UFIDA (A)

Abstract

UFIDA was established in 1988. It developed quickly as Chinese enterprises started switching to computerized accounting methods, and businesses the world over started using information technology-based management tools. By 1991, UFIDA had become the largest financial management software provider in China, and has retained that top spot until the present. In 1996, UFIDA expanded into enterprise management software/ERP. In 2001 the company went public, listing on the Shanghai Stock Exchange. By 2002 UFIDA had taken a greater ERP market share in China than SAP, the international ERP provider, and UFIDA grew to become the largest Asia-headquartered enterprise management software provider.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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Resources

Appendix 1 UFIDA Software Park

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Appendix 2 Management Software Product Portfolio

  • Basic operation platform: It supports management software. All products in management software packages operate on the platform and are developed on it. Its functions include work flow engine, statement tools, intelligent clients, coordination between platform and application & development context.
  • MES (Manufacturing Execution System): It's a flexible tool that monitors and controls processes for production managers, guarantees smooth production flow, and controls product quality and cost. Functions include resource configuration and status management, procedural arrangement, production unit allocation, document control, data collection and process management.
  • ERP: It's a management platform that is based on IT and offers decision makers and staff members with decision making means depending to systematic management notions. ERP, a new-generation integrated management information system, develops from and extends MRP (Material Requirement Plan). Its core is supply chain management, and it optimizes enterprise resources on the supply chain. ERP system integration information technology and advanced management ideas become an operation model of modern enterprises. Common modules consist of financial management, production control, logistic control, and human resource management.
  • OA: It makes use of information technology to elevate business efficiency and realize office automation. Based on Internet/Intranet technology and work flow conception, OA realizes information sharing among staff members, coordinates assignments, changes low-efficiency, complex handwork way in the past, collects and processes comprehensive information swiftly, and provides references for business management and decision making. Major modules contain document management, content management, knowledge management, collaborative management and tools, work flow, public resource management, enterprise portal, and connection with ERP and other application systems.
  • CRM: It analyzes customer information details, enhances customer satisfaction, and promotes enterprise competitiveness. The system usually comprises marketing, sale, customer service and analysis modules.
  • SCM: It focuses on enterprise supply chain and manages supply, demand, raw material procurement, market, production, inventory, orders, distribution and delivery, including each part from production to delivery and from suppliers to customers. It covers four primary modules. The planning module designs the entire supply chain and arranges resource according to demands. The execution module manages material allocation, production and order confirmation. The coordination module manages overall operation and contracts. The cooperation module is responsible for supply chain portals, flow and integration.
  • PLM (Product Lifecycle Management): It supports creation, management, distribution and application of product lifecycle information and is used within a business that is located in a single site, within a business that has several working sites, and between businesses that collaborate in R&D. It integrates all elements in relation to products, including human resource, flow, and application system and information. PLM normally include project and product portfolio management, flow and data management around product lifecycle, as well as elementary service modules.
  • BI: The tool turns existing enterprise data into knowledge and helps enterprises make intelligent decisions on business operation. Enterprise data come from internal system, such as orders, inventory and ledgers; industry and rivals, such as information about customers and suppliers; and external environment. Business intelligence supports business operation decisions on operating, tactical and strategic levels. BI, which converts data into intelligence, consists of databases, OLAP tool and data mining tools.
  • Industrial solution: It refers to management software specially developed for a certain industry. Each sector needs special management software that are suitable for the industry. Catering needs an order system and real estate industry needs a housing sale system.

Appendix 3 C/S and B/S Architectures

C/S (Client/Server) architecture: Client and Server are usually on two computers with a long distance. Client programme submits user demand to Server programme and then displays results returned from Server. Server programme receives and handles service requests from Client and returns disposal result to Client.

C/S is a software system structure that makes full use of hardware advantages on both sides, reasonably assigns tasks to Client and Server, and reduces system communication expense. Typical C/S structure is open only at system development level. In specific applications, both Client and Server require specific software support. C/S fails to offer a real open environment as users expect, C/S structure requires different software versions on different operating systems. Due to fast product upgrade, C/S cannot support a LAN with more than 100 computers now owing to high cost and low efficiency.

B/S (Browser/Server) architecture: It improves or alters C/S structure as Internet technology emerges. Under B/S, user interface is realized through WWW browser. Only a few business logics are realized in Browser, and most business logics are realized at Server. It forms a three-tier structure. C/S is a fat client that needs software installation on user computers, while B/S is thin, because most or main business logics are saved in Server. B/S needs no client software installation. It operates on client browser. During system upgrade or maintenance, only server software is required to update. This structure largely reduces client computer load, cost and workload of system maintenance and upgrade, and TCO. Another important point is B/S is more attractive than C/S in application in large-sized enterprises, because B/S facilitates unified and central administration, as well as system installation and maintenance. In addition, B/S structure makes it possible for the system to support unlimited users. Compared with C/S, B/S is slow in system operation and cannot control system access users.

Under current technical conditions, the way of combining B/S on LAN with database application under Internet/Intranet is easy and cost-effective. In this one-time-development way, users at different locations can access and operate the same database through LAN, WAN and Internet/Intranet. It can effectively protect data platform, control access, and secure server database. After JAVA cross-platform language appears, B/S-based management software becomes more convenient and efficient.

Appendix 4 UFIDA Memorabilia

  • UFIDA's growth phase I: 1988–1998

On December 6, 1988, UFIDA was founded in Zhongguancun, Haidian District, Beijing.

In 1993, UFIDA was awarded Good Faith Company by Beijing Administration for Industry and Commerce. In addition, UFIDA was awarded Large Tax Payer, Advanced Tax Payer and Credit Tax Payer by Beijing and national authorities.

On January 18, 1995, the company was renamed UFIDA Software Co. Ltd. Company scale and industrial chain gradually expands.

In 1996, UFIDA announced to transfer from financial to ERP software, starting a new chapter of the company.

As UFIDA customer group enlarged, product lines got more complex, and company size increased, UFIDA introduced advanced quality management system ISO9001 to guarantee product quality and maintain customer satisfaction. On October 28, 1997, UFIDA passed CCQE certification and became the first company in Chinese software industry that passed international quality system certification. In the same year, UFIDA Mansion, located in Shangdi, Beijing, and the largest ERP industrial base at that time in China, was open to use.

In 1998, UFIDA turnover reached RMB120M. When the company was established, its goal was RMB30M turnover in 1998.

  • UFIDA's growth phase II: 1998–2008

In 1999, UFIDA finished reforming from a limited liability company to a stock limited company and prepared for being listed.

In 2000, the only ERP center for post-doctoral studies in China was set up in UFIDA, and the company became a key base that cultivated top ERP professionals for the country. On May 18, 2001, UFIDA was listed in the Shanghai Stock Exchange. It's the first stock issued according to approval system in A Share market. Offering price was 36.68 RMB/share, and fund raised was 880 million RMB. The share price exceeded 100 RMB on the IPO day, breaking many records in Shanghai Stock Exchange. After being listed, UFIDA had stronger capital power to provide better products and services for customers.

On September 1, 2001, UFIDA acquired Beijing Hengxin Yuhua Software Technology Co., Ltd and renamed it UFIDA Cellsoft Software Technology Co., Ltd.

On January 8, 2002, UFIDA and IFS set up Beijing IFS UFIDA Software System Co., Ltd. UFIDA controlled the joint venture, which focuses on software systems of large-sized, capital-intensive projects and large-scale construction projects. This is a crucial part in UFIDA overall development strategies.

In 2002, UFIDA ERP market share reached 21.6% and exceeded SAP in China. After that, UFIDA market share has been increasing, and exceeded the total sum of the second and third companies in 2006, acting as a main force to spread ERP in China.

In 2003, UFIDA acquired Anyi Software Company to enter e-government market. Anyi was renamed UFIDA Zhengwu Software Company, and concentrates on development, promotion and service of EG software for financial budget and administrative institutions, as well as NGOs. Three years later, the company became the largest accounting software provider in China.

On September 17, 2003, UFIDA set up UFIDA (Hong Kong) Co., Ltd, as a base to enter Southeast market, developing overseas business, and becoming an international software company. In this year, Wang Wenjing was elected as one of Chinese Digital Celebrities 2003.

In 2004, UFIDA initiated global strategies to strengthen international competitiveness, intensify Chinese local operation, develop software outsourcing, carry out international cooperation, and introduce foreign talents. UFIDA also set up branches in Hong Kong and Japan and offices in Thailand and Singapore.

On August 18, 2004, Wang Wenjing and VP Li You announced plan to enter financial industry at the press conference establishing UF Financial Software System Co., Ltd. Since then, a pan-UFIDA was shaped. In November 2004, UFIDA released ERP packages, incorporating small and medium-sized enterprises into company strategy.

In 2005, UFIDA ERP with Chinese developed intellectual property was exported. Also in 2005, company name was changed from UFsoft to UFIDA for easy use in the global market. U stands for user or you, and FID comes from fidelity, meaning UFIDA is loyal to customers and a long-term, reliable partner.

Under the background of Made-in-China, UFIDA initiated ERP popularization movement in China. UFIDA actions changed ERP from luxury goods into a necessity that help businesses improve management and operation. As more and more enterprises deployed ERP, UFIDA became one of the largest ERP provider headquartered in Asia-Pacific.

In 2006, UFIDA embraced mobile business as one of the two core strategic operations, established an M-business company, to enter M-business sector, and began to provide customers with M-commerce applications and mobile management solutions. The mobile mall product released by UFIDA Mobile was the first Chinese large-scale, complete-function mobile e-commerce platform. Enterprises could market goods in the mall anytime and anywhere.

On March 22, 2007, UFIDA Software Park was opened. The hi-tech, garden-style, environment-friendly software development base is the largest in Asia-Pacific, and is also a starting point for UFIDA to become a world-class software company. In 2007, more than 1,000 key staff members were rewarded company shares.

On April 18, 2008, UFIDA U9, the first ERP software completely based on SOA architecture in the world, was released in Beijing. U9 follows global and real-time business principle, supports global operation with multiple locations, organizations, factories, languages and taxation systems, tries to boost more Chinese enterprises to go global.

In September 2008, UFIDA fully acquired Turbo CRM (Beijing) and Turbo CRM (Shanghai), the largest CRM provider in China. In October, UFIDA controlled all shares of Beijing Fangzheng Chunyuan Scientific Development Co., Ltd, a leading solution provider in Chinese fiscal industry.

  • UFIDA's growth phase III: 2008–

In September 2009, UFIDA set up UFIDA Medical & Health Information System Co., Ltd, entering medical IT sector, providing sophisticated solutions and professional services for medical and health industry that urgently needs IT building. In December, UFIDA Cellsoft announced to purchase Guangzhou Sunnet Science and Technology Co., Ltd to move into business intelligence field.

On January 29, 2010, UFIDA combined the original online service department with UFIDA Mobile operations, and set up UFIDA Wecoo Information Technology Co., Ltd, to create new modes, and expedite full-range e-commerce service for Chinese and Asian enterprises. The old small ERP business department was restructured as an independent operating entity that dedicatedly serves small-sized organizations and aims at the largest small ERP provider in Asia.

In June 2010, UFIDA bought all shares of Shanghai Infoservice Information Technology Stock Ltd and moved into the auto industry.

Appendix 5 Key Financial Data and Objectives (2007 to 2009)

Figure

Figure

Note 1: Incidental profit and loss items are confirmed in accordance with China Securities Regulatory Commission [2008] No. 43 circular, No. 1 Explanation Notice on Information Disclosure of Companies with Public Offerings – Incidental Profit and Loss (2008). Data of past years have been altered in accordance with the Notice.

Note 2: The above data after adjustment in 2008 is based on financial statements altered according to the Reply on Accounting Handling Regulation of Partial Investment in Subsidiaries under the Condition of No Losing Controlling Power (Cai Kuai Bian [2009] No. 14 circular).

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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