INTRODUCTION
REASONS FOR CHOOSING TOPIC
Information Technology (IT) is the motivation to promote economic growth and stimulate innovation for the global economy in general and national economy of each country in particular.
As calculated by IDC, the turnover of IT products and services market in the world in 2010 reached US$ 3,000 billion; expected to reach US$ 8,400 billion in 2015.
It is forecasted in 2011-2015 that the growth of IT in Vietnam will increase from 4.94 to 31.6% per year on average.
According to data of the U.S Department of Commerce, the proportion of computer software industry has contributed one third of the economic growth of this superpower.
CMCsoft, a member of CMC Technology Group (cmc.com.vn), faces intense competition in its operations To sustain its market share and remain a leading service provider, CMCsoft must develop a business strategy that aligns with the evolving market landscape Therefore, I have selected "Business Strategies of CMCsoft from 2011 to 2015" as the focus of my capstone project report.
OBJECTIVES OF THE RESEARCH
Build business strategies, action plans to help the company develop sustainably, provide a good material and spiritual life for its officers,employees; and bring benefits for the community and society.
OBJECTS AND SCOPE OF RESEARCH
Research needs, trends of domestic software market;
Analyze capacity of production and business, position of CMCsoft and competitors in the industry;
Propose action plans to achieve business goals in the period 2011-2015;
This paper only focuses on a research of domestic market Foreign markets shall not be presented.
METHOD OF RESEARCH
There are some methods used in this capstone project report:
Data statistics method and statistical analysis;
Comparative method and comparative analysis;
CONTENTS OF THE CAPSTONE PROJECT REPORT
Name of the capstone project report: “Building business strategies for CMCSoftInfo (CMCsoft.com.vn) in 2011-2015”
This capstone project report is divided into three parts:
Part 1: General theory of business strategy This part summarizes the theory of business strategy;
Part 2: Analyze current situation of business This part analyzes the current situation of production and business, provide assessment on strengths, weakness, challenges and opportunities;
Identify opportunities, markets, challenges, competition.
This party shall build the company’s business strategy
Make action plans to achieve targets.
THEORETICAL BASIS
DEFINITION, ROLE AND MODEL OF BUSINESS STRATEGY
Business strategy appeared in 1960s of the 20 th century with many different views and definitions as Fred David, Alfred Chadler, Harvard University, James B Quinn.
CMCsoft's business strategy focuses on long-term goals, supported by a comprehensive system of policies, measures, and resource allocation methods designed to achieve these objectives over time.
2.1.2 Feasibility of the business strategy
Enhance the power of the enterprise and gain competitive advantages;
Ensure the safety of business;
Define the business scope, objectives and basic conditions for achiving the objectives;
Forecast the future business environment ;
2.1.3 Why does CMCsoft need to build the business strategy?
Firstly, the business strategy helps CMCsoft determine its objectives and direction The strategy forces managers to consider and determine which direction to follow and when to reach a certain position;
Secondly, the business strategy forces managers to analyze and forecast conditions in the near and distant future;
Thirdly, thanks to the business strategy, CMCsoft shall connect decisions with conditions of business environment;
Forthly, the business strategy will help managers use available resources of
CMCsoft effectively and allocate them appropriately.
Fifthly, the business strategy helps managers coordinate with authorities in the organization effectively to achieve common goals of the organization.
2.1.4 Models of the business strategy
POSITION OF THE ENTERPRISE IN THIS SECTOR
CMCsoft's positioning highlights its visual appeal and showcases the intrinsic qualities of its products and services This strategic positioning not only enhances brand perception but also signifies the potential profitability for investors in the future By focusing on these aspects, CMCsoft aims to maximize its value proposition and attract investment opportunities.
CMCsoft must have the business strategy adapting to the market with high flexibility.
Firstly, a high position gives CMCsoft advantage, creates image of products, services and credit for the products; promote turnover increase and be a sharp weapon in competition.
When CMCsoft establishes a leading position in the market, it fosters strong customer trust in its products and services, resulting in high customer loyalty and stability Additionally, this prominent position allows CMCsoft to attract new markets and expand its reach, drawing potential customers away from competitors.
Thirdly, with a firm position, CMCsoft will be strong in fierce competition of the market on prices, attraction of investment capital and talents.
Forthly, CMCsoft’s position is not only the company’s property but also the nation’s propery in case of entering international markets. ấp kinh doanh
- Xác định nhiệm vụ và mục tiêu
- Phân tích lựa chọn chiến lược
2.2.2 The necessity of building strategies for CMCSoftware Ltd Co.
CMCsoft's current relative market share indicates a decline from its dominant position in the early years of software production, highlighting the impact of increasing competitive pressure from other companies in the sector on its market power.
New software companies entering the computer software production market will benefit from state support through advantages like licensing, flexible mechanisms, and tax exemptions These newer firms leverage advanced technology, maintain streamlined organizational structures, and offer professional services, enhancing their competitive edge.
Secondly, to dominate markets when new services were launched, enterprises of the same sector have used many business strategies to attract customers.
Thirdly, companies of financial capacity and large scale aslo shift to software production such as FPT, Hanel, VTC, HIPT, Viettel.
As CMC continues to grow, it faces increasing competitive pressure internally, necessitating strategic adjustments in human resources and employee treatment to effectively manage the rising number of employees and associated remuneration challenges.
Fifthly, traditional software is now stable, with more competition in the sector, CMCsoftware should make turning points in the research of new products and services.
CONSTRUCTION PROCESS AND OPTIONS TRADING STRATEGY
Figure 2.1: Model of comprehensive strategic management
MENTIONED ISSUES IN BUILDING BUSINESS STRATEGY
Long-term goals are defined by key indicators that reflect sustained success, including profit, productivity, competitive positioning, employee development, and employee relations, while also emphasizing the importance of social responsibility and effective management techniques.
As the steps, the action program of strategy in each strategic stage, they are separated results which company intends to arise within the next decision cycle.
Analyze and forecast external business targets
Analyze and forecast internal business targets
Study business philosophy, targets and mission
Build and implement more short-term plan
Take form strategy Appreciate and adjust strategy
Organize to implement the strategy
Environment of an organization are the factors, forces, institutions being inside and outside enterprises, having influence on the operation and operated results of enterprise.
Analysis to assess advantages and disadvantages and measures being taken in line with the situation in order to achieve enterprise targets in short and long term.
External environment of CMCSoft is divided into two levels:
Macro environment: Impact on all sector enterprises.
The macro-environment analysis helps what CMC Soft, Vietnam and world information technology is facing factors of economics, Government and politics, society, nature, technology, technique, and population.
Micro-environment: Analyze the environment of industry, Vietnam information technology with all interprises in the sector including five basic elements:
Factors of competitors, customers, suppliers, new potential competitors and alternative products.
Analyzing the internal environment of CMC Soft, a subsidiary of CMC Group, reveals both strengths and weaknesses across various functional areas, including human resources, research and development, manufacturing, finance and accounting, and marketing By identifying these internal factors, the company can implement strategies to mitigate weaknesses while enhancing its strengths, ultimately maximizing its competitive advantage in the market.
Strategy process consists of three phases:
Phase 1 of the strategic formation process involves the EFE matrix, the comparative image matrix, and the IFE matrix, collectively referred to as the input stage This stage serves to summarize essential information required for effective strategy development.
Phase 2, referred to as the matching phase, emphasizes the development of strategic decisions by organizing and integrating key internal and external elements This phase utilizes the SWOT matrix to identify and analyze threats, opportunities, strengths, and weaknesses.
Phase 3, known as the decision phase, employs the Quantitative Strategic Planning Matrix (QSPM) to assess feasible strategies This matrix utilizes data gathered from Phase 1 to objectively evaluate the attractiveness of various strategies identified in Phase 2 By providing a clear and quantifiable basis for decision-making, the QSPM enables organizations to select the most effective strategies for implementation.
Enterprises choose appropriate strategic plans based on their functions, tasks, and goals The selection of these strategies also considers the economic impacts they generate, including financial targets, profit potential, and contributions to social welfare.
Process of choosing general strategy should implement the following steps:
- Realize the current business strategy.
MAJOR TOOLS TO BUILD AND SELECT STRATEGY
2.5.1 External Factor Evaluation Matrix (EFE)
External Factor Evaluation Matrix allows strategists to brief and evaluate all information about economics, society, culture, population, geography, politics, Government, Law, technology and competition.
2.5.2 Example of External Factor Evaluation Matrix
Table 2.1: Example of external factor evaluation matrix
2.5.3 Examples of Competitive Image Matrix
Indicators Important level Classify Important
Table 2.2: Examples of competitive image matrix
The Competitive Image Matrix serves as a tool to identify key competitors along with their respective advantages and disadvantages This matrix extends the concept of the External Factor Evaluation Matrix, maintaining the same significance in terms of importance level, classification, and overall scoring.
The Competitive Image Matrix differs from the External Factor Evaluation Matrix, as it is crucial for determining success factors such as financial stability, advertising effectiveness, and research and development proficiency Additionally, the two matrices vary in their classification of competitor companies, with the Competitive Image Matrix also calculating a total importance score for these companies.
A comparative analysis of the total evaluated scores of competitor companies against the sample company reveals critical strategic insights This analysis allows for a direct comparison of the classification levels of both the competitors and the sample company, highlighting key differences and strengths.
Similar to External Factor Evaluation Matrix, Internal Factor Evaluation Matrix can develop according to 5 steps as mentioned in Example of Internal Factor Evaluation Matrix.
Without research and development forces 0,05 2 0,10
Table 2.3: Internal factor evaluation matrix
The SWOT Matrix, which analyzes Strengths, Weaknesses, Opportunities, and Threats, is a crucial tool for managers to formulate four strategic approaches: Strengths-Opportunities (SO), Strengths-Weaknesses (SW), Strengths-Threats (ST), and Weaknesses-Threats (WT) Successfully integrating key internal and external factors into this matrix is a challenging task that demands sound judgment and optimal combinations for effective strategy development.
SO strategies leverage a company's internal strengths to capitalize on external opportunities, enabling organizations to navigate trends and events in their environment effectively Managers aim to position their organizations to utilize these strengths, often pursuing WO, ST, or WT strategies to enhance their capabilities When faced with significant weaknesses, companies strive to transform them into strengths, while also working to mitigate threats by focusing on available opportunities.
WO strategies focus on enhancing internal weaknesses while leveraging external opportunities Often, significant external opportunities exist, yet internal weaknesses within the company hinder its ability to capitalize on these prospects.
ST strategies use strengths of a company to avoid or reduce the impact of external threats It does not mean that a strong organization always meets threats from the external environment.
WT strategies are defensive strategy in order to reduce internal weaknesses and avoid threats from the external environment To create a SWOT matrix, you must implement following eight steps:
1 - List the internal main strengths of the company
2 - List the internal factors of the company
3 - List the major external opportunities of the company
4 - List the important external threats of the company
5 - Combining internal strengths with external opportunities and write the result of SO strategy in the appropriate box
6 -Combining internal weaknesses with external opportunities and write the result of WO strategy
7 - Combining internal strengths with external threats and write the result of
8 - Combining internal weaknesses with external threats and write the result of WT strategy.
CONCLUSION OF CHAPTER I
As the Vietnamese economy increasingly integrates with the global market, competition intensifies, making it essential for businesses to develop effective strategies The success or failure of an enterprise hinges on its strategic management capabilities, highlighting the critical role of managers in implementing these strategies successfully.
To effectively establish and manage an appropriate strategy for an enterprise, administrators must grasp the fundamental principles of strategy building and implementation This article employs various research methods, including desk research utilizing secondary data from the Vietnam National Petroleum Corporation and internal reports on transport operations from 1996 to the present A detailed questionnaire was used to create strategic matrices, identify optimal strategies, and manage data in Excel for verification Chapter II will analyze domestic petroleum consumption demands, transportation needs, and the capacity of existing transport companies, while also assessing the development potential of the Corporation's fleet to propose actionable solutions for strategy implementation.
ANALYZE RESULTS OF RECENT PRODUCTION BUSINESS
INTRODUCTION OF THE COMPANY
CMCSoft, a member of CMC Corp, Vietnam's leading ICT group, boasts a team of over 300 experienced professionals dedicated to delivering high-quality software solutions The company specializes in products and services for various sectors, including Finance, Banking, Insurance, Government, Education, and Enterprise Management Notable offerings include the eDocman electronic Governmental Software, the iLib community knowledge portal, and tailored software for IU University Additionally, CMCSoft provides consulting, implementation, and integration services for applications like ERP, FileNet, Business Intelligence, Billing, ECM, EDMS, and SAP Business One, earning the trust of an expanding customer base.
CMCSoft's products, solutions, and services are highly valued by customers and trusted by technology partners, earning numerous prestigious awards from both domestic and international organizations.
CMCSoft is solidifying its leadership in Vietnam's software industry, reinforcing CMC Group's prominent status in the Information Technology and Communication sector.
Become a software company with products and services are recognized the international quality, high competitiveness in the region and around the world.
CMCSoft is dedicated to delivering high-quality information technology products and services through ongoing innovation and research investment Their commitment aims to enhance societal development, fostering a prosperous community while ensuring a fulfilling physical and mental life for their employees.
Insight of multi-professional and multi-field is not only talent in IT, team of
CMCSoft experts possess extensive experience and insights in various professional fields We recognize the challenges that clients encounter due to the nature of specialization, allowing us to effectively enhance operational efficiency through our software products, solutions, and services.
CMCSoft values enthusiastic, creative, and talented staff dedicated to the growth of the IT industry Our team is trained to embrace dynamism and innovation, making our skilled human resources an invaluable asset and a key strength of our company.
Advanced technology: Programming languages: Java, JSP, Servlet,Struts,
JSF, C #, VB.NET, ASP.NET, ASP, , Visual Basic, Oracle,
Operating System: Microsoft Windows NT/2K/2003, Linux,FreeBSD, UNIX Databases: Oracle, SQL Server, DB2, MySQL, PostgreSQL
Technology: UML, OOAD, COM, J2EE, EJB, NET, IBM WebSphere, Oracle IAS, J Boss
Network Protocol: SNMP, TCP / IP, NAT, IP Sec, VPN
Methods to develop modern software.
CMCSoft prioritizes quality as a key objective, aiming to meet customer needs and enhance their competitiveness To achieve this, CMCSoft has developed a quality management system that aligns with international standards, including ISO 9001:2008, ISO 27001, and CMMI Level 3.
We are improving processes, and will eventually build CMMi level 5 in 2012 to improve the quality of products and services in order to bring the highest benefit for the customers.
CMCSoft has established strategic partnerships with leading global ICT corporations, including Microsoft, Oracle, IBM, and SAP, to enhance its service offerings By fostering long-term collaborations with these industry giants, CMCSoft aims to leverage their expertise in technology and innovation, ultimately delivering superior solutions and services to its customers.
CMCSoft’s IT applications deliver verified products and solutions that have demonstrated effectiveness in enhancing management, production, and sales for enterprises and organizations in recent years Trusted by numerous customers, CMCSoft's software solutions have garnered multiple awards and recognition from the Government, Ministries, and esteemed Associations.
Perennial experience, prestige: From the early years of development,
CMCSoft specializes in software products and services tailored for government and enterprise sectors With 14 years of experience in the software industry, we have successfully completed numerous projects, both large and small This extensive experience has allowed us to continuously enhance our offerings, ensuring that our products and services increasingly meet the evolving needs of our customers.
Competitive pricing is achieved through high-quality software development that adheres to international standards and incorporates innovative research This approach enables the creation of products and services that deliver optimal efficiency at the lowest possible cost for customers.
3.1.4 Summary of software products, services (cmcsoft.vn)
3.1.4.1 Handling software for markets of Government, enterprises and organizations.
Administrative management, process automation for all organizations.
Computerization solution and Administrative management eDocman
Software eDocman to manage document and job profile
3.1.4.2 Handling software for markets of Insuarance, Finance, Banking.
Software Solutions Non-life Insurance CPC
Software eDocman to manage Letter of Credit LC
Software eDocman to manage profile and compensation process for insurance companies.
3.1.4.3 Handling software for Information and Library.
Electronic Library software integration iLib
Digital Library Software - iLib.Di
Library Management Software medium sized - iLib.Me
Information Publishing Software - iLib.CDPub
Combined appendix software - iLib.UC
3.1.4.4 Handling software for Education and Training.
3.1.4.5 Services of consultancy and providing software solutions.
Comprehensive management solutions of ERP Enterprise Resource
Supporting solution to make decision Business Intelligence
3.1.4.6 Development, provides software solutions according to the demand
We specialize in developing tailored software applications for organizations of all sizes across various sectors, including Government, Finance, Insurance, Education, and Enterprise Our high-quality solutions are recognized for their professionalism and ability to address the complexities of large applications, as well as the unique requirements of each industry.
3.1.5 CMC Business Results from software (VND)
Figure 3.1: CMC business results from software (VND)
3.1.6 General introduction on software market.
In the nation, there are approximately 500 educational institutions ranging from professional schools to universities, including around 10 major universities that serve as regional hubs These universities offer various disciplines such as economics, engineering, medicine, education, and vocational training, each requiring distinct management models Consequently, the demand for software applications tailored to these specific educational needs is a growing trend across all universities.
Finance – banking, insurance markets: Number of units is less than education but applications needs and expense for information technology is 3 times higher than educational block.
Block of the central government, local government, parliament, parties, organizations spend according to the budget and information technology programs;
There are many enterprise sectors, but market share is only targeted to large enterprises, about 1000 large – sized enterprises.
Competitive enterprises in the industry
Major global corporations like IBM, Oracle, and Microsoft primarily focus on selling core products, while in Vietnam, leading IT firms such as CMC operate in distinct market segments, avoiding direct competition with local companies.
Domestic software companies in Vietnam are fierce competitors, each employing unique strategies and strengths to reach their objectives Among these, CMC stands out as one of the top five largest software firms, actively competing across various segments and projects.
ANALYZE EXTERNAL FACTORS
3.2.1 Predictions for economic factors affecting software using
Prediction for the Vietnam ICT industry in 2011 (data in IDC’s top 10 ICT predictions for the Vietnam ICT industry in 2011).
IT spending growth in Vietnam leads the Asia/Pacific market
IT spending in Vietnam will increase in 2011 Specifically, IDC predicts that
In 2011, Vietnam's IT spending is anticipated to experience a robust year-over-year growth of 17.0% Notably, IT services are expected to lead this growth with an impressive 18.5% increase, while hardware spending is projected to match the overall growth rate at 17.0% Additionally, the packaged software sector is forecasted to grow by 14.4%, highlighting the dynamic expansion of the IT industry in Vietnam.
3.2.2 Government-based projects will fuel IT spending in the public sector
The Vietnamese government has announced its ambition to establish the country as a leading developer in Information and Communication Technology (ICT) by 2020 Significant IT development projects are underway in major cities like Hanoi, Ho Chi Minh City, and Da Nang, with expectations of increased public sector ICT spending in 2011 Government agencies are set to invest in strategic infrastructure and the upgrade or replacement of existing hardware and software These public sector IT opportunities will arise from comprehensive reform initiatives across various service sectors, including healthcare, education, energy, environmental management, transportation, and communications.
3.2.3 Data center services will further expand with more significant growth
Recently, there has been a significant surge in the planning and construction of datacenters in Vietnam Major players like Vinadata, Thang Long, and Matbao, along with leading service providers such as Lac Viet and VDC, are actively investing in this sector Furthermore, medium-tier banks and smaller service providers are also contributing to this growth The Vietnamese market anticipates that the total capital expenditure (CAPEX) for commercial datacenters will exceed US$244 million by year-end.
3.2.4 Rural/remote geography will gain bigger IT attention
The Vietnamese government is prioritizing the enhancement of IT adoption in rural and remote regions, with several key projects set for completion by 2011 These initiatives include the "One Million Computers for Education" program and the "Development of Secondary Education," aimed at improving access to technology and education in underserved areas.
Programs aimed at enhancing computer usage and public internet access are gaining traction, prompting PC vendors to continually reassess their business strategies to align with emerging public sector initiatives.
3.2.5 Social media will play a bigger role in local business marketing efforts
Despite government attempts to regulate social network services, their popularity continues to surge According to IDC, the merging of social media with collaboration tools is set to revolutionize online business interactions, enabling companies to reduce costs and enhance marketing efficiency.
3.2.6 Cloud computing services will become true
Cloud computing services in Vietnam have evolved significantly, yet they continue to encounter security challenges The success of cloud computing in the country largely relies on the government's initiatives to transform IT infrastructure and the public's willingness to adopt cloud-based solutions.
3.2.7 Potential for security-as-a-service
In recent years, local businesses have become increasingly aware of the negative impacts of online fraud and hacking, prompting a heightened focus on IT security As a result, IDC predicts that by 2011, IT service providers will begin offering security-as-a-service, particularly targeting niche sectors like financial services, with an emphasis on security and vulnerability management (SVM).
3.2.8 Business Process Outsourcing (BPO) services will gain traction in enterprises
In 2010, Vietnam's total BPO service revenues amounted to US$23.6 million According to IDC, the customer care BPO sector is projected to grow significantly, with an anticipated five-year compound annual growth rate (CAGR) of 17.9%, reaching US$20.53 million by 2014 Additionally, financing and accounting are expected to emerge as the primary BPO services in the near future.
3.2.9 Digital content will see increased commercialism
Supported by the Government of Vietnam's Digital Content Industry (DCI) program, IDC anticipates that the digital content sector will emerge as a pivotal industry in 2011, focusing on four main areas of commercially-generated content: mobile network services, online gaming, online advertising, and e-commerce.
3.2.10 3G deployments will raise mobile operators value-added services
In 2010, Vietnam's mobile operators invested $2 billion to fully deploy 3G infrastructure, achieving nearly 98% geographic coverage by the end of 2012 By 2011, the number of 3G subscribers in Vietnam is projected to reach 8 million.
3.2.11 Predictions for social factors affecting software using
Aberdeen Group predicts investment in the world IT products and services will rise 4% in 2011; the U.S is expected to increase 3.6%.
In 2012, global spending in the IT industry is projected to reach between US$1.3 trillion and US$1.4 trillion, with an annual growth rate of 4-5%, and 5-6% specifically in the U.S The Aberdeen Group forecasts that from 2011 to 2015, the Asia-Pacific region will dominate IT sector investments, experiencing an impressive annual growth of 6.5%, while North America and Europe will follow with growth rates of 4.9% and 2.6%, respectively.
3.2.12 Predictions for spending policies in software in Vietnam
Prime Minister’s Decision No 1605/QD-TTg dated 27 August 2010 approved the national program on application of information technology to operations of state agencies during 2011-2015 The objectives should be achieved until 2015:
1 Build and compete information infrastructure, laying the foundation for e- government development;
2 Widely apply IT in internal operations of state agencies in order to improve labor productivity and reduce operating costs;
3 Provide information, public services online of high level in wide area for people and enterprises; making operations of state agencies more transparent, serving people and enterprises better.
1 Build and compete information infrastructure, laying the foundation for e- government development;
Develop and compete infrastructure to ensure activities of applying IT in state agencies in the network environment safely and effectively;
Develop and implement a comprehensive information system with a robust database that focuses on creating a national database encompassing human resources, environment, finance, economy, industry, and trade This initiative aims to establish a structured system and foster an electronic working environment within state agencies.
2 Apply IT within state agencies
60% official documents exchanged among state agencies in electronic form. Most of officials and officers regularly use e-mail system at work.
To guarantee seamless communication, it is essential to establish technical conditions that enable 100% of the Prime Minister's meetings with ministries, ministerial-level agencies, government bodies, and provincial and city People's Committees to be conducted in an online environment.
Ensure technical conditions for 100% management records of officers, officials can be managed collectively on the national scale.
Implement the management information system of budget and treasury to all provinces and cities under central authority;
Ensure electronic data serving almost activities of state agencies.
3 Apply IT to serve people and enterprises
All state agencies at the district level and above now have e-portals or websites that comply with Article 28 of the Law on Information Technology These platforms provide comprehensive information and offer online public services at least at level 2, with many basic services available at level 3 for both individuals and businesses.
50% tax declaration records of people and enterprise submitted online;
90% customs authorities of the provinces, cities implement e-customs procedures.
ANALYZE INTERNAL FACTORS
3.3.1 Table analysis of business results (VND).
Revenue 113,360,000,000 189,490,000,000 309,550,000,000 67% 63% Expenditure 38,305,000,000 57,175,000,000 80,180,000,000 49% 40% Profit before soft salary 75,055,000,000 132,315,000,000 229,370,000,000 76% 73% Income depends on business results 15,000,000,000 27,000,000,000 50,000,000,000 80% 85% Profit after soft salary 60,055,000,000 105,315,000,000 179,370,000,000 75% 70%
Income depends on business results per person
Profit after soft salary /person 91,911,765 141,955,836 192,433,514 54% 36% Revenue/person 694,607,843 996,267,087 1,191,355,887 43% 20% Profit/person 367,984,069 553,706,625 690,335,989 50% 25%
Table 3.5: Table analysis of business results (VND)
Comments, assessments: Growth in revenue is rapid in recent three years
(67%, 63%), while expenditure growth of medium - sized companies (49%, 40%), thus it suggested that labor productivity has improved well, optimized internal resources.
Between 2011 and 2015, organizations must undergo structural changes to achieve significant advancements in production development and revenue growth Additionally, optimizing organizational frameworks is essential to enhance profit margins per employee, aiming for increases of 50% and 25% respectively, as highlighted in the CMC report of 2010.
3.3.2 Chart analysis of business results
Figure 3.5: Chart analysis of business results
Over the past three years, the average income of employees has risen significantly, enhancing the appeal of labor within these businesses This increase in per capita and labor income has been particularly notable in the first company, indicating a strong correlation between employee compensation and the company's sustainable development Furthermore, the calculation of profit before soft salary reveals that profits, after accounting for employee income, have positively contributed to the overall financial health of the organization.
Soft salary = salary / month + year-end earnings of employees by business results; Source: CMC report 2010
3.3.3 Table analysis of revenue structure.
Revenue Structure iLib, eDocman, IU, eDocman none software 103,240,241,922 33%
Web sphere, File Net software 21,783,294,724 7%
Table 3.6: Table analysis of revenue structure
Comments, assessments: iLib, eDocman, IU, eDocman none bring large revenue for the company due to better purchasing power, needs to focus on doing business to create large revenue.
New products, New services: Web sphere + File Net, needs to boost the revenue proportion in the period 2011-2015, entry market policies well.
Packaging Product: Packet needs to organize business to generate high profits; Source: CMC report 2010
Figure 3.6: Chart of revenue structure
Analyzing the revenue structure reveals that product revenue represents the largest share, highlighting the importance of focusing on market dynamics and offering quality products To enhance market share next year, it is crucial to prioritize these elements in strategic planning.
3.3.5 Table analysis of compensation elements in recent 3 years
Income depends on business results /person 128,676,471 173,501,577 211,676,866 Profit/person 331,219,363 522,160,883 671,092,637
Table 3.7: Table analysis of compensation elements on recent 3 years
3.3.6 Chart analysis of worker’s compensation in recent 3 years.
Figure 3.7: Chart analysis of worker’s compensation in recent 3 years
Comments: Income per capita has steadily increased three years, so companies can appeal the labor; Source: CMC report 2010
3.3.7 Analysis of yields following each year
Table of yields 2008 2009 2010 iLib, eDocman, IU, eDocman none software 150 290 400
Web sphere, File Net software 65 100 200
Table 3.8: Analysis of yields following each year
3.3.8 Chart analysis of yields in recent 3 years.
Figure 3.8: Chart analysis of yields in recent 3 years
Over the past three years, revenue from the product has shown consistent growth and stability, particularly from Product ilib, IU, and edocman This trend highlights the steady increase in market performance of these products, as reported by CMC in 2010.
3.3.9 Analyze price of products following years.
2008 2009 2010 iLib, eDocman, IU, eDocman none software 274,934,946 266,345,662 258100604.8 Web sphere, File Net software 119,742,996 117,832,947 108,916,474
Table 3.9: Analyze price of products following years
3.3.10 Chart analysis of the price in recent 3 years
Figure 3.9: Chart analysis of price in recent 3 years
Over the past three years, product prices have remained relatively stable; however, the high cost of Trade products has led to significant fluctuations in company revenue To develop a low-risk revenue plan, it is advisable to focus on service products rather than relying on Trade products This strategy is supported by the findings in the CMC report from 2010.
3.3.11 Analysis of revenue, expenditure in 2010 (VND).
No Items Quarter 1 Quarter 2 Quarter 3 Quarter 4 Results in
5,196,600,000 5,196,600,000 5,196,600,000 5,196,600,000 20,786,400,000 insurance, payment of trade union)
Total individual soft salary – not depend on business result of company and parts
Soft salary depends on results of parts and company
Table 3.10: Analysis of revenue, expenditure in 2010 (VND)
Comments: The business situation is good; revenue of the quarter was stable leading to positive cash flow, stable companies, and good prospects.
Profit before soft salary = profit before tax - income of the employees last year as a result of business
Soft salary = salary / month + year-end earnings of employees by business results; Source: CMC report 2010
3.3.12 Factors of process, control, quality
It is necessary to make sanctions and motivations help quality control system ISO 2709 and software manufacturing processes CMM level 3 to be practical in operating and producing process.
Process factor is actually effective arm which helps managers to manage jobs and promote operating results.
3.3.13 Analysis of motivation management, change.
Implement programs to build motivation for each department, in order to create a breakthrough for the company on development targets.
3.3.14 Table of Internal Factor Evaluation Matrix (IFE) of the company
Leaders of the company with professional level and management capacity.
2 Leaders of Sbus with professional knowledge and attachment to company 0.03 2 0.06
3 Management level of Sbus can meet the demands of job 0.05 3 0.15
5 Employee with skills, trained in full – time 0.05 3 0.15
7 Increasing rate of employee through years 0.04 4 0.16
10 Stable price in the past 3 years 0.06 2 0.12
11 Good effectiveness of using capital 0.06 2 0.12
Managing production according to functional online model Director masters enterprise situation
13 Forecasting method for building real annual plan 0.04 3 0.12
15 The company has traditional trademark in many years 0.06 3 0.18
16 The company has built trademark for the domestic markets 0.03 3 0.09
17 Marketing strategy to expand the market is not good 0.03 3 0.09
18 Leadership style is democratic centralism 0.06 3 0.18
20 Closely link of organization model to promote productivity and quality 0.04 4 0.16
21 Under the management of the Group 0.03 3 0.09
Table 3.11: Table of internal factor evaluation matrix (IFE) of the company
Conclusions: (2.93 marks) For an overview suggest, the company is managing the problems of internal enterprises, especially the motivation of employees and close cooperation of management; trademark control software quality.
THE COMPETITIVE PRESSURES FROM CUSTOMERS
3.4.1 Can simulate specifically software before customers decide to buy?
Pressure: Customers want to see, feel specifically functions of software when buying
Challenge: Softwares following software requirements are often not available Measure: Build knowledge database about software and specialized knowledge
Pressure: Customers will find what they want to buy rather than what CMC has.
Challenge: Convince that the functions are suitable with customer requirements
Measure: Persuasion by references, experience
3.4.3 Besides suitable using demands, How about issues of security and safety?
When evaluating software, customers prioritize its value beyond merely meeting professional requirements They often inquire about the software's simplicity, convenience, and the safety and security it offers.
Strategy: Improve continuously, synchronize solution
3.4.4 Tools and utilities of software?
Pressure: What is software utility more dominated than other products?
3.4.5 Services are faster than ones which I’m using or not?
Pressure: How long is implementation progress from order to the client can use real application?
3.4.6 Services are cheaper than ones which I’m using or not?
Pressure on price: Price is the top concerned issue of consumers when deciding to buy the software.
SWOT Matrix
1 Spending on packaged software is increasing;
2 Spending on industrial-level software is deployed mass;
3 The Government is determined to have IT budgets;
4 Corporation with foreign companies has brought much strength.
1 Large scale means slow response to market changes;
2 Less competitive price (high price);
4 More and more companies are entering in this industry.
2 Capable of carrying out projects that are complex/ difficult in production process and technology;
3 The company is stable, having its own brand;
1 Creating influence on software spending policies;
2 Corporate with foreign companies to increase competitiveness;
Make strategies to speed up market shares and product diversification.
1 Build packages of products and services in each market segment;
2 Manage motivation, conflict and changes;
Strategy of maintaining market shares by after-sales services;
Strategy of lowering production cost
1 High price due to high operating costs;
4 New products and markets are not much.
1 Product package is sold mass;
2 Breakthrough by big/ complex and long-term projects;
3 The price is suitable for purchasing power;
Strategy of breakthrough in revenue, profit by purchasing, merging;
Strategy of lowering price to increase competitiveness and market shares
1 Set up wide distribution channels;
2 Maximize profits by developing distribution channels in line with the segments;
3 Restructure organization Strategy of optimal zing resources and profits
QSPM Matrix
Replaceable strategies Strategy of breakthrough in revenue, profit by purchasing, merging
Strategy of maintaining market shares by after- sales services;
Capable of carrying out projects that are complex/ difficult in production process and technology
The company is stable, having its own brand 2 3 6 2 4
Large scale means slow response to market changes 3 3 9 2 6
Less competitive price (high price) 2 3 6 2 4
Spending on packaged software is increasing 2 3 6 2 6
Spending on industrial-level software is deployed mass 3 3 9 3 9
The Government is determined to have IT budgets 2 3 6 3 6
Cooperation with foreign companies has brought much strength 3 3 9 2 6
More and more companies are entering in this industry 3 2 6 2 6
Strategic breakthroughs in revenue, profit by purchasing merger
Strategy of lowering production cost
Strategy of maintaining market shares by after- sales services
Capable of carrying out projects that are complex/ difficult in production process and technology
The company is stable, having its own brand 3 2 6 2 6
Large scale means slow response to market changes
More and more companies are entering in this industry
Spending on packaged software is increasing 3 3 9 2 6
Spending on industrial- level software is deployed mass
The Government is determined to have IT budgets
Cooperation with foreign companies has brought much strength.
Replaceable strategies Strategy of lowering price to increase market shares
Strategy of optimal zing resources and profits
High price due to high operating costs 3 2 6 3 9
New products and markets are not much 3 2 6 2 6
Cooperation with foreign companies has brought much strength 2 2 4 2 4
Large scale means slow response to market changes 2 2 4 2 4
Spending on packaged software is increasing 2 2 4 3 6
Spending on industrial-level software 3 2 6 3 9 is deployed mass
The Government is determined to have IT budgets 2 2 4 2 4
More and more companies are entering in this industry 3 3 9 3 9
Replaceable strategies Strategy of lowering price to increase competitiveness and market shares
High price due to high operating costs 3 2 6 3 9
New products and markets are not much 3 2 6 3 6
Large scale means slow response to market changes 2 2 4 3 6
Less competitive price (high price) 3 2 6 2 6
More and more companies are entering in this industry 2 3 6 3 9
Group S+O: Strategy of breakthrough in revenue, profit by purchasing, merging got total 83 points; Strategy of maintaining market shares by after-sales services got 68 points.
Group S+T: Strategy of lowering production cost got 78 points; Strategy of maintaining market shares by after-sales services got 69 points.
Group W+O: Strategy of lowering price to increase market shares got 61 points;
Strategy of optimal resources and profits got 72 points.
Group W+T: Strategy of lowering price to increase competitiveness and market shares got 38 points; Strategy of restructuring company got 52 points;
From the above results, we will choose the following strategies to develop the company:
- Strategy to “stabilize” by maintaining market shares, increasing profits by transforming project products into packaged products;
- Strategy to “speed up” breakthrough in revenue, profits by purchasing, merging, BPO services;
- Strategy to strengthen the enterprise’s position by restructuring organization.
CONCLUSION OF CHAPTER III
The investment in new products, new markets to get new opportunities is necessary and constant during performance of the company.
The optimization of profits, revenues in traditional products create sustainability and stability of the company.
The transformation of project products into packaged products to lower production costs creates competitiveness for the enterprise and breakthrough in profits;
Set up simple, active system to increase revenue, take advantage of market opportunities to create stable revenue and cash inflows.
Restructure of the company’s management structure to create unity in the company and group in order to create position of the enterprise in the industry and in the market.
SET UP STRATEGIES IN 2011-2015
OBJECTIVES IN 2011-2015
4.1.1 Planning Profit target for 5 year (billion vnd)
Table 4.1: Planning profit target for 5 year (billion vnd)
The company aims to increase 30% profits in each following year.
4.1.2 Products revenue structure (short-term revenue plan)
Revenue structure VND 325,027,500,000 VND 402,415,000,000 iLib, eDocman, IU, eDocman one software VND 227,519,250,000 VND 241,449,000,000 Portal, CDM software VND 48,754,125,000 VND 80,483,000,000 BPO Business process outsourcing VND 32,502,750,000 VND 40,241,500,000 New products (e-Gov) VND 16,251,375,000 VND 40,241,500,000
Table 4.2: Products revenue structure (short-term revenue plan)
Packaged products can ben sold mass with lower price.
Production of new products and services: Find out new products with faster services
Maintain top 5 software companies in Vietnam.
Maintain the market of education, enterprise and government (core products are sold in this market).
Gather resources to dominate the market of finance-banking and insurance.
Set up a department in charge of after-sale services, receiving objectives and customer care KPI.
Quickly response to customer requests.
Set up well-trained core system of the company.
Labors’ remuneration is guaranteed by the contribution of each individual, is motivation for individuals to strive during work.
STRATEGIES PLAN
Improve marketing in market segments in accordance with the government’s direction of IT spending.
Marketing must be divided according to each product cycle; the spending of segment must ensure marketing efficiency.
Restructure business program according to department in charge of products and market.
Sell directly, Mass and through dealer
4.2.2 Program of news Products and news services
Diversify and improve quality of products and services
Packe CDM products of the company in commercial products.
Set up new solutions such as digitalization, BPO services.
Set up labor productivity to each individual in production and business area.
Set up remuneration packages based on working results and periodical reports.
Human resources is a key factor that decides position and strength of the company.
Skill self-improvement (with program, contents of training objectives for each department), it is obligatory of spend training funds.
Attract senior personnel in the industry to the company.
Restructure the company’s organization into SBU self-accounting; assign objectives and KPI to each SBU.
Forecast Finance Status in 2010 vnd
No Items Quarter 1 Quarter 2 Quarter 3 Quarter 4 Results
Table 4.3: Finace for annual activities
With business results in 2010, until 2011, the company can fully targeted profit goal increasing 130%.
MEASURES
Investing in new products directly impacts annual expenditures For software companies, labor costs represent the largest expense To mitigate threats to profitability, it is crucial to manage quality effectively and reduce labor costs in the short term.
4.3.2 Measures to control plans and prevention of threats.
Strategic assessment once every 6 months
Company strategy is concretized in strategies of SBU department
CONCLUSION
“stabilize” by maintaining market shares, increasing profits by transforming project products into packaged products;
“speed up” breakthrough in revenue, profits by purchasing, merging, BPO services, other investments.
”strengthen” the enterprise’s position by restructuring organization.
The investment in new products, new markets to get new opportunities is necessary and constant during performance of the company.
The optimization of profits, revenues in traditional products creates sustainability and stability of the company.
Transforming project products into packaged products effectively reduces production costs, enhancing the enterprise's competitiveness and significantly boosting profits Additionally, establishing a streamlined and proactive system can increase revenue by capitalizing on market opportunities, ensuring stable income and consistent cash flow.
Restructure of the company’s management structure to create unity in the company and group in order to create position of the enterprise in the industry and in the market.