VINSUN Infra Engineering: ERP on premise or on cloud
Sunil Satav founded VINSUN Infra Engineering Pvt. Ltd. in 2002. The company offers electrification solutions and services for several industries across India. However, the company’s growth had led to difficulties regarding an information overload which made information management challenging. Vinsun used Microsoft Excel to process its information for its daily activities. The nonexistence of any ERP system led to ineffectiveness of data being used by the company. With an increasing amount of incidences, Sunil Satav wanted a change. Ruchira Kulkarni, the company’s CIO, advised an introduction of an ERP system that should solve the issues. The following to versions were available: 1. ERP on cloud 2. ERP on premise
Both different systems have their own advantages and disadvantages. Additionally, Kulkarni recommended two different vendors, one of them being Bluechip Corporations, and the other a start-up called Codeautomatics. However, after presenting the idea at a town hall meeting the employees’ feelings were mixed. Most of them disliked the idea of an ERP introduction due to the fact that the system would create new costs, employees are not tech savvy enough, the new system would need a long time to be adapted by employees, companies invested a lot in ERP systems and had no results, a decrease in efficiency, change of business processes etc. When making his decision, Satav has to consider the following advantages and disadvantages of both systems:
ERP on cloud
One of the most significant advantages of an ERP system on cloud is that the initial costs are fairly low, since not a completely new infrastructure must be installed. Furthermore, since it will be a standardized version of an ERP, which is used in several other corporations, the possibility for mistakes in the system, are minimal. The probably