VINSUN Infra Engineering Pvt. Ltd Harvard Case Solution & Analysis

Threats

As the company lies within Small and Medium Enterprise (SME), therefore, investing huge budget on IT may hamper the growth of the company due to which it might not become as profitable as in the current situation. Currently, the entire data of the company is dependent over few individuals, which is maintained in personal computers. However, no backup for data is maintained which could result in the loss of data and all the important information of clients.

Porter’s Five Forces Model

Threat of a New Entrant

The threat of a new entrant in the particular industry of providing civil services and electrical works to service industries and buildings is high as it requires minimum initial cost for its establishment. There are few competitors that provide the particular services to different industrial customers as VINSUN.

Threat of a New Substitute

The threat of a substitute is limited as there can be individuals performing the same task but the services which could be availed through the organization like VINSUN could provide benefits due to many clients and huge revenues involved.

Competitive Rivalry

The competitive rivalry is also low as there are few companies providing the services to the large customers. However, it is likely that the growth may increase in the future and more competitors would be enabled to enter the market, hence, increasing the competitiveness.

Bargaining Power of a Supplier

The supplier of the company would include its on-site employees that would perform various tasks of electrical and civil engineering works. The bargaining power of supplier is moderate because there is no shortage of employees in the Indian market.

Bargaining Power of a Buyer

The bargaining power of a buyer is weak since there are few players in the market who deal in the expertise of civil and electrical works. The buyers do not have much choice to select from the options available.

Analysis of Alternative Solutions

Alternative 1: Cloud ERP

Advantages

The main advantage for the particular ERP system is that there is minimum initial investment involved because no infrastructure is required for its implementation, but only contractual cost is associated. Also, there is no need for the development of ERP team as managers could easily focus on their respective activities. Furthermore, the particular system is standard and is being used in many companies around the world as the number of bugs is limited in the system. Through cloud ERP, the work could be carried out from anywhere around the world if internet connection is provided (Ray, 2011).

Disadvantages

As the data is shared on the internet, there is very much possibility for the data theft as the privacy of the data and data security is not certain. Even though the particular ERP system has low initial cost, but there is huge cost associated in the long run. There are also technical issues and connectivity issues involved in the implementation of cloud ERP (Leon, 2008).

Alternative 2: On-Premise ERP

Advantages

As the particular ERP system works on intranet, therefore, there is no effect of internet connectivity on the working of the system. There is a strong security of data because the company’s firewall makes the security of the data possible. Moreover, the particular ERP system could be customized as per the requirements of the company as all the features of ERP are transferred to the buyer. Furthermore, it can also be used for long term advantage as changes could be made easily according to the future needs of the company (Ray, 2011).

Disadvantages

Due to the high investment cost associated with on-premise ERP, it could be considered as a major disadvantage for the small and medium sized enterprises. Additional cost of employee training is required to equip employees to understand the functionality of ERP. Moreover, the maintenance fees would be charged under the IT department of the company. Business could be disrupted because clearing the bug requires stoppage to the office work which may lead to the loss of working hours (Ray, 2011).

Alternative 3: Customized Solution

Advantages

Limited cost is associated with the installment of the particular system along with the saving of time because employees of the organization could easily get equipped with the system. The particular system will also take little time for implementation (Ray, 2011).

Disadvantages

There would be no or minimum changes done in the system which may not address the problems identified by the company. As integration between departments is also a huge problem faced by the company, therefore, the system does not address the problems identified. The problems may still persist because limited changes are made (Ray, 2011).....................................

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