Yonyous Business Operations in the Software Industry
Yonyous Business Operations in the Software Industry - Case Study Example
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The recession led all the software companies to change their business strategies. Likewise, Yonyou also developed its own strategies to sustain in the changing market environment. The investment in the R&D to promote product development eventually worked in company’s favor towards its expansion. Yonyou collaborated with companies like IBM and Atos to develop the cloud computing, which proved to be a step towards the future of IT.
Yonyou Software Co. Ltd., headquartered in Beijing, China, is an accounting and ERP software company. It operates in mainland China, Japan, Hong Kong and Thailand. Founded in 1988, Yonyou has been ranked as no. 1 management software provider in China. The company excelled in Chinese markets as it could understand the Chinese management culture closely. In order to streamline its business, the company also outsourced its consulting and implementing services. The information technology industry went through several changes in last five years and all the companies had faced severe downturn or even ceased to exist. However, Yonyou has managed to adapt to the changing environment and sustained in the competitive industry.
The growth of management software had slowed down after the great recession and economic crisis in 2008. The management software market in Asia had a much higher growth rate in 2011, although being a small portion of the global market. The manpower and materials cost had increased within the last decade in China, as a result, the companies were bound to adopt the management software system in order to avoid inefficient operations and management. Although, as compared to other developed countries, China still stands behind when it comes to investment in management software. China mentioned in the 18th national congress, that it will follow its own way to implementation of information technology on a national strategic level.
This paper is about Yonyou’s business operations in the software industry. The company developed management software modules and eventually diverted to providing customized software services. The management software industry has changed gradually over the years, particularly after the 2012 recession…
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