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Foreign Pmkt Solutions for Small and Medium Enterprises


the most business requirements. The following comparison table will outline the differences between Oracle, SAP... evaluated through actual usage.

Comparison between these solutions gives the following results:




SAP


Oracle

Microsoft

Dynamics

Awards

other method

Average implementation time (months)

20

18.6

18

17.8

Average implementation cost ($ million)

16.8

12.6

2.6

3.5

Training costs

Highest

High

Medium

Medium

Maintenance costs

Highest

High

Medium

Medium

Total Cost of Ownership (TCO)

Highest

High

Medium

Medium

Payback period

Longest

Long

Shorter

Shorter

Level of benefits obtained

73.6%

63.8%

61.5%

61.8%

Performance improvement level

68.1%

41.4%

57.7%

52.9%

Process improvement level

75%

69%

80.8%

91.2%

Leadership/management satisfaction

76.4%

75.9%

65.4%

67.6%

Employee satisfaction

73.6%

60.3%

76.9%

76.5%

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Foreign Pmkt Solutions for Small and Medium Enterprises

Table 8: Comparison of Oracle, SAP and other solutions.

Source: eac.vn – research data of Ponorama company

SAP and Oracle are two very popular and valuable software on the market; Microsoft's Solomon software has been used for a long time, but currently in the Vietnamese market, this software is not strongly developed. We see that using foreign software is quite expensive but the performance level is high; so when wanting to apply a software, our country should focus on careful research so that the software can achieve the highest efficiency. In general, foreign software products have the following advantages and disadvantages:


* Advantage:


- Professionalism: this can be seen when using famous software such as Sun System (this software was transferred to Oracle company under the contract of transferring the entire Sun Microsystem company in April 2009), Quickbook, Peachtree... This can be explained by the fact that in developed countries, the management process is strict and professional, so the software must meet strict conditions.

- The software is highly synchronized and can be customized according to the actual requirements of the business.

- Stable software, built on advanced technology and highly secure.

- Powerful management reporting system and smart reporting tools. For example, Peachtree can be combined with Crystal Report to create custom reports for customers.

* Disadvantages:


- Foreign accounting software is often expensive compared to the capabilities of Vietnamese businesses. Installation prices often range from several thousand to hundreds of thousands of USD, only suitable for large-scale companies with high revenue.

- Not fully compatible with Vietnamese accounting system. Foreign software usually supports mainly American and British accounting system.

- Training and operation are costly and expensive. The program system, interface and documentation are mainly in English, so it takes a long time to deploy and transfer the software (usually takes from several months to a year to be able to use all the features of the software).


- Warranty and repair are quite complicated when problems occur and at high costs. When problems occur, foreign experts must be invited and costs from 500-1000 USD per time, whether or not the repair can be done.

3.2 Foreign PMKT solutions for small and medium enterprises

Currently, there are foreign accounting software solutions for small and medium-sized enterprises such as Peachtree, Quickbook... These software use the accounting system according to American standards, so very few Vietnamese enterprises use this product. However, the two accounting software Peachtree and Quickbook are two quite popular accounting software for foreign enterprises in the Vietnamese market. In addition to the two products Peachtree and Quickbook, there are also a number of other products such as AccPack, myob... However, Peachtree and Quickbook are the two foreign accounting software that compete most strongly with small and medium-sized enterprises in our country's market. However, due to its inadequacy in not using the Vietnamese accounting standards system, the company does not directly implement but sells the product in the form of copyright sale combined with the emergence of accounting software of domestic origin that is developing strongly, so foreign accounting software is gradually losing market share in the Vietnamese market. Below is a brief overview of the two products Peachtree and Quickbook:

* Peachtree Accounting products:

Peachtree Accounting, commonly known as Peachtree accounting software, is designed by Sage Software and is sold mainly in the United States. According to American businesses, Peachtree is considered one of the best software in the world today for small and medium-sized businesses. Peachtree products are divided into 3 levels according to their features: Peachtree Complete, Peachtree Pro and Peachtree First.


* Quickbooks products:

Quickbooks is produced by the US software company Intuit with products Quickbooks SimpleStart, Quickbooks Pro ($160), Quickbooks Premier ($320) and Quickbooks Enterprise Solutions ($600 for the first machine and $480 for subsequent machines). Quickbooks products are quite popular in the small and medium-sized business software market in the US.

In addition, Australia's Myob software for small and medium-sized businesses is designed according to Australian standards and is less common in the Vietnamese market than Peachtree or Quickbooks.

3.3 Domestically produced accounting software solutions

In our country, there are some popular accounting software such as Fast, Misa, SAS Innova,... (see Appendix 1 for details). Comments on current accounting software are quoted from experts' assessments in the Financial Informatics magazine - Ministry of Finance, issue 34, April 2006 as follows:

“…..Accounting software writers in Vietnam currently pay too much attention to current regulations on accounting policies and regimes and they write according to those regulations. They have not taken into account that Vietnam is on the path of integration and that continuous changes in regimes are a current issue. Many customers are also “easygoing” in accepting dozens of updates to their systems a year. That only proves that this software system is not really a complete system and a closed system…”

Although this review appeared more than 4 years ago, it is still relevant to the current accounting software market. Experts have a deep insight into accounting software for current and future trends that accounting software providers need to pay attention to. Domestic accounting software reviews have some advantages and disadvantages as follows:


* Advantage


- Low product price, suitable for the revenue of Vietnamese enterprises (ranging from several million to several tens of millions of VND for installation and deployment)

- Simple and suitable for Vietnamese accounting regime. Whenever there is a change in accounting policy, domestic software is quite quick in updating these changes.

- Interface, Instruction manual in Vietnamese. Fast technology transfer. Easy for accountants to use and exploit information.

- Quick and easy warranty policy.


* Disadvantages


- The solution is not synchronized. The ability to customize according to requirements is not high. Requires a lot of effort and time. Because it is too simple, the process often has many loopholes that are prone to errors and fraud.

- The reporting system mainly consists of financial reports and very few management reports. Furthermore, these reports are often fixed and difficult for users to create and edit.

- Poor security, especially with software written on Access or Foxpro. Just with a DBF file reader program, you can get all information about transactions that have occurred in the business.

II. Evaluation of accounting software market in Vietnam


1. Development trends of accounting software market in Vietnam


Although businesses trading PMKT products are no longer strange to businesses across the country, in fact, businesses providing products have not developed commensurate with the potential of the market as well as the businesses themselves. Currently, the scale of businesses


In the market, there are still many businesses, very few of the more than 130 businesses providing PMKT products dare to expand their market share nationwide, and only a few typical businesses really develop this field. Therefore, businesses have not really gone deep to expand the market. There are still many development opportunities for businesses and they will create a development trend in the future (ie businesses expand their scale of operations).

With the advantage of a rapidly developing IT market, businesses can solve the problem of programming resources; the infrastructure system will be more convenient for project implementation. As a result, businesses can be more assured of the input process and only focus on the output process. Therefore, businesses have the opportunity to expand their market share in this field.

The development of the software industry is not only beneficial for businesses or businesses using software products, but also beneficial for the State. Using IT systems in business processes will help the State manage the national business system better. From there, the State will be able to make policies for the economy; at the same time, apply different management processes to the State system.

The fact that Vietnam ranks 12th in the world as the most investment-worthy country combined with the fact that our country is on the path of development and opening up the economy, the use of accounting software in all enterprises is absolutely correct. Enterprises operating in the market with the goal of meeting customer needs; at the same time increasing profits will need to use accounting software to support business operations. Furthermore, we need to catch up with the world to keep pace with the global economy, so the use of information systems as well as accounting software is completely beneficial. In the future, not only accounting but also other operations need to be built.


on a computer basis to save more time and resources in the business system.

Thus, the development direction for the accounting software market is to increase the number of enterprises applying accounting software in their accounting operations to save time, costs and improve the business system to meet the need to improve labor productivity.

2. Analysis of opportunities and challenges for the accounting software market in Vietnam

2.1 Analysis of opportunities for the accounting software market in Vietnam

The PMKT market is growing with many opportunities for product development, implementation process development as well as user-friendly services analyzed with the following factors:

Human resource factor

Market factors


2.1.1 Human factor

The human factor is the key factor that determines the success or failure of any business. A strong business is also thanks to good, harmonious employees and good leadership; therefore, when talking about a business, it is impossible not to mention the human factor. For businesses providing PMKT products, this factor is very favorable because:

A business providing PMKT must have a system of good, creative, enthusiastic programmers... while in Vietnam there is a large number of workers in the IT field that is increasing rapidly. Moreover, the team of programmers are all young, dynamic and very good at catching up with the market and the market.


customer preferences, so it is easy to create a product that meets accounting needs while having a beautiful interface, suitable for each company.

Second is the system of employees responsible for output, that is, sales staff, product implementation staff, customer care staff, etc. This system of employees is not lacking in the market with a large number of young, enthusiastic, highly trained students graduating every year, which is also an advantage. In addition, the economic crisis at the end of 2008 also caused a large number of workers to lose their jobs, which is also a source of experienced and professionally qualified labor.

Third, domestic universities and colleges all have computer systems with software used in education, which will train a group of proficient accountants with the use of software as a great resource.

This system of abundant and enthusiastic human resources has created a solid position for businesses to penetrate deeply into the market.

2.1.2 Market factors

Currently, the number of small and medium enterprises is about 300,000, with very few enterprises using PMKT. The number of enterprises that have not used PMKT is the segment for enterprises to exploit.

With the current speed of IT development, businesses can easily invest in the field of computer infrastructure combined with the average price of a PMKT of about 5 million VND, which is very suitable for companies to use PMKT. The utility of PMKT helps businesses save time and costs compared to the clutter of paperwork. Therefore, the need to use PMKT is not small, which will be a great advantage for the providing business.

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