How FRAMECAD supported their growth with SAP Business OneJohn Showell and Kent HutchingsSales Manager – REALTECH, CFO – Framecad
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Agenda
Wh A FRAMECADWho Are FRAMECAD Metamorphis from Sales / Distribution Focus to Vertical Supply Chain ProviderNeed for new business management solutionSelection ProcessSAP and REALTECHSAP Business OneHow the selected solution supported FRAMECAD sensational growthHow the selected solution supported FRAMECAD sensational growth over last 4 years
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The world’s leader in cold-formed steel construction solutions.– 20 years in the industry, 10 Years focused on Construction
Technology – Advanced end-to-end building solutions - from design to g g
production– Focus on innovation– Focus on sustainability– Focus on sustainability– Driven by customer needs– Mark Taylor (CEO) Ernst Young Entrepreneur of the Year 2009
S i C tServices Category
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FRAMECAD VisionFRAMECAD Vision
To be the world leader in the supply of rapid pp y pproduction, sustainable building solutions
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Global Player
Customer
FRAMECAD offices
Manufacturing Plant
Distributors
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CustomersCustomers
Property developers, construction companies, volume builders / franchisefranchiseTermite belts, war zones, natural disaster areas, emerging countries, , Limited skilled resources, Hi h th i D b iHigh growth economies eg Dubai, Natural resources (wood, concrete) limitedHigh volume projects, government investments in low cost emerging g p j , g g gmarkets require rapid enablementPotential Customers - Global shortage of 300+ million homes
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Residential
Australia
New Zealand
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Residential
French PolynesiaUSA Dubai
Iran RussiaChina
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Industrial
2 Level Villa Iran UK
School Project IraqAdditional Level to existing building Tehran
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Industrial
Commercial Russia
School Project Rwanda
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Workforce Accommodation
Workforce Accommodation Abu Dhabi
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Portable and modular
IranDubai
USA
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FRAMECAD advantage
Maximising Return on Investment– Save time on design, production and construction
• Up to 30% time saving in construction process– Save on manpower; Do more with fewer skilled people– Reduce errors with precise 3D modellingReduce errors with precise 3D modelling– Reduce wastage to 1% with a certified factory– Increase quality, speed and accuracy
M f t f f 3 b d h i 6 h• Manufacture frames for a 3 bedroom house in 6 hours• Onsite erection 2 days
– One Stop Shop Solutionp p– Partnerships & Turnkey Factory Solutions
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Question
Ti b S l F i If b ildi h ldTimber vs Steel Framing If you were building a new house would you be happy to use steel framing over timber framing. 1 = Yes, 2 = No,Sustainability. Do you think steel framing is more sustainable than timber framing? 1 Y 2 N1 = Yes, 2 = NoLeaky buildings. Do you think that steel framing would contribute to leaky buildings? y g1 = Yes, 2 = No
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FRAMECADS Business Management Requirements - 2005
Hi i ll l d b ildi d l l kiHistorically a steel and building products supply company looking to become a manufacturer and exporter of steel design and fabrications solutions for mass production of buildingsA single integrated solution which can cater for all of the existing business processes (Distribution) and has an expectation of addressing the future business process requirementsaddressing the future business process requirements.A single version of the truth with data input at source ie no double entry. International Expansion – Support & Currency & Lingual
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Selection Process – Theory and Practical
I i i d 2005 f i (P l) i hInitiated 2005 to move from accounting system (Pastel) with non integrated systemsKey user input into development of Requirements Document – the y p p qtheoretic requirements – now and the futureDevelop Demo Scenarios to review practical capabilities of potential solutionssolutions“User Friendly” and business acumenEmphasis on strategic long term capabilitiesp g g p3 systems were reviewed – theoretic and practical
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SAP / REALTECH
REALTECH SAP i li t lti i 1994REALTECH are SAP specialist consulting company since 1994NZ Office opened 1997International, Head Office Germany (Walldorf)Publicly Listed 1999Proven low risk implementation process
– Design Scope– Fixed Price– Data Conversion– Training– User Acceptance Testing– Go Live Support– On going development
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SAP / REALTECH
SAP i th ld' l t b i ft d th ld' thi d l tSAP is the world's largest business software company and the world's third-largest independent software supplier overall. 30 Years in the Business of Business 12 Million Users12 Million Users. 89,000 customers. 1,500 Partners. 25 Industry Solutions. 30,500 employees. Located in 50 countries.
SAP is the recognized leader in providing collaborative business solutions for all types of industries and for every major market
Founded in 1972, headquartered in Walldorf, Germany
NZ$17Bn Revenue, NZ$2.4 Bn R&D
80% FORTUNE 1000 Companies use SAP
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SAP Business One: Product Positioning
SAP Business One is an affordable, easy-to-use business automation software solution that helps emerging businesses streamline their operational and managerial processes and gain better control of their business.
24,000 customers (1,000+ sold in Australasia in 48 mths)
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Conceptual Options
Sh i k W S l i dd ll b i f iShrink Wrap Solution to address all core business functions
Best of Breed eg Accounting, CRM, Service and WMS 3rd party g g, , p ysolutions
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Shrink Wrap Scenario – Building a Shed
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Shrink Wrap – You Need a Hammer!
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Shrink Wrap Scenario - Building an Oil Rig
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Shrink Wrap– You still need hammer!
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Shrink Wrap Solution
E i l i lEconomical to implementEconomic to supportYou may get lucky BUT NZ companies are rarely vanillaYou may get lucky BUT NZ companies are rarely vanillaCompromise leads to frustrationStill rely on Excel and Access to fill the gap
AND /ORCustom development resulting in Source Code change and the slippery road to the orphanageslippery road to the orphanage
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Best of Breed – Build Solution from variety of components
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Best of Breed
Th ti ll t h t th k fTheoretically users get what they ask for.Potentially many additional systems and databases eg
– CRM– Service – MRP– E-Commerce– Warehouse Management
Data replication results in multiple versions of the truthIntegration costs high - middlewareHidden ongoing support of integration expensiveKeeping versions in stepMultiple suppliersReal time can be hard to achieve
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The New Fusion Approach - Shrink Wrap with certified Best of Breed Options
SAP Options E C
Breed Options
eg E-CommerceSAP Certified
PartnerOptional Modules
Core ProductProduct
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Application Programming Interfaces (APIs) & SDK
Core Product
Financials General Ledger AR/AP Fixed Assets Funds Management
Logistics SalesImport
Cost/Purchase Orders
MRP Warehouse Management Manufacturing Job Costing
C t R l ti hiCustomer Relationship Management Contact Management Opportunity Management Pipeline Management Service Management
Business Intelligence Predefined Reports & Dashboard XLR Reportwriter & Crystal 2008 Drag & Relate
Business Process Technology
Application Integration
Alert & Workflow Management
Extension and Personalization Migration Formatted Search SQL
Human Resources HRHuman Resources HR
E-Commerce E-Commerce
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Question
W h SAP h ERP l i d i d ifi llWere you aware that SAP have an ERP solution designed specifically for the Small / Medium Sized Business
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Sample of Certified Optional Modules
Project Management ETOAdvanced WMS
Advanced Manufacturing Intelligence Performance M tg Management
Inter Company Solution
Report & Document Delivery Tool
Inter Company SolutioniVend Retail/POS
Job Costing End User Configuration Tool
I t F ti d Pl i
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Ecommerce and SFA Inventory Forecasting and Planning
Over 400 Optional Modules
Retail Apparel Property ManagementRetail – ApparelRetail - POSSteel ProductionChemical Production
Property ManagementAnimal HusbandryAdvertisingIT Consulting
PrintPharmaceutical ProductionShipbuildingAutomotive Dealership
Chartered AccountingInsurancePassenger CargoFurniture and textile ProductionAutomotive Dealership
Metal FabricationBilling – Telco / UtilityMiningForestr
Furniture and textile ProductionMediaFinancial ServicesConstructionEq ipment HireForestry
Food ProcessingFrozen FoodsWinery
Equipment HireLogisticsPostal ServicesFoodservice
Meat and FishPetfood ProductionSheetmetal Fabrication
Farming
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Benefits of Fusion
R i Si l V i f h T hRetain Single Version of the TruthMenus, Screens, Queries and Reports integrated into standard system yStandard Development Kit = Common look and feelAPI = Data IntegrityRetain ability to easily upgradeNo requirement to re-invent wheel therefore reduce development Reduce integration testingReduce integration testingFuture Proof
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No Free Lunch
Maintain Software Development Kit – early version limitationsNot all combinations Options validNot all combinations Options validSoftware Vendors Release Policy accommodate ISV’sChoice great for customers – challenging for consultantsg g g
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SAP Business One Chosen
F i h dd f b i iFusion approach to address future business process requirementsMet requirement scenarios with negligible customisationCost effectiveCost effectiveFuture Proof – financially sound, R&D RoadmapDesigned for International CommerceReputation for dependable solutionsRuns on IBM Intel Range ServersREALTECH d dREALTECH recommended
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Proof of the pudding at FRAMECAD
PROJECT W kb h M d l dd P j A iPROJECT - Workbench Module to address Project Accounting (Budgeting, Timesheet Capture, Analysis)SERVICE - SAP CRM Module address Service ManagementgSALES - SAP CRM Module to address Sales Opportunities and Contact ManagementMANUFACTURE SAP P d ti / MRP M d lMANUFACTURE – SAP Production / MRP ModuleMARKETING - Third Wave for electronic communication to customers300% Growth since SAP Business One implementedSame system after 4 years despite rapid growth, 3 x users, global
i b i d ti l th fexpansion, new business process and exponential growth of transactions
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Business Benefits
R l Ti Si l V i f T hReal Time, Single Version of Truth, Data entered once at sourceData Integrity – apiData Integrity api Access to users as appropriate.1 system, less administration, 1 supplierVisibility. What gets measured gets done – SBO measures all facets of business
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The Future
EDI C i i i h li dEDI Communication with suppliers and customersWorkflow updates to customers eg ETACustomer Portal for information accessCustomer Portal for information accessMobile systemsMulti lingualIntegrated customer management eg capturing forecast of demand to plan optimal supply conditions
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Lessons Learnt
I l i R W i iInternal resources constraint eg Report WritingReview Product and Service ProviderIt’s a journey not a destination – plan for the journeyIt s a journey not a destination plan for the journey
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40
Thank oThank you
Questions?
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IntegrationIntegration
Engineering &3D Modeling
Engineering & Detailing Manufacture
Services, Expertise, Supply Chain
Training & Enablement
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IndividualComponents Assembly Construction
Innovation
• FRAMECAD Software• FrameMaster Manufacturing Plants• Turnkey Factory Set-up
R M t i l• Raw Materials • Consulting Services• Research & DevelopmentResearch & Development• Skills & Intellectual Property
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SustainabilitySustainability
S l l d & l blSteel – recycled & recyclableLow impact onsite building practices eg treated timberWaste reductionWaste reductionDo more with less skilled labourDurabilityEnergy efficient over lifecycle
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Customer Needs
2006 P ki t th k FRAMECAD t f t ithi t d d t i d2006 Pakistan earthquake, FRAMECAD set up a factory within two days and trained staff to design and build relief housing, medical clinics, schools etc. In the first year, 1,000,000 sq ft of buildings were erected.A similar strategy in Indonesia after the 2004 Boxing Day tsunamiA similar strategy in Indonesia after the 2004 Boxing Day tsunami.South Africa requirement 19,000 trusses residential houses
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