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In the world there have been many studies on issues related to enterprise resource planning (ERP), an overview of research on ERP, 3 ERP project implementation process in enterprises, roles and impacts. of ERP to business operations, critical success factors (CSFs) of ERP projects, ERP development trends.
MINISTRY OF TRAINING AND EDUCATION FOREIGN TRADE UNIVERSITY SUMMARY OF PHD THESIS APPLICATIONS OF ENTERPRISE RESOURCE PLANNING (ERP) OF RETAIL ENTERPRISES IN THE WORLD: LESSONS LEARNED AND SOLUTIONS FOR VIETNAMESE ENTERPRISES IN THE CONTEXT OF COMPETITION AND INNOVATION GROWTH MODEL Discipline: Business and Management NGUYEN THI HONG VAN HANOI - 2019 MINISTRY OF TRAINING AND EDUCATION FOREIGN TRADE UNIVERSITY SUMMARY OF PHD THESIS APPLICATIONS OF ENTERPRISE RESOURCE PLANNING (ERP) OF RETAIL ENTERPRISES IN THE WORLD: LESSONS LEARNED AND SOLUTIONS FOR VIETNAMESE ENTERPRISES IN THE CONTEXT OF COMPETITION AND INNOVATION GROWTH MODEL Discipline: Business and Management Major: Business Administration Code number: 9340101 62.34.01.02 NGUYEN THI HONG VAN Supervisor: Assoc Prof Dr Pham Thi Hong Yen Assoc Prof Dr Nguyen Van Thoan HANOI - 2019 LIST OF PUBLICATIONS Nguyễn Văn Thoan Nguyễn Thị Hồng Vân, 2015, Kinh nghiệm quản lý website thương mại điện tử số doanh nghiệp giới học kinh nghiệm cho doanh nghiệp Việt Nam, Tạp chí Khoa học Thương mại số 77+78, tháng 1,2/2015 Nguyễn Văn Thoan Nguyễn Thị Hồng Vân, 2015, Nghiên cứu trường hợp FresDirect học kinh nghiệm cho doanh nghiệp bán lẻ trực tuyến Việt Nam, Tạp chí Khoa học Thương mại số 82+83, tháng 6,7/2015 Nguyễn Văn Thoan Nguyễn Thị Hồng Vân, 2017, Một số giải pháp ứng dụng công cụ thương mại điện tử nhằm đẩy mạnh bán lẻ trực tuyến Việt Nam, Tạp chí Kinh tế đối ngoại, số 95, tháng năm 2017 Phạm Thị Hồng Yến Nguyễn Thị Hồng Vân, 2017, Ứng dụng quản trị nguồn lực doanh nghiệp (ERP) doanh nghiệp bán lẻ Việt Nam, Tạp chí Kinh tế Châu Á – Thái Bình Dương, số 504, tháng 10 năm 2017 Nguyễn Thị Hồng Vân, 2018, Một số giải pháp nhằm ứng dụng mơ hình thương mại điện tử lĩnh vực du lịch Việt Nam bối cảnh cách mạng công nghiệp 4.0, Tạp chí Kinh tế đối ngoại, số 107, tháng năm 2018 Nguyễn Thị Hồng Vân, 2018, Doanh nghiệp bán lẻ Việt Nam bối cảnh cạnh tranh đổi mơ hình tăng trưởng, Tạp chí Cơng thương, số 12, tháng năm 2018 Nguyễn Văn Thoan Nguyễn Thị Hồng Vân, 2018, Kinh nghiệm phát triển Nông nghiệp thông minh Nhật Bản học cho Việt Nam bối cảnh cách mạng Công nghiệp 4.0, Tạp chí Kinh tế đối ngoại, số 110, tháng 10 năm 2018 Nguyễn Thị Hồng Vân, 2019, Xu hướng khả ứng dụng công nghệ Blockchain chuỗi cung ứng hàng nông sản thời đại cách mạng cơng nghiệp 4.0, Tạp chí Kinh tế đối ngoại, số 114, tháng năm 2019 INTRODUCTION Rationale of the topic Vietnam has fully opened its retail market since January 11, 2015, making the retail market more exciting than ever Foreign retail businesses with advantages in capital, technology, and modern management methods create great challenges for Vietnamese retail businesses In addition, the retail market also tends to develop modern retail channels, online retail, integrated multi-channel retail, convenience stores creating a new face of the market retail and increased pressure on traditional retail channels Many foreign retailers, especially in the modern retail sector, such as Aeon (Japan), Lotte (Korea), Central Group (Thailand) have been expanding their activities in Vietnam market through M&A If there are no significant changes in improving the efficiency of resource management, many Vietnamese retail businesses will soon fail in the domestic market To overcome these challenges, retail businesses need to increase the application of modern management tools to improve the efficiency of resource management, provide timely reports to help leaders make timely decisions In particular, Enterprise Resource Planning (ERP) is the information and management technology solution for businesses in optimizing the efficiency of use, exploiting the resources of enterprise In the world, especially in developed countries like the United States, Britain, Germany and Japan the application of enterprise resource planning (ERP) at retail businesses has become popular The world's leading businesses in the retail sector such as Walmart, Amazon, Costco have all deployed ERP and considered it an information system that plays a decisive role in the success of the operation and management of retail operations In Vietnam, enterprise resource planning ERP has been mentioned since 2000, however, the implementation of ERP applications in Vietnamese enterprises, especially retail businesses is still very limited Specifically, about 11% of Vietnam's retail businesses have applied ERP Only large-scale enterprises, large capital, and large quantities of goods can implement ERP systems such as SaigonCoop, Nguyen Kim, Tran Anh, Mobile World Moreover, foreign-invested retail businesses have the advantage of deploying ERP applications from their parent companies overseas, which also puts pressure on Vietnam's retail businesses In the context of increasingly fierce competition in the domestic retail market, Vietnam's retail businesses need to make rapid changes to survive on the domestic market in the context of competition and tissue innovation growth picture Therefore, studying the experience of ERP application of retailers in the world from which to draw lessons and proposing appropriate solutions for Vietnamese retailers is necessary and have practical value Therefore, "Applications of enterprise resource planning (ERP) of retail enterprises in the world: lessons learned and solutions for Vietnamese enterprises in the context of competition and innovation growth model" is proposed as the title of my PhD thesis Literature review of the topic 2.1 Oversea researches In the world there have been many studies on issues related to enterprise resource planning (ERP), an overview of research on ERP, ERP project implementation process in enterprises, roles and impacts of ERP to business operations, critical success factors (CSFs) of ERP projects, ERP development trends Typical of which: General research on ERP: Esteves and Pastor (2001), Al-Mashari (2002), Moon (2007), Schlichter (2010) are typical studies that provide statistical reports on studies and articles posted in specialized ERP magazines Studies on the impact of ERP implementation on business operations, on market response to enterprises: Research by Hayes et al (2001) on market response when companies announce ERP implementation Studies on the application of ERP and ERP project implementation process: a study by Marnewick et al (2005) provides a model to explain the complexity of ERP systems for houses manage in a nontechnical and understandable way This study shows that ERP systems are not only software but also business processes and management in the enterprise 2.2 Researches in Vietnam In Vietnam, ERP studies have been mentioned by some authors in recent years, typically as follows: An overview of enterprise resource planning: books on information systems and e-commerce in Vietnam have addressed the issues of enterprise resource planning (ERP), typically Church Process Management Information System (Tran Thi Song Minh, 2012), E-Commerce Curriculum (Tran Van Hoe, 2010) is a valuable reference material for the thesis 2.3 Research gap From an overview of the research situation, it can be seen that most of the research on ERP applications in enterprises comes from foreign scientists and practical issues in countries such as the United States and China These studies mainly analyze enterprises in the manufacturing industry, small and medium enterprises, have very little research on retail businesses There has not been much research conducted in Vietnam on ERP applications, and there have been no studies analyzing businesses in the retail industry Therefore, the gap for ERP application research in retail businesses in Vietnam is huge Research objectives and Research questions: The purpose of the thesis is to propose solutions and recommendations to enhance ERP application in Vietnamese enterprises In order to achieve the research purpose set out, the thesis must solve the following specific research tasks: - Clarify theoretical issues of enterprise resource planning (ERP), application of enterprise resource planning (ERP) in retail businesses and the need for enterprise resource planning applications (ERP) in retail businesses in the context of competition and innovation growth model - Study the experience of applying enterprise resource planning (ERP) in retail businesses in the world, with typical successes and failures in a number of retail businesses in the United States, China, and Thailand , and Canada - Evaluate the situation of application of enterprise resource planning (ERP) of Vietnamese retail businesses in the context of competition and innovation of growth model - Proposing solutions for retail businesses and proposing to state management agencies to enhance ERP application in retail businesses in Vietnam in the context of competition and innovation of growth model In order to carry out the research tasks of the thesis, the PhD student answers the research questions of the thesis including: - What are the benefits of ERP systems for retail businesses? - How retail businesses in the world deploy ERP? - What are the lessons that Vietnamese businesses can learn? - How has Vietnamese retailer applied ERP? - What Vietnamese businesses need to to enhance ERP application? - What measures should the State authorities take to promote ERP application in retail businesses? From the research questions, after conducting an overview study, the PhD student presents the hypotheses and research models, the specific content is presented in chapter in the thesis Subjects and scope of research: 4.1 Research subjects The research object of the thesis is the experience of applying enterprise resource planning (ERP) of retail businesses in the world, lessons and solutions for Vietnamese retail businesses in the context of competition and Innovation growth model 4.2 Research scope Regarding the content: In the framework of the doctoral thesis, the scope of research is limited to retail businesses doing business in series Specifically, the dissertation analyzes the experience of application of enterprise resource planning (ERP) in a number of retail businesses doing business in typical chains in the world including: Walmart, Amazon, Nordstrom, Wumart, MC Group, and Target In the analysis of the status of application of enterprise resource planning (ERP) in Vietnamese retail enterprises, the thesis also limits the study of enterprise resource planning (ERP) from 2000 to 2018, vision to 2030 Research method 5.1 Qualitative and quantitative research methods Qualitative research method: The thesis uses methods in qualitative research including: observing, analyzing content based on secondary data and in-depth interviews to consult experts on research issues save (Berg, 2001; Salkind, 2009) Quantitative research method: The thesis uses enterprise survey method to test the model of factors affecting the application of ERP in retail businesses in Vietnam The method used by PhD students in quantitative research is to test the scale by Cronbach's Alpha coefficient, EFA factor analysis and regression correlation analysis to determine model building and model verification ERP applications in retail businesses 5.2 Methods of collecting and processing data The data used in the thesis include primary and secondary data Primary data is collected from expert interviews and enterprise surveys Secondary data is aggregated from articles published in specialized journals on e-commerce, technology, business and management; textbooks, monographs on e-commerce, ERP, and industrial revolution 4.0 Methods of data collection and processing in the thesis are used including content analysis method in qualitative research (Krippendorf, 1980), and EFA factor analysis method and multi regression analysis turn on SPSS software 20 5.2.1 Content analysis method Content analysis method: technology to "determine orientation, discovery, and prediction according to the intent of the study" (Krippendorf, 1980) Fellows use intentional survey, prediction or reasoning methods, set the content of analytical data in context and purposeful analysis, in particular Research students use content analysis techniques to analyze ERP application situations in foreign retail businesses Methods of synthesis, analysis, comparison and comparison: are methods combined with content analysis method to combine theoretical basis, research overview, and experimental results (Krippendorf, 1980) The data used includes primary data (through surveys, interviews) and secondary data (eCommerce reports, IT reports, corporate reports) 5.2.2 Inspection of Cronbach’s Alpha scale, EFA discovery factor analysis and multivariate regression PhD student using SPSS 20 software in quantitative research method, using methods of testing Cronbach's Alpha scale, factor analysis of EFA discovery and multivariate regression to verify research model ( Hoang Trong and Chu Nguyen Mong Ngoc, 2008) 5.2.2.1 Inspection of Cronbach’s Alpha scale The researcher uses Cronbach's Alpha method (or "type of garbage") to eliminate inappropriate variables in the quantitative research model enterprises in the period from 2000 to 2018, before and in the context of competition and innovation growth model in Vietnam Fourth, the thesis has evaluated the model of factors affecting the applications of enterprise resource management (ERP) in retail businesses in Vietnam in the context of competition and innovation of growth models , assess the reliability of the scale and test hypotheses Fifth, the PhD student has proposed solutions and recommendations to promote ERP applications in Vietnam retail businesses in the context of competition and innovation of growth model Structure of the thesis In addition to the list of tables, pictures, references, appendices, introduction and conclusion, the main content of the thesis consists of chapters Chapter 1: Enterprise resource planning and the necessity of applying corporate resource management of retail businesses in the context of competition and innovation of growth models Chapter 2: Experience of enterprise resource planning (ERP) applications in retail businesses around the world Chapter 3: Current situation of enterprise resource planning applications in retail enterprises in Vietnam in the context of competition and innovation of growth model Chapter 4: Solutions and recommendations to strengthen enterprise resource planning applications of retail businesses in Vietnam 10 CHAPTER 1: CORPORATE RESOURCE MANAGEMENT AND THE NECESSITY ENTERPRISE ENTERPRISES OF RESOURCE IN THE APPLICATION PLANNING COMPETITIVE OF OF RETAIL CONTEXT AND INNOVATION GROWTH MODEL 1.1 Overview of enterprise resource planning (ERP) 1.1.1 The concept of enterprise resource planning (ERP) Enterprise resource planning, also known as enterprise resource planning (ERP) is a widely used term with two approaches: from a management perspective and on a technical perspective 1.1.2 Enterprise resource planning models Based on the tools used in enterprise resource planning, the PhD student divides the models of corporate resource management into levels as follows: - Paper-based management of paper resources (paper-based management) - Enterprise resource planning on computers (computer-based management) - Enterprise resource planning using ERP software 1.1.3 Development history of enterprise resource planning (ERP) 1.1.4 Classification of enterprise resource planning software (ERP) 1.1.5 ERP project implementation methods 1.1.6 Process of enterprise resource planning (ERP) application in the enterprise 11 1.2 Enterprise resource planning (ERP) application in retail businesses 1.2.1 Concept and classification of retail businesses 1.2.2 Characteristics of the resource management system in retail businesses - ERP system for retail businesses has flexibility and scalability due to the business characteristics of the distribution industry, retail is constantly expanding: more shops, more products in large quantities, species 1.2.3 Benefits and limitations of ERP applications in retail businesses The effective ERP resource management system will support retail businesses in standardizing the transaction processing process for better data sharing and information management, while providing measurement indicators performance for analytical processes and decision making (Al-Mashari, 2002) 1.2.4 Conditions for deploying enterprise resource planning (ERP) in retail businesses The thesis refers to the model of TOE technology application (Tornatzky and Fleischer, 1990) and the theory of successful determinants CSFs (Rockhart, 1979) to analyze the factors affecting the application of resource management Enterprise (ERP) at retail businesses 1.1.5 Evaluate the effectiveness of enterprise resource planning (ERP) applications in retail businesses 12 1.3 Competitive context and innovation of growth model in Vietnam and the necessity of ERP application in retail businesses 1.3.1 Competitive context and innovation growth model in Vietnam 1.3.2 The necessity of applying enterprise resource planning (ERP) in retail businesses in the context of competition and innovation of growth models 1.3.2.1 Enterprise resource planning (ERP) application helps retail businesses improve their competitiveness, participate in global supply chains 1.3.2.2 Enterprise resource planning (ERP) application helps retail businesses adapt to the process of innovation of economic growth model 1.4 Model of factors affecting the application of enterprise resource planning (ERP) in retail businesses Based on the analysis of theoretical concepts and previous research findings, the thesis presents the proposed research model as Figure 1.7 The research model proposes to build groups of factors affecting the application of enterprise resource planning (ERP) in retail businesses including: Technology access capacity of retail businesses, Characteristics organization of retail business, Requirements of competitive business environment and growth model innovation SUMMARY OF CHAPTER In chapter 1, the thesis analyzes the general issues of enterprise resource planning, enterprise resource planning applications in retail 13 businesses, and the necessity of joint resource management applications Industry (ERP) in retail businesses in the context of competition and innovation growth model Inheriting studies of applying technology acceptance model (TOE), key success factor (CSFs), the thesis has developed a research model proposed to analyze the factors affecting the application Enterprise resource planning (ERP) in retail businesses CHAPTER 2: EXPERIENCE OF APPLICATION OF ENTERPRISE RESOURCE PLANNING (ERP) AT RETAIL ENTERPRISES IN THE WORLD 2.1 Overview of the current status of enterprise resource planning (ERP) in retail businesses in the world The largest retail market in the world is the United States, estimating 2/3 of US GDP comes from retail industry, the total value of retail sales in the United States in 2016 is estimated at nearly trillion dollars, mostly Retail sales in the United States come from traditional retail, retailing e-commerce (B2C) only accounts for 7.1% (Laudon, 2017) Although rated as the world's most developed e-commerce market, this rate in Europe reached 7.5% and in Asia reached 10.2% (Turban, 2017) Leading retailers in the United States also reached the top position in the top 10 largest retailers worldwide with names such as Wal-Mart, Costco, Kroger, Amazon, and Walgreen 2.1.1 Overview of the development of businesses in the world's largest retail markets 14 2.1.2 Overview of the development of modern retail channels 2.1.2.1 Specialized and specialized stores 2.1.2.2 Integrated multi-channel retail (Omni channel retail) 2.1.2.3 Auto retail store 2.1.3 Status of enterprise resource planning software (ERP) for retail businesses in the world 2.2 Experience the application of enterprise resource planning (ERP) in a number of retail businesses around the world 2.2.1 Experience Walmart's successful enterprise resource planning (ERP) application in the United States 2.2.2 Experience Amazon's successful enterprise resource planning (ERP) application in the United States 2.2.3 Experience Nordstrom's successful enterprise resource planning (ERP) application in the United States 2.2.4 Experience Wumart's successful enterprise resource planning (ERP) application in China 2.2.5 Experience the successful enterprise resource planning (ERP) application of MC Group in Thailand 2.2.6 Experience Target's enterprise resource planning (ERP) failure in Canada 2.3 Lesson learned about enterprise resource planning (ERP) application of retail businesses in the world 2.3.1 The application of enterprise resource planning (ERP) in retail businesses is very difficult and expensive but can be implemented and is an inevitable trend 15 2.3.2 Enterprises need to develop a clear and specific strategy of applying enterprise resource planning (ERP) 2.3.3 Enterprise resource planning (ERP) application requires high determination of business management 2.3.4 Retail businesses need to invest appropriately in enterprise resource planning (ERP) applications 2.3.5 Enterprises need to assess the application of enterprise resource planning (ERP) and continually upgrade according to technology trends SUMMARY OF CHAPTER 2: In chapter 2, the thesis analyzed situations of enterprise resource planning (ERP) in some typical retail enterprises in the world including Walmart, Amazon, Nordstrom, Wumart, MC Group, and Target based on the proposed research framework Since then, the thesis shows the lessons from the success and failure experiences of retail businesses in the world At the same time, through the analysis of factors affecting the application of enterprise resource planning (ERP) in a number of retail businesses around the world, PhD students have assessed the importance of individuals The factor of success and failure of ERP project is a premise for completing research model in chapter of the thesis 16 CHAPTER 3: CURRENT SITUATION OF APPLICATION OF ENTERPRISE RESOURCES MANAGEMENT IN VIETNAMESE RETAIL ENTERPRISES IN COMPETITIVE CONTEXT AND INNOVATION GROWTH MODEL 3.1 Actual situation of enterprises and retail market in Vietnam in the context of competition and innovation of growth model In the 2010 period up to now, there have been major changes in the market according to the trend of developing modern retail channels, especially online retail and multi-channel retail Businesses also actively bring new experiences to customers by promoting new ordering methods and electronic payments on smartphones and mobile devices 3.2 Current status of ERP application in Vietnamese retail businesses 3.2.1 Scale of ERP applications in retail businesses 3.2.2 ERP solution providers in the retail sector in Vietnam 3.2.3 Current status of enterprise resource planning (ERP) application in some retail businesses in Vietnam 3.2.3.1 The reality of successful application of enterprise resource planning (ERP) in TP Ho Chi Minh (Saigon Co.op) 3.2.3.2 The reality of successful enterprise resource planning (ERP) application at Nguyen Kim Commercial Joint Stock Company 3.2.4 Current status of ERP application in Vietnamese retail businesses 3.2.4.1 These achievements 17 3.2.4.2 Limitations and reasons 3.3 Model of factors affecting ERP application in Vietnamese retail businesses 3.3.1 Research model and hypothesis Based on the results of the study of general theory, experience in the world, and practicality in the application of enterprise resource planning (ERP) in Vietnamese retail enterprises, the researcher reassesses the research model Save the proposal to be able to model the factors affecting ERP application in Vietnamese retail businesses Hypothesis of model and hypothesis base: H1: Enterprise's technological capacity positively influences the success of ERP application in retail businesses H2: The size of enterprises positively affects the success of ERP application in retail businesses H3: Enterprise IT application strategy positively affects the success of ERP application in retail businesses H4: Commitment of business leaders to ERP projects positively affects the success of ERP application in retail businesses H5: State policy positively affects the success of ERP application in retail businesses H6: Competitive pressure of retail market positively affects the success of ERP application in retail businesses 3.3.2 Results of quantitative analysis Fellows conduct a second enterprise survey with enterprises that have applied ERP in order to test the research model to evaluate the 18 operation of ERP applications in Vietnamese retail enterprises The research results are as follows: 1) Analysis of Cronbach's Alpha reliability in SPSS The test results show that the observed variables have appropriate total correlation coefficients 2) EFA discovery factor analysis in SPSS The second EFA result reaches KMO value = 0.719, reliability of Sig