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IT Service

Industry

Understanding of the Industry

ERP Issues in the IT Service Industry
Sales based on input manpower, sales and maintenance of research and development software
Difficulty in managing input and available manpower
It is difficult to manage the progress of the project and the management points for each project are different (service, development, SW)
Management of maintenance sales, which are recurring sales
Contract management and customer product/equipment/license No. history management required
Lack of actual profit and loss management and cost management for each project
Difficulty in managing contractors, resellers, partners and promotions
Lack of ERP linkage between existing legacy and other systems

IT Service Industry Expansion Plan
Expansion through various IT solutions
Electronic contract solution: contract management and outsourcing management through electronic contract
Sales support system: use of various customer management systems such as SFA
Shopping mall interface: Sales calculation of own shopping mall and B2C sales platform
PRM interface: Partner management, distributor, promotion management through the Partner Relationship Management system
RPA: Securing efficiency by introducing RPA in simple repetitive tasks and simple processes

IT Service Industry Issues & Solutions

Personal expense settlement and installment supply confirmation through mobile (management of management support team → management of individuals and PIC)

  • Efficient settlement of personal corporate cards distributed to all employees and expense settlement through mobile for on-the-go employees
  • HW and SW supply confirmation signature through mobile

Contract Management (Separate System Management for Each Division → Integrated ERP Management)

  • Integrated management of billing/sales/delivery through contract registration
  • Sales are automatically generated according to the revenue recognition criteria for each product type

Cost calculation method for specific products (manual Excel calculation → system calculation)

  • S/W products imported and sold (Company A is an Asian distributor (import -> domestic sales/overseas sales))
  • Registration of contract information and expected cumulative sales and calculation of the current month’s cost through the cumulative cost by converting the progress rate through the expected cumulative sales compared to the total purchases calculated by the actual payment + the expected payment

Income statement by sector / Direct cost profit and loss inquiry by product (manual preparation or calculation non possible → inquiry through the system)

  • By systematizing product groups and classifications through ERP implementation PI activities, profit and loss for each major category/product group/business division is provided accurately and quickly
  • Accurately and promptly provide profit-to-sales for costs directly incurred by each product

Analysis and status of human resource availability and designation (management of each dept. → integrated ERP management)

  • Management of the project status and manpower details of the already put in manpower
  • Identification of actual input man-hours compared to plan by man-hour input through mobile

Management of contract and inspection confirmation of outsourced personnel (separate handwriting management → outsourcing contract management through the system)

  • Outsourcing quotation, contract, inspection, and supplier evaluation management through a separate web page open to suppliers
  • Linkage between electronic contract and ERP through electronic signature of corporate accredited certificate

Business Plan Management

  • Implementation of business plan management to systematize standard information for business plans and compare and analyze them against actual project performance
  • Securing consistency in budget establishment through project deliberation and business plan management prior to sales order

Human Resource Management

  • Import planned manpower or enter actual manpower based on the planned manpower for each registered project
  • When cost is processed by man-hours of the approved projects, the cost is distributed based on the man-hours