ERP expert sets eye on Asian countries as long-term growth strategy

Lim Chang-won Reporter() | Posted : October 23, 2020, 14:19 | Updated : Febuary 19, 2021, 14:16

[Courtesy of Younglimwon Soft Lab]

SEOUL -- As a COVID-19 pandemic accelerates the introduction of non-face-to-face work in companies, Younglimwon Soft Lab CEO Kwon Young-bum has high expectations on the wider use of an enterprise resource planning system using cloud and mobile technology that would enable the full integration of business operation activity and an information system of company-wide sharing in real-time.

Enterprise resource planning (ERP) systems run on a variety of computer hardware and network configurations, typically using a database as an information repository, to integrate varied organizational systems and facilitate error-free transactions and production. The demand for cloud ERP is growing as non-face-to-face services are predicted to gain greater attention in a post-pandemic society.

As an engineer-turned businessman, Kwon founded Younglimwon in 1993 and unveiled a customized ERP system called K-System in 1997. With a new cloud-based ERP system called SystemEver, he hopes to advance into foreign markets through active investment in research and the acquisition of talent in Asian countries.

"The demand for ERP will grow steadily in the long run," Kwon said. In order for companies to operate normally amid the spread of non-face-to-face culture, he thinks that ERP will serve as an integrated information system and as a key infrastructure to cope with the 4th Industrial Revolution through digital transformation.

The company is expected to attain this year's annual target and sustainable growth afterward. For his long-term strategy, Kwon sets his eye on Asia where demand for cloud technology is expanding. Overseas markets accounted for two percent of Younglimwon's total sales in 2019, but Kwon set a bold goal to increase the proportion of overseas sales to 20 percent by 2025. 

With cloud ERP, Younglimwon has secured five new customers in Japan and is pushing for negotiations to supply solutions to IT companies affiliated with big local groups in Southeast Asia. Proceeds secured through Younglimwon's initial public offering in August will be used for investment in research and development.

Kwon is working with Microsoft to access Asian markets through Azure Cloud. Microsoft Azure is a cloud computing service for building, testing, deploying, and managing applications and services through Microsoft-managed data centers. He saw Microsoft as a company that has the ability to differentiate itself from other global companies in the fields of cloud, artificial intelligence and cloud-based PaaS (platform as a service).

"There are more and more people using MS Office as a cloud method like Office365, and fewer people are buying single-product licenses as in the past," Kwon said. "ERP is also moving to cloud in major developed markets because cloud ERP has less initial burden and  excellent functions despite its low price."

Kwon believes the domestic market's perception of cloud ERP will change a lot in three years. "If IT companies want to continue to have a competitive edge, they need to secure talented people to do good research and create competitive products."

(This story is based on an interview conducted by Aju Business Daily reporter Im Min-cheol.)
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