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Implementation of fashion ERP systems in China: Case study

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Bowen Ding

on 31 March 2014

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Transcript of Implementation of fashion ERP systems in China: Case study

Certain merits would be achieved.
Mainly In 4 areas:
1. Order to Cash (OTC)
2. Ware-house Management (WM)
3. Requisition to Check (RTC)
4. Finance and Controlling (FICO)
In this case-study:
Focus on OTC module.

Sales Order Input
Available to Promise Checking
Delivery, Billing and Paymeny
Prompt Information Available
Faster Processing Time and Fewer Human Errors
Adherence to Corporate Strategy
Capture of True Demand
Tsan Ming Choi, Pui Sze Chow, Shuk Ching Liu
Int. J. Production Economics
Bad performance
Forced to innovation
Reasons for LSCO's ERP system implementation
Net sales revenues: in 2002, $4.1 billion; in 1996, $7.14 billion.
Economic crisis
Rival competition: Guess & Tommy Hilfiger
Keep pace with industry-wise practice: Nike, Adidas, Reebok.
Disparate information systems across regions
Business partner requirement
Problems of File Compatibility
Issue of Information Sharing
Issue of Stock Replenishment
Implementation of fashion ERP systems in China: Case study of a fashion brand , review and future challenges
$7.14 Billion
$6.9 Billion
$6 Billion
1999 - 2001
$4.1 Billion
Introducing ERP
LSCO's Annual Net Sales Revenues: 1996 to 2002
Critical Success Factors
– In information systems this means
“what a system must do to
accomplish what it was designed
to do”
Literature Review
Case Study—Levi’s
Critical Success Factors

what ERP systems is?
Motivation & Contribution
Reasons for chosen
Research Question
Literature Review
Hershey et al.
10 critical success factors in ERP implementation
China Specific Success Factors
a. Changing mind set and fine-tuning cultural norms (Organizational commitment to change)
Guanxi is critical for success of Chinese companies
Many ad hoc and non-systematic decision making mechanism
The industry norms are hugely manual based
b. Providing Good Incentive
User resistance
in a change of information system
respect to the culture, value and norms of Chinese workers
smooth the transaction from the old platform to the new ERP system
operate the new ERP system appropriately.
Benefits of implementing ERP systems

Reported Challenges and Critical Success Factors of implementing ERP systems

Implementing ERP systems in China

Implementing fashion ERP systems

Model development
(Understanding of the strategy, including excellent implementation team and great management)
c. Confined scope of the project and roll-out
in transition

High cost and declining sales
Call-off the project
Review and redesign (revised to be focused on streamlining the order to cash management)
Restart implantation at staged basis
Case study
--Levi & Strauss Co
d. commitment from both top management and operational staffs.
(i) Management commitment

the company was devoted to improvement in her information technology for better business performance.
(ii) Staff Commitment

Share information and collect feedback from employee for the future development of the system.
(iii) Formation of in-house IT expertise
system problems and users enquirers can be handled in a prompt manner
Im Carla
Thank You !

Bowen Ding, Luying Xu, Jiayi Sun
Full transcript