Case Study: Vinsun Engineering's ERP Implementation Decisions

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Case Study
AI Summary
This case study analyzes Vinsun Engineering's decision to implement an Enterprise Resource Planning (ERP) system. The company, experiencing rapid growth and handling complex projects, faces the challenge of choosing between an on-premise and a cloud-based ERP system. The case study details Vinsun's background, the CIO's proposal, and the CEO's dilemma. It explores the benefits of ERP, such as integrated data management and real-time information access, while addressing employee concerns about change. The study provides a recommendation for Vinsun to adopt a cloud-based ERP system, highlighting cost-effectiveness, data accessibility, and the advantages of cloud servers over on-premise solutions. The analysis considers factors like data security, service provider selection, and the importance of employee training. The conclusion emphasizes the suitability of cloud ERP for enterprise applications.
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Running head: VINSUN’S ERP MANAGEMENT CASE STUDY
Vinsun’s ERP Management Case Study
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VINSUN’S ERP MANAGEMENT CASE STUDY
Executive Summary
A case study of the Vinsun Engineering Companyis done regarding their dilemma of whether
to set up an on-premise or cloud server ERP system. Each aspect of the case has been
thoroughly studied and recommendations based on the company’s advantages have been
given.
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VINSUN’S ERP MANAGEMENT CASE STUDY
Table of Contents
Introduction................................................................................................................................3
Company Background................................................................................................................3
Case Details................................................................................................................................3
Recommendations......................................................................................................................4
Conclusion..................................................................................................................................5
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VINSUN’S ERP MANAGEMENT CASE STUDY
Introduction
Enterprise Resource Planning (ERP) is the need of the hour for any organization in
the modern days. Enterprise Resource Planning provides an integrated and a constantly
updated view all core processes involved in a business, using database structures. It is
maintained by a DBMS (Database Management System)1. This report aims to do a case study
of the Vinsun’s need for ERP.
Company Background
Sunil Satav founded VINSUN in 2002. The Vinsun Infra Engineering had been
providing electrification services in India for over a decade now. They have their market
grasp over the telecommunication industries, commercial infrastructures, institutions and
hospitals in providing electrification solutions. The company’s annual turnover had tripled
over the past five years2.
Case Details
Vinsun’s CIO, Kulkarni had proposed about the importance of embracing an ERP
system into the company’s working module. As the company is growing in size and complex
projects are being undertaken, maintaining local computer database to store data and
information is also turning to be hectic. Furthermore, having multiple workstations across the
country, the company presently relies on manual efforts to collate project information. Both
Satav and Kulkarni believe that the inclusion of the ERP system shall solve all problems. In
1MarcinRelich. "Knowledge acquisition for new product development with the use of an ERP database."
In Computer Science and Information Systems (FedCSIS), 2013 Federated Conference on, pp. 1285-1290.
IEEE, 2013.
2'Vinsun Infra Engineering Pvt. Ltd.' (Vinsunengineering.com, 2017)
<http://www.vinsunengineering.com/#!/about_us> accessed 8 November 2017.
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VINSUN’S ERP MANAGEMENT CASE STUDY
the hall meeting, Kulkarni explains in details, all benefits of the system. She explains how the
inclusion of an ERP can help the company focus more on their core activities and get real
time data at the same time. The ERP system will help to keep exclusive copies of data on the
server and would also be easier to search from, using more efficient programs and methods.
However, some employees feel that bringing in this change into the system, would create
chaos and harm productivity. Nevertheless, the company CEO decides to go for the leap.
Now his query is whether to opt for an On-Premise ERP or a cloud based ERP system. The
CIO had already collected quotations from two different ERP Solution farms. The case study
plans to provide recommendations about which path to chose.
Recommendations
After thorough study of the company’s case, it can be suggested that an On-Cloud
ERP system would be highly beneficiary to them. Firstly, it is cheaper to setup, as the in-
house network requirement cost is excluded, however the server maintenance in the long term
might prove to be costly3. That is considerable though, keeping in mind the benefits that
cloud server beholds. Secondly, data can be stored and accessed from anywhere. Manual
carriage of project data between workstations and headquarters will be abandoned. This
would also prove to be a permanent solution for data loss. Data being saved on the cloud
server will have their own back-up systems and shall be supervised by the service provider.
The company will need not invest attention in its operation and hence concentrate on
business. Whereas, in case of on-premise servers, it would be accessible only within the
locally connected computers. This provides an obstacle in the barrier-less working concept
3Maricela-GeorgianaAvram. "Advantages and challenges of adopting cloud computing from an enterprise
perspective." Procedia Technology 12 (2014): 529-534.
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VINSUN’S ERP MANAGEMENT CASE STUDY
that the company wishes to achieve. Cloud servers also prove to be faster when compared to
standard dedicated servers.
However, to chose the proper service provider is also necessary. In this case, Bluechip
Corporation and Codeautomations are the contenders. Provided that the CEO wishes to
provide 2-3% of the annual budget into IT upgradations, and Codeautomations on-cloud ERP
service is well within the company’s financial reach, this option is preferable in all
terms.Satav and the CIO need to endow trust on the service providers regarding both their
working stature and their ability to maintain data privacy4. Specific tech-savvy employees
must be identified within the organization and given proper training to handle the database
from the local computers.
Conclusion
The case study of Vinsun’s situation in installing an ERP system depicts every
important aspect of it. The study also helps in concluding that on-cloud ERP servers are more
preferable for enterprise uses than on-premise database.
4KuiRen, Wang Cong, and WangQuian. "Security challenges for the public cloud." IEEE Internet
Computing 16, no. 1 (2012): 69-73.
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VINSUN’S ERP MANAGEMENT CASE STUDY
References
Avram Maricela-Georgiana. "Advantages and challenges of adopting cloud computing from
an enterprise perspective." Procedia Technology 12 (2014): 529-534.
RelichMarcin. "Knowledge acquisition for new product development with the use of an ERP
database." In Computer Science and Information Systems (FedCSIS), 2013 Federated
Conference on, pp. 1285-1290. IEEE, 2013.
RenKui, Cong Wang, and Qian Wang. "Security challenges for the public cloud." IEEE
Internet Computing 16, no. 1 (2012): 69-73.
'Vinsun Infra Engineering Pvt. Ltd.' (Vinsunengineering.com, 2017)
<http://www.vinsunengineering.com/#!/about_us> accessed 8 November 2017
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