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Subject: Enhancing Business Performance through the

Implementation of an ERP System Danh Medical


Equipment Company Limited (DMEC)

Student’s name: Nguyen Lan Anh


Tutor IAE Toulon: Professor PhD. Vicent Chauvet
Tutor: Associate Professor PhD. Tran Thi Xuan Anh
MAIN CONTENTS

PART 1 – ISSUES AND ENVIRONMENT


 1. Introduction
 2. Implementing an ERP System at Danh Medical
Equipment Company Limited
PART 2- EVALUATION AND IMPROVEMENT
 1. Advantages
 2. Limitations and Solutions

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PART 1 – ISSUES AND ENVIRONMENT
1. Introduction
DANH MEDICAL EQUIPMENT COMPANY LIMITED

DANH MEDICAL CO.,LTD

No. 50 Nguyen Phuc Lai, O Cho Dua Ward, Dong Da


District, Hanoi, Vietnam

Operation day: 26/12/2011

Provide high-quality medical equipment and supplies

Branch offices: Ho Chi Minh City, Da Nang, Can Tho


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PART 1 – ISSUES AND ENVIRONMENT
1. Introduction

Before the implementation of the ERP Danh Medical Equipment


The implementation of an ERP
system, the company was struggling Company Limited, in
system at DMEC was imperative
with data duplication and operation for over 11 years
to enhance business performance
inconsistency due to the use of and surviving multiple ups
and ensure the company's long-
disparate systems in different and downs, reaffirmed its
term sustainability.
departments. position in 2020

Objectives of the project

Understand the company's current operational systems and Enhance the


Investigate the processes company's
necessity and operational
advantages of Analyze different ERP vendors to identify the most suitable efficiency, improve
implementing an ERP system for the company financial
ERP system in performance,
DMEC increase customer
To evaluate the success of the ERP implementation satisfaction
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PART 1 – ISSUES AND ENVIRONMENT
2. Implementing an ERP System at DMEC
2.1. Planning System Configuration and Customization

Training and Change Management

System Testing

Launch and Support After Deployment

Continuous improvement

Communication and Stakeholder Engagement

Risk management

Evaluation and Lesson Learned


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PART 1 – ISSUES AND ENVIRONMENT
2. Implementing an ERP System at DMEC
2.2. Project management

500,000 USD
500,000 USD
500,000 USD
500,000 USD Vendor Selection
Requirements
Project Planning Gathering
Project Initiation Q4 2023
Q3 2023
Q2 2023
Q1 2023
PART 1 – ISSUES AND ENVIRONMENT
2. Implementing an ERP System at DMEC
2.2. Project management

Budget
Project Phase Duration Allocation
System Configuration 2 months 15%
Data Migration and Integration 3 months 20%
Training and Change Management - 10%
Testing and Quality Assurance 2 months 15%
Go-Live and Post-Implementation Support 1 month 15%
Evaluation and Continuous Improvement - 10%

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PART 1 – ISSUES AND ENVIRONMENT
2. Implementing an ERP System at DMEC
2.3. ERP’s main components
Sales Materials Inventory Project
Management Management Management Management

Sales management Material management Inventory management This feature assist


component is used function of software is feature is used for: contractor in:
to track cost of: used to:  Stock tracking  Creating daily field
 Labor  Order materials  Barcode scanning of reports
 Material and  Create purchase orders the products  Issues change
equipment requests

 Analyze the project  Create service contracts,


 Track labor rates
profitability by tracking post ERP implementation
for union and certified metric such as utilization for maintenance
payroll projects rate

Payroll Financial Service


Management Management Management
PART 1 – ISSUES AND ENVIRONMENT
2. Implementing an ERP System at DMEC
2.4. Training, customization, and integration

Training Customization Integration

- Training Needs Assessment - System Customization - Integration Roadmap


- Development of Training - Customized Reporting - Data Mapping Plan
Materials - System Integration - Middleware
- Interactive and Hands-On - Scalability Considerations Implementation
Training - Testing and Validation
- Super User Training - Ongoing Monitoring
- Continuous Training and
Refresher Sessions

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PART 2- EVALUATION AND IMPROVEMENT

ADVANTAGES LIMITATIONS

Improved efficiency High initial investment

Cost savings Implementation time

Enhanced decision-making Employee resistance and training

Increased sales Software customization

Scalability System performance issues

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PART 2- EVALUATION AND IMPROVEMENT

Advantages:
Improved efficiency in Q1/2023
120%

100% 96%

80% 77%
80%
70%

60%
40%
40%
28%
20%

0%
Before ERP After ERP

Time on data entry Customer retention rate Customer satisfaction


PART 2- EVALUATION AND IMPROVEMENT

Advantages:
Cost savings
23
10 days 100 errors

8 days
70 errors
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8.5

Before ERP After ERP


Unit: billion VND
Before ERP After ERP Before ERP After ERP

Annual inventory carrying costs Order processing Manual errors


Administrative expenses
PART 2- EVALUATION AND IMPROVEMENT

1. Advantages:
Increased sales

78 billion VND
67 billion VND

37%
30%
24 hours

2 hours
Before ERP After ERP
Response times for customer inquiries The repeat purchase rate Revenue
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PART 2- EVALUATION AND IMPROVEMENT

2. Limitations and Solutions:


• Cost-Benefit Analysis
High Initial Investment
• Cloud-based ERP Solutions
• Effective Project Management
Implementation Time
• Pilot or Staged Approach
Employee Resistance • Robust Change Management Strategy
and Training • Comprehensive Change Management Plan
• Choose an ERP system that aligns with business processes to minimize
Software customization.
Customization • Engage experienced consultants for valuable and efficient
customizations, considering cost and future upgrades.
• Test the system thoroughly before implementation, partnering with a
reliable ERP vendor.
System Performance • Regular audits and performance checks, along with quality hardware,
Issues prevent performance issues.
• Involve an experienced IT team and invest in proper infrastructure for
optimal performance.
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CONCLUSION

3. Experience

• Courses in Corporate Finance and Management Control had a significant impact on


improving my performance as a Sales Executive when I work for DMEC.

• The knowledge and skills gained from these courses, such as Financial Reporting
Standards, Financial Management, and Information Technology Tools for
Management Control,v.v, proved invaluable in several key areas of my internship
report.
♥I am sincerely grateful to the professors of
the Master's program at the Academy of

Thank
Finance and the University of Toulon. Your
dedicated teaching, guidance, and
encouragement have been invaluable
throughout my learning and research journey.

you!
♥My heartfelt thanks go to my classmates
for their shared experiences and the strong
bond we have formed, both academically and
personally. I look forward to continuing this
journey together in the future.
♥Lastly, I want to express my deepest
gratitude to my family, parents, and spouse for
their unwavering support, which has enabled
me to fulfill my lifelong dream of completing
the Master's program.

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