A New Method of Informatization Construction for SMB in Industrial

A New Method of Informatization Construction for SMB in Industrial
Cluster: Network-based Manufacturing System
LI Zebiao
Economic and Management College, Zhejiang Sci-Tech University, Hang Zhou 310018, China
Abstract At present, competitive advantage of industrial cluster has changed from regional material
resources to utilization of information and knowledge. Therefore, informatization construction has been
an imperative way for improving their competitive power, especially for SMB. The new solution of
informatization construction for SMB in industrial cluster proposed in this paper is Network-based
Manufacturing System (NMS). This NMS has a four-layer system architecture, which is composed of
portal layer, application server layer, ASP service layer and basic layer. Some key technologies for
NMS are also discussed in this paper. Then application model and commercial model of NMS are
presented. Eventually, one NMS for Shaoxing textile cluster as an example is shown.
Key words: Industrial Cluster; ASP; Network-based Manufacturing System
1 Introduction
Industrial cluster is a geographic cooperative group that includes suppliers, consumers, peripheral
industries, governments and supporting institutions such as universities, and is a system that causes
component firms and institutes to generate higher unit earnings and more efficient operations owing to
innovations stimulated by intense competition and cooperation within clusters [1]. In recent years, more
than hundred industrial clusters with specialization cooperation and over ten billion of output have been
come to being in Zhejiang Province. According to the investigation of Economic & Trade Commission
of Zhejiang Province in 2003, there were more than 6 industrial clusters ,whose gross industrial output
value have been more than 20 billion RMB, such as: Shaoxing textile cluster; Haining leather cluster;
Shengzhou tie cluster; Yongkang hardware cluster; Zhuji sock cluster and so on [2]. These clusters have
become the production and innovation base for oversea and home market.
However, facing to more open and competitive globalization market, the advantage of relying on
regional material resources in these industrial clusters has been gradually disappeared. Information and
knowledge have gradually replaced regional material resources to become a crucial part of strengthening
the competitive advantage of industrial cluster [3]. Because of the development at full speed of the
network technology, information has been separated from its material object carriers, which makes
business from material flow to information flow [4]. Therefore, the enterprise informatization
construction has been an imperative method of improving their competition.
To these industrial clusters’ status and present problems, this paper will propose to establish one
informatization platform or system for Zhejiang industrial cluster: Network-based Manufacturing
System. And the whole solution for enterprise informatization construction will be provided. In this
paper, the four-layer system architecture for this platform was introduced, which composed of portal
layer, application server layer, ASP service layer, basic server layer. The key technologies for this
platform also have been discussed. The system’s application model and business model was also
discussed. Eventually, one NMS for Shaoxing textile cluster is shown.
2 Requirements Analysis
2.1 Requirements analysis
Investigating and researching the Shaoxing textile cluster, Yongkang hardware cluster and other cluster,
the main problems of informatization construction and the main obstacle of industrial cluster
development are shown as follows:
(1) Since the reasons from history, the enterprises in Zhejiang industrial clusters mainly engaged to the
traditional production manufacturing, whose technology and production level was generally low.
Moreover, the production design technology and production design method in majority of SMB is
relatively backward. These have been badly hindered the more rapid development of Zhejiang
887
industrial clusters.
(2) “One village, one production” is the real reflection to Zhejiang industrial cluster economy. In one
region, hundreds of SMB engage same production manufacturing. Therefore the manufacturing
resource is wasted badly. At present, the supply chains that depend on enterprises ranking high in
their industry have been appeared in many clusters, but the traditional management model and
method are still used.
(3) Since lack of effective management and better utilizing customer resources, customer resources are
often controlled in the businessmen’s hands. Without effective communication between the
businessmen, the enterprise economy is often suffered lots of losses and customer resources are
been run off. At the same time, because the marketing channel of these enterprises is so single and
the level of enterprise informatization construction is not high, the rapid and steady development of
economy in industrial clusters has been badly effected and restricted by these problems.
(4) Since economic subject of Zhejiang province is private economy, the level of informatization
construction is not high in majority of the enterprises. And the level of informatization resources
management is used irregularly. Moreover, the range of information systems that have been applied
did not meet the balance of whole enterprise apartments and the information technologies are
applied singularly also.
(5) From the viewpoint of e-business, the present level of industrial clusters’ e-business has only been
stayed in the website, for example: China textile city online, China leather, Tie city and so on,
which have applied only in the fields of marketing and purchase. There is no one integrated
platform or system for e-business. Moreover, the application model of these enterprises’ e-business
does not meet the needs of their informatization construction now.
2.2 Requirements summary
To solve over problems, we will introduce one new concept of informatization construction, which is
called network-based manufacturing, as a new solution for SMB. Network-based manufacturing (NM) is
an advanced manufacturing model in globalization production, which is a theory that geographic
cooperative group uses the Internet to make production design, manufacturing, marketing, purchasing,
management and so on. NM is used to achieve these activities as follows: production cooperative design,
manufacturing, supply chain management, most optimum distribution of resources and so on.
Considering the majority of enterprises are private in Zhejiang province, ASP (Application Service
Provider) service will be used as the operation model of NMS. ASP is one application method of
deployment, leasehold and management, aiming to provide the professional service for enterprises,
saving the costs of informatization construction for enterprises, and more better using the network
resources.
This Network-based manufacturing system proposed in this paper will mainly solve production
cooperative design, supply chain management, customer relationship management and ASP model.
Production cooperative design is used to solve the first question of the requirements analysis, aiming to
provide design tools, to share of the design resource, to strengthen the capability of production design.
Supply chain management is used to solve the second question of the requirements analysis, aiming to
reinforce the cooperation between enterprises for optimization and recombine of all kinds of
manufacture resources. Customer relationship management is used to solve the third question of
requirements analysis, aiming to enhance the market mechanism and to expand the marketing channels.
ASP service will solve the fourth and fifth question of the requirements analysis, aiming to use this
system to make ASP service save the costs of enterprise informatization construction, especially for
SMB.
3 The System Architecture of NMS
According to the requirements analysis, this paper will propose one system architecture for Zhejiang
industrial cluster economy, as shown in Figure 1. This system architecture mainly includes portal layer,
application server layer, ASP service layer and basic layer.
(1) Portal layer
Portal layer is the entrance of this system for enterprises, research institutes and service suppliers, which
888
is composed by the interfaces of application systems. Users can configure the style of this portal,
according to their interests. This portal mainly provides all kinds of technological consultation service,
such as: production information exchange, related policy, industry standard propaganda and technology
train. The function of this portal is mainly composed of portal web, application interface, technology
policy & legislation service, supply and demand information, configuration tool and so on.
(2) Application server layer
Application server layer is to provide the services of making profits for enterprises in industrial clusters,
which is composed of production cooperative design system, supply chain system, customer relationship
management and other application systems.
Figure 1 Network-based Manufacturing System Architecture.
Combining features of Zhejiang SMB and requirements of cooperative design, production cooperative
design system provides design resources share and production cooperative design tools, for enhancing
the capability of design and new production development. The core parts of production cooperative
design system mainly includes design resources share, cooperative design tools, design knowledge
share.
The phenomenon of enterprise union depending on high-rank enterprises is a distinct feature in Zhejiang
industrial clusters. Further more, the relation of supply chain in cluster is relatively steady. So supply
chain management will be used as an important method to further develop this cluster economy. Besides
general supply chain system, specialization supply chain systems for various industries also are been
included in NMS. To general supply chain system, its functions mainly include the establish of supply
chain, order management, marketing management, supply chain plan, supply chain stock management,
supplier management, purchasing management, manufacturing management, financial management and
so on. And since features of production in various clusters are different, specialization supply chain
system also is been established for these difference.
Large-scale professional market is the main marketing channel for enterprises of industrial cluster.
Customer relationship management system will be a crucial tool of enhancing marketing channels.
Customer relationship management system is the platform that includes marketing management,
customer call center, customer service, customer resource management and all kinds of business related
with customer. Establishing customer resource records and providing high-quality service, this system
889
aims to enhance the degree of customer’s satisfaction and to strengthen the capability of developing
market.
Besides over systems, to provide general service and professional service for various clusters, other
application system will provide catalog management, content management, resources management,
project management and so on.
(3) ASP service layer
ASP Application Service Provider is a new model for enterprises using network, using the method of
lease and centralized facilities. ASP will make more profits through selling their service using the
method of Web for SMB.
ASP is mainly developed for one special or professional business. ASP includes two parts: general ASP
and professional ASP. Professional ASP usually is designed for various special businesses in industrial
cluster, but general ASP is used in general field. The ASP service of NMS is used in as follow fields:
purchasing management, distribution management, stock management, customer resource management,
material management and so on.
(4) Basic layer
Basic Layer mainly includes system service layer and system basic layer. System service layer is not
direct severed for enterprises, but it will ensure that the whole system runs steady. System service layer
mainly includes security service, applied integrated service, data management, transaction service,
message service, log service, XMI service and so on. System basic layer is composed of
Internet/Extranet, database, integrated plat, network-based standard and so on, which is the basis
environment of Network-based Manufacturing System.
（
）
4 Key technologies for NMS
The development and deployment of
Technology
Quality
criterion
NMS is one complicated system
management
criterion
engineering. Its key technologies
Service
mainly include system criterions and
Production
criterion
management
Fee policy
standards technology, application
data criterion
Service standard
integration technology and software
Business process
Parts criterion
Commercial model
encapsulation technology.
(1) System criterions and standards
Integration
criterion
technology
Integration data service
interface criterion
Standardization is one of sustentive
Data transmission and
features in NMS. If relevant service
assemble criterion
standards were not followed, the
Information exchange
criterion
application software will not be
Figure 2 Criterions and Standards of NMS
integrated and provided service. Then
the application of NMS will lead to failure. Criterions and Standards of NM mainly involve ASP service
criterion, basic information and technology criterion, integration data criterion and quality management
criterion, as shown in Figure 2.
ASP service criterion mainly describes standard framework system of ASP service, such as: the
criterions of business model, business process and business standard. Basic information and technology
criterion mainly describes the original standard of production data, which standard was provided from
the suppliers that provided application system to integrate. Integration data criterion mainly provides
whole data exchange standard, which is used to support the application integration process from original
database of DRP, CAD, PDM, CAPP, CAM, ERP, SCM, CRM and so on. Quality management
criterion generally is to make the deployment of NMS accord with the standard of ISO9001.
(2) Application integration technology
Application integration technology is one of crucial technologies for successful implement of NMS.
Three cases can be concluded in processing integration. Fist case is that application software provided
by ASP service supplier need integrate in NMS. Second case is the integration of application software in
NMS for resolving one problem. Third case is the integration of enterprise’s application systems with
890
NMS.
To solve over three cases, we will utilize the results of EAI research. With CORBA, Web Service, Soap
and Agent technology, communication problems between application systems will well be dealt with
well. And under the help of system criterions and standards technology, we will achieve the integration
work between application systems.
(3) Software encapsulation technology
Software encapsulation is the basis of achieving application integration between systems. Every
application system that will be used to integrate must be keep with the standard of software
encapsulation. Then it can complete the communication to other system through interface. Therefore,
software encapsulation in NMS must has these characteristics: openness, expandability and separability
from business.
For meeting over demand, we adopted the combined technologies that are based on CORBA, Web and
Agent technologies to achieve software encapsulation. Web provides users the unified system style.
Agent can change the obscure task to sharp transfer of CORBA service and conceal the details of
achievement for application service. At the same time, adding the communication of Agent between
WDB service and CORBA client is favorable for systems expand. Further more, CORBA and Agent can
provide related information for application server, for example: the fee of flow rate, the log of solving
clash and so on.
5 Operating model of NMS
5.1 Application model
The method of informatization construction in past is self-construction basically, which includes
following processes: purchasing equipments, system development, and self-maintenance. The
shortcomings of adopting traditional method are shown as follow: fist one is a mass of equipments, such
as: network equipment, server equipment and storage equipment, need purchase. Second one is that
many IT technicians should be trained for the development, upgrade and current management of
software. Third one is that SMB that is lack of enough funds, technology and technician, can not afford
the large costs of construction, on the other hand, and has no enough technology and technician for this
construction. Therefore, appearance and development of ASP model provides a new method for NMS.
Because NMS involves so many contents and functions, its implement will a complicated engineering
inevitably. Therefore, government, scientific research organization, software supplier, agency and
enterprise will all participate in this engineering. In the process of operation, government plays an active
role for guide, and provides the support of this platform construction. Scientific research organization
mainly researches the related technologies of this system, and develops parts of application system.
Software supplier provides some parts of professional system and ASP service. The operating
organization will response for the construction of hardware and maintain of this system. Enterprises
must take part in all stages of development, like investigation and requirements analysis, system debug,
trial run. All these efforts ensure this system will be applied successfully. The application model is
shown in Figure 3.
Figure 3 Application model of NMS
5.2 Commercial model
Good commercial model becomes an imperative for application and development of NMS. Aid from
891
governments and research organizations will help this system to form good circle of “making profits providing more high-quality services –attracting more users”.
(1) Commercial model of free style and trial service
Through regional general information, free service and trial service of some important functions is
provided from the portal of this system, more and more users will be attracted from everywhere. If the
website of this system has been a portal in certain cluster, considerable Ad profits will be brought.
(2) Commercial model of member form
With member form for majority of enterprises in industrial cluster, using ASP service of NMS,
considerable profits will come from member fee.
(3) Commercial model of all-function and specialization
Aiming to meet all various needs of enterprises’ application service, commercial model of all-function is
used as solution for horizontal regional network-based manufacturing. On the other hand, commercial
model specialization is serviced as a solution for vertical regional network-based manufacturing. These
two models, which are combined together, will service all kind of clients in certain cluster.
(4) Commercial model of establishing successful typical examples
Through establishing some successful typical examples of applying this system and taking more
propaganda, more and more enterprises will join in NMS.
6 Case Study
Combining the present status of industrial cluster economy in Zhejiang province, after we researched
and investigated the characteristic of industrial cluster economy, a suit of NMS for industrial cluster was
developed. Under the help of Shaoxing Torch Center, we successfully brought NMS into practice in
Shaoxing textile cluster firstly. Through the successful implement within more than 10 enterprises, the
primary experience of deployment, operation and implement has been accumulated. Some parts
examples of this NMS are shown in Figure 4 and Figure 5:
Figure 4 the Portal Web of NMS
Figure 5 the Web of Marketing Management in One Corporation
7 Conclusion
The research and application of NMS will push the rapid development of industrial cluster economy
forward. From analyzing the present status and problems of industrial cluster, the whole solution of
NMS for industrial cluster was proposed. The application model was discussed. Eventually, one NMS
for Shaoxing textile cluster as an example is shown.
Reference
[1] Chin-Huang Lin, Chiu-Mei Tung and Chih-Tai Huang, Elucidating the industrial cluster effect from
a system dynamics perspective, Technovation, 2006, 26(4) 473-482
[2] Zhejiang Province Bureau of Statistics, The status and development of Zhejiang industrial cluster,
http://www.raresd.com/bbsxp/ShowPost.asp?ThreadID=89, 2005
[3] Kang Sheng, The effect of industrial cluster from informatization construction, Science &
Technology Progress and Policy, 2006, 5, 70-72
[4] Wang PingRao, Wang HuaXian, Industry cluster and informatization, East China Economic
Management, 2005, 19(3): 38-41
[5] Fun YuShun, Connotation and key technologies of networked manufacturing, Computer Integrated
Manufacturing Systems, 2003, 9(7): 576-582
892