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Web Based ERP

.leveraging Web 2.0 Technology

Piyush Bhamare (6118) Rahul Chopra (6121) Vignesh Iyer (6136) Bhavin Rathod (6254) Sunil Dahale (6316)

Emerging Web 2.0 Technology Normal User can easily control the content Success of YouTube, Wikipedia and blogs Using this framework, user can define processes Deployment cost decreases drastically

Conventional ERP
Heavy Investment Hardware Maintenance Costs Customized Solution providing specific costs Upgradation difficult

Web Based ERP

Generalized framework Drag and drop facility for normal user to define and describe processes One server thus reducing the costs

Pre-Startup Stage
Initial Investment : Rs. 7,50,000/ 5 promoters Registered as an IT Company based in Nasik Ten Computers for development One server

Revenue Model

Target customers Small to medium scale industries Customers can buy the service online Separate service for customizing the needs of the customer Scope for advertisement leveraging the web based deployment

Initial Cost
Item Costs Preliminary Expenditure Rs. 50,000/Development of framework Rs. 1,00,000/Softwares Rs. 1,00,000/Server Rs. 1,50,000/10 Computers Rs. 2,50,000/Design of E-Commerce site Rs. 1,00,000/Total Rs. 7,50,000/-

Financing Option
Would use Debt for 50% financing Remaining to be funded by promoters Support from Software Technology Park of India (STPI)

Comparison between conventional and web based ERP

Item Per Module Conventional ERP Rs. 4,00,000/Web Based ERP Rs. 40,000/-

Deployment Charges Training and Maintenance Customizing Services Total

Rs. 2,00,000/-

Rs. 30,000/-

Rs. 1,00,000/Rs. 1,00,000/Rs. 8,00,000/-

Rs. 25,000/Rs. 30,000/Rs. 1,25,000/-

Startup Stage
Start with SME industries Focus on marketing through IT Fairs and Exhibitions Scaling the operations at national level Convert the service into business portal

SWOT Analysis
Strengths Leveraging the powerful Web 2.0 technology ERP system can be implemented at a low cost Web based system enables to target the world market

SWOT Analysis
Weakness Degree of customizing processes Data security issues

SWOT Analysis
Opportunities Online system would extend the concept worldwide The concept can be extended and a business portal can be formed

SWOT Analysis
Threats Competition from ERP giants like SAP and Oracle and other players Awareness about Web 2.0 Technology among the target customers

Early Growth Stage

Extending upto international level Conventional ERP market is growing at the rate of 20% Web Based ERP would allow us to create a new market Expected to capture 30% of the SME market Being a first mover and creating a new market we intend to grow at 50% CAGR for the first five years After the initial years, we expect to grow at 20% CAGR After 5 years, we would scale the human resources

Later Growth Stage

In 2014, we expect to invest Rs. 20,00,000/We would scale the operations and the enterprise would be extended to form a professionally managed company Create different divisions in the company The service offering would be in the form of international portal targeting the international market Opportunity to exit like Sabeer Bhatia did for Hotmail

(in '000 Rs)

Capital Investment

2008 2009 2010 2011 2012 2013


2015 2016





Operating Expenditure Operating Profit

625 938 1406 2109 3164 4746


6834 8201

9842 11810

100 125










525 813 1256 1934 2964 4521


6259 7601

9217 11160

Thank You