Study On Strategy And Application Of Finance And Business Integration In A Group Company

In the Internet era,new business models keep emerging driven by the technologies of Cloud Computing,Big Data,Internet of Things,and Mobile Internet.The state has put forward the internet plus iniative.Both cruel market competition and great historical opportunities are challenging the enterprises.The Ministry of Finance pointed out that it is necessary to integrate business and finance organically by advanced tools and methods in this new normal.The traditional financial management mode is inadequate for the development of modern enterprises.The transition for financial management into value management during the whole management process of the enterprise is a necessity,and Finance and Business Integration(FBI)becomes inevitable as a result of the transition.As a new term originating from China,FBI has become a focus of attention for enterprises and theorists.It is generally believed that a good integration of business and finance will not only help enterprises to enhance their competence in value management,gain a competitive advantage,and become stronger and bigger,but also be conducive to the establishment and perfection of the concept and proposition,content system and theoretical framework of FBI,so as to better play the role of accounting in national governance and competitive environment.However,being a newly emerging proposition,FBI itself involves not only the knowledge of accounting and specific businesses,but also the theory of management,and even advanced information technology is needed for its implementation.Thus it is complex and comprehensive in nature,and up till now,there is no relatively complete theoretical paradigm and no successful practical case.Therefore,the research on FBI is still in its initial stage.In this context,this paper proposes how to establish and improve the FBI mode and its application framework by way of basic theories and Internet technology.Drawing on the research findings of the related documents and materials in recent years on the inevitability,content and significance,and practical path of FBI,this paper introduces Theory of Constraints(TOC)and Transaction Cost Theory,and puts forward three practical strategies for FBI:value orientation,organizational mechanism,and system support,combined with years of practical experience.Meanwhile,the paper selects Group Company A for case study on the integration of internet plus procurement business so as to verify the three proposed practical strategies.As the first reformer of mixed ownership in central enterprises,Group A has converted its strategic objectives to internet operation.Yet,its traditional procurement mode cannot meet the requirements of such transformation,nor can it satisfy the needs of national tax administration.For this reason,Group A has proposed an integration mode of internet plus procurement business based on "internal mall,clearing platform and tax system".Through investigating its guiding ideology,system architecture layout and business process realization diagram,this paper refines six key strategies covering strategic guarantee,value orientation,organization and operation mechanism,supply chain relationship,whole staff wisdom and independent research and development capability,and summarizes the achievements of financial integration in the procurement industry in terms of promoting efficiency value,management effect and risk control.At the same time,it reveals two innovations in the financial integration into the procurement industry.Firstly,it facilitates practical innovation in view of coordination of supply chain relations;secondly it provides reference for the paperless management reform of tax invoices in China.In the end,on the basis of basic research and case studies,seven suggestions in three aspects are advanced about the establishment of financial integration into procurement business.First,in terms of value orientation,FBI must conform to the trend of the times and promote enterprise strategy as its basic guarantee.Second,in regard to organizational mechanism,it is necessary to form an efficient coordination team to sort out the whole process of purchasing value chain,so as to optimize the organizational structure and establish an operational mechanism of FBI.In the meantime,we should give full play to the synergy of the supply chain.Third,the guarantee ability of the information system is the key point of FBI.