A Research On Information Technology-based Enterprise Financial Management Transformation

With the deepening of reform and opening-up development and the acceleration of economic globalization, Chinese enterprises are faced with the intensified competition from both domestic and international market. The traditional financial management mode, however, fails to satisfy the need of the current situation of enterprise development, government supervision and public concern. The successful transition of financial management, which is regarded as the core function throughout the enterprises’ supply, production and sale process, will affect the enterprise’s economic returns in the short term and eventually determine the enterprise’s core competitive ability in the long run.Given this backdrop, this paper makes a research on the theory and practice of the enterprise’s financial management transformation by focusing on the practical application. By conducting a systematic study of the enterprise’s financial management transformation practice and the theory of financial informatization, this paper sums up the strategic appeal, technological means and organizational guarantee for the enterprise’s successful financial transition. By conducting a case study of Luzhoulaojiao Group Co., Ltd, the leader in Chinese liquor industry, this paper then introduces Luzhoulaojiao Group Co., Ltd’s implementation of financial informatization construction and financial management transformation. This paper is divided into seven chapters. Chapter1introduces the research background, main content, research methods and the main contribution of this paper. Chapter2reviews the concept, connotation, features and development of financial informatization and summarizes the successful experience of the financial transition by combining the theory and practice of financial transition at home and abroad. Chapter3describes the background under which Luzhoulaojiao’s financial transition is carried out, and then puts forward the expected target for the transition by analyzing the current situation and drawbacks of the construction of Luzhoulaojiao’s financial transformation. Chapter4gives an introduction to Luzhoulaojiao’s informatization construction. The construction of financial information system is based on the building of "digital Luzhoulaojiao" platform. Chapter5describes Luzhoulaojiao’s accounting organization transformation which adopts SSC or BPO for different sub-companies according to the different situations. Chapter6seeks the possibility for the establishment of professional financial center, the implementation of Luzhoulaojiao’s financial management system. Chapter7demonstrates the phase achievement of Luzhoulaojiao’s financial transformation and discusses the existing problems as well as the improvement for the next step.This paper provides a comprehensive theory reference for financial transformation by making a deep analysis of different transformation modes. Through financial transition practice application, it inspects and perfects the existing enterprise financial transition theory, enriches the financial transition practice research especially the construction and implementation of integrated financial information system and its support to the financial transition. The effect of financial transformation also proves that the financial transition is the inevitable choice of the enterprises. At the same time, the successful application of Luzhoulaojiao’s financial transformation provides a reference for other enterprises.