Electronic document flow in a holding company
Contents
Introduction1.
Relevance of electronic document flow implementation
.1
The aim of the study
.2
The objectives of the study
.3
The research methods
.4
The structure of the study
.5
The research relevance2. Description of selected companies
.1
Pattern of ownership
.2
Sectorial branch
.3
Company size
.4
Resources used
.5
Location
.6
Current document flow3. Sector under review. Expected results/Sources
It is known that information is one of the modern production
resources. The quality of enterprise management and, consequently, its
competitiveness depends on how efficiently and effectively information is used
(obtained, processed, transmitted or destroyed).
Documented information is always the basis of enterprise
management. Working with information at an enterprise is the foundation of the document flow.
The term "document flow" in relation to workflow
management occured in Russian science in the early 1920s. At that time, the
main principles of document flow were formulated, and some theoretical
foundations were developed. That fact got legal (normative) implementation in
1931 with the release of "The General Rules of Documentation and
Workflow." Later, the national document flow standards of the USSR were worked out.
The modern concept of document flow is determined in the
article “Enterprise Management and Archiving. Terms and Definitions" of
the State Standard of the Russian Federation GOST 51141-98 " approved by
the Decree of the State Standard of February 27, 1998, N 28, as "the
movement of documents in an organization from the moment of their inception or
receipt until their accomplishment or dispatch. "study is structured as
follows:introduction part covers the historical component of the problem as
well as describes the structure of current work.first chapter is the analytical
part with the description of the aim of the whole work, objectives of the
study, research methods, the structure of the whole study and research
relevance.second chapter describes selected company: pattern of ownership,
sectorial branch, company size and usage of the resources, its location and
current document flow.for the third chapter it describes the sector under
review.conclusion gives the summary and describes expected results.finally
references are given.
Chapter 1. Relevance of electronic document flow
implementation
1.1 The aim of the study
The aim of this study is to develop a
project on the introduction of electronic document flow in a holding company,
consisting of two enterprises and several retail stores. On completion of the
project development the selected system will be directly implemented according
to the work plan.project follows PMBok 4th Edition standard from
2008 that helps to cover all aspects of the project and will keep the
integrated approach to project management.
To achieve the aim the study sets a
number of tasks:
. To explore the Russian
market of information systems in the field of electronic document flow.
. To analyze the work of the
selected companies and their interactions, both with each other and with
external factors.
. To identify the most
appropriate information system for the holding company.
. To develop the necessary
documents based on PMBok 4thEdition 2008 project management
standard.
. To review and make
recommendations on the implementation of the chosen information system in the
holding company drawn upon the basis of created documents.
1.3 The research methods
The following methods of scientific
research have been used in the process of writing this paper: firstly, a
thorough analysis of existing information systems, secondly, a study and
analysis of best practices, both Russian and foreign, then interviewing staff
of the holding company, computer modeling, and further analysis based on the
acquired business operation patterns.
1.4 The structure of the study
The study is structured as
follows:introduction part states the relevance, defines the purpose, objectives
and methods of research, and covers the historical component of the
problem.first chapter deals with general theoretical issues, the need to
implement electronic document flow, and the analysis of existing system.second
chapter is the analytical part with the description of the holding company at
the beginning, IT audit, and the implementation process of the information
system in this holding at the end of the chapter.third chapter describes the
changes that took place in the company after the implementation of the information
system, the new structure of the IT department, as well as the cost of the
electronic document flow system project implementation.conclusion gives the
summary and final results of the research; it also provides recommendations for
the company.
1.5 The research relevance
For a long time paper document flow
was a framework for all proceedings of any enterprise, whether it was a small
family business or a large industrial corporation. This means that the
registration of incoming/outgoing information was only paper based.that time
information flow in small business was not burdensome, whereas using paper
document flow in larger structures not only significantly slowed down the
business, but also created chaos and confusion., doing paperwork was time-consuming
and required substantial financial costs to process it. Over the years and with
the enhancement of the company document flow, the process grew more and more
aggravated.is hard to find any particular document, analyze the documents of
different business units, make reports, keep records, or maintain control.to
Gartner and Xerox, about 20% of the office staff working hours of any entity
was ineffectively spent for paper-based document flow, which makes the waste of
a monthly payroll in the business year.scientists and analysts say that the
development of business goes at a tremendous rate in the modern world.
Academician, Professor Mikhail Kirpichnikov, writes in his lecture, From
Biotechnology to Bioeconomy, "that the person is no longer keeping up with
the pace of development, which he has set for himself"., with the rapid
development of business the document flow at an enterprise dramatically
increased. It is becoming so great that, in hard copies, it simply cannot be
processed and stored.is especially true for companies with multiple offices
located sometimes in distant places, working with foreign partners, and/or
consisting of many units, different in structure and function.issue of
electronic document flow implementation has become really urgent for all
departments of enterprises, small, medium and large business structures.modern
conditions this type of document flow has become an integral part and an
important factor of the successful business development, increasing its
mobility, sustainability and competitiveness in the market.need of companies
and organizations to optimize their workflow keeps growing as no doubt, electronic
document flow has a number of essential advantages.
The main advantages may be the following: 1. A significant
increase in the speed of information processing within the company, which is an
important advantage in a competitive market environment. 2. Foundation of the
unified information space of the enterprise, which significantly reduces the
risk of information loss. 3. Considerable resource savings as there is no need
to spend money on paper, messenger service, and a large clerical staff. 4.
Broadened options of document processing as text editing and amending is
simplified, multimedia content may be added, and ready-made forms can be used.
5. Improved quality of control over the document flow by creating a transparent
system, as well as through the introduction of security features (passwords,
access codes, etc.)
Thus, it is obvious that, at present moment, electronic
document flow systems are necessary for a company aiming at developing and
becoming leader in its market sector.
Moreover, we can conclude that the
subject of the study is suggested by the circumstances, by the economic and
social conditions that have been established in business by now. And the
development of a project for a particular business enterprise is a very
important and urgent task.to analysts, more than 50% of the document flow of
enterprises and organizations, especially small and medium business structures,
is still stored in unstructured hard copies., it is obvious that the current
system of electronic document flow is necessary for companies aimed at growth,
development, and market leadership.
Chapter 2. Description of selected companies
Description of selected companies
The two companies selected, namely OOO (cf. LLC or Ltd.) “Plast” and OOO (cf. LLC or Ltd.) “Prof”, further “Plast” and
“Prof”, can be referred to as small businesses. The companies can be viewed
from different angles.
2.1 Pattern of ownership
The ownership pattern of these companies is OOO (cf. Limited
Liability Company). Both are established by an individual business entity,
whose charter capital is divided into shares. The company shareholders are not
liable for its obligations but bear the risk of losses associated with the
company operations though the value of those losses should not exceed the cost
of their shares in the company’s charter capital. Thus, this pattern of
ownership proves to be the most convenient for manufacturing companies.
2.2 Sectorial branch
2.3 Company size
As for the size of these companies, they can be classified as
small businesses. The personnel of the “Plast” have 38 employees, and the
“Prof” has 73 staff members. As for the organization structure, it can be said
that both of these companies belong to the hierarchical structure that is seen
in the following charts.
Chart 1 Organization structure of “Plast”
Chart 2 Organization structure of “Prof”
two charts above present the organization structures
of the “Plast” and “Prof”. It can be seen that both companies have a hierarchical structure, and each department
has a chief manager and subordinate employees. More detailed charts can be
found in the original graduate thesis by Arthur Drab.
2.4 Resources used
The first company to be analyzed is the “Prof”. This
company uses both raw material resources (rolled steel, lubricants and other
materials) and human and information resources. The purchase department is
responsible for procurement. Once the raw materials are delivered, they go to a
warehouse and are inspected by a stock control clerk.for the second company
under analysis, the major resource of the “Plast” is polycarbonate granules
packed in large bags. Besides, the company uses other materials used for
equipment maintenance. As any modern enterprise, they also utilize information
and human resources.
2.5 Location
The companies “Plast” and “Prof” are parts of the
“Komplekt” group. Moreover, the “Plast” has a retail store chain. The “Prof”
and the “Plast” are set within the territory of one manufacturing unit located
outside the region's capital city. The chain stores of the “Plast” are located
both in the capital city, which is also home of the manufacturing unit itself,
and other cities of the region.
2.6 Current document flow
Currently, the greater part of the document flow is
made by handing over written or printed documents within the companies
described. As one can see, this makes the work too complex, and, what is the
most important, seriously increases the length of the transaction conducting
period.present moment, these companies have two information systems unconnected
with each other. Each warehouse uses «1C: Sklad (Warehouse)», while the
accounting department uses «1C: Buhgalteria (Accounting department)». The
information system, though first implemented by both companies about two years
ago, has failed to function effectively.stock control clerks have been trained
to use the «1C: Sklad». The warehouse and the accounting department interact by
transferring printed documentation now. The same principle is used for
interaction between the warehouse and other departments at both companies, i.e.
the “Prof” and the “Plast”.for the accounting departments, since the same staff
of employees work for both companies, they use two separate copies of the «1C:
Buhgalteria» program.two companies run their business so, that all departments
are constantly interacting with one another. A lot of documents daily go from
top managers (department heads) to factory workers and back., because the
document circulation is done by hand, each stage of document processing takes a
long time. Moreover, that distracts people from their work, not to mention a
lot of funds daily spent on stationery. It raises a problem of necessary
control over conducting transactions and also giving instructions and reports
inside the company.
Chapter 3. Sector under review
The object of this investigation is the market of various
electronic document flow systems existing in Russia. Hundreds of companies all
over the world make such applications, and the most well-known of them are, for
example, the ACS Software, Adobe, Documentum, SAP, IBM, Microsoft, Oracle
etc.Russian market employs a number of world-famous brands (e.g. Documentum,
DOCS Open/Fusion, SAP, IBM, Microsoft, Oracle, Lotus Notes etc.) as well as
home-made systems such as BOSS-REFERENT (IT), Kodeks, Dokumentooborot
(consortium “Коdeks”), Гран-док (Granit), Evfrat (Сognitive Technologies), Delo (EOS), LanDocs (Lanit), 1С:Dokumentooborot and 1С:Arhiv, Tsirkular and Visual DOC
(TsentrInvest Soft), Document-2000 (TelcomService) and some others.analytical
survey of that market shows that the option 1C is the most effective one for a
small manufacturing business as most of the employees have been trained to work
with that information system. Besides, the companies described have already
purchased the program «1С:Predpriyatie (Enterprise)
8.0».
«1С:Predpriyatie (Enterprise)
8.0» for organizations and individual persons includes a platform and
platform-based applications. The platform adjustability makes it possible to
apply «1С:Predpriyatie (Enterprise)
8.0» in a variety of cases:
· automatization of manufacturing and
trading businesses, state-funded and financial organizations, service
facilities etc.;
· operative business administration support;
· automatization of organization and
business activities;
· handling book keeping with several
account plans and discretionary accounting measurements, regimented recording;
· conducting planning, budgeting, and
financial analyses;
· doing payroll job and personnel
workforce management;
· others.
The company «1С» produces mass-market applications, intended for automatization of
standard accounting and management tasks in real economy commercial enterprises
and state-funded organizations. Each program product combines standard
solutions (shared by all or several programs) and specific features of a
particular industry sector or a line of business.world-famous auditing and
consulting company PricewaterhouseCoopers gives consulting help on
methodological aspects of managerial and financial reporting and International
Financial Reporting Standards (IFRS).
Conclusion. Expected results
Speaking of the results expected, it is worth mentioning that
this graduation thesis aims at developing a project on implementing the
information system under study in the work of the “Komplekt” group, consisting
in its turn of the “Prof”, the “Plast”, and a retail store chain. Further on,
recommendations on the information system implementation procedure itself will
be given.the information system implementation, the holding company's work is
expected to considerably improve in the following ways. First of all, the
document handling rate will increase. Next, the staff administration and
control (i.e. administration and control functions) is going to become more
effective. Finally, the stationery expenses are going to get a lot lower by the
end of a quarter period., the company's IT expenses are also going to lessen
after certain system adjustments. Besides, a total remote control over the
company's work as it is possible to utilize web-interfaces.completion of the
analysis of all company's business activities, some of those business
activities are likely to be modified to make the company's work more effective.
The major results of this thesis on Information system implementation at an
enterprise may be of great value in order to shape the working process and
improve the reporting layout. There will be an opportunity to install widgets
displaying the major data about each company in the real-time mode.conclusion
it can be said that the major advantage of the information system
implementation in the work of the “Komplekt” group is an overall performance
optimization in both the group itself and each of its branches. The information
system will also enable to make a more clearly arranged analysis of the
company's work in order to make the right managerial decisions.
electronic document information
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Распоряжение
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документооборота в системе индивидуального (персонифицированного) учета для
целей обязательного пенсионного страхования»
Федеральный
закон от 6 апреля 2011 г. N 63-ФЗ "Об электронной подписи", с
изменениями и дополнениями от: 1 июля 2011 г., 10 июля 2012 г.
Федеральный
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