BEIJING, Dec. 4 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on OEM enterprises needing to be active in IT development.

The progressive evolution of OEMs support American clients' requirements

In recent years, name brand manufacturers have been reducing value chains and entrusting product design and after-sale services to OEM enterprises in order to focus on their core business. This reduces the product life cycle as well as the operation risks resulting from vicissitudes in the market. After the OEM scale reached a certain level, clients would require OEM enterprises to undertake such tasks as product design, logistics, delivery and after-sale services in addition to product manufacturing.

OEMs need to attract and retain quality clients with advanced management

Along with the OEM pattern of evolution, name brand manufacturers have shifted their focus from lower OEM prices to the overall cost of the supply chain. They have thus begun to consider management ability and the ability for OEM enterprises towards value chain collaboration. Some OEM enterprises have even received help to make improvements in order to guarantee that the quality, production rate and overall cost of products and services rendered by OEM enterprises meet the requirements of name brand manufacturers. Many domestic OEM enterprises have gained advanced and practical managerial knowledge in this process, realized progressive development, attracted more agreements with name brand companies or have developed self-owned brands.

That being said, low labor costs were once one of the main advantages of China's OEM enterprises. Currently, domestic and foreign governments have released new standards and regulations, one after another, on labor and environmental protection making it more difficult to pass product and management systems' requirements. With RMB appreciation on the way, labor and management costs in domestic OEM enterprises are steadily increasing. Along with the introduction of more OEM enterprises from areas with lower labor costs, the original Chinese OEM enterprises are expected to gradually lose their labor cost advantage. Thus domestic Chinese OEM enterprises need to develop other advantages besides labor costs in order to provide products and services at a better performance-to-price ratio than name brand manufacturers.

OEM enterprises need active and continuous IT development Common problems of domestic OEM enterprises on IT development:

1. They are influenced greatly by clients during their IT development mode selection and implementation

Just for managerial experience reproduction and data interaction, name brand manufacturers often recommend familiar IT systems and executive plans to OEM enterprises. But enterprises are greatly different from one another in the living environment, management fundamentals, management model, development stage and internal culture. They are different as to their demand for IT systems, demand priority and implementation dependability. Thus the IT development of OEM enterprises may not be successful if the suggestions and experiences of major clients on IT system development are simply copied.

2. The benefits of IT development remain undocumented in most companies

The benefit assessment of IT development is a complicated topic and a hot spot in the trade recently. Due to a lack of past management evaluation and data, most domestic Chinese enterprises can't measure IT investment and returns accurately. Thus many OEM enterprises are likely to link the IT development benefits with new order acquisitions and neglect the role of IT development in enterprise growth, such as improving the stock turnover and asset turnover and improving the value chain cooperation capability and integration capability.

3. IT development is far behind enterprise development demand

OEM enterprises need to win over others through low cost, high speed and high flexibility. OEM enterprises need to make frequent adjustments to service mode, flow and lacking human resources. But it is quite difficult to find co- partners to support their long-term IT development in the current domestic IT market. So, when facing the possibility of rapid development, OEM enterprises often find that their IT level is insufficient to support IT demand brought about by increasingly complicated business and management.

According to CCID Consulting, domestic Chinese OEM enterprises should adopt the following measures in order to cast off the above problems:

1. Clarify enterprise development objectives and lay stress on certain aspects in accordance with business events and actual management capability. 2. Develop long-term programs on IT development balancing enterprise development strategies with business management capability. 3. Elucidate the significance of IT development for decision-making and management. Cultivate personnel who are proficient in business and management as well as IT system applications, and who can carry out IT development plans and consistently improve business flow. 4. Seek IT solutions with higher performance price ratios and co-partners that support the long-term IT development of the enterprise. 5. Present enterprise IT development achievements and application capability to clients or potential clients in order to build up their confidence. About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as "CCID Consulting"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as "CCID Group"). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company's business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.

For more information, please contact: Cynthia Liu Coordinating Manager CCID Consulting Co., Ltd. Tel: +86-10-8855-9080 Email: liuyan@ccidconsulting.com

CONTACT: Cynthia Liu of CCID Consulting Co., Ltd., +86-10-8855-9080, or
liuyan@ccidconsulting.com

Web site: http://en.ccidconsulting.com/

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