Group A2
VINSUN infra engineering: ERP ON PREMISE OR ON CLOUD
What are the pros and cons associated with each of the options being evaluated by VINSUN?
| Pros | Cons |
Bluechip corporation’s ERP on premise | - No need of internet connection: ERP on premise works on the intranet. It is therefore possible to work without access to the internet. Connectivity and speed cannot hamper operations.
- Scalability: As the company’s needs increases, additional features can be added accordingly
- Reliable service and greater product quality.
- Availability of customization according to the needs of the company and hence features can be modified as per the requirement.
- Extensive prior experience in the domain
- Operations are performed securely as no internet connectivity is required.
- Lower security concerns as data is stored in its own database.
| - Huge initial investment: Both the initial hardware and initial software costs are way too large and over the budget.
- Yearly costs are more than the other alternatives
- High cost of customizations
- Unnecessary features are present in the product
- Maintenance cost: The ongoing costs are substantial and will have to be borne by IT department.
|
Codeautomations’ ERP on premise | - Low investment and maintenance cost
- Availability of customization according to the needs of the company and hence features can be modified as per the requirement.
- No need of internet connection: ERP on premise works on the intranet. It is therefore possible to work without access to the internet. Connectivity and speed cannot hamper operations.
- Lower security concerns as data is stored in its own database.
| - Lack of experience
- As it is a startup so there is a doubt on its product quality.
- This will need a lot of time and effort for training employees which could have been used elsewhere.
- Not scalable easily during growth phase
|
Codeautomations’ ERP on cloud | - Low initial investment, no infrastructure or separate ERP team is required.
- Scalability is high
- Database available for onsite workers
- Flexibility of storage space and ease of accessibility as ERP is available on cloud
- Disruption in business will be minimal.
- There are less probability of having to deal with bugs and errors because the features have been tested a large number of times.
| - Higher ongoing cost and scope for minimizing this cost is limited.
- High Security Concerns due to data transfer via internet and data storage on service provider database
- Data Security: data may be leaked to the competitors since no firewall is available.
- Internet connection needed: speed and connectivity will affect work
|
Evaluate TCO over a period of five years for the options available to VINSUN
TCO for BlueChip Corporation’s ERP on premise Solutions
[pic 1]
TCO for CodeAutomations’ ERP on premise Solutions
[pic 2]
TCO for CodeAutomations’ ERP on cloud Solutions
[pic 3]
Given your analysis suggest what Satav should do? Justify your suggestions.
Satav should first decide whether to implement ERP system or not. As we know the company’s growth had led to challenges in terms of information overload and had made information management difficult. So, in order to resolve these issues, we as a group feel that it would be beneficial for the firm to implement the ERP solution to cater to the expected growth of the firm. VINSUN is growing at a tremendous rate and as it grows the need for data and information management and the access to that data will become more and more crucial. ERP will ensure the data maintenance, accessibility and free flow of information across the organization. ERP will also solve the problem of data integrity, redundancy and incompleteness. ERP will help to store data safely on a database leading to faster access to the information. There may be resistance from the employees as the new system is implemented but they should be trained and explained about the advantages of the system which will help in the easier implementation of the system across the organization.
