Vinsun infra engineering: Case on ERP

1. VINSUN INFRA ENGINEERING: CASE ON ERP GROUP 7

2. COMPANY BACKGROUND Line of business: providing electrical & civil services across India Incorporated in 2002 Clients: production & services industries, telecom companies, commercial buildings, institutional campuses, residences, hospitals etc.

3. PROBLEM STATEMENT Challenges in terms of information overload Input cost calculations were not readily available, outdated Lack of data integration; redundancy and incompleteness of data Data back-up not being maintained properly

4. OBJECTIVE ‘To find a way to access accurate information more rapidly’ Decision Point Whether to implement ERP system or not?

5. PROS AND CONS OF ERP Pros Greater efficiency Allows focus on core activities Facilitates adoption of best practices Eliminates losses from outdated information Back-up can be accessed anytime Cons May be more costly than beneficial Employees’ resistance

6. ALTERNATIVES Implement ERP on premise ( Bluechip corporation) Implement ERP on premise ( Codeautomations ) Implement ERP on cloud ( Codeautomations )

7. PROS & CONS OF BOTH COMPANIES Bluechip Pros: Track record of successful implementation, customization options Cons: Services offered only on premises, cost way over the budget Codeautomations Pros: Cost effective, both on cloud & premise Cons: Start-up company, risk of failure

8. ORGANISATIONAL ISSUES A few key managers are sceptical about the results associated with the roll-out There is no measure to quantify the returns yet Budget constraint: 3% of sales = 13,53,000 If approved, choice of cloud or premises is difficult because Cloud database could compromise security Premise database results in additional costs

9. FINANCIALS: BLUECHIP (PREMISE)

10. FINANCIALS: CODEAUTOMATIONS (PREMISE)

11. FINANCIALS: CODEAUTOMATIONS (CLOUD)

12. FINDINGS Initial roll-out cost of Bluechip’s quotations is way over the budget (i.e. 13,53,000) Cheapest option is to take Codeautomations’ services on cloud But wait, what about the ongoing costs?

13. PRESENT VALUE OF ONGOING COSTS

14. CONCLUSION From the financial point of view, Codeautomations’ service on premise is the cheapest in the long term However we still need to consider other factors such as organisational acceptance & risk of failure

15. THANK YOU FOR YOUR TIME!