a server to save database which is controlled by servers or rented hosts of external partners

c Reality of software application: about 50% of computers are equipped with Window XP copyrighted operating system; In addition, 100% of computers are installed with BKAV antivirus or Kapersky The other software applications are provided sufficiently to meet requirements and to improve performance and their work

d E- information portals and website of the Company: Nam Duoc Company

is currently one of the companies with the largest website in pharmaceutical industry The websites, in addition to purpose of brand advertisement of the Company, are information connection channel between the Company and consumers and daily consulting place for consumers There are tens of thousands of accessing turns into Nam Duoc’s websites

e Reality of the human resource: At present, Nam Duoc Company has only one website administrator who is in charge of information technology affairs meanwhile other websites are controlled by Brand Managers The website administrator assists departments in monitoring, management, maintenance of computers and internet connection

f Reality of e-commerce application: Nam Duoc Company has been reconstructing its proper website system to apply e-commerce and online sales However, its activities are in shortage of strategic vision, not implemented drastically and associated with the overall marketing strategies

g Reality of application of ERP software system to management work: at present, Nam Duoc is coordinating with FAST Software Company to construct accounting software management

system between the Holding company and subsidiaries It is expected to officially put the

system into operation on 1st January 2013 In addition, the Company is negotiating to continually construct sales administration system

3 Evaluation of weaknesses and strengths of SWOT model- based products

Equipping computers and other key facilities to

all officers and staff In particular, 100% of

management staff are provided with laptop for

working

Application of copyrighted software to common

software

Construction of websites of the Company and the

prestigious and aesthetic brands, meeting

demands on information of clients

Young personnel who have basic knowledge and

quick approach to information technology

The leadership does not have comprehensive visions to the system

so decisions and visions are limited Future using level of computers has not been considered so their configuration may be out-of-date as synchronous application of new software

Specialized and advanced software has not been applied

E-commerce software has not been applied

The State is approaching and issuing so many

information technology application assistance

programs to companies Nam Duoc is developing

a large strategy to implement a synchronous

strategy

The finance invested in the plan on information technology application

in 5 years is quite high meanwhile it

is easily asynchronous if being equipped from time to time

4 Analysis and making comparison with 3 competitors in the industry

Nam Duoc Traphaco Thai

Duong

Hau Giang

Construction of Information

Portals

internet-marketing Applications 8 7 4 7

5 Analysis of experience and lessons from other domestic and foreign companies

a Vietnam is making the best efforts to become the regional center for assembling electronic, telecommunication equipment and computers, production of several types of accessories, parts, and design of new equipment Information technology industry become key economic industry with the average growth rate of 20 -25%/ year with the total revenue of about USD 6 -7 billion in 2010 Personal computers, mobile phones, and Vietnam brand software is controlling the domestic market shares, and the

export value is over USD 1 billion (Source: Vietnam Telecommunication

and Information Technology Development Strategies by 2010 and orientation to 2020).

b Reality shows that the companies with strong development of information technology application in corporate management and control promptly gain success, effectiveness and firm developments The most typical lesson that is deserved to be review is from Vinamilk Company: it has faced with

so many difficulties in connection to study to acquire technology; change

in procedures of the Company to be in line with software procedure and to avoid risks in accounting works at the same time during its development process The clear decentralization facilitates its accounting and financial work much more than it used to The Company controls inventories, distribution, corporate operation, relations with clients, production better and reduces risks significantly; there is more smooth coordination between sales and distribution; monitoring functions are implemented on basis of real time Information technology qualification of personnel in Vinamilk Company is improved significantly in comparison with it in the past

Information technology infrastructure is consolidated, synchronous, standardized, and promoted

6 Solutions to information technology application in the industry

a Pharmaceutical companies are basically late in application of information technology

b Some companies start to construct good online information system So many companies establish their websites without proper care from time to time to become dead information channels to which there is unavailable viewer and innovated information

c E-commerce application in the industry is simple and insufficient Some companies establish online sales pages However due to bad infrastructure, online sales procedure is not good enough Online transaction quantity and direct delivery are little so effectiveness is not high as it was expected

d Application of software and construction of database to manage and decentralize are not good enough Most of companies have not owned client database management software Some advanced companies own software of client care, personnel management, supply, inventories, etc

II. INFORMATION TECHNOLOGY APPLICATION STRATEGIES IN

NAM DUOC COMPANY

1 E-commerce and information

technology application strategies

 ERP software integrates general functions of

an organization into the unique system In

stead of parallel and independent use of

accounting software, personnel- salary

software, production management software,

etc, Nam Duoc targets to construct an ERP

system consisting of all in 1 unique software

in which functions are connected to each

others

 ERP helps increase productivity, sufficient and timely concentration and sharing information of the Company In addition, the information is protected absolutely ERP enables to re-organize operations of the Company under professional procedures

It is possible to summarize ERP’s advantages as follows:

 An entirely integrated information system

 Sufficient management sub-systems with varied functions, meeting different requirements on production, business, professions, and scope

 Working under the standard and modern management procedure of leading companies in the world

ERP owns overall and diversified management functions, meeting comprehensive demands on corporate management in all departments, which are designed into modules

in organic relations to form a closed procedure with automatic median steps

Accounting – financial management: consists of financial – planning modulus,

General Ledger, Cash Management, Accounts Receivables; Accounts Payables, Fixed Asset Management, cost accounting, civil construction accounting and account reports, financial management reports, and other reports under provisions issued by the Ministry

of Finance such as balance sheet, income statement, VAT and cash flow statements

Accounting transactions are integrated with other management sub-systems such

as inventory management, purchasing management of goods – materials, production and sales management Accordingly, as professional transactions happen, responding

Other sub-systems Other resources

Reviewsing General Ledeger

Revising

Processing

accounting entries such as increase, reduction of inventories (from inventory management sub-system), account receivables (from sales management sub-system), Accounts Payables (from purchasing management sub-system), cost accounting (from production management sub-system), are created automatically and recorded into the accounting subsidiary ledgers The integration system permits minimizing time to entry data with exact arising accounting figures

The specialized staff shall close the general ledger at end-term to complete accounting work of the period The sub-system supplies reports as required by the State

or management reports as required by the corporate management demands

- PO – Purchasing Order: ERP supplies the Information management procedure

from sales to payment, including such functions as management of purchasing requests,

management of orders, bills, payment documents and accounting records for purchasing and payment

The procedure permit comprehensive purchasing management from initial request for order until receipt of shipping and payment The procedure is implemented via sub-systems of purchasing, inventories, accounts payables, general ledger The procedure permits managing such information as

+ Purchasing orders: thanks to integration of the system, purchasing orders can

be created automatically from the production management sub-system (As the system calculates materials and goods insufficiently to support production and sales out to the market) The users enable to create purchasing orders manually from arising purchasing orders of goods and materials

Material demands Source

Quotation Supplier

Requests for Quotation Purchasing Order

Order s Receipt of goods

Payment

+ Order / Contract Management: the function helps save information in

connection to purchasing orders or contracts with sufficient information related to purchasing profession such as suppliers, date of purchasing, date of shipping, effective date, goods, quantity, unit price, payment terms, etc

+ Goods receipt monitoring: the system has functions on receipt of goods and

making comparison among orders on basis of available orders In addition, it is possible

to control returns of sold goods (in case of redundant receipt or dissatisfactory purchased goods, etc)

+Bill management: the system allows creating bills automatically on basis of the

purchasing orders or manual entry of accountants into the system The functions are implemented with accounts receivables sub-system

+Payment: it belongs to accounts receivables sub-system and functions filing

documents related to payment against sales

+ Book keeping operations: the book keeping operations are related to

purchasing procedure that automatically creates such transactions as inventories, returns

of sold goods, entry of bills, and payment The entries are saved into the subsidiary ledger and updated into the general ledger as required by the General Accountant

- Order Management: manages the information in connection to sales contracts

or order, clients information, shipping to clients, comparison with orders and accounts receivables The sales management sub-system permits entry and processing of orders, tax on revenue/ Value Added Tax, shipping plan, transportation, direct purchasing and sales (rather than via warehouses), suspending orders, credit tests, policies on price and discount, returned goods, etc

+ Procedure: monitors comprehensively since receipt of orders until shipping to

clients, issue of bills, money receipt and book keeping operations

+Sales: controls orders or Contracts The sub-system allows the Company to file

all contracts, orders The information of the orders consists of information on sold goods, quantity, unit price, date of delivery, payment terms, clients, designed address for shipping, etc In addition, order management function permits the Company to disclose policies on sales such as discount, devaluation, transportation management, etc

+ Shipping: the function helps monitoring information related to shipping to

clients The output information of the process is export goods from the warehouse and clients’ receipt

+ Creation of bills and payment: the system permits creating bills automatically

or manually to monitor debts of clients on basis of the information in the Contract/ Order

In addition, the system functions payment (receipt of cash) as clients pay against goods The transactions are implemented with Accounts Receivables sub-system

+ Book keeping operations: the book keeping operations arising from sales

procedure such as export, bills and payment are accounted automatically and saved into the subsidiary ledger Then, they are updated into the general ledger as required by the General Accountant

- Customer Relation Management: CRM allows comprehensive client

management in entire process from potential clients, sales opportunities, sales transactions to warranty service, client care after sales CRM consists of sub-systems:

Entry of orders

Storage of goods Goods export Delivery

Automatic creation of bills Accounts

Receivables

Bills

Money receipt Banking record

comparison

management of client documents, management of sales opportunities, management of calendar and activities, management of client services

- INV – Inventory: this ERP-based corporate management solution supplies

inventory management sub-system to meet demands on complicated inventory management with so many physical inventories, varied types of goods and materials

+ Inventory organization: the function allows to report inventory ERP permits

to report inventory organization in varied plants, stockpile of materials, warehouse of finished products, etc The function helps share information related to inventories in varied inventories to concerned people

- MFG - Manufacturing: PP – Production Plan, MRP – Material Resource

Planning, Bills of material, Costing, management of production, value and quantity in progress (WIP – Work in Process)

Production Management Integration Modulus

Management procedure from demands on production to sales is illustrated in the following diagram:

Capacity evaluation

Orders

Sales manag ement Quality Control

Material demand planning

Manufacturing phase management

Costing

Management of warehouse, materials

and goods Sales

management

Production Capacity

Material ratings and manufacturing phases