RESEARCH ON INTEGRATED MANAGEMENT AND CONTROL
SYSTEM IN ENTERPRISES BASED ON PROJECT RISKS
Yufei Li and Yong Wang
UFIDA Software Co., Ltd, No.68 Beiqing Road, Haidian District, 100094, Beijing, China
Keywords: Enterprise groups, Integrated management and control, Information construction.
Abstract: This paper, with the example of construction enterprises in Hunan Province, illustrates a solution of
enterprise groups’ integration of management and control based on project risks, which provides references
for construction enterprises of the same kind.
1 INTRODUCTION
Informationization is highly needed in rapidly
developing construction enterprises. The faster an
enterprise develops, the more urgent requirements of
management innovation and information technology
are called for. Although the information construction
in China’s construction enterprises has been
significantly improved since reform and opening up,
it’s still limited to information departments or
individual professional software, which forms
“information isolated islands” and cannot exploit the
advantages of information technology. Thus, global
precise and intensive management services can
hardly be achieved. Meanwhile, according to SAC’s
Informationization Evaluation System, the current
comprehensive application of information
technology in Chinese construction enterprises
remains at a lower level. Therefore, the
informationization level ought to be enhanced in
order to match the enterprises development. This
paper illustrates a solution of enterprise groups’
integration of management and control based on
project risks, which provides references for
construction enterprises of the same kind.
2 LITERATURE
As for the traditional method of management, it is
difficult for enterprise headquarter to know about the
real performance condition of each branch,
especially the operating condition of a specific
project. In reality, headquarter often flies through the
examine process, which can hardly discover the true
problems. The work of higher level is to examine the
statement reported by subordinates, the authenticity
of which is questioned. Therefore, it cannot support
decision-making and management. On the other
hand, the problems encountered during project
operation can hardly be guided or supported by the
enterprise headquarter, which costs too much
valuable work time by working on reporting
financial statement. As a result, it is of crucial
importance for us to come up with a solution to the
management and control of large-scale enterprises.
And an integrated management and control system
which combines with all the business data and
processes of core enterprises as well as branches will
solve the above-stated problems to some extent.
3 OBJECTIVE
OF INFORMATION
CONSTRUCTION
The principal of redesigning and reconstructing the
information systems is “Overall Planning with
Intensive Management and Integrated Application
with Step-by-step Implementation”. With the initial
purpose of achieving enterprise strategy, the system
should be mainly within intensive management and
control, project-management focused, and supported
by collaboration platform based on the unified
information encoding, in order to achieve
collaborative and standardised system. Particularly,
we should promote global information management
so as to achieve the goal of national first-class
318
Li Y. and Wang Y..
RESEARCH ON INTEGRATED MANAGEMENT AND CONTROL SYSTEM IN ENTERPRISES BASED ON PROJECT RISKS.
DOI: 10.5220/0003603603180322
In Proceedings of the 13th International Conference on Enterprise Information Systems (BIS-2011), pages 318-322
ISBN: 978-989-8425-54-6
Copyright
c
 2011 SCITEPRESS (Science and Technology Publications, Lda.)

housing construction contractor, infrastructure
producer as well as real estate brand provider.
Furthermore, we should establish a transparent
information system which follows the layer of
decision-making, management control and operation
from top to bottom, a management platform which
puts financial capital, human resource and enterprise
procurement together, a comprehensive integrated
information system and also a unified platform
which includes decision-support, performance
analysis, and risk monitoring.
4 INFORMATION
CONSTRUCTION
According to the present information construction
status, together with the respective requirements of
Construction Ministry’s Premium quality
assessment, state asset regulatory commission and
also the individual construction company itself, the
implementation of information construction should
be divided into parts in order to realize the
recombination and integration of information
systems.
4.1 Infrastructure Construction
Software construction is the specific embodiment of
enterprise strategy and application. Fine software
should be built on a stable, secure and smooth basis
of hardware, supported by corresponding
management system. According to the current
architecture and layout of the enterprise, we should
redesign and unify the existing network and security
system, improve the management method of internet
managers, increase input to update the internet data
centre according to relevant standards and establish
a series of IT management systems to maintain it.
4.2 Standardised Construction
To ensure the direction and performance of
information flow, standardization is the foundation
of achieving informationization, which includes
information management system, project operation,
resource management and project information.
During the process of implementing information
construction, the existing standards ought to be
arranged and improved. And then these standards
are fixed by information systems, thus realizing the
management unity and laying a solid foundation for
the management and control of enterprise.
During the process of standardization construction,
we should obey the following principles:
 Information management system is to optimize
and improve the existing management system in
order to adapt to the requirements of enterprise
information construction.
 Standardization of project operation is to
arrange and optimize the existing project operation
in order to meet the requirements of information
software development.
 Standardization of resource management is to
classify and code human, capital and resources and
regulate different types of report statements in order
to meet the requirements of software database
coding, including establishing the coding rules for
human, resources, equipment and clients.
 Standardization of project information is to
classify and code corresponding resources according
to each project’s contents, including establishing a
coding rule for working procedures, enterprise’s
fixed amount and so on.
5 INTEGRATED SYSTEM
CONSTRUCTION BASED
ON PROJECT RISKS
In order to achieve the collaborative, cross-regional
and multi-level information construction, the system
orients at establishing an integrated management
system, which includes the financial capital
management system to promote centralized and
efficient management of capital, the procurement
management system to promote centralized
procurement of sub-suppliers and reduce purchasing
costs, the human resource management system to
promote co-ordination of human resources
allocation, and also an integrated project
management system to promote management level
of projects.
Through systematic analysis and planning, the
information application system is divided into three
major platforms, namely coordination office
automation platform, operation management
platform and integrated project management
platform. The system design is shown in Figure1.
5.1 Coordination Office Automation
Platform
The coordination office automation platform is
consisted in enterprise portal, decision-support
system and coordination office automation system.
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PROJECT RISKS
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Figure 1: Integrated Information Management System Design.
With this coordination platform, we can conduct an
overall summary of the project operation. And the
formation of project signage enables us to achieve a
richer and multi-angle data analysis, which is helpful
for managers to quickly locate the causes of the
problem issues, provide appropriate and timely
warning, and identify risks actively, thus realizing
the goal of integrated, collaborative and automatic
management. The construction of coordination
platform completely changed the previous situations,
the characteristics of which are approval without
accordance, decision-making without data,
simplistic monthly reports, and lack of identification
and assessment of risks.
5.2 Operation Management Platform
5.2.1 Human Resource Management System
Human Resource Management system is the core of
the whole integrated system, which includes human
resource planning, strategic support, information
management, organizational management, job
sequence management, recruitment selection
management, performance appraisal, training and
development, compensation management
applications, decision-making for human resources
planning and reporting, decision analysis, labour
costs management, personnel change management,
contract management, policy management,
performance management and self-service
application oriented to all employees.
5.2.2 Financial Capital Management System
Financial capital management system is the core of
“human, capital and material” focused strategy.
Through the establishment of a transparent analysis,
management and control financial information
network which goes through decision-making,
management and project operation layers from top to
bottom, the authenticity, accuracy and completeness
of accounting information is ensured. Through the
establishment of a unified accounting system and
accounting subjects, which meets the requirements
of real-time and cross-units examination, query and
sheet formation, it reflects the operation conditions
of the enterprise comprehensively. It also supports a
variety of cross-year account query, evidence
processing, printing, final closing, general ledger
postings as well as other functions, and meets the
assessment and examination of individuals,
departments, clients, suppliers, projects and so on at
the same time. The system also functions as
comprehensive monitoring, management and
analysis; management of financial planning, capital
closing, collecting capital and risk control which
integrates with related systems. The system can
standardize the business processes; optimize the
allocation of financial staff, and establish a fair,
open and scientific evaluation system, which
increases efficiency. Therefore, the implementation
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of this project will achieve data transfer between the
existing and the new information system, thus
making the financial operations integrated.
5.2.3 Procurement Management System
Procurement management is the key to controlling
costs and project quality. With the help of
information technology, we particularly manage the
process from procurement demand to planning,
bidding, and making the contracts. The bidding
system, financial system, project management
system and capital management system are
integrated on the same platform, thus achieving the
goal of data sharing, operation interaction and
enterprise integration. The application process can
be summarised as “centralized procurement with
decentralized delivery, centralized billing with
internal allocation”. The centralized procurement,
together with the project material management in
integrated project management system functions as
an integrated application. For example, we can
achieve centralized procurement according to the
material purchase demand sheet generated by
integrated project management system. Material
management includes supplier management and
evaluation, bid management, procurement inquiry
and parity, purchase orders, procurement contracts,
quality control as well as inventory management.
5.2.4 Knowledge Management System
The knowledge management system can achieve a
set of applications, including database management,
image processing, network storage, and process
management. It can also manage diverse archives,
office documents, images, videos and so on.
5.3 Integrated Project Management
System
As the core of construction enterprise management,
integrated project management system builds
progress, quality, security, environment, cost,
contract, subcontract, labour, personnel, materials,
equipment, technology, information, finance, capital,
and other project-specific together so that meet the
requirements of comprehensive management.
Through the application of integrated project
management system, previous problem issues, such
as the method of cost management is not unified,
and the accuracy of cost information is not achieved
after cost calculation. Thus, the present costs can be
managed according to different objects. With multi-
dimensional comparative analysis of the costs,
automatic imputation can be allocated according to
the cost duration, thus accuracy greatly enhanced.
6. EVALUATION
OF INTEGRATED SYSTEM
CONSTRUCTION
6.1 Collectivized Management
It was difficult for departments or different levels to
collaborate and cooperate with each other. It also
took a great deal of time to have meetings, search for
people and ask for documents. What’s worse, the
documents obtained were often lack of unity because
the differences between departments.
The integrated management system covers all
management of enterprise, subordinates and even
projects. With refined management mode built
within the integrated information management
system, the management level can have timely
access to the front-line production data of any
branch globally, thus achieve refined management of
procurement, labour and costs. The UC construction
solution achieves the seamless integration of project
management system, financial management system,
decision-support system and so on.
6.2 Share of Cost Management
Manual deliveries of business documents lagged in
time and basic business information couldn’t be
shared. Also, financial data were often disengaged in
processes of financial accounts. Therefore, there
were great inconvenient issues and workload in data
verification due to various factors, such as
differences in data verification calibre, inconsistent
basic information and so on. It was rather difficult to
control costs. By building a collectivized basic
information platform, we can achieve the integration
of project management and financial management.
Accounting voucher is automatically generated
through dynamic accounting platform, thus the share
of business data and financial data is realized. The
financial departments can query, track and control
business in real time. The overall data can be
collected, controlled and analyzed in the dynamic
cost management platform so as to integrate
financial costs and project costs.
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6.3 Multilevel Approval Management
There was great arbitrariness in some of the
regulatory processes in enterprises without a very
good restraint or control method. Thus, it was
probable that information data were inconsistent,
making the query statistics time-consuming, labour-
intensive and delay in time.
Core businesses are all processed according to
the pre-set and fixed software standard procedures,
and avoid the influence of human factors, so that
data can be accurately delivered in time. Group
president is able to directly monitor specific projects
through the management system. In order to
improve efficiency, many of the management
procedures in the system are optimized. For
example, in the past, a project had to be examined
and assessed by a dozen people. However, at
present, most of the projects can be processed by
one or two people in charge. And the approval
results are copied to other managers to inspect. The
simplified approval levels based on this information
management system effectively improve the
efficiency of decision-making.
6.4 Integrated Financial Statement
The former manual deliveries of financial
documents and statements made it rather
complicated to combine businesses and collect data.
With set-up of reporting system and management of
reporting tasks, the reporting data is integrated
managed, which greatly enhances the efficiency of
collection, compilation and combination of reporting
data, and achieve integrated management of
financial data of branches.
6.5 Personnel Cultivation
The project implementation improves the
comprehensive quality of financial staff and helps
the enterprise to cultivate a group of compound
talents who are proficient in their professions and
have a good knowledge of advanced technologies.
And this system successfully tackled with the
traditional management difficulties. For instance,
business data cannot be acquired in real-time; lack
of immediate monitoring and trace to the data source;
and departments cannot communicate with each
other well.
7 CONCLUSIONS
In order to facilitate the management of enterprises
with a number of branches, an integrated
information management system is of great
importance for enterprise management level to
manage and control projects and businesses not only
within enterprises but also between branches and
projects. This paper demonstrates an integrated
information management system design to solve this
problem, which is helpful in many respects, such as
cost control, procedure simplification, business
standardization and personnel training.
REFERENCES
Chuxuan Chen, 2007. Research on internal control system
design in construction enterprises. Press of Southwest
University of Fnance and Economic.
Changsheng Zhang, Overall budget management in
enterprises.
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