21st century is an era of e-commerce. Switzerland Credit banks according to a study published recently, the global e-commerce is growing at annual rate of double the amount, by 2003, will reach us $ 1.24 trillion. Report notes that this figure of us $ 98 billion last year, more than $ 38 billion in 1998 increased 160%. it is predicted that the Asia-Pacific (except Japan), e-commerce market will reach $ 26.4 billion in 2003, China’s average annual increase of about 243%. There is no doubt that electronic commerce in the future play an integral role in economic development.
With the rapid development and wide application of information technology, with the help of the network economy, development of e-commerce has become more competitive, effective means to adapt to the future. Currently United States over 95% of large enterprises through different ways one or more using electronic commerce, developing electronic commerce have become new trend of contemporary various industries and enterprises, building trades is no exception.
The general trend
Development of e-commerce is not just in the construction industry development requirements and the inevitable trend of the times, is determined by the status of the industry and its characteristics and development trend of the decision:
1. the construction industry is one of the pillar industries of national economy construction, is a strong impact on national economy
Task fixed asset investment was mainly in the construction industry. Since its founding, every year there are a large growth in fixed asset investment in China, growth and deeper after reform and opening up. About 60% in fixed asset investment in China from 1994 to 2000 was implemented by the construction industry, and the engineering construction industry output value of about 30% per cent of gross national product, thus, have a great impact on the development of the national economy of the construction industry, construction industry information development will inevitably affect the development of the national economic and social information. Is the industrial optimization and upgrading of social Informationization and industrialization, modernization of key links are covered modernization of strategic initiatives. Therefore, development of electronic commerce should be foremost in the construction industry, achieving industry information.
2. the construction industry the dispersion of
Building industry itself has dispersed of nature, and as increasingly more domestic building enterprise joined to international competition of ranks, engaged in international engineering contracting cause, more full to reflected out “dispersed” of features: a is may need across multiple market, in short time within switch Yu different of engineering area; II is often is in away from command center of offsite for production activities; three is has complex of logistics, these features decided has it will than other industry more need and more benefit Yu e-commerce, So the construction industry is more than any other industry good reason for developing e-commerce.
3. international engineering contracting business is growing and the impact of WTO on China’s construction industry
Since 1985, China’s international engineering contracting business in the year 25% rapid gains in speed. As joining WTO and international construction investment increased national enhancement of market openness, makes international engineering contracting market is further expanding but also means Chinese building industry will face more fierce competition. Domestic construction enterprise competitiveness are generally lower than foreign counterparts, the main gap lies in management, and e-commerce is to make up an important means of managing defects.
Construction enterprises, in particular international engineering contracting companies, realizing e-commerce has the following advantages:
First is the ability to improve the efficiency of project management.
Timeliness is an important project management requirements, implementation of e-commerce meets this demand, makes up for in traditional project management model is insufficient. It allows managers to ready access to project information, timely attention to violations of, and timely monitoring, for the whole process of project management of electronic, information, automation, real time and scale, to improve project management efficiency, speeding up construction progress, play a social and economic benefits of investment projects as soon as possible.
Followed by lower direct costs.
Networks contribute to enhancing transparency, place downward pressure on prices. Through network, contractor may convenient to for inquiry, timely get more, and more full of information, found more new of opportunity, and does not just limited in a a range within select supplier; and now website Shang also appears has increasingly more of anti-auction, in anti-auction in the supplier each other competition, description in what price Shang they can meet a a specific of orders, to can greatly reduced directly cost.
Addition is the ability to reduce management costs.
As market of open, in China building industry has increasingly more of enterprise across out abroad, participation international engineering of competition, network is can for Enterprise provides a in contact global around customer of while and reduced trading costs and shortened communication time of opportunities: provides has a may and customer directly contact of, and instant bi-directional of Exchange channel, makes enterprise can avoid traditional of or has exists of value chain Shang of other links.
According to the survey, in the traditional enterprise transaction mode, business transaction process needs 19 sessions, and in the e-commerce only needs 7 sessions. Traditional business transaction is a built in paper trade documents (files) trade on the basis of the transfer, each doing a business requires large volumes of paper documents, complex workload. Between the contractors and vendors of e-commerce then too many paper files are no longer needed, thereby saving sent design drawings, technical documents and contract time.
But also for the suppliers, the buyer’s market reach beyond the traditional boundaries, which would reduce the cost of extensive publicity contact. On top of that, will significantly reduce the personnel productivity increases. Enterprise management cost in all its aspects are much lower.
Finally, can enhance the exchange of information among enterprises.
Networking can make the whole construction industry for highly rapid information exchanges, in China to be more efficient online business operational information. But joined the project increasing online can also project implementation during each phase provides plenty of valuable data it.
V to achieve horizontal integration facilitated the production mode.
Chinese construction companies try to occupy a place in world markets of the future, it is necessary to expand the company provide a more extensive scale, undertaking large projects and services breakthrough, need to achieve vertical integration models, patterns or horizontal joint production.
Which will make it difficult for contractors to form a unique competitive advantage, in each of these areas cannot be achieved economies of scale, so to achieve horizontal integration production is the right thing to do. And only uses the Internet as a platform for business activities, providing multimedia and make full use of its means of communication, in the area of contracting projects, transverse joint production model may truly become a viable model of production organization and management model.
VI for the enterprise supply chain management has facilitated.
Building enterprise to improve own of competitiveness, not only to coordination enterprise itself internal operations of each links, also to and including supplier, zainei of Shang downstream Enterprise close combined with, implementation enterprise of supply chain management, and B2B e-commerce just-oriented entire supply chain, using supply chain management of thought, using Internet, integration enterprise of Shang downstream industry, constitute a e-commerce supply chain network, makes enterprise supply chain Shang of all participants Zhijian can through network, implementation information swaps, and information shared, Consolidation of cooperation between community resources, eliminate unnecessary movements and across the supply chain network consumption, contributed to the dynamic, virtual, global supply chain network in the direction of.
According to the survey results show building online networks, usually due to missing files and lack of communication has increased construction cost 20-30%, and due to your use of the site United Kingdom construction market will save a lot of money each year, at the same time construction period shortening 15%. United States bidding sites and construction network are claimed by construction market with access to the Internet can save 30-35% of project cost.
United States of maikemubei company is a successful case, the company jointly with other companies, was established in Boston “Internet project management” Web site. This site provides all partners with a “design online” platform, with a variety of engineering design software and modernization of the network means of communication, significantly shortening the project cycle; real-time communication between partners make parallel design easy to; the joint participation of all parties to ensure the quality of engineering design. Websites also provide “online management” service allows contractors to on several continents for real-time tracking project progress and control of. E-commerce applications of input-output ratio of the company increased from 1:2 in the past to the present 1:6.
In short, should make full use of information technology in the construction industry as a result of huge productivity, innovation, the use of electronic commerce in many ways reform of business and management, better survive and develop. Of course, at present, China’s e-commerce is still an early stage, there are obstacles: incomplete online settlement inconvenience, the network infrastructure, lack of safety certification, the online information industry management system and mechanism is not perfect, and so on. This will cause a certain amount of pressure to the enterprise, not to rush into investment. But we have to address this concern. Software, General Manager of IBM greater China Song Jiayu said: “I don’t know what you come up with (electronic commerce) programme will be wrong, but you can tell you is: you don’t do it, is certainly wrong. ”
Enterprise system should be
For construction companies, there are two ways to achieve e-commerce you can, one is setting up their own Web sites, and B-B or B-C e-commerce system, on the other is through a proxy server after registering, using its online tendering, procurement and distribution systems to achieve. From enterprise on the human, financial, information technology, the use of the former is extremely expensive and difficult, it is difficult to coordinate the relations between the parties, to one-time successful not too practical.
So before gradually establish their own e-commerce system that temporarily using the second way. And due to increasingly more of people realized that network of important, this species Server also increasingly more, as website provides has building materials trading of online platform, website provides has for project management, and enrollment tender, online trading of platform, also has Ministry of construction launched of China engineering construction and construction industry information network, and China Engineering Advisory Network and around of engineering construction information network,, these website are provides has various information and operation platform, makes enterprise both saves has the part of work, and can also enjoy to network of advantage.
But the enterprise is able to completely give up to establish their own e-commerce system, should be based on specific circumstances, with company’s existing business or technology, from the enterprise system of a certain place starts e-commerce process, this is the one with the goal of e-commerce, progressive reform road.
Enterprises are to establish an effective e-commerce system, you must follow certain procedures to step through, the process generally consists of six stages:
1. set goals
Any behavior must have a goal, so as to ensure that the behavior is meaningful. At this stage the main activities include: (1) by corporate upper management to work out development goals, no matter what specific goals, with the ultimate goal should be to increase overall competitiveness, (2) in all its aspects, assess the need for this system, and (3) clarify the implementation of the project personnel, formed a e-commerce development team. People can come from either inside or outside the company. Once determine, should they threw herself into to work, coast-to-coast for his own work and and directly to advanced management reporting; (the 4) formulating strategic plans.
2. the evaluation
Evaluation is the enterprise access to resources, through the evaluation of existing tools and technologies, qualitative and quantitative analysis on the present situation of enterprise. Including: (1) carried out SWOT (strengths,weaknesses,opportunities,threats) analysis, to identify the specific business goals, and (2) on the business characteristics, by the enterprise itself the core of the business to analyze, such as a person (skills, experience and ability), technology, process (steps, interaction and direct relationship between people), and data management (acquisition, processing, storage) And (3) through the tracking of workflow, especially (2) referred to in various aspects, found major deficiencies existing in the current system.
At the same time also an evaluation system should be established throughout the whole process of e-commerce system is set up, to acceptance and evaluation of the results of each stage. The e-commerce development team is responsible for operation and maintenance of the system.
3. awareness
”Good weather, geography, people and” are the three prerequisites for success, particularly in the great and who. If you can’t get support and understanding of all concerned, any change is bound to fail, so it is important to create the atmosphere of one heart and one mind, it may bring unexpected benefits.
In order to obtain full support of all employees, it is necessary to take a series of measures, first of all, the importance of promoting staff awareness, inform employees about the reasons and importance of the change, make it clear to occur and changes, fully aware of the effects that may be caused to yourself.
When creating an understanding between the staff and look forward to achieve after the change of atmosphere, it should encourage the active participation of Executive, on the system and put forward their views or proposals for change.
At the same time as early as possible in order to enable the Executive to put into a new role, should carry out various types of awareness training and the necessary technical training, so that all categories of personnel to be able to be confident to new posts.
4. the implementation of the programme, a clear focus
Changes have been implemented, different scenarios will be subject to conditions relating to funds or other difference.
First should determines out suitable of tools and technology, confirmed which is enterprise has has of, which is also need purchased of; then on second step of evaluation results for analysis, find implementation process in the need note may will appears problem of local, clear the work of important degree, combination budget and other resources of limit, for cost–benefit analysis, makes highest returns and commercial target match, sought a best of implementation programme.
5. development of project plans
Careful and thorough plan is essential for success. E-commerce development team should be based on priorities identified in the previous step worked out a detailed plan of action. The plans should including following content: (1) each item change by involved of about personnel; (2) more of operation programme, including all task or child task; (3) milestone or expected stage results of set; (4) project process arrangements and resources distribution; (5) further of training plans: as project of progress, on personnel on by used of tools and technology for more deep of training; (6) feedback evaluation plans: constantly for feedback, ensure as environment of changes, information flow timely update, Plans are always consistent with the goals, and (7) contingency planning.
6. the implementation of
Implementation is the core of the work, will have a direct bearing on the end of the new system and put into operation.
The phase of a major implementation, operation, inspection, correction (according to changes in the environment, such as some key people left, or there is a new technology can be used), forming a loop feedback, continuous improvement process. Attention in the implementation of established reporting systems, enabling managers to more accessible, and timely feedback information, to monitor the implementation process, take control measures in a timely manner.
More than six steps is to set up e-commerce system. But in order to ensure that the change is making steady progress, or in the case of bad will still maintain enthusiasm, senior management should lend its support in a variety of ways. Includes the following areas:
(1) emergency funding to prepare:
The adoption of the budget, combined with long-term plans to determine a monetary sum, for technology, marketing, personnel and other unforeseen emergencies.
(2) communication support:
Ensure that employees, e-commerce development team and the smooth flow of information between the management and should be easy to contact, you can specify a dedicated telephone or e-mail.
(The 3) process of continuous tracking:
Top management shall meet regularly to review progress. If the deviation between actual performance and plans exist, it is timely to take appropriate measures to rectify, ensure that the final realization of the development goals.
All in all, the development of information technology in today’s world, Internet and e-commerce in the global proliferation of business model to the traditional industry created a strong impact, on the traditional enterprise management mode also brings severe challenges. Traditional industry of information technology and traditional establishment of enterprise e-commerce system is the inevitable development of the times.
But due to in China is e-commerce development of primary stage, about enterprise e-commerce development of many theory and practice problem also no full resolve, so enterprise more need in determines enterprise e-commerce development strategy of Foundation Shang, established for own of e-commerce schema, in accordance with the must of process has plans to established up own of e-commerce system, such to full guarantee enterprise in seize opportunities of while does not because “blind obedience” and brings loss.
This course is very time consuming and difficult, foreign 20-30 time used some large enterprises, and domestic enterprises because of the need to catch up, so I have to fight for a short time in the. Chinese enterprises and the Advanced mode has a very big gap, therefore, more should draw on successful experiences, seize the opportunity, do not hesitate, in accordance with the specification process, bold input as possible or without detours, success in one fell swoop.