Report of Internship at iON Education Ryosuke Miyashita Kyoto - - PowerPoint PPT Presentation

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Report of Internship at iON Education Ryosuke Miyashita Kyoto - - PowerPoint PPT Presentation

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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

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Report of Internship at iON Education

Ryosuke Miyashita Kyoto University February 29th, 2016

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Before…

My Internship Activities at iON Education

  • 1. Visit some

Places with iON Colleagues

  • 2. Visit

Customers Alone

  • 3. Consider

Business Plan and Comparison Analysis My internship activities at iON Education consisted of three parts mainly.

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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
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Asia Business Leader 2015

  • 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.

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.

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Vendors must understand customer’s requirement from a view point of users. Moreover, we should try to understand hidden requirement of customers. 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.

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Asia Business Leader 2015

  • 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

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.

  • BIT Mesra fortunately had been hiring a staff who was a PeopleSoft

consultant in the campus, which was big reason to adopt it.

  • BIT Mesra tries to bring the cloud platform to own site because the

monthly price is higher than its expectation currently.

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With Prof. Beura With Prof. Dutta

  • Implementation of ERP package for on-premise and private cloud platform

needs a lot of time. All customers require quick implementation to adapt quick change of the market.

  • Implementation of them needs a lot of initial cost also. Most of the HEIs in

India are still new and small; they don’t have much funds to pay such costly solutions initially.

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Asia Business Leader 2015

3-A. Analysis of ERP – Features Comparison -

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Products

SAP (SAP) Oracle (PeopleSoft) TCS (CMS)

Type On-Premise/ Private Cloud On-Premise/ Private Cloud SaaS

Customizatio n Level

High More flexible customization and add-on for user’s needs Low User can customize output style and some contents only Low User can customize output style and some contents only

Implementat ion Periods

Very long

  • Avg. 18.5 months

Very Long

  • Avg. 22.5 months

Short at least 6 months

Modules

Very Few MM, FICO, HRM * no modules focusing on education institutions Few Student Life Cycle, HRM, CRM .etc Many HRM, Finance, Academic, Library Hostel, Transport .etc.

Customers in India’s Education

Very Few KIIT and some HEIs only Few BIT Mesra, IIM Shillong .etc Many 21 customers on its website

Understandi ng license fee structure

Difficult 90% customers complain against the ambiguous fee structure Easy

  • Disclosed the information on its

website

  • Clear definition of user

Easy Stable Monthly Fee

Positive Matters

  • No.1 Market share(26%)* in the

world

  • Consultants in any places of

worldwide

  • No.2 market share (17%) *worldwide
  • Easier to use and learn for beginners

(PeopleCode is object-oriented programming and similar to Java)

  • Single window to use other

solutions of TCS

  • Users can access the system with

any device easily

Negative Matters

  • Difficulty to learn ABAP (Special

language of SAP)

  • High Failure Rate(38%)*
  • Sometimes users sued and were

troubled by peoplesoft; Montclair State Univ, the state of Ohio,.etc.

  • Users need high-bandwidth NW

to use CMS system

  • Success in India only

*http://www.akaneko-cpa.com

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Asia Business Leader 2015

  • 4. TCO Model – On-Premise VS SaaS -

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Company A company B company C company D company

  • No. users

30 50 12 26 Items Cost % Cost % Cost % Cost %

Hardware (Production, Test) 9,990 8 9,144 8 2,676 15 3,780 8 License Fee 12,792 10 21,324 18 3,072 18 9,660 21 Support by Consultant 79,926

64

72,000

62

5,880

34

22,152

50

Others (OS, MW .etc) 22,170 18 144,90 12 5,670 33 9,882 21 Sum 124,878 100 116,898 100 17,298 100 47,094 100

Cost Structure of Package for On-Premise system

Cost: INR thousand

Reference: http://www.sk-erp.com/erpbefore/ed07_kakaku.html

Items SAP PeopleSoft Other ERP Average License 13.51% 13.15% 26% Hardware 6.75% 9.21% 14% Service*

79.72% 77.63% 60% 60%

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

Cost Ratio of SAP & PeopleSoft

*Including consultant fee and others

  • As for On-Premise software, consultants

fee occupies entire cost largely.

  • Compared to other ERP software,

proportion of service fee of SAP and PeopleSoft is very costly

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Asia Business Leader 2015

  • 4. TCO Model – On-Premise VS SaaS -

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20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000

Initial 2 3 4 5

Yearly Cost Total Cost Target Birla Institute of Technology Mesra

  • Students: 4,000
  • Faculties: 180

The Premise

  • Maintenance by own staffs
  • No customization & Add-on
  • No version-up

Even if no customization of on-premise system, the TCO will be higher than SaaS’s within 5 years.

Rs Years

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Asia Business Leader 2015

  • 5. What I Learned through Internship at TCS

SaaS Business in India

SaaS is appropriate for Indian market, especially Education market

Indian Business Culture

 Speaking > Showing

  • Meeting > Document & Mail
  • 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

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Situation of India’s education Benefit of SaaS

Rapid changing situation of PEST

(e.g. technology development, economic growth, government policy .etc.)

Quick implementation

(customers needs to adapt the change. They cannot spare much time to implement software)

Increasing new HEIs & schools

(No. Private HEIS: from 16 in 2007 to 227 in 2015)

Low price of starting up

(it is difficult for new institutions to prepare big funds for starting up) * These situation is totally opposite of Japanese culture

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Asia Business Leader 2015

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.

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Asia Business Leader 2015

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Thank you! धनॎयवादॎ! Arigato! （ありがとう）

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Asia Business Leader 2015

Reference:Outline of Internship Activities

Months Weeks

Activities 1st 2nd 3rd 4th December January February Presentation of my expectation Visit Bilra High School with Pradip Comparison Analysis of CMS Presentation of Comparison Analysis Visit KIIT Viral Infection Making Business Plan of Indian Education Market & Japanese Education ICT Market Telephone Presentation about KIIT’s SAP Visit St. Lawrence High School with Samrat & Abhishek Making Report for Kyoto Univ. Visit BIT Mesra Presentation Visit places with iON Members Visit Customers Alone Investigation & Making reports Others Definition of each colors

Internship Activities

×4

Visit Trade & Technology (TTPL) with Abhishek