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VINSUN INFRA

ENGINEERING:
CASE ON ERP
GROUP 7

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.

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Input cost calculations were not readily available, outdated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

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

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Eliminates losses from outdated information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

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

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

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

FINANCIALS: BLUECHIP
(PREMISE)

FINANCIALS:
CODEAUTOMATIONS (PREMISE)

FINANCIALS:
CODEAUTOMATIONS (CLOUD)

FINDINGS
Initial roll-out cost of Bluechips 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?

PRESENT VALUE OF
ONGOING COSTS

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

THANK YOU FOR YOUR


TIME!

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