how framecad supported their growth with sap business one

How FRAMECAD supported their growth with SAP Business OneJohn Showell and Kent HutchingsSales Manager – REALTECH, CFO – Framecad

Make change work for youIBM Insight Forum 09®

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

IBM Insight Forum 09 Make change work for you®

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


FRAMECAD VisionFRAMECAD Vision

To be the world leader in the supply of rapid pp y pproduction, sustainable building solutions


Global Player

Customer

FRAMECAD offices

Manufacturing Plant

Distributors


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


Residential

Australia

New Zealand


Residential

French PolynesiaUSA Dubai

Iran RussiaChina


Industrial

2 Level Villa Iran UK

School Project IraqAdditional Level to existing building Tehran


Industrial

Commercial Russia

School Project Rwanda


Workforce Accommodation

Workforce Accommodation Abu Dhabi


Portable and modular

IranDubai

USA


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


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


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


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


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


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


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)


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


Shrink Wrap Scenario – Building a Shed


Shrink Wrap – You Need a Hammer!


Shrink Wrap Scenario - Building an Oil Rig


Shrink Wrap– You still need hammer!


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


Best of Breed – Build Solution from variety of components


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


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


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


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


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


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


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


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


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


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


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


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


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


40

Thank oThank you

Questions?

IBM Insight Forum 09®

Make change work for you

IntegrationIntegration

Engineering &3D Modeling

Engineering & Detailing Manufacture

Services, Expertise, Supply Chain

Training & Enablement


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


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


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
