Research on Network Financial Management System Based on E-Commerce

Liang Xiao-lin1 Department of Information and Technology

HeBei University of Economics and Business Shijiazhuang, HeBei Province

HLH_L@163.com

Hu Yu-yong2 HeBei University of Economics and Business

Shijiazhuang, HeBei Province HLH_H@163.com

Abstract: The E-commerce develops greatly in recent years, coincidently, the digitalized Network financial management inaugurates as one of the powerful new accounting or financial management tool. It has greater advantages over the traditional financial management tools. This paper is about how to establish such a network for conglomerate enterprises who seeks global businesses.

Keywords: e-commerce; Financial Management System; Network

I. INTRODUCTION According to the China Internet Network Information

Centre (CNNIC) and Comscore Networks, there are totally 137Million netizens in china by the end of 2006, ranking 2nd place world wide. This suggests china’s internet development comes into a new phase; it will greatly push the development of E-commerce, E-government, and business digitalization in China. The application of computer technology in Financial Management came early in China and covers broadly, particularly when the concept of Internet Financial Management emerged in 1999.

II. THE DEVELOPMENT OF NETWORK FINANCIAL MANAGEMENT

Network-Financial Management is a brand new management model whose birth is based on certain material conditions, technology and law environment. First of all, the wide-spread use of internet is the basic factor. In recent years, the internet users and computers used in the net grew rapidly (see figure 1, figure 2), both growths are over 20%.

Figure 1. Surveys on Netizen Number from 2000-2006

Figure 2. Computers used On Internet From 2000-2006.

Secondly, the broad coverage of broadband also

promoted the development of the internet. By the end of 2006, there are 27.1 M users accessing to internet via leased lines, 6.9% lower than the previous year; 39 M via telephone, 23.5% lower than previous year; Meanwhile, there are 90.7 M users accessing via broadband, 41.1% greater than the previous year, and 17 M users via cell-phone (see figure 3).

Figure 3. Netizen Number Via Different Accesses from 2000-2006.

The rapid development of financial management

software provides a technological basis for development of Network-Financial Management.

A good law environment for the development of the internet financial management also comes into form. The “Accounting Law” and “the Accounting Standard for Enterprises” provides such a good environment.

2010 International Conference on e-Education, e-Business, e-Management and e-Learning

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DOI 10.1109/IC4E.2010.91

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III. THE ADVANTAGE OF THE NETWORK FINANCIAL MANAGEMENT

A. It helps enterprise realize internationalization of its financial management With the impact of economic globalization and the E-

commerce, the financial management internationalization becomes an urgent and inevitable choice. The Network Financial Management relies on internet to realize its functions; therefore it is quite easy for global management [1].

B. It helps enterprise realize centralization management with high efficiency In real world, due to space distance constraints, some

companies suffer from insufficient control of the subsidiary bodies, and even lead to poor decisions for lack of a centralized management. The centralized information can help the various functional departments with the decision-making analysis, and achieve centralized management.

C. It helps enterprise realize coordinated management With the development of the Internet, there are much

higher requirements in terms of synergy. The synergy shows in 3 aspects: First, the synergy within the organization; second, the synergy relating to supply chain collaboration; Third, the synergy relating the relevant sectors of society.

D. It helps enterprise realize real time and dynamic management Traditional financial management emphasizes on post-

administration, it is a static management. In the e-commerce environment, companies may realize real-time dynamic financial management by using the faster and efficient information transmission.

IV. THE TECHNOLOGICAL BASE FOR REALIZATION OF THE NETWORK FINANCIAL

MANAGEMENT Network Financial management must be based on

network computing as its technology core, and use network technology and mainstream application platform to operate. Now we already have the technical conditions, including DNA frame structure, Web technology, three-tier structure technology, large databases and firewall.

A. DNA Framework The DNA Frame structure here is an information security

concept and framework derived from the human DNA double helix. It is closely related to the security of the network financial management, it can be applied to the construction and maintenance of the safety of the network.

B. Web Technology Web technology has greatly promoted the development

of Internet, and has become the most popular, the most important means of information services on internet [4]. Web technology can bring all types of information resources, such as static images, text, data, video and audio organically

combining together, put the client terminals into a unified Web browser [3-5].

C. Three-tier Structure Technology The three tier structure technology is an advanced and

sophisticated database applications structure. The system components are divided into three services, namely customer service side, middle layer servers and database servers [5].

D. Large Database Technology A large database is a store that corporate stores financial

data is an important cornerstone for enterprise to use Network Financial Management [6]. To achieve the massive number processing, according to processing requirements, enterprises use databases such as SYBASE, IN2FORMIX, ORACLE, SQL server and other large databases to enable unlimited data traffic.

E. Firework Technology Firewall technology is the access control system built

between the Intranet (Intranet) and the external network interfaces; it filters information across the network border, aimed at preventing the illegal access from the outside.

V. THE DEVELOPMENT AND CONSTRUCTION OF THE INTERNET FINANCIAL MANAGEMENT SYSTEM

Figure 4. The Roadmap on Implementing Network Financial

Management System

A. The Feasibility Analysis of the Network Financial Management System When an enterprise develops and applies a network

financial management system, it must do the overall review of the situation of the enterprise, to conduct a comprehensive grasp survey of the current situation, analyze the feasibility of the implementation in the enterprise.

B. The Planning and Design of the Network Financial Management

1) Business Design Business design can be divided into different 3 parts,

namely, network financial management accounting systems, networks financial management analysis and control, network financial management for decision support system.

2) Network Design In the design, it should use multi-layer structure to

achieve real-time information transmission. It also needs to consider the appropriate operating system (including network platform design and application platform choice), database management systems, integrated Wiring, hardware and software choices, the network management and maintenance in later period, and network security problem.

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C. The Realization of the Network Financial Management The realization of Network Financial Management

should be divided into two steps to complete: The first step is to establish enterprise internal financial network system; the second step is through Internet to achieve contact with the outside.

1) Purchasing and Installation of Equipment In the time for selecting and purchasing, the

expandability and compatibility of the Equipments should be considered.

2) The Development and Application of Software As to the choice of the software, we should give full

consideration to the operability and applicability of the software. Ensure that the function that software provides can effectively support the company's business.

3) Data Generation and Transmission This work refers to the original data collection,

processing and transmission into the computer, which, on this basis, in accordance with the selected software standards to compare and to transform of data, so that it can be successfully imported to the selected software database.

4) Staff Training After network financial management system installation

is completed, it should also have relevant personnel training, including training two full-time systems maintenance personnel, so that it can independently solve the basic problems of software applications.

D. The Operation, Maintenance, Test and Improving of the Network Financial Management In daily operation and maintenance, it should have a

good system such as CD-ROM and technical support centers to replicate and wake-up for troubled machines. After running for some time, it should have some systematic evaluation, and then proposed to improve the system in the future direction and measures [10-14].

VI. CONCLUSIONS There is huge space for network financial management to

develop. Standing on the side of internal enterprise, it will be an important component that enterprise information and management information systems for further integration; on the outside the enterprise concerned, the whole goal will be a comprehensive e-commerce. As the Internet become part of the social life and work, the network will become an

indispensable mode for e-commerce and enterprise management.

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