The core business of sales, finance, and logistics is the brain of enterprise development. Without hands and feet, B&Q is only slowing down, but once the "brain" is out of order, it is a matter of life and death, so for the back-office service providers, our choice is the most cautious.
Working with IBM will free us from the pain of complex IT management, and we can focus on accumulating opportunities for full openness.
This project will greatly enhance the existing business capabilities of B&Q in terms of immediacy and efficiency, and will support all of B&Q's stores across China and the stores that will be opened in the future.
B&Q, President of B&Q China, is an internationally renowned chain of decorative building materials. In 2001, it was approved by the State Council and became the first Sino-foreign joint venture commercial pilot enterprise in the decorative building materials industry. It has opened chain supermarkets in major cities in mainland China. And establish a leading and reliable brand image in the minds of local consumers. B&Q now has 50,000 to 60,000 items, 20 stores in 10 cities, and consumers across China. The size and complexity of the entire system exceeds that of the Shanghai Stock Exchange. By 2009, B&Q plans to open 80 chain stores in 34 cities across the country.
• Strengthen control over all aspects of inventory, distribution, and shelf sales of various commodities • Address large-scale business expansion • Improve operational efficiency of core businesses
• Establish an efficient supply chain system to ensure rapid business development • Integrate back-office services, meet complex and large data operations under strict time requirements, improve overall management level • Real-time processing of billing, billing, distribution and inventory information Improve operational efficiency and enhance core competitiveness
IT outsourcing is "brain"
Publication date: 2005-02-06 / Author: Yang Yunlong
The results of IBM and HP on the B&Q project not only reflect the trend of 1T services, but also indicate that customers have a new position in the understanding of the two service providers.
It seems that the good play is always unexpected.
At the end of last year, HP just publicized the first IT outsourcing bill in China's retail industry. When the B&Q project has already fallen into the bag, it doesn't want to be heard. The biggest competitor IBM announced in Shanghai in early 2005 that it has reached a goal with B&Q. The first application management outsourcing contract for the retail industry.
The two opponents shouted the first at almost the same time. Who is better?
Which one makes more sense?
The most powerful voice in this regard is B&Q. According to reports, there are three main parts related to the B&Q retail business: the store support system (that is, the front-end consumer-related POS system), the daily system support service, and the core business back-end service (ERP software hosting service). ).
In these three parts, Siemens's Deli Duofu got the store support system, HP got the daily IT system, and IBM signed the back office list.
For these three parts, Wei Zhe, President of B&Q China, described it as “footâ€, “hand†and “brain†respectively. “The outsourcing of the store system allows us to go faster and open faster. The daily support services that HP helps us are equivalent to our two hands, ensuring that we work every day; ERP (Enterprise Resource Planning) hosted today to IBM The system is equivalent to the brain of B&Q."
Such a metaphor has already shown who is more important. Wei Zhe even said without hesitation: "Without hands and feet, B&Q is only slowing down, but once the "brain" is out of order, it is a matter of life and death, so for the back-office service provider, we The choice is the most cautious."
Wei Zhe’s remarks at the signing of B&Q’s cooperation with IBM made Guo Shixun, the deputy general manager of strategic outsourcing for the service department of IBM in charge of the project, excited. He knew that after HP signed a contract with B&Q last year, the pressure could be met. Imagine it.
Since December 11 last year, important areas such as commercial wholesale and retail, construction, and logistics will allow foreign investment to enter, and this area is naturally the focus of competition between IBM and HP. The battle between the two sides has started since the end of 2003. After more than a year of competition, HP first got the first order, but from the development trend of outsourcing and the importance to customers, IBM’s partial weight seems to be heavier. some.
Strategic contest
The ability to get a back-end list is, to a certain extent, IBM's strategic success. In China, due to market maturity and concepts, China's IT outsourcing market as a whole has been relatively low. One fact that can be explained is that despite relying on the vast Chinese market, the position of IBM China in the global market is not prominent, and the reason is that it is plagued by the sluggish outsourcing service market.
In order to change this situation, IBM began to explore new ways to open this market. At present, there are four main areas of support services, integration services, IT consulting, and IT outsourcing in the IT service market. In IT outsourcing, it is divided into infrastructure outsourcing, application management outsourcing and business process outsourcing.
In the past, both IBM and Hewlett-Packard have focused on infrastructure outsourcing projects, but the results are not very good. In the last year or two, IBM changed its strategy and began to turn its attention to corporate business, especially non-core related outsourcing services.
Guo Shixun believes that this change is in line with the current needs of customers. “Because various needs indicate that customers are buying products or services, the ultimate goal is to solve the business problems they face.†Guo Shixun said: “IBM has increased its strategic outsourcing in recent years to see this trend.â€
For the contract that can win B&Q, Guo Shixun believes that there are two key points: one is strong consulting ability and the other is deep industry experience. “The first question for the staff of B&Q is to ask: Has IBM done a project for management outsourcing of building materials retail management?†Guo Shixun recalled the situation when bidding: “Customers now choose IT service providers are no longer a major in IT. Competence, but a specific industry solution experience."
Wei Zhe’s answer also verified Guo Shixun’s judgment. According to Wei Zhe, B&Q's building materials supermarket has many special rules compared with food supermarkets. Some products are not available in the product store and need to be ordered. Can't be like a food supermarket, customers can take the goods and buy them through the POS machine. Every product purchased by a consumer at B&Q is a special order, which means that the product information is passed to the supplier. Therefore, the IT back office is more important than other retail companies. "If it is a food supermarket, eight to 90% depends on the reliability of the front-end POS machine. For us, every order must go to the ERP system, and the supply and demand is very large." Wei Zhe said that IBM is consulting The strength of the capability and the ability to integrate in ERP are one of the keys to getting an order; another key point is that IBM has had similar cases in the UK and B&Q UK.
Luo Jie, general manager of the Greater China region of IBM's transportation and commodity distribution industry, believes that in the cooperation with B&Q, IBM has demonstrated a full range of service capabilities, from front-end storefront environmental planning to back-end system transformation and construction of the front-back environment. The advantages of connecting the channel and implementing long-term maintenance and update of the system, and combining business consulting and service implementation capabilities are fully reflected.
Compared with traditional infrastructure outsourcing, application management services have an advantage. The amount involved in a single contract is relatively small, which is more suitable for SMEs in China. The birth of the first application management outsourcing service contract in China's retail industry indicates the trend of IT outsourcing services extending from infrastructure services to helping customers achieve business transformation services. As business and IT become more and more closely connected, enterprises have begun to pay attention to the service consulting and integration capabilities of service providers and whether they can establish a business system that can respond instantly to enterprises. “In 2004, IBM’s service management outsourcing service grew by more than 50%, becoming a new highlight of IT outsourcing services.†Yu Xueli, general manager of IBM Global Services Greater China, believes this trend may gradually drive the entire outsourcing market.
IBM Application Management Service (AMS)
• Develop and implement the processes and procedures required by our customers • Assist customers in monitoring system performance, improve the application environment • Implement and follow up changes to enterprise applications, manage databases • Efficiently manage work results • Have data support systems across the country
Just a coincidence?
A company chooses two competitors to serve itself, and to a certain extent has checks and balances and masters the reasons. But recalling some recent outsourcing service cases, we can see that some of the more interesting similarities are that HP sometimes gets an IT infrastructure outsourcing contract, and IBM gets the business-related piece.
Like Procter & Gamble, HP acquired an IT infrastructure outsourcing contract in April 2003 for a total of 10 years, valued at $3 billion. But in September 2003, IBM received a 10-year, $400 million global agreement on HR business transformation outsourcing services from P&G, supporting nearly 90,000 P&G employees in nearly 80 countries. Services provided by IBM include: payroll management, allowance management, compensation programs, expatriate and related placement services, management of travel and related expenses, and human resource data management.
Although both HP and IBM are emphasizing that they are comprehensive service providers, HP is more inclined to infrastructure than its customers, while IBM prefers the integration of technology and consulting.
Wei Zhe's words may be more indicative of the changes that consulting brings to IBM. Wei Zhe believes that the acquisition of PwC's IBM management and industry experience has been greatly improved, while the sale of the Pc department is more clear about IBM's positioning. "Some of the strategies IBM has taken make me feel that IBM is more focused on IT services." Wei Zhe said that he welcomes IBM's current practices, and he feels that this makes the positioning of IBM services clearer.
On the HP side, in the recent period, HP has gradually shifted its focus to consumer electronics. Entering the digital camera and large-screen home appliance market is an example. In terms of the proportion of services, services account for more than half of the company's operating income in IBM, and the proportion of services in HP is less than 20%. In terms of global market share, HP is only ranked third. After EDS, IBM topped the list, with annual sales close to $30 billion.
Although HP and IBM will be major competitors at this stage, there is news that SAP, the world's largest application management software vendor, has planned to list IBM as the sole partner. SAP's choice seems to have already indicated that the industry has already indicated There is a difference between the positioning of HP and IBM.
Working with IBM will free us from the pain of complex IT management, and we can focus on accumulating opportunities for full openness.
This project will greatly enhance the existing business capabilities of B&Q in terms of immediacy and efficiency, and will support all of B&Q's stores across China and the stores that will be opened in the future.
B&Q, President of B&Q China, is an internationally renowned chain of decorative building materials. In 2001, it was approved by the State Council and became the first Sino-foreign joint venture commercial pilot enterprise in the decorative building materials industry. It has opened chain supermarkets in major cities in mainland China. And establish a leading and reliable brand image in the minds of local consumers. B&Q now has 50,000 to 60,000 items, 20 stores in 10 cities, and consumers across China. The size and complexity of the entire system exceeds that of the Shanghai Stock Exchange. By 2009, B&Q plans to open 80 chain stores in 34 cities across the country.
• Strengthen control over all aspects of inventory, distribution, and shelf sales of various commodities • Address large-scale business expansion • Improve operational efficiency of core businesses
• Establish an efficient supply chain system to ensure rapid business development • Integrate back-office services, meet complex and large data operations under strict time requirements, improve overall management level • Real-time processing of billing, billing, distribution and inventory information Improve operational efficiency and enhance core competitiveness
IT outsourcing is "brain"
Publication date: 2005-02-06 / Author: Yang Yunlong
The results of IBM and HP on the B&Q project not only reflect the trend of 1T services, but also indicate that customers have a new position in the understanding of the two service providers.
It seems that the good play is always unexpected.
At the end of last year, HP just publicized the first IT outsourcing bill in China's retail industry. When the B&Q project has already fallen into the bag, it doesn't want to be heard. The biggest competitor IBM announced in Shanghai in early 2005 that it has reached a goal with B&Q. The first application management outsourcing contract for the retail industry.
The two opponents shouted the first at almost the same time. Who is better?
Which one makes more sense?
The most powerful voice in this regard is B&Q. According to reports, there are three main parts related to the B&Q retail business: the store support system (that is, the front-end consumer-related POS system), the daily system support service, and the core business back-end service (ERP software hosting service). ).
In these three parts, Siemens's Deli Duofu got the store support system, HP got the daily IT system, and IBM signed the back office list.
For these three parts, Wei Zhe, President of B&Q China, described it as “footâ€, “hand†and “brain†respectively. “The outsourcing of the store system allows us to go faster and open faster. The daily support services that HP helps us are equivalent to our two hands, ensuring that we work every day; ERP (Enterprise Resource Planning) hosted today to IBM The system is equivalent to the brain of B&Q."
Such a metaphor has already shown who is more important. Wei Zhe even said without hesitation: "Without hands and feet, B&Q is only slowing down, but once the "brain" is out of order, it is a matter of life and death, so for the back-office service provider, we The choice is the most cautious."
Wei Zhe’s remarks at the signing of B&Q’s cooperation with IBM made Guo Shixun, the deputy general manager of strategic outsourcing for the service department of IBM in charge of the project, excited. He knew that after HP signed a contract with B&Q last year, the pressure could be met. Imagine it.
Since December 11 last year, important areas such as commercial wholesale and retail, construction, and logistics will allow foreign investment to enter, and this area is naturally the focus of competition between IBM and HP. The battle between the two sides has started since the end of 2003. After more than a year of competition, HP first got the first order, but from the development trend of outsourcing and the importance to customers, IBM’s partial weight seems to be heavier. some.
Strategic contest
The ability to get a back-end list is, to a certain extent, IBM's strategic success. In China, due to market maturity and concepts, China's IT outsourcing market as a whole has been relatively low. One fact that can be explained is that despite relying on the vast Chinese market, the position of IBM China in the global market is not prominent, and the reason is that it is plagued by the sluggish outsourcing service market.
In order to change this situation, IBM began to explore new ways to open this market. At present, there are four main areas of support services, integration services, IT consulting, and IT outsourcing in the IT service market. In IT outsourcing, it is divided into infrastructure outsourcing, application management outsourcing and business process outsourcing.
In the past, both IBM and Hewlett-Packard have focused on infrastructure outsourcing projects, but the results are not very good. In the last year or two, IBM changed its strategy and began to turn its attention to corporate business, especially non-core related outsourcing services.
Guo Shixun believes that this change is in line with the current needs of customers. “Because various needs indicate that customers are buying products or services, the ultimate goal is to solve the business problems they face.†Guo Shixun said: “IBM has increased its strategic outsourcing in recent years to see this trend.â€
For the contract that can win B&Q, Guo Shixun believes that there are two key points: one is strong consulting ability and the other is deep industry experience. “The first question for the staff of B&Q is to ask: Has IBM done a project for management outsourcing of building materials retail management?†Guo Shixun recalled the situation when bidding: “Customers now choose IT service providers are no longer a major in IT. Competence, but a specific industry solution experience."
Wei Zhe’s answer also verified Guo Shixun’s judgment. According to Wei Zhe, B&Q's building materials supermarket has many special rules compared with food supermarkets. Some products are not available in the product store and need to be ordered. Can't be like a food supermarket, customers can take the goods and buy them through the POS machine. Every product purchased by a consumer at B&Q is a special order, which means that the product information is passed to the supplier. Therefore, the IT back office is more important than other retail companies. "If it is a food supermarket, eight to 90% depends on the reliability of the front-end POS machine. For us, every order must go to the ERP system, and the supply and demand is very large." Wei Zhe said that IBM is consulting The strength of the capability and the ability to integrate in ERP are one of the keys to getting an order; another key point is that IBM has had similar cases in the UK and B&Q UK.
Luo Jie, general manager of the Greater China region of IBM's transportation and commodity distribution industry, believes that in the cooperation with B&Q, IBM has demonstrated a full range of service capabilities, from front-end storefront environmental planning to back-end system transformation and construction of the front-back environment. The advantages of connecting the channel and implementing long-term maintenance and update of the system, and combining business consulting and service implementation capabilities are fully reflected.
Compared with traditional infrastructure outsourcing, application management services have an advantage. The amount involved in a single contract is relatively small, which is more suitable for SMEs in China. The birth of the first application management outsourcing service contract in China's retail industry indicates the trend of IT outsourcing services extending from infrastructure services to helping customers achieve business transformation services. As business and IT become more and more closely connected, enterprises have begun to pay attention to the service consulting and integration capabilities of service providers and whether they can establish a business system that can respond instantly to enterprises. “In 2004, IBM’s service management outsourcing service grew by more than 50%, becoming a new highlight of IT outsourcing services.†Yu Xueli, general manager of IBM Global Services Greater China, believes this trend may gradually drive the entire outsourcing market.
IBM Application Management Service (AMS)
• Develop and implement the processes and procedures required by our customers • Assist customers in monitoring system performance, improve the application environment • Implement and follow up changes to enterprise applications, manage databases • Efficiently manage work results • Have data support systems across the country
Just a coincidence?
A company chooses two competitors to serve itself, and to a certain extent has checks and balances and masters the reasons. But recalling some recent outsourcing service cases, we can see that some of the more interesting similarities are that HP sometimes gets an IT infrastructure outsourcing contract, and IBM gets the business-related piece.
Like Procter & Gamble, HP acquired an IT infrastructure outsourcing contract in April 2003 for a total of 10 years, valued at $3 billion. But in September 2003, IBM received a 10-year, $400 million global agreement on HR business transformation outsourcing services from P&G, supporting nearly 90,000 P&G employees in nearly 80 countries. Services provided by IBM include: payroll management, allowance management, compensation programs, expatriate and related placement services, management of travel and related expenses, and human resource data management.
Although both HP and IBM are emphasizing that they are comprehensive service providers, HP is more inclined to infrastructure than its customers, while IBM prefers the integration of technology and consulting.
Wei Zhe's words may be more indicative of the changes that consulting brings to IBM. Wei Zhe believes that the acquisition of PwC's IBM management and industry experience has been greatly improved, while the sale of the Pc department is more clear about IBM's positioning. "Some of the strategies IBM has taken make me feel that IBM is more focused on IT services." Wei Zhe said that he welcomes IBM's current practices, and he feels that this makes the positioning of IBM services clearer.
On the HP side, in the recent period, HP has gradually shifted its focus to consumer electronics. Entering the digital camera and large-screen home appliance market is an example. In terms of the proportion of services, services account for more than half of the company's operating income in IBM, and the proportion of services in HP is less than 20%. In terms of global market share, HP is only ranked third. After EDS, IBM topped the list, with annual sales close to $30 billion.
Although HP and IBM will be major competitors at this stage, there is news that SAP, the world's largest application management software vendor, has planned to list IBM as the sole partner. SAP's choice seems to have already indicated that the industry has already indicated There is a difference between the positioning of HP and IBM.
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