VPN enables Usha International reap ERP's benefits

Introduction

Usha International Ltd. (UIL), group company of the Siddharth Shriram Group, is a consumer durable major dabbling in a wide range of products right from fans, sewing machines, air conditioners, water coolers and home appliances to engines, motors, pump sets and auto products. The company's presence spans across 33 locations, including Divisional Offices and Godowns. Sify's VPN and Radio Frequency (RF) based broadband services have allowed UIL to go for a centralised architecture and thereby reap benefits of the ERP.

The Need

In the year 2000, UIL decided to implement SAP-ERP. After deliberating upon whether to go for a centralised or de-centralised architecture, it was decided to go for a centralised set up. According to Pradyumna Poddar, General Manager, Usha International Ltd., full benefits of an ERP could only be reaped when there was a common database and everything had to be online. "When going for the ERP, the main challenge was how to connect the Godowns and offices to the new system," says Poddar. The primary factor that could have enabled it was to have a robust connectivity backbone. After evaluating various options available, UIL finally outlined upon Sify's VPN solution.

Why VPN?

Other than VPN, the company studied alternative options like leased lines and VSATs for backbone connectivity. Considering the number of locations, VSATs turned out to be a costly solution. Taking a leased line and its management was not so easy at that time, specially if it was about managing the leased lines in various states. Calling VPNs a sunrise concept at that point in time, the company decided to implement it for being a relatively cost effective option.

Apart from Sify, UIL considered various vendors including Wipro, Global Telesystems and HCL Infinet. But having the largest number of POPS (around 40 at that time) Sify was preferred over other vendors. Further, these POPS covered almost all the locations that UIL was operating and wanted to connect. Another reason why Sify was UIL's preferred partner was that the VPN solution was Sify's core strength.

The unique thing about the implementation was that the VPN solution was rolled out simultaneously with the ERP starting October 2000. Now UIL believes in VPN so much so that it has become the backbone connectivity for all the 33 locations of the company. This VPN takes care of all the major applications running on UIL network including SAP ERP, Lotus Mail, 'Same Time Chat' and 'Voice Chat'. End of the day, Poddar and UIL are happy.

Last Mile connectivity?

For the last mile connectivity, UIL initially implemented a combination of leased lines, ISDN and PSTN dial-up. However, as Sify got the license for providing the Radio Frequency (RF) links, UIL was convinced that RF would be a better option for its broadband connectivity as well as the last mile option. "Radio based connectivity has just got the initial expense to install and one does not necessarily get involved with the nodal agencies for anything," says Poddar. Eight locations including Delhi HO, Delhi Divisional Office, Jallandhar, Patna, Cuttack, Guwahati, Bangalore and Chennai migrated from leased line to Radio based connectivity.

Benefits

UIL is reaping plentiful benefits of the VPN solution. It has been the success factor behind the ERP. According to Poddar, ERP and Connectivity can't be looked at in isolation. ERP's success largely depended on a scalable, secure and reliable connectivity, which was provided by Sify. "The ERP system will fall flat if there is no robust connectivity," says Poddar. The VPN solution has offered the company an uptime of almost 100 percent.

Also with the introduction of VPN the concept of locational barrier is out and there is 100 percent online information. Presently the entire communication process is over VPN, resulting in cost savings by bringing down long distance call bills. In fact, UIL has drastically cut down the number of long distance lines within the organisation.