Report of Internship at iON Education Ryosuke Miyashita Kyoto University February 29th, 2016
Before… My internship activities at iON Education consisted of three parts mainly. My Internship Activities at iON Education 3. Consider 2. Visit 1. Visit some Business Plan Customers Places with iON and Comparison Alone Colleagues Analysis
Outline 1. Visit Places with iON Members 2. Visit Customers Alone 3. Analysis of ERP 4. TCO Model - SAP, PeopleSoft, and SaaS - 5. What I Learned through Internship at TCS
1. Visit Places with iON Members A) Birla High School Aim: Promotion of PREP Test (First contact) • At first a principal was negative against the proposal from TCS because all faculties in the season too busy to consider the service. • After she knew a fact that other schools used PREP test, she decided to introduce the service to IT administrator. Indian customers mind deeply what other schools use the service or not . Plus vendors should make relationship with other schools of the group also because customers may share their opinion to consider the solution among the group. B) St. Lawrence High School Aim: DEMO of CMS • A customer asked TCS to introduce the usage of CMS from a view point of users, not technical things . • He showed output documents of existing ERP and asked TCS to understand the current system situation of the school . Vendors must understand customer’s requirement from a view point of users. Moreover, we should try to understand hidden requirement of customers. Asia Business Leader 2015 4
2. Visit Customers Alone A) Kalinga Institute of Industrial Technology ERP: SAP (On-Premise) • KIIT spent much time and money for SAP PJ (Period: 30 months, man months: 1200, Total Expenditure: USD 3 million). • They couldn’t help but choose on-premise because of unstable and low speed of networking . • Few success of SAP in Indian education market so far (only KIIT and With Prof. Beura some universities). B) Birla Institute of Technology Mesra ERP: PeopleSoft (Private Cloud) • BIT Mesra's ERP system is made as private cloud computing system , entrusting the maintenance and operation to Birlasoft. • Implementation of ERP package for on-premise and private cloud platform • BIT Mesra fortunately had been hiring a staff who was a PeopleSoft needs a lot of time . All customers require quick implementation to adapt quick consultant in the campus , which was big reason to adopt it. change of the market. • With Prof. Dutta BIT Mesra tries to bring the cloud platform to own site because the • Implementation of them needs a lot of initial cost also. Most of the HEIs in monthly price is higher than its expectation currently. India are still new and small; they don’t have much funds to pay such costly solutions initially. Asia Business Leader 2015 5
3-A. Analysis of ERP – Features Comparison - Products SAP (SAP) Oracle (PeopleSoft) TCS (CMS) Type On-Premise/ Private Cloud On-Premise/ Private Cloud SaaS Customizatio High Low Low More flexible customization and User can customize output style and User can customize output style and n Level add- on for user’s needs some contents only some contents only Very long Very Long Short Implementat Avg. 18.5 months Avg. 22.5 months at least 6 months ion Periods Modules Very Few Few Many MM, FICO, HRM Student Life Cycle, HRM, CRM .etc HRM, Finance, Academic, Library * no modules focusing on education Hostel, Transport .etc. institutions Very Few Few Many Customers in KIIT and some HEIs only BIT Mesra, IIM Shillong .etc 21 customers on its website India’s Education Understandi Difficult Easy Easy • Disclosed the information on its 90% customers complain against Stable Monthly Fee ng license the ambiguous fee structure website fee structure • Clear definition of user • No.1 Market share(26%)* in the • No.2 market share (17%) *worldwide • Single window to use other Positive • Easier to use and learn for beginners world solutions of TCS Matters • Consultants in any places of • Users can access the system with (PeopleCode is object-oriented worldwide programming and similar to Java) any device easily • Difficulty to learn ABAP (Special • Sometimes users sued and were • Users need high-bandwidth NW Negative language of SAP) troubled by peoplesoft; Montclair to use CMS system Matters • High Failure Rate(38%)* • Success in India only State Univ, the state of Ohio,.etc. *http://www.akaneko-cpa.com Asia Business Leader 2015 6
4. TCO Model – On-Premise VS SaaS - Cost Structure of Package for On-Premise system Cost: INR thousand Company A company B company C company D company No. users 30 50 12 26 Items Cost % Cost % Cost % Cost % Hardware 9,990 8 9,144 8 2,676 15 3,780 8 (Production, Test) License Fee 12,792 10 21,324 18 3,072 18 9,660 21 Support by 79,926 72,000 5,880 22,152 64 62 34 50 Consultant Others 22,170 18 144,90 12 5,670 33 9,882 21 (OS, MW .etc) Sum 124,878 100 116,898 100 17,298 100 47,094 100 Reference: http://www.sk-erp.com/erpbefore/ed07_kakaku.html Cost Ratio of SAP & PeopleSoft • Other ERP As for On-Premise software, consultants Items SAP PeopleSoft Average fee occupies entire cost largely. License 13.51% 13.15% 26% 6.75% Hardware 9.21% 14% • Compared to other ERP software, 60% 60% 79.72% 77.63% Service* proportion of service fee of SAP and *Including consultant fee and others PeopleSoft is very costly Reference: http://www.techtarget.itmedia.co.jp/tt/news/1210/16/news02.ttml Reference: http://www.techtarget.itmedia.co.jp/tt/news/1209/20/news02.ttml Asia Business Leader 2015 7
4. TCO Model – On-Premise VS SaaS - Target The Premise • Birla Institute of Technology Mesra Maintenance by own staffs • • Students: 4,000 No customization & Add-on • • Faculties: 180 No version-up Rs 120,000,000 Yearly Cost 100,000,000 80,000,000 60,000,000 Total Cost 40,000,000 20,000,000 0 Initial 2 3 4 5 Years Even if no customization of on-premise system, the TCO will be higher than SaaS’s within 5 years. Asia Business Leader 2015 8
5. What I Learned through Internship at TCS SaaS Business in India SaaS is appropriate for Indian market, especially Education market Situation of India’s education Benefit of SaaS Rapid changing situation of PEST Quick implementation (e.g. technology development, economic growth, (customers needs to adapt the change. They cannot government policy .etc.) spare much time to implement software) Increasing new HEIs & schools Low price of starting up (No. Private HEIS: from 16 in 2007 to 227 in 2015) (it is difficult for new institutions to prepare big funds for starting up) Indian Business Culture Speaking > Showing - Meeting > Document & Mail * These situation is totally opposite of Japanese culture - Telephone > Mail Rapid Decision Making (e.g. it took only one day for a customer from first contact for DEMO to contract) Improvement of Personal Skills Marketing - Select & Focus - - Focusing on SaaS only - Focusing on mostly Private schools & HEIs English skill Asia Business Leader 2015 9
Finally I am supposed to be in charge of Asian Public Sector Market after going back to Japan. With knowledge and skills I got through internship at TCS, I will make effort for Asia. I hope not only India and Japan but also TCS and NEC can make good relationship continually. Asia Business Leader 2015 10
Thank you! धनॎयवादॎ ! Arigato! （ありがとう） Asia Business Leader 2015 11
Reference:Outline of Internship Activities Internship Activities Months Weeks Activities 1st 2nd 3rd 4th Comparison Presentation of my December Visit Bilra High Visit Trade & Analysis of CMS expectation School with Pradip Technology (TTPL) with Abhishek Viral Infection January Presentation of Visit KIIT Making Business Comparison Analysis Plan of Indian Education Market & Japanese Education ICT Market Telephone Visit St. Lawrence February Making Report for Visit BIT Mesra Presentation about High School with Kyoto Univ. KIIT’s SAP Samrat & Abhishek × 4 Definition of each colors Visit places with Investigation & Visit Customers Presentation Others iON Members Alone Making reports Asia Business Leader 2015
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