Lux Rao - Empowering the Indian SMBs - Interop Mumbai 2009


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SMBs in India have for long been denied the benefits of business automation and technology tools. This has been primarily due to capex considerations. The advent of SaaS has ignited the opportunity for SMBs to gain the tools and techniques of enterprises albeit without the cost structure. With the pay-as-you-go costing model, SaaS truly partners businesses to grow without the cost shackles. In short, SaaS for SMBs = Growth without Shackles.

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Lux Rao - Empowering the Indian SMBs - Interop Mumbai 2009

  1. 1. Empowering the Indian SMBs • The Value of Automation • IT Automation as a strategic enabler M.Lakshmi Narayan Rao
  2. 2. Power to the People Users are no longer constrained by what technology allowed them to do; Technology now follows what users want to do
  3. 3. Mull it Over ! Small and medium businesses (SMBs) are the backbone of the nation's economy, particularly in developing countries. They constitute the bulk of the industrial base and also contribute significantly to their exports as well as to their Gross Domestic Product (GDP) or Gross National Product (GNP) 6 Million SMBs 50% of industrial output 42% of India’s total exports 50% of private sector employment 30-40% of value-addition in manufacturing 80 percent of the total number of industrial enterprises
  4. 4. Mull it Over ! Now, here is the sad story !! <10% PC penetration <1% use Biz Automation No/low IT Roadmap Heavy dependency on paper documentation CRM, ERP, HRMS, BI, Dashboards – What are these?
  5. 5. Objectives Empowering SMBs o The Challenges o The Technology conundrum Emerging Technology Trends o The Tools and Tricks of Enterprises at SMB price points Use cases
  6. 6. The Emerging Business Dynamics Globalization Liberalization WTO Regime Competition Cross border business complexities
  7. 7. Challenges to Growth Innovation Indian SMBs suffer from problems of suboptimal scales of operations Scalability and technological obsolescence. Processes BUSINESS AUTOMATION IS THE KEY Business Optimization Operational Efficiency
  8. 8. The Technology Conundrum Do I need Technology? Is Technology Expensive? Is maintaining it cumbersome? How about manpower? Maintaining the Status Quo = Comfort Zone Impact = Losing Customers, Market Share, Credibility
  9. 9. Emerging Technological Revolution Organization B Organization A Software Cloud Computing Organization D Organization C Infrastructure
  10. 10. The Perfect Solution for SMBs WHY ?? Pay as you go versus CAPEX/initial capital commitment Easy to adopt and expand Low start-up and operating costs Minimal IT involvement Easy to budget - fixed costs No added cost surprises No cost software upgrades
  11. 11. Business Scenario & a SaaS Solution 50 people organization Export House Needs concurrent Tools Software needed Annual License costs Monthly Subscription Mailing Solution Rs 4,75,000 Rs 16,800 CRM Rs 1,92,000 Rs 11,520 Web Conferencing Tool Rs 86,000 Rs 1,248 Anti Virus Solution Rs 1,20,000 Rs 5,520 Mini ERP Rs 6,00,000 Rs 17,280 57% TOTAL Rs 14,73,000 Rs 52,368 Savings SaaS Cost for the Year: = Rs 6,28,416
  12. 12. Why SaaS makes sense? On Demand (SaaS) On Premise (Traditional) No Upfront Cost Substantial Upfront Cost Simple Usage based fee & Fixed Cost Hardware investment Easy to deploy & implement Software Licenses Reduced IT Concerns High Management Costs Minimal IT involvement Dedicated IT resource Enterprise Class SLA In-house monitoring Secure & Reliable Cost of Maintenance Implementation in Days Implementation may take months Buy only what you need Buy more than what is needed No minimum commitment Minimum Order Quantity Easy Scalability Additional Cost of Upgrades, New Versions Pay as you Go 'Shelf-ware' liability The OPEX Vs CAPEX Advantage
  13. 13. Case Study • Use-case • The Eco-system • SMB Suite – Solution in a box
  14. 14. Ideas in Action ! FMS Case: Fleet Management Solution for a Mid-size Transportation Company – DFC, spread over 40 locations and over 200 Trucks carting essential cargo such as Oil. Existing Scenario: Excel Spreadsheets Paper Records Human Memory Anecdotal Data Problems: Sag factor of over 25% in Capacity utlization Unplanned maintenances. Missing Cargo Ever growing Paper Records and hundreds of Excel Files Zero BI
  15. 15. Ideas in Action ! FMS On-Premise Solution Proposed Multi-location Hardware and Software project 3 months of development activity 1 month of implementation Rs 10 lakhs + 35% maintenance fee annually 3 Year cost out-lay: Rs 17 lakhs SaaS Solution: Solution Scope Vehicle Management Development Time: 15 days Cash Management Setup fee: Rs 1.5 lakhs Statutory Alerts Monthly subscription: Rs 5,000 all inclusive Driver Module Access Anywhere 3 Year cost out-lay: Rs 3.3 lakhs Legacy Data Migration Dashboard & BI
  16. 16. The Brass-tacks From Excel sheet to dedicated browser based-personalized SaaS Business Application for complete Fleet Management within 2 weeks time. On Demand Vs On Premise Zero Capex. Low Opex Solution. Savings over 3 Years: Rs 13.7 lakhs ‘‘ ...The moment we finished the application design, our fleet solution for all our trucks was up and running with no coding at all. Field staff is able to enter data using the excel-like interface and we have activated vehicle specific alerts. This is an impressive platform...’’ Krishan Agarwal, MD, DFC
  17. 17. Ideas in Action ! DMS Case: Document Management Solution for a school with over 2000 students. Existing Scenario: Excel Spreadsheets Paper Records Problems: Islands of Automation Paper Mountains Retrieval of Records would take days Ever increasing demand for storage of paper docs Poor Service levels reflected poorly on school’s image
  18. 18. Ideas in Action ! DMS On-Premise Solution Proposed Document Management Software 1 months of development activity for customization 15 days of implementation Rs 3 lakhs + 35% maintenance fee annually Narrow scope project with substantial investments for upgrade / functionality 3 Year cost out-lay: Rs 5.1 lakhs SaaS Solution: Development Time: 8 days Setup fee: Rs 85,000 Monthly subscription: Rs 2,000 all inclusive Upgraded to web based total Information Management System –at Rs 5K/mo 3 Year cost out-lay: Rs 1.57 lakhs
  19. 19. The Brass-tacks From Excel sheets to dedicated browser-based Administration and information management SaaS Application within 8 days time On Demand Vs On Premise Zero Capex. Low Opex Solution. Savings over 3 Years: Rs 3.5 lakhs “ ...Our Student Information System was designed & delivered using a SaaS Solution . We are thrilled with the speed of application development, flexibility in making changes & proactive partner services team.” Riad Mahmood, MD, Headstart
  20. 20. Solution in a Box Multiple vendors Jamcracker Cloud Carrier SMBs Hardware Core SaaS + HaaS Services Industry Knowledge + Provisioning Industry BPOS Support Training Specific Solutions Channel Enablement Vertical Apps Single Stop Shop for SMBs Jamcracker Provides Single windw Rich Services Catalog SMBs (Need) H/W Industry specific Carrier Biz Automation Tools solutions Training Single Window for Support Branded Market place IT Solutions’ advice Training Support = Advice S/W Supprt
  21. 21. Summary Computing capacity today: Hundreds, even thousands of connected servers located across the globe and SMBs don’t even have to own them or know where they are located. Rapid deployment of applications, releasing SMBs from the need to buy hardware; Access to ready-to-go, preconfigured solutions that SMBs can turn on in days or weeks with minimal configuration; Better user-adoption rates , thanks to familiarity with Web-like SaaS interfaces, which can allow SMBs to forego expensive training. Zero Lock-in, providing SMBs the advantage of experimenting and choosing the right solution for their needs
  22. 22. The Perfect Solution for SMBs Cost-effective Scalable Quick to implement Pay-as-you-Go No minimum order quantities No vendor lock-in Green with reduced carbon foot-print SaaS is the closest that comes to answering the above Wish list and more so in turbulent times.
  23. 23. About Jamcracker • Provider of the world’s first cloud computing (SaaS) aggregation service delivery platform – Established processes for sourcing, integrating, testing, branding, bundling and delivering cloud services – Complete life-cycle management for cloud based services – Executive Dashboard views for qualitative measurement of cloud services delivery • Provide infrastructure, operations, support and programs for branded services delivery and life-cycle management – Enabling enterprise to rapidly source, bundle, and support cloud services – Ability to rapidly on-board core and complementary cloud services – Unified management of cloud services, with minimal cost, effort and risk – Technology and services in production since 1999
  24. 24. Q&A
  25. 25. Thank You M.Lakshmi Narayan Rao