Caterpillar Xu Bing: IT Strategy for Construction Machinery Industry

From an IT organization and operation point of view, the construction machinery industry is not much different from other industries, but there are some special areas that need to be considered. For example, the DMS team needs to manage distribution, and the Telematics team is facing the end-user, financial solution team. To deal with banks and the Banking Regulatory Commission, internal innovation requires independent project funding, which makes it difficult to merge with traditional IT functions and requires separate processing to increase effectiveness.

The continuous creation of value by IT is a problem that continues to plague IT managers, which is more evident in the construction machinery industry. Because it is usually considered an "old" or "traditional" industry, there is no IT or how much money is invested in IT, companies may be able to run. Personally, I think the more the situation is, the more we must think of ways to increase the value of IT because it is a chicken and egg problem.

Reasonable IT architecture, I think it is closely related to business processes and business plans. Mainly reflected in three aspects: First, to help businesses grow profitably. Second, product cycle management. Third, operational excellence. The IT infrastructure ensures the functional modularization of processes and IT infrastructure. For example, functionally, the construction machinery industry has product development systems, pre-sales systems, manufacturing systems, after-sales and spare parts sales systems. The IT architecture should focus on ensuring that each function is effective and complete. The integration must be very strict and expandable. On the four core systems, there is a good integration platform between the company's personnel, finance, and corporate decision-making systems.

Using Information to Improve Safety Management Many people say that safety is a human problem. Can IT solve people's problems? In our production line there are safety-related information collection and alarm systems, equipment operation monitoring, and even behavior analysis and prediction on BI.

Managing the financial approval process through the system is the development trend of all companies. However, the financial department also has many concerns. For example, the CFO raised some concerns: First, there are not many large companies that use online financial approval. II. , The tax bureau does not approve, third, the leakage of users and passwords will lead to financial risks, and fourth, whether the boss is accustomed to the problem.

I feel that there is patience at this point. We need to find companies that have used systems, preferably at the CFO level. It is an illusion that there are not many large-scale financial approvals on the Internet. Taxes are not recognized nor problems, and they need to be fixed with the auditing and taxation departments. User name password management can be managed with IT. The habits of the bosses need us to work and inform the boss about the benefits of IT in all aspects of the company. The habits can be changed and nurtured. The world’s largest companies have done a great job in safety training.

Data Standardization and Data Correction Master data management requires the cooperation of processes and systems. From the process point of view, it is necessary to define the standard, content and format of the master data, the process from generation to failure of the master data, which department to approve and maintain, and which department to invalidate. If conditions allow, you can get an integrated master data management solution. The process must be managed by the system, and not by the people. The data must be strictly managed in terms of additions, deletions, and changes. This is also a chicken-egg problem. Many foreign companies have also taken a lot of detours on this issue. My proposal is to solve it once and for all.

IT planning should allow business units to fully participate in the enterprise When doing IT strategic planning, whether the CIO leads the internal team or whether a professional consulting company completes the IT planning for the company's business. This is a matter of opinion. I think CIOs simply do it internally or simply ask an outside consulting company to do it. Because external consulting firms can tell us what the external market is best, the best is not necessarily the best for the company itself. The external consulting company can't tell us what is the most suitable company. I suggest to use the best knowledge of the external consulting company to be done by our team.

There are many failed examples in this area. Pure IT does not recognize the business department. What pure consulting companies do is not recognized or landed in many companies. In the implementation of the project, the leadership must be within the company, not the external consulting company.

If the strategic plan for the matching of enterprise IT and business is questioned, it means that when the IT department is doing IT planning, the business department is not included in the planning. When doing IT planning, it is necessary to fully involve the business departments in the planning, give them opportunities, express their views, and consider their opinions as much as possible. If you can't reach an agreement yet, you can only make a decision. If at the top level, there is still no clear indication. At this time, why do you think leaders have no idea? Do you have a good idea? Still hope IT gives advice? If the upper level is not clear, it may be that business is not urgently needed or that IT preparation is not in place.

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