How technology improves business process?
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Category: Market Strategies
Forum Name: Fundamental
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URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=670
Printed Date: 04/May/2025 at 8:52am
Topic: How technology improves business process?
Posted By: PrashantS
Subject: How technology improves business process?
Date Posted: 21/Dec/2006 at 9:27am
| Basantji if they can implement SAP ...it would be great.....Pantaloon is expanding well in Bangalore..........but i hope reliance or walmart dont muscle out other players |
Replies:
Posted By: India_Bull
Date Posted: 25/Dec/2006 at 5:34am
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I am not sure but I guess they might have implemented SAP-Retail package.
Some of the points I can highlight:
SAP for Retail supports the following business processes for grocery companies:
Could you pls get some more information on this front,just curious if they have implemented APO and BIW tools as well which will bring huge advantages. I think Reliance retail is also implmenting SAP-Retail though.
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: basant
Date Posted: 25/Dec/2006 at 7:52am
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That sounds interesting and what you wrote this should bring about efficiency in any business by lower inventories, lesser capital and so on. Pantaloon is also doing an ERP package in the Rs 100 crore outlay that it has set for technology upgradation. Even if they get a 1% operating margin expansion I think thatthis money will be recovered in 3 years.
How different is ERP from SAP or do bothe these systems complement each other? About those specifics (APO and BIW) I am not aware and would let you know as soon as I am able to find out. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: India_Bull
Date Posted: 26/Dec/2006 at 3:40pm
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ERP is Enterprise Resource Planning and is a concept developed from MRP (Material Requirement Planning) and is basically an integration of MFG,FIN and SALES and other addon business processes...
SAP is one of the product and market leader with almost 65% market share worldwide. Oracle fin,Peoplesoft,Baan etc are other companies that make ERP packages. ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: s_praharaj
Date Posted: 26/Dec/2006 at 6:41pm
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Thanx sandy for briefly and clearly explaining the SAP.
SAP is something which is highly essential for big companies. My brother was closely associated with implemenation of SAP in M&M and I used to talk with him about it. It may initially look costly, but it saves a lot of money as it plans everything and gives reports and alerts to the management in real time. It helps the management in perfectly managing the inventory, debtors, creditors sales, personnel, customers etc etc. It also helps in Data mining , Customer Relation Management etc etc.
In Banking SAP is called Core Banking Solution (CBS), which RBI has advised Banks to implement. Major vendors are Infosys, Iflex. ------------- Shashi Praharaj |
Posted By: India_Bull
Date Posted: 26/Dec/2006 at 6:54pm
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Very truely said. SAP transforms the business you do !!! In banking you have mentioned Iflex and Infy, does Nucleus also into Bank ERP?
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: s_praharaj
Date Posted: 26/Dec/2006 at 8:36pm
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Nucleus does not have any CBS software.
As far as I know they have some treasury Management and Fx software. ------------- Shashi Praharaj |
Posted By: omshivaya
Date Posted: 26/Dec/2006 at 2:52am
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Nucleus specializes in the "Loan Origination software" segment and is a leader in the "Retail Lending" part of the BFSI . It beats even Infy and I-Flex in many deals on this front. Interestingly, Nucleus' software has been chosen over Infy's and I-Flex in the particular area that Nucleus provides software for, by many banks in India. Also interestingly, in its niche segment in India, more than 70% of the banks have Nucleus' software implementation(chosen over Infy's and I-Flex) That is the kind of leadership Nucleus has in its niche area.
Nucleus has the major market share(over 70%) in "Retail Lending and Cash Management", where Infy and I-Flex lag far behind Nucleus.
Plus, Nucleus has done a very good thing by venturing into Japan, Africa and Middle-east in a a major way that the biggies havent...thus giving Nucleus' software pricing power.
I know though out of context of the topic on this thread, this was just for information purposes for anyone wanting a brief idea on Nucleus product offerings. Post can be moved to somewhere else, if inappropriate here. Thanks. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: kulman
Date Posted: 27/Dec/2006 at 3:42pm
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It may not be relevant on this thread...but this one is for SAP-fans.....
Have a look at this interesting news:
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http://www.thehindubusinessline.com/2006/12/27/stories/2006122702010400.htm - SAP bets big on small, medium size firms
T.E. Raja Simhan
 MR ALAN SEDGHI Chennai , Dec. 26
It took 10 years for SAP AG, a $10-billion German software maker, to get 1,500 customers in India. However, it aims to reach 15,000 in the next four years, with 50 per cent of them in small and medium size businesses (SMBs). "This is our vision and we can achieve it with India offering enormous business opportunity," said Mr Alan Sedghi, President and CEO, SAP India Pvt Ltd. The German company said globally it would like to have around 1,50,000 customers by 2010. "We would like to have around 10 per cent of the total clients," he told Business Line on the sidelines of the India Finance Forum organised by the Confederation of Indian Industry here last week. India is among the top eight strategic markets for SAP globally, he said. Major push Mr Sedghi said SAP India, which also caters to markets in neighbouring countries such as Sri Lanka and Bangladesh, would give a major push towards SMBs. The SMBs in India are beginning to realise the need for technology to compete with domestic companies and global players. SAP has solutions tailor-made for SMBs, he said. "In the next three to four years, growth for us would come from SMBs in India. We hope SMBs to be around 50 per cent of our total customers from the present 30 per cent. This does not mean business from large customers would slow down. This segment will also grow," he said. SAP provides business software comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management. More than 34,600 customers in 120 countries run SAP applications from solutions addressing the needs of small and medium size businesses, he said. Strategic hub It may be recalled that recently Mr Henning Kagermann, CEO and Executive Board Member, SAP, announced the company's plans to invest $1 billion over the next five years to expand its presence in India. This is part of the SAP's decision to make India a strategic hub in the Asia-Pacific. SAP has around 3,500 employees, including in research and development and sales. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: nav_1996
Date Posted: 27/Dec/2006 at 5:23pm
| Organisations not well geared to implement an ERP solution may be in a big mess if they chased ERP dream. They would be better off without ERP. But in today's environment they can not be competitive without ERP leave alone being market leader. |
Posted By: basant
Date Posted: 27/Dec/2006 at 5:28pm
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Please explain that. How do you suggest that org should gear themselves. Do you mean to say that there could be resentment from staff etc? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 27/Dec/2006 at 6:10pm
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Let me first make it clear that I'm not competent enough to post views on this discussion thread.
But out of curiosity, I attended a lecture by an ERP cosultant/expert during IT-Expo last week. (I try to visit Exhibitions/Trade Shows, attend seminars/lectures on variety of fields....I find that one gets to 'learn' some new matters/subjects, meet people from across the industry/Trade and the best of all is it much better time spent than watching TAUs' forecasts on TV channels!)
So, coming back to the point....the speaker made some important observations on ERP:
He had displayed this beautiful quote in one of presentation slides.......(could be his selling point to prospective clients): Information that you have, is not what you want
Information that you want, is not what you need
Information that you need, is .......not available!
We could learn more from other knowledgable forum members.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 27/Dec/2006 at 6:25pm
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Information that you have, is not what you want
Information that you want, is not what you need
Information that you need, is .......not available!
_______________________________________________
This applies to every walk of life even our stock market most of the time we discuss issues that are irrelevant or which do not concern us. FOr instance everyone wants to talk on how real estate stocks have gone up irrespective of whether they bought it or not.
Though I am not a believer in the real estate stocks I do hear several people saying "I am worried with the kind of mommentum these stocks have gone up". I mean if you have not bought them why should you be worried as long as you are not the chairman of SEBI and the Finance Minister of India.  ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 27/Dec/2006 at 6:34pm
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I mean if you have not bought them why should you be worried as long as you are not the chairman of SEBI and the Finance Minister of India
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Bilkul sahi hain Basant jee!
Even I get involved in this TAU-bashing excercise every now & then! Of course it entertains a few guys here & there...but what does it achieve really?
Having said that.....I won't give it up....no way!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 27/Dec/2006 at 7:32pm
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No no you do it so people can check and see whether they can identify in that group. That is perfectly Ok!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: s_praharaj
Date Posted: 27/Dec/2006 at 9:56pm
|
OMshivaya,
There are only two companies in India, Infosys and I-Flex which gives total core banking software. Nucleus does not have a core banking software, so its choice over iflex and Infosys does not arise. Recently SBI has purchased a core banking software and customised it with TCS, which SBI and its associates are using. But this is not a complete core banking software and SBI is facing a lot of problems because of that.
About the cash Management software Cash Tech is the widely used software which is interfaced with both iflex and infosys software. It is devoloped by a pune based company. I don't know whether it is Nucleus or not.
About the loan processing software from Nucleus, only private banks and foreign banks may be using this. I know a few public sector banks, but none of them are using that. If you can give me a list of their Indian clients, I can explore this further.
They have however a lot of foreign clients. The company is also doing well. ------------- Shashi Praharaj |
Posted By: basant
Date Posted: 27/Dec/2006 at 10:04pm
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Between Finnacle and Flexcube which one would you think is better. generally I heard that flexcube has a clear market lead in this. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 27/Dec/2006 at 11:51pm
As far as my knowledge goes, 70% of all transactions in india, in regards to "retail lending", is processed with nucleus' Finnone Lending software.
Some of Nucleus' Indian clients are: ICICI Bank, HDFC Bank, Citi Financial, and now Cholamandalam DBS.
For further details, you may try doing a search on google.com
And yes, Nucleus' Lending software has been chosen over I-Flex's and Infy's in many deals, in which all three have bidded together. If someone chooses Infy for some part of the total banking solution, doesnt mean some other software(which specializes in a particular area of the solution) won't be chosen for that area.
Here are two extracts of questions asked by the 2 analysts, in a conference call.
(I)
Dipen: Hi there. Thanks for the excellent set of numbers. Just to understand the competitive environment in which Nucleus is operating in, who are the typical Indian vendors you come across when you are making pitches for new wins?
Niraj: We are bidding for projects all across the globe, so we have clearly two sets of competitors, one are the global competitors and others are the very local regional specific competitors. So, if I look at the international competitors, we would be fighting with Fair Isaac, London Bridge, Fidelity, ebworks etc., these are some of the names, and if you were looking at some of the Indian vendors who do we come across in most of the deals is I-flex as well as Infosys. These are the vendors with whom we compete. (II)
Dipen Mehta:Just a last question Sir. On page 2 of your press release, you have mentioned in business expansion that FinnOneTM Lending today covering almost 70% of the incremental retail business in India is being adopted by leading global financial institution. Does it mean that 70% of the retail banking is being done on our product or what does that 70% means exactly?
Vishnu R. Dusad: 70% means let’s say, whenever there are 100 loans getting booked in a month, then out of those 100 loans, 70 loans will be booked using our platform in India. Hope this helps. As I said, Nucleus has a major market share in the niche area of "retail lending". I am not talking of CBS etc., bcoz in that we all know who the leaders are. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 27/Dec/2006 at 7:07am
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That was very informative. Till date I never knew why Nucleus was going up but now the story sems to be clearer to me. If that is indeed the case then the journey has just begun because if someone can get into product software the net incremental sales gets added directly to the bottomline. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 27/Dec/2006 at 10:47am
|
Yes, and Nucleus has an interesting model they have recently introduced. Something like..."Portfolio Shared revenues". This model does two major things, one for the client and one for Nucleus. If it would have normally cost the client 1000 bucks for the software implentation etc., with this model Nucleus asks just for 100 bucks and a share of the portfolio of the bank. Thus as the bank's retail lending portfolio increases, Nucleus gets some small basis points off the portfolio. then This is a huge savings for the bank and also makes sure that Nucleus is paid as the portfolo grows...thus Nucleus has a direct interest in making sure that all goes well for the bank to get more and more retail lending clients.
This model seemed really enticing to me, for some reason I dunno. Let's see what time foretells. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 27/Dec/2006 at 11:38am
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This is really a dhamaka as you say it. Why on earth does not RD discuss this. See I do not buy software companies nor would have ever. I knew he was into it at around Rs 100 but had he said this on the chat people would have been more confident. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 28/Dec/2006 at 12:47pm
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It remains to be seen how many clients choose that model of theirs(though it is very enticing for the client). That is why I had said earlier, "I listen to the sir jees and then follow it up with loads of research". However, my research was mainly limited to the internet.
However, this new model of theirs was introduced I think around 1 year back.
Why RD jee doesnt discuss it I dunno...maybe he wants some research to be done by the investors themselves. I wont want to speculate.
Btw, PN Vijay just has got interested into Nucleus and has already started buying its shares, as he mentioned on CNBC yesterday. He is one of the better lot, so someone could give some credibility to his decision. However, no one should buy JUST BCOZ he's buying. do your own due diligence and then do what you wanna do. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: kulman
Date Posted: 28/Dec/2006 at 4:06pm
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That was quite a study on Nucleus by OM jee!
Excellent!
In a lighter vein: Woh kehte hain naa....kisi cheez ke bilkul teh tak jaana...waisa research kiya hain OM jee ne! Shaayad Vishnu Dusad se jyaada jaankari jama ki hogi ab tak Nucleus ke baare mein!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: reetesh
Date Posted: 28/Dec/2006 at 4:21pm
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JOKE:
Interesting name (Dusad)he is eligble for quota according to goverment but sadly it is in educational institution only and that to as student. I wish him luck that goverment shall introduce this in business also so that every bank that operates in India will have to have one product from Nucleus.. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: omshivaya
Date Posted: 28/Dec/2006 at 9:08pm
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On a personal note, Vishnu ji is a really devout man and extremely down-to-earth. He organizes spiritual classes from time to time for his employees. As I said long time back when once we were discussing Nucleus, that Vishnu jee's body language and his eyes are very very honest and transparent. That is one thing that gives me a lot of confidence. What future holds only time shall tell, let's hope for the best.
And hehe Reetesh jee, the kulman baba ji fever is getting a hold of you 2 ha! Nice one! ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: omshivaya
Date Posted: 28/Dec/2006 at 9:22pm
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Oh, there is something that Basant ji maybe interested in...though exceptions are always there...but Vishnu jee would be on the right side of the fence and not the exception: "Vishnu R Dusad is a graduate from the Indian Institute of Technology, New Delhi."
Hehe,so there you go Basant sir....just for fun I mentioned it! ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: s_praharaj
Date Posted: 28/Dec/2006 at 9:32pm
|
OM Shivaya,
I don't have any knowledge about the loan processing software of Nucleus. I also enquired with some of my friends, which are mostly from public sector banks. But none of the PSU's including SBI is using that. But I don't understand why PSU's are not using it.
Basant,
I am a user of Flexcube. I have seen thoroughly both Flexcube and Finnacle. To me Flexcube is more suited to foreign countries than India. Finnacle is more suited to Indian Banking. The result also is clear. Finnacle is market leader in India where as Flexcube is used in 102 countries all over the world and clearly the preferred one in foreign countries.
Ofcourse in the last four years Flexcube has customised a lot to suit Indian Banking and we are quite comfortable with that. This is my private opinion. ------------- Shashi Praharaj |
Posted By: omshivaya
Date Posted: 28/Dec/2006 at 9:38pm
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Yes, PSUs are not currently on the client list of Nucleus I have seen that. No hassles though. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 28/Dec/2006 at 8:34am
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I think a few years back in 2003 I flex was to break into the US market. In fact that was the only country where they did not have adequate representation. I was holding Iflex at that time. ALso their tie up with Oracle would put them in big league in the US market as would Mphasis's tie up with EDS. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: s_praharaj
Date Posted: 29/Dec/2006 at 6:29pm
|
Basant,
Today Iflex has many customers in US. This software is very good for a bank say having aroubd 100 branches and all tech-savvy customers, who do not want to visit branches. That's why it is popular in so many countries. Mostly Banks in western countries are having few branches, and thus iflex is the preferred software. Now oracle takeover will take it still farther. ------------- Shashi Praharaj |
Posted By: India_Bull
Date Posted: 29/Dec/2006 at 7:46pm
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Hi Omshivaya,
I am not sure to offer any comments about the body language thing but I am also studying now Nucleus (and since I am a IT Pro ) think I should be able to find out what is hidden in it !!!
Anyways I have a very high respect for IIT and IIM-A (especially) and if the business is good and the company is actively run by them then as a thumb rule I dont hesitate to get into that stock (of course with my limitations) (I mean my 50% conviction is buid on the leader !!!
------------- India_Bull forever Bull ! www.kapilcomedynights.com |