Case Study 3
Case study: Vinsun Infra Engineering:ERP on Premise or on Cloud by Wei Jia
Company Background Vinsun Infra Engineering Pvt. Ltd is one of India’s leading service provider companies engaged in providing products and services in electrification and civil engineering projects. Sunil Satav is the founder and the managing director of Vinsunwho was born in Madhya Pradesh in India. He was interested in becoming an entrepreneur since childhood, then pursued a degree in electrical engineering. In order to save money he worked part time in a storage plant, then built up Vinsun as a small start up enterprise, then grew into a small and medium sized SMS enterprise with 60 employees. Because of his model work, The National Education and Human Resource Development Organization give him the Rashtriya Udyog Ratna Award.
Issues
When did for a civil electrification project, Satav found that data relate to input cost was not readily available and some of the costs included in calculations were outdated by a full year. Because Vinsun was using the traditional methods of processing the information for its daily activities, this led to information overload and made information management difficult. This issues became more and more visible as Vinsun is expanding in size business as well as in employees. A lack of data integrity, redundancy and incompleteness led to unprofitability and inconsistency of the decision making. There are the mentioned challenges which has aroused in Vinsun:
1. Information overload made information management very difficult.
2. Maintained data in MS-Excel on local computers and searched manually which requires tremendous effort.
3. Lack of of data integrity, redundancy and incompleteness.
4. Data cannot be retrieved without data backup.
5. Some employees strongly opposed to the ERP system. 6. ERP system put stress on Vinsun’s IT budget.( ERP system is very expensive and need a budget of around 2%-3% of Vinsun’s annual revenue)
Q: What are the
Company Background Vinsun Infra Engineering Pvt. Ltd is one of India’s leading service provider companies engaged in providing products and services in electrification and civil engineering projects. Sunil Satav is the founder and the managing director of Vinsunwho was born in Madhya Pradesh in India. He was interested in becoming an entrepreneur since childhood, then pursued a degree in electrical engineering. In order to save money he worked part time in a storage plant, then built up Vinsun as a small start up enterprise, then grew into a small and medium sized SMS enterprise with 60 employees. Because of his model work, The National Education and Human Resource Development Organization give him the Rashtriya Udyog Ratna Award.
Issues
When did for a civil electrification project, Satav found that data relate to input cost was not readily available and some of the costs included in calculations were outdated by a full year. Because Vinsun was using the traditional methods of processing the information for its daily activities, this led to information overload and made information management difficult. This issues became more and more visible as Vinsun is expanding in size business as well as in employees. A lack of data integrity, redundancy and incompleteness led to unprofitability and inconsistency of the decision making. There are the mentioned challenges which has aroused in Vinsun:
1. Information overload made information management very difficult.
2. Maintained data in MS-Excel on local computers and searched manually which requires tremendous effort.
3. Lack of of data integrity, redundancy and incompleteness.
4. Data cannot be retrieved without data backup.
5. Some employees strongly opposed to the ERP system. 6. ERP system put stress on Vinsun’s IT budget.( ERP system is very expensive and need a budget of around 2%-3% of Vinsun’s annual revenue)
Q: What are the