Web model for SMEs to use ERP through Internet

Hyderabad-based Syscon Solutions Private Limited, which has been working with small and medium enterprises (SMEs) for the last 10 years, has come out with a web model that would facilitate the customers to use ERP (enterprise resource planning) through Internet.

According to company's managing director S Vijay Venkatesh, the web server will be placed in one of the reputed data centres. The data centre company will take the responsibility of security, maintenance, disaster recovery and regular backup of the data along with round-the-clock support services.

This will relieve the SME organisation from the hassle of systems administration.

In this model, the customers need not own the server and software. The data maintenance and support will be handled by the host organisation. The customers are only required to pay monthly rental charges.

As the Internet bandwidths are available at an affordable cost, Syscon has ambitious plans on this model. City-based Balaji Amines Limited was the first company to adopt Syscon's web model, Venkatesh told Business Standard.

He said that Syscon is part of LEAP (Leverage Enterprise Application Program) of HCL.

Under this, Syscon has come out with low total cost of ownership for the SME segment, which includes high-end HCL Xeon server, pre-loaded Microsoft SBS premium edition (from HCL plant), Syscon Cronus ERP software with two months of implementation support for a cost of Rs 5. 3 lakh.

Thatavarthi Technologies, a Hyderabad-based testing company, supports the testing and implementation of Syscon Cronus.

The company has received letter of Intents (LoIs) from five SME customers with an annual turnover ranging from Rs 10 crore to Rs 150 crore. Syscon will complete the training and implementation and take them live by April 1, 2006. The company is aiming to complete 50 implementations in different parts of the country in 2006-07.

The existing customers of Syscon include Axiom Energy Conversions Private Limited, Deloitte Consulting India Private Limited, Everest Organics Limited, Electro Magnetic Devices, Linkwell Telesystems Private Limited, PETE Transformers Private Limited, Polmon Instruments Private Limited and Vem Technologies Private Limited.

In view of globalisation, Indian industries are stated to be under constant pressure to reduce cost and increase efficiency. Several SMEs are looking to adopt IT as a strategy and have realised that ERP plays a big role in streamlining their business processes. Adoption of ERP as a tool to increase cost effectiveness is a global trend and Hyderabad-based SMEs also have caught up with this trend.

"At Syscon, we have found that the number of SMEs open to IT and ERP has increased since 2004. And, at present, we are hardly able to find an SME who says IT or ERP doesn't work. The level of IT awareness has indeed gone up in the recent times among SMEs. However, lack of internal IT expertise and evaluation methods are hampering SMEs IT adoption," Venkatesh said.