Gome Wong Kwong Yu: Businessmen Manage Information.

With the rapid development of information technology, economic globalization has led to increasingly fierce competition among enterprises.

Domestic enterprises have realized that if they want to improve their competitiveness, they must change their management concepts in a timely manner and realize the modernization of informationization with the core of management as soon as possible.

After China's accession to the WTO, the strategy of "promoting industrialization with information technology and promoting informatization by industrialization" was established.

And one of the sharpest weapons of these wolves is the modernization of management centered on informatization.

The continuous updating and improvement of informatization drive the continuous development of knowledge economy.

Many entrepreneurs in China have realized that there are business opportunities in information, and that if they grasp the information, they may have mastered financial resources.

Wong Kwong Yu repeatedly stressed that businessmen operate "information quantity".

"Gome is managed by information."

A senior executive who had served as general manager of Beijing, Shanghai and Tianjin in the national expansion period of the Gome said.

Wong Kwong Yu often said to his generals: "business will be priced. You can't make clear the minimum information. How can you talk to the manufacturer?"

How can we talk about pricing with them?

It can be said that Wong Kwong Yu's advanced consciousness in the use of information is an important condition for his great success.

Businessmen manage information.

If you want to run this product, you need to know the product information, competitive information, quality information, technical information, reputation information, consumer information and so on. Only when you master these necessary information, can you know how to price, how to negotiate, how to gain the advantage in negotiation, and how to remain invincible.

What does it mean to have a ready mind?

Once you have all the necessary information, you will truly have a ready mind and you will be able to strategise and win.

In the early days of Gome, 30% to 40% of its commodity sources were located in Zhongshan, Panyu and other places in Guangdong, and Gome has contact stations in these two regions respectively.

At that time, the salesmen of Gome played the role of the information system. They took the goods directly from Zhongshan and Panyu. As long as the prices in Guangdong changed, they immediately reported to Beijing Gome.

The price is moving over there, the price will be adjusted immediately, or the stores must be cleaned up within one or two days.

Wong Kwong Yu demanded that his information be very precise.

Li Juntao said, "you need to accurately judge where these goods come from or from Guangdong.

As soon as the plane lands, you have to know what goods are available, so we often communicate with the suppliers, and we often go to the market to understand, otherwise we will not know.

The level of information management has a very important impact on the business performance of enterprises.

Retail enterprises have many outlets, many stores, many staff, many management links, and large amount of information. Therefore, retailers need to improve their competitiveness through improving management level, fine management capabilities and capturing market information responsiveness.

In the late 1980s to the early 90s, the information system was naturally unable to match the current situation. At that time, in order to fully obtain market information, Wong Kwong Yu let employees ride around bicycles in various parts of Beijing, collecting information from different businesses.

In 2000, Gome's decision makers established the idea of implementing information management. They used an ordinary financial software at that time.

However, with the expansion of Gome, the software of Invoicing system for general department stores can no longer keep pace with the development of Gome.

In May 2001, Gome began to introduce domestic and foreign management software, trying to improve its backward information system, but it did not play a big role.

Until 2002, many offices in Gome headquarters were still staffed by a printer, and everyone was covered with paper materials.

At that time, Gome already had more than 100 branches in the country. Every time the inventory was counted, it was necessary to call from the headquarters to the branch, and then the branch went to the store. After each shop manually summarized the data, it was time and effort to report it to the headquarters.

Manual processing of data is not only slow, but also prone to errors, resulting in serious waste of resources.

So, in May 2002, Gome decided to invite foreign companies to invite foreign and domestic famous software manufacturers to bid.

Finally, Gome chose Wuhan Jinli software. Since then, the information technology level of Gome has been greatly improved.

Since 2006, with the successful merger of Gome and Yongle, the number of new GOME stores has expanded rapidly, and it has become more urgent to enhance the level of information management.

In order to basically reflect the information inside and outside the enterprise to the decision-making level, and provide information guarantee for quick decision and flexible response, Gome has built computer internal network information system, ERP system and IT videophone system successively.

In the first half of 2007, Gome promoted 350 large and medium-sized core suppliers such as Haier, SONY, Midea, Panasonic and their own ERP system (ERP is the acronym for English EnterpriseResoursePlanning, the Chinese meaning is enterprise resource planning) to achieve docking.

In terms of operation, ERP docking can improve the efficiency of enterprise operation, and also reduce the residual rate of household appliances in operation.

This docking is of great significance. It has realized the barrier free interaction between Chinese circulation enterprises and suppliers for the first time in history.

The interaction between Gome and suppliers has realized the interaction of information flow, logistics and capital fluency, greatly reducing the inventory of both sides and speeding up capital turnover.

At present, many people simply interpret information construction as "software", which is a misunderstanding.

For example, ERP docking is not only the data exchange, but also the integration of supply chain.

At present, the construction of Gome's information technology is improving from the support of the main business to the decision and management of the whole enterprise.

This requires a process.

After adopting the ERP system, the head of Gome can know all the instant information about the sale of goods in any store in the country.

ERP system for goods procurement and inventory management, can be accurate to buy more than one is not allowed.

Before Gome and suppliers did not realize the docking of information technology, China's household electrical appliance industry has been in a stage of worrying about inventory.

Because there is no accurate demand information, suppliers have been in a state of preparing many kinds of products to wait for orders.

Because of the fierce competition between suppliers and the habit of placing orders only if the products are ready, the products that are not sold after the end of each peak season will naturally turn into inventory. Therefore, every enterprise has huge inventories, and the whole industry inventory will become a huge tumor of consumption.

When Gome knocked down the barriers between suppliers and suppliers, the performance of the entire household appliance sector immediately proved the correctness of the information campaign and the strength of its optimization.

At present, the ERP docking rate between Gome and its suppliers has reached 80%.