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

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT SOME APPLICATIONS OF OPENERPODOO – AN ERP SYSTEM IN ENTERPRISE BUSINESS AND FINANCE MANAGEMENT: A CASE STUDY

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL

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

Student’s name: Vu Le Minh

Hanoi - Year 2020

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL

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

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

STUDENT ID: 15071562 COHORT: MIS2015A

MAJOR: Management Information System

Hanoi - Year 2020

LETTER OF DECLARATION

I 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 results of my own research and has never been published in any work of others During the implementation process of this project, I have seriously taken research ethics; all findings of this projects are results of my own research and surveys; all references in this project are clearly cited according to regulations

I take full responsibity for the fidelity of the number 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 directly 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 graduation thesis

Secondly, I would like to express my gratitude to our thesis coordinator- Mrs Nguyen Thi Thuy who has given her valuable time to inform me of the essentials for graduation thesis

Finally, I would also like to extend special thanks to the staffs of MIK for their full co-operation and support during my graduation thesis

The 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.I am also grateful for having a chance to meet wonderful people and professionals who supported me through this graduation thesis period

TABLE OF CONTENT

SUMMARY OF GRADUATION THESIS 10

ABSTRACT 12

Chapter 1 OVERVIEW 13

1.1 The necessity of the topic 13

1.2 The goals of the thesis 14

1.3 Research subject 14

1.4 Scope of research 14

1.5 Methodology 15

1.6 Main content 15

Chapter 2 THEORETICAL FOUNDATIONS AND RELATED WORKS 17

2.1 Definition terms 17

2.1.1 Definition of business resources 17

2.1.2 Definition of business functions 17

2.1.3 Definition of business plan and planning 18

2.1.4 Definition of ERP method 21

2.2 Optimization and Customization of an ERP system 21

2.2.1 Overview 21

2.2.2 ERP classification 23

2.2.3 Factors in ERP selection 25

2.3 Advantages of ERP system 27

2.4 Applying an ERP adoption 28

2.5 Literature review 30

Chapter 3 BUSINESS ACTIVITIES OF VIETNAM MIKGGROUP JOINT STOCK COMPANY 33

& PROBLEM STATEMENT 33

3.1 Overview of the company 33

3.1.1 General information 33

3.1.2 Business activities 33

3.1.3 Current system situation of MIKGroup 38

3.2 Current situation of ERP in Vietnam and MIKGroup 40

3.2.1 Current situation of ERP in Vietnam 40

3.2.2 Current situation of ERP in MIKGroup 42

3.3 Research process 42

3.4 Problem statement 43

3.5 Proposed ERP system 45

3.5.1 Choosing ERP software 45

3.5.2 Constructing to replace current system 47

3.5.3 Constructing comprehensive system 51

Chapter 4 RESULTS AND DISSCUSION 55

4.1 Results 55

4.1.1 ERP software 55

4.1.2 Current system 55

4.1.3 Comprehensive system 57

4.2 Limitation and the next research direction 60

Chapter 5 CONCLUSIONS 62

REFERENCE 64

APPENDICES 66

TABLE OF NOTATIONS AND ABBREVIATIONS

MIKGroup Vietnam MIKGroup Joint stock Company

LIST OF TABLES

Table 2-1 Potential effects of ERP adoption (Carlo and Sara,2018) 27

Table 3-1 Business result of MIKGroup 2016-2018 (Unit: Million VND) 34

Table 3-2 Source of revenues of MIKGroup 2016-2018 (Unit: Million VND) 35

Table 3-3 List of projects has been carried out by MIKGroup 35

Table 3-4 Main partners of MIKGroup 37

Table 3-5 Current software of MIKGroup 39

LIST OF CHARTS AND FIGURES

Figure 2-1 Plan level 19

Figure 2-2 Flow of information in planning (Raphael, 2008) 20

Figure 2-3 Planning process (Armstrong, 1982) 20

Figure 2-4 The full lifecycle ERP adoption reference model (Chuck, 2019) 29

Figure 3-1 Organizational structure of MIKGroup 38

Figure 3-2 Research process 43

LIST OF PICTURES

Picture 3-1 Module for human resource management (OpenERP) 48

Picture 3-2 Accounting module interface (OpenERP) 48

Picture 3-3 Document-storage interface (OpenERP) 48

Picture 3-4 Real estate and building management module (OpenERP) 49

Picture 3-5 Users setting (OpenERP) 49

Picture 3-6 Group creation (OpenERP) 50

Picture 3-7 User creation and modification (OpenERP) 50

Picture 3-8 Employee information by HR department (OpenERP) 51

Picture 3-9 Comprehensive system with full of modules (OpenERP) 52

Picture 3-10 Menu of accounting user (OpenERP) 53

Picture 4-1 Expense creation (OpenERP) 57

Picture 4-2 Cash reporting in Accounting module (OpenERP) 57

Picture 4-3 Sign module with signing a contract (OpenERP) 60

SUMMARY OF GRADUATION THESIS

Supervisor: Assoc Prof Dr Nguyen Hai Thanh

Student: Vu Le Minh

Code: 15071562

Cohort: MIS2015A

Major: Management Information System

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

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

The thesis examines business and system situation at MIKGroup Joint stock Company, states 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

The main contents of the study include a review of ERP system and related applications, 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 ERP system for the case study by Odoo/OpenERP

However, due 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 try to automate and systemize its processes to easily manage and find new opportunities in business Vietnam is no exception where mostly 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 number 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 not been a strange term for most business in the world or in Vietnam Beside popularity of ERP, it seems like this system is not widely applied in Vietnam Through this thesis, the ERP related problems are investigated and tackled by the selection and construction of an ERP software for a specific company

However, due to the limitations in time and knowledge, the thesis only aims to select

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 concerns for businesses in all fields “Information Technology (IT) innovations, the advent of the Internet, and the ease of finding and sharing information are all 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, innovative, 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, stakeholders and the environment The organization must design an information system that would collect information as well as provide required information to all these stakeholders.” (Anbuudayasankar, Ganesh, Mohapatra, and Sivakumar, 2014)

In Vietnam, systematization and synchronization are no longer new concepts, but most organizations use a lot 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 affect the optimization of the business process and management leading to underdevelopment and difficulty in finding and recognizing new opportunities

So, there is a necessity for applications of ERP system in enterprise business and

finance management, that aims to support controlling and optimizing in enterprise resource management, thus helping organization to make optimal decisions, increase profits and also reduce costs for management and operations in the business “An ERP addresses the abovementioned problems by bringing together all those involved in the

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: Firstly, to understand about resources controlling and planning, the importance of those concepts and how it relates to decision making and management operations

Secondly, to learn about the ERP with the question: “How to evaluate 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 and understand the real case of business then identify 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, IT and financial aspect

1.4 Scope of research

Space: Vietnam MIKGroup Joint Stock Company (MIKGroup)

Time:

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

Investment data has been provided by the company since 2016 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

Case study: Vietnam MIKGroup Joint Stock Company (MIKGroup)

1.6 Main content

The topic layout consists of 5 chapters:

Chapter 1: Overview of the thesis

Introducing the research topic, identifying the objectives, scope and research methods

to implement the thesis

Chapter 2: What are ERP systems and their applications

Introducing theoretical basis related to the research topic

Chapter 3: Business activities of MIK Group and research design

Presenting the current state of business process, IT, finance and management of the company (MIK Group)

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

Chapter 4: Results and discussion

Reporting the results of application after running the ERP system, and discussing the limitations

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 The 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 clarify 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 terms

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 Those factors are human, financial, physical and knowledge which are also necessity to create value for the customers

Business resources can be divided into four 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 services or directly 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

 Financial 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 competitive advantages compared to other company For example: Better knowledge employee, innovative 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 function can be divided into several areas:

Depending on the type of business, business functions are structured differently It 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 types 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 planning

2.1.3 Definition of business plan and planning

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,

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 Alternative Strategies

 Step 3:Evaluate alternative strategies by comparison

 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,

assessment of environment’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 effective actions, be aware of the operational risks and improve, innovate to enhance competiveness Thus, it ensures the organization operates effectively in an ever-changing environment

2.1.4 Definition of ERP method

“Enterprise resource planning (ERP) systems refer to suites of application systems comprising multiple integrated software modules that help organizations to manage their resources With the ERP, 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 innovate and improve the business practices and processes of the company on an ongoing basis.” (Chuck, 2019)

2.2 Optimization and Customization of an ERP system

2.2.1 Overview

“ERP systems can be defined as Business management systems, which are based integrated software packages, control the seamless integrated information flow and process across functional areas within the organization and include at least the financial and accounting module and any other module as a single system with a shared database.” (Hany and Ahmed, 2017) It is a unified, multi-functional software that links

module-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 independent 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, timesheet, database for employee records, performance evaluation, payroll system, etc

 Financial management

It include accounting and finance transactions such as expenditures, tax management, payments, etc

 Sales and marketing

This module carries sale business processes like orders, sales invoices, etc It may 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 to 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

 Inventory

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

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, 2017):

 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 customize the system by themselves without the relying on the vendor Generally, for this solution, it requires that organizations must have IT department and staff with ERP development and programing skill Example: Odoo (openERP), OpenBravo, Axelor ERP

 Vertical ERP

This is industry-specific ERP which are built as a specific software to meet the need of

a particular industry This solution supports only 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 An example of this solution is BlueCherry ERP which focus on fashion retail industry

 Small business ERP

Typically, small business ERP is a SaaS (software as a service) model This ERP solution is modularized with reduced features It serves maybe one or two business process which are likely add-on features to fit the need of companies For example: PeopleSoft (oracle) – an ERP software which can be used for single modules such as HRM or accounting

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

 On-premise ERP

ERP system will be installed on hardware and server which belong to its company Organization must have an infrastructure which are strong enough to be able to install and maintain an on-premise ERP

 Cloud ERP

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

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 setup so much easier that you only have

to install base on necessity functions and activate accounts to access to provider’s server ERP is complex so with each solution, user training will always be necessity Company have to concern about their vendor 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: ERP with existing CRM A flexibility ERP system will able a business to work with existing application, expand or scale its functionalities or even replace the existing infrastructure while ensuring file migration

 Customization

A company has to make sure the ERP processes meet the requirement of key business workflow Aside of it, there is more than just about business processes Each department of a company may have different priorities and culture For example: Marketing will spend but accounting will try to save It leads to a problem that different workflows won’t fit into one-size solution An organization should consider

an ERP with customized tools to be able to configure workflow or localize dashboard That will help performance of each department become better

 Reporting

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 queries 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 “However, in most cases companies are positive about ERP 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 data, ERP open the way to data manipulation

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

ROA, ROI, ROS, ROE, Cost of

goods sold over sales, Employee to

sales

Social ratios, corporate governance, customer satisfaction, employee satisfaction, employee productivity, internal process, innovation and

learning

“ERP improves the productivity in two ways: (1) by bringing in best practice to its modules thereby increasing efficiency 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 lot from automation of ERP An ERP system can generate automatically activities which used to be manually carried It saves more than just time and money, an ERP software enables a company to remodify or improve its 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 that the data and record will be synchronized and unified All of it 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 adoption, these are seven phases to implement an ERP system:

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

 Phase 1: Assess & Plan: Planning project and assessing business include system needs, capabilities, limitations

 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 ERP system and new business processes to production Clearly defining roll-out plan, contingency plan and the best approach way to minimize risks and disruptions

 Phase 7: Operate & Improve: Troubleshooting appeared problems Maintaining system and upgrading functions, modules as necessary Enhancing and updating new releases from the ERP provider in order to keep the system up to 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 Estimating cost and selecting project team

 Project execution stage: Clarifying and validating requirements, selecting provider, finalizing ERP solution, defining implementation strategy, establishing changing and training plan

 Go live stage: Testing and applying system, 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 efficiently In 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)

This paper identifies the unique nature of IT 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 ERP 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 expenditures controlling

 Enterprise Information Systems Design, Implementation and

Management Organizational Applications (Maria, 2010)

This book is a research of the creation and implementation of enterprise information system Including of many topics, such as information system outsourcing, 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 to identify opportunities, trends and challenges of EIS selection, application, and exploitation

 Enterprise Resource Planning and Business Intelligence Systems for Information Quality (Carlo & Sara, 2018)

This book analyses the role of Enterprise Resource Planning (ERP) and Business Intelligence (BI) systems through an empirical analysis Under the perceived of the Italian manager, the paper presents application of ERP and BI in reducing or managing information overload/underload, so that improving the information quality It also considers if the combined adoption of ERP and BI system could be more effective in dealing with information overload/underload than an adoption of only one system Furthermore, the book presents the examination of affection that ERP and BI system

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

 Managing Enterprise Resource Planning Adoption and Business

so that reader could understand quite deep about the ERP 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 Discussion of various

important ERP and management issues can be supported by these two ERP experiences

SUMMARY OF CHAPTER 2 Chapter 2 introduces the theoretical basis of business resources, business functions, business plan and planning, ERP Also, the author makes a research of factors and requirements to build an ERP system In order to build an ERP system for a research business, the author explores articles on ERP application cases into many practical issues in 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

 Abbreviated name: MIKGroup

 Headquarters: 6th Floor, Hong Ha Center, No.25, Ly Thuong Kiet Street, Phan Chu Trinh Ward, Hoan Kiem District, Ha Noi City, Vietnam

 Tax code:0106558919

 Charter capital: VND 5,500,000,000,000 (Five trillion five hundred billion)

 Company size: ~ 450 employees

 Business activities: Real estate investment, real estate consulting, real estate broker, constructing, etc

 Vietnam 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, Imperia Sky Garden, Valencia Garden in Hanoi, The Waterfront Saigon, Villa Park, Park Riverside, River Park, RioVista in Ho Chi Minh City; Sol Beach House Phu Quoc, Mövenpick Resort Waverly Phu Quoc, etc

3.1.2 Business activities

3.1.2.1 Business goal