VINSUN INFRA

ENGINEERING: ERP ON
PREMISE OR ON CLOUD
Presented By
Group 1
Aadil
Abhishek Singh
Abhishek Kalra
Abhishek Verma
2/14/2018 1
Adityavesh
 Case Analysis
• VINSUN infra engineering has been providing electrical and civil services across India
since 2000
• The managing director Mr. Sunil Satav has identified the challenge faced by the
organization due to absence of any data compilation and data-storage software
• VINSUN’s CIO has proposed the use of ERP software to take care of the challenges
faced by the growing company
• two options available are ERP on cloud and ERP on premise with couple of vendor
viz. Codeautomations and Bluechip Corporations
• Seniors managers Mr. Rajesh Lokhande and Mr. Subhash Deshmukh were against
the implementation while on the other hand Ms. Kanika (Project Manager) is in
support of ERP implementation

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 01 06 ERP was very expensive
Information Overload has made and VINSUN was a small
management of information very difficult organization. (ERP was
very expensive; much
more than 2 – 3 % of the
02 annual revenue set aside
Data stored in MS- by Mr. Satav)
Excel and the
compilation of the
data is done Major 05
manually which
requires enormous
Challenges Mixed feelings
effort faced by amongst employees
towards ERP system
VINSUN with some
employees feeling
03 threatened of losing
the job due to ERP
Lack of data integrity,
redundancy and
incompleteness. No data 04
backup means data lost Data analysis almost impossible as the
can never be retrieved historic data limited due to size

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 Options Available
ERP on premise platform
Pros
NO need for internet connection
Data Security
Customization
Long term Advantage
Cons
Huge initial investment
Training of employees
Maintenance cost
Business disruption
2/14/2018
ERP on cloud
Pros
Initial investment low
No separate ERP team
Standard, tried and testes features
Business disruption low
Accessibility
Cons
Data security and privacy
High recurring cost
Internet required
4
 Recommendations

• PFA excel for comparison between the products offered by two companies i.e.
Bluechip and Codeautomations

• Initial Cost for Bluechip is exceeding the expected budget of 3% of annual sales i.e.
13,53,000

• So therefore the cheapest option available is to go with the Codeautomations

services i.e. on cloud

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 But after looking at the net present value of the two services offered by
Codeautomations we can say that the on premise service offered by the
Codeautomations is cheaper in the longer terms, So the company should go with
Codeautomations on premise service

On Premise On Cloud
Year Cost Present Value Year Cost Present Value
0 1087707 1087707 0 379957 379957
1 112759 100862 1 301984 269641
2 112759 89891 2 307984 245524
3 112759 80261 3 314584 223920
4 112759 71658 4 321844 204531
5 112759 63979 5 321844 187145
PV for On Premise
2/14/2018
1494358 PV for On cloud 1510718
6
 Thank You
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