'Many Indian SMBs Still Don't Use an ERP'

by Sharon Lobo    Nov 10, 2009

Chetan Pathak, Country Manager, Tectura India, in an interview with Sharon Lobo, gives an overview of his company’s operations in India and explains the benefits of using Microsoft Dynamics solutions

Could you give us an overview of Tectura and its operations in India?
Tectura is a worldwide provider of business consulting services delivering exceptional services and sustainable value through consulting, software and IT implementation. We apply our industry knowledge and best practices philosophy to provide Microsoft Dynamics ERP, CRM and technology solutions. We are Microsoft Gold Certified Partner, and maximize our vast technology resources and deep Microsoft expertise to deliver increased efficiency, project acceleration and a competitive edge. Tectura’s has over 1,800 team members in more than 20 countries. Additionally Tectura has a global network of Strategic Alliance Partners and local service and support strength.

In India, Tectura is a leading provider of Microsoft Dynamics based business solutions in the country. We have over 80 customers in India and have offices and team members in all the major locations. These team members specialize in the consulting, development and support of Tectura’s targeted industries including Life Sciences, Chemical, Food & Beverage, Retail, and Services with expertise in Microsoft Dynamics AX, Microsoft Dynamics NAV and Microsoft Dynamics CRM.
        
How does a business benefit more from Microsoft Dynamics solutions as compared to solutions provided by SAP, Oracle, PeopleSoft etc?
The benefits offered by Microsoft Dynamics solutions to businesses are

  • Affordable scalability to growing businesses. With benchmarked performance up to 1,000 users and beyond and rich functionality across financials, supply chain management, and customer relationship management, Microsoft Dynamics meets the needs of growing business. By integrating Microsoft Dynamics business management solution with Microsoft SQL Server users can enjoy enterprise-level reporting, flexible decision-making support and timely, relevant business insight at a low cost with significantly high usability and flexibility.
  • Low cost of ownership. Microsoft Dynamics is engineered to cost-effectively support the changing requirements that are frequently necessary for customers to adapt, grow, and maintain a competitive edge in their business. The licensing is based on concurrent users versus named users and has no imposed user minimum or maximum, so it evolves with the user organization. 
  • Quick implementation as compared to competing solutions. Microsoft and its partners have evolved an implementation methodology to facilitate this. Thus, an user organization starts realizing the benefits of the investment much faster.
  • Improves employee productivity. Microsoft Dynamics solutions are integrated with MS Office, hence it is very easy to export/import data. Also, Microsoft Dynamics solutions are designed to maximize ease of use thus requiring minimum investment in training.
  • Industry-leading vertical partner ecosystem. Microsoft is in a position to deliver vertical solutions to hundreds of different industries on a local basis. Microsoft’s Certified for Microsoft Dynamics program offers solutions designed to meet the needs of specific industries. It can provide customers with the benefits of a rich portfolio of tested, reference supported solutions developed by ISVs that have met Microsoft’s highest solution and organizational certification standards

How has the adoption of an ERP solution in Indian SMB space been so far? How do you convince an SMB to go in for an ERP solution?

The adoption of ERP solutions in Indian SMB space has been on the rise for the last five years. At the same time, there are still a huge percentage of SMB organizations which does not yet use ERP solutions. The adoption of ERP solutions by Indian SMBs has been driven by the growth in revenues, setting up of multi-location facilities, increasing globalization, and integration of Indian SMBs in global supply-chains. The major objectives set by Indian SMBs while initiating ERP projects are - to increase productivity and efficiency, and reduce cost by removing redundant processes.

We convince an SMB organization to adopt ERP by providing a business case that justifies the investment. We do this by conducting a study of the prevailing situation in the SMB organization and providing an estimate of the benefits and the investment required. Increasingly, SMB organizations are deciding on ERP based on quantitative considerations. We also provide number of proof-points of successful adoption of ERP in other organizations in the same industry vertical, and similar in terms of size and complexity. Finally, we provide a detailed implementation plan highlighting the critical success factors for achieving the project objectives.

Which business verticals need to urgently implement an ERP solution in order to stay competitive in the future?

As we come out of the global recession into the changed world, verticals such as Auto Ancillaries, Chemicals, Food & Beverages, Life Sciences, and Metal manufacturing will need to have an efficient ERP system in place that can improve their competitive advantage and help them gain long-term benefits by making them more agile. Other than this large Indian enterprises, where ERP has been there are now trying their hands on building better business intelligence into it, and also CRM solutions for better customer relationship management. 

What is the value proposition Tectura offers its customers as compared to competition who also provide Microsoft Dynamics solutions?

Tectura is the single source of expertise and resources for the most important business and technology challenges. By tailoring standardized Microsoft Dynamics ERP, CRM, and technology solutions, Tectura provides companies with solutions that precisely fit their business needs. Our industry knowledge, close partnership with Microsoft, global presence and established local success is how we make a distinctive difference for our clients. Tectura Solution Framework (TSF) is our proven delivery methodology. We have capabilities and experience to provide solution to the organizations in the upper mid-market space. Also, we are the leaders in Microsoft Dynamics AX and Process verticals. We are one of the first partners in India to provide Microsoft Dynamics solutions giving us unmatched experience and insight in the Indian market.

Could you give a few examples of how Tectura’s Indian clients have benefited from Microsoft Dynamics solutions?

Tectura’s extensive experience of implementing more than 80 projects in India includes various projects in Life Sciences, and Manufacturing, Retail, Professional Service segments, Tectura boasts of satisfied and reference able clients’ such as Abhi Asmi (Paliwal Group), Abicor Binzel, Aimil India, Biocon, Cheyyar SEZ, Kazo Fashion, LG Life science, Lilliput, Naprod Life science, Polycab, Positive Packaging, Satyen Polymers, and TCNS to name a few.

Abicor Binzel, a global player welding or cutting torch as well as robotic peripheral systems is one of our customers. As Abicor Binzel continued to scale-up their operations in India it started to face major challenges on demand and supply planning, inventory planning and scheduling, maintaining and tracking quality parameters, and timely and accurate reporting of their financial results.

Tectura provided Abicor Binzel a scalable, flexible, and ready-to-use solutions spanning across entire range of industry processes and operations, including procurement, production, inventory management, supply chain planning, sales & marketing, finance & accounting and business analytics. This resulted in accurate and fastest possible turnaround on financial consolidation, planning, significant reduction in inventory through improved visibility of inventory levels, increased quality and reduction in scrap due to automated measurement of quality for incoming raw material, work-in-progress and finished goods leading to reduction in cost.

Another customer of ours, Hawk Industries, tried to maintain and manage large numbers of stand-alone and legacy applications such as: QuickBooks software for finance; Excel for demand, supply, quality, and production planning as well as sales related activities. The limited financial capability of the QuickBooks software led to inaccurate reporting, heavy manual accounting work-loads and erratic Management Information System (MIS) data submission of financial information to the management team.

Tectura integrated its expertise to understand the company’s most pressing business and technology challenges with the innovation to solve them. As a result, Hawk now enjoys significant benefits post-implementation such as up-to-the-minute financial data, timely and accurate cost analysis for each product, significant reduction in overall expenditure due to better planning and preparation of mould development planning as per the bill of materials (BOM), accurate cost analysis of actual vs. budgeted mould cost, and tracking of mould development on set parameters at various stages.