What is a business management system? How to build a business management system

The business management system is considered the center of the organization, helping to operate, control and optimize all business activities from production processes, human resource management to marketing strategies and customer interactions. row. So what is a business management system? How to build a business management system? Let's find out with 1C Vietnam below.

1. What is a business management system?

A business management system is a comprehensive set of tools and means of support for businesses in managing, evaluating, and operating projects, human resources, and resources. Instead of fragmented and unconnected management, a business management system will help increase efficiency and minimize errors in operations.

2. Benefits when building a business management system

Building a business management system brings many outstanding benefits in terms of process optimization, improving operational performance and increasing competitiveness:

2.1. Increase competitive advantage

Deploying a business management system requires a large investment, but in the long term it will help businesses save costs and improve competitiveness. Instead of applying outdated work processes, businesses can optimize resources through software, helping work performance improve significantly. From there, businesses will stand out more and reduce error rates compared to competitors.

2.2. Improve working efficiency

The enterprise management system provides a comprehensive platform, eliminating repetitive tasks and minimizing manual information transfer. This helps businesses improve daily work efficiency by optimizing processes. All employees can easily access data and connect with other departments to complete tasks.

2.3 More accurate forecasts of the market

The business management system provides real-time comprehensive reports on customers, sales, peak periods and more. This helps businesses have an overview of the market to forecast the future. More accurate forecasts help businesses save capital, reduce business costs and manage their teams effectively.

2.4 Create strong internal links

Interaction and connection between departments within the business is an important factor to ensure strong operations. If a business operates in a silo, this can lead to failure.

Applying an ERP system allows centralizing consistent data on one platform, helping departments share information and collaborate anytime, anywhere. This helps staff maintain communication and coordinate work handling even when in different branches or locations.

2.5 Arrange reasonable processes

ERP systems help businesses automate work processes more easily and conveniently. Whether the process is simple or complex, businesses can arrange and manage it properly with software, minimizing redundant and unnecessary steps.

2.6 Cost savings

The business management system helps reduce costs and allows businesses to use budget in other necessary areas. Businesses can also proactively manage operations, prevent disruptions and delays, and make quick decisions. With the right solution and a reliable supplier, businesses will achieve strong ROI.

2.7 Custom reports

ERP software helps build reports easily and flexibly, suitable for all needs. Businesses can improve reporting capabilities and respond quickly to complex data requests. ERP software also allows users to easily retrieve desired data and present it in charts and forms as required. Users can run personal reports without the need for information technology support, helping to save time processing work.

3. The role of the management system in an enterprise

With the support of the ERP business management system, businesses can establish a comprehensive management system, applying appropriate technological advances. The corporate governance system also plays an important role in the following aspects:

• ERP allows businesses to customize according to their own needs and characteristics.
• ERP adapts well to business changes and developments.
• ERP provides a reliable source of data, accessible from different locations and devices.
• ERP improves data accuracy and consistency.
• ERP protects information resources and prevents the risk of data loss or exposure.

4. Steps to building a management system for a business

Below are 6 important steps to build an effective ERP business management system :

4.1 Set up system administration regulations

The enterprise will develop internal management regulations including documents issued to be applied internally to operate, control and manage the company. In addition, these regulations are also related to financial activities and asset management of enterprises.

4.2 Completing the organizational structure

During this phase, managers will perform the following tasks:

• Create a logical organizational chart to support business goals.
• Develop a common set of documents, describing the functions and tasks of departments and divisions in the enterprise.
• Design job descriptions for important positions.
• Build a matrix to assign tasks and responsibilities between departments and divisions in the enterprise.

4.3 Build a financial management system

Financial management is the management of a business's capital resources to maximize profits. Therefore, building a financial management system is an important operation that is established after the organizational structure and functions of departments. During this period, management and experts will develop processes, regulations, and instructions to manage advances, settlement, monitoring, and debt collection.

4.4 Building a management system in production and business

Production and business activities are the pillars of business existence and development to create profits. In this step, the leadership needs to establish processes and instructions for purchasing management, production control, sales, handling defective products, inventory import and export management, and customer information processing.

4.5 Build a human resource management system

Labor is an important resource of organizations and businesses. To effectively manage this input, businesses need to build systems that include recruitment, training, and personnel evaluation processes, as well as machinery management, maintenance, and repair processes.

4.6 Building an administrative management system

In this step, businesses need to establish processes, regulations, and instructions for managing information, documents, and text to ensure efficiency and arrange administrative work in a strict and organized manner.

4.7 Budget control

The actual cost of an ERP system often exceeds organizations' initial estimates. To control costs as much as possible, businesses need to establish detailed budget plans and perform periodic settlement. At the same time, businesses need to set budget estimates from the early stages until two months after completing system improvements.

4.8 Monitor, evaluate and measure the system

Success in applying an ERP business management system depends not only on sales but also on change management and employee compliance. Therefore, businesses need to establish measurement standards based on time, performance or sales results. Leaders should also monitor daily work reports to identify advantages and limitations in new work processes.

Thus, building a proper corporate governance system is an important step that brings many benefits to businesses. To achieve success in system implementation, choosing a suitable and experienced partner is very important. If your business needs to build and deploy a business management system , please contact 1C Vietnam for support.