Kok Wei Bee, Chief Financial Officer,

Daya Materials Berhad

Established in 1994, Daya Materials Berhad envisioned to create a Malaysian integrated oil and gas (O&G) company with a global reach. Now a major player in the region, with O&G operations throughout the Asia Pacific, Daya Materials holds interests in companies and subsidiaries that involve both upstream and downstream O&G sectors, including engineering, construction and investments.

Due to the diversified nature of the group, with varied business natures and business models, Daya Materials faced the challenge of visibility across its subsidiaries. “In the past, prior to the company’s mergers and acquisitions, this was not an issue,” says Kok Wei Bee, Chief Financial Officer, Daya Materials Berhad. “However, with our present corporate structure, we faced the lack of visibility, in terms of profitability and business growth among the companies and subsidiaries within the group. Our previous system was unable to support management’s demand for timely reporting. We had no standardized accounting systems within the group, resulting in difficulty in tracking and managing current business processes.”

The Group currently oversees 35 subsidiaries across the Asia Pacific region, with companies comprising six core business types. According to Ms. Kok, this often contributed to delays in accounting and decision-making. “Previously, we had to rely on finance departments of our various subsidiaries to give us reports, which we collated and analyzed manually,” she said. These came from varied systems, including UBS, TBS, MYOB and Biztrack, among others. “We could not assess our business intelligence in real-time.”

Solution

The decision to adopt Microsoft Dynamics NAV was made upon close evaluation of comparable products. Daya Materials worked with Synergistic in deploying Dynamics NAV, ensuring compliance with Microsoft vendor standards. Ms. Kok says that the company’s deployment of Microsoft Dynamics NAV did not require expensive and time-consuming customization work. “It can handle our various business requirements with just the standard and ready solution,” she says. “We do not need to spend a lot for customization, in order to get a system that can fit into our environment.”

In deploying Microsoft Dynamics NAV, Daya Materials split the implementation into groups and stages due to the wide spectrum of business involvement and the different locations of the business operation. By splitting into groups, the company was able to see the visible success and results from the implementation much faster. “The whole implementation had been carried out according to the plan,” says Ms. Kok.

Benefits

“Microsoft Dynamics NAV is a flexible system that can grow together with our business,” says Ms. Kok. “The platform empowers us with real-time visibility from our 35 subsidiary companies. Reporting time has been reduced from weeks to mere minutes, saving us 8 to 12 man-hours of consolidation work per month.”

Standardized reporting and documents. According to Ms. Kok, the Group chose to deploy Microsoft Dynamics NAV because of its “flexible reporting with advanced and user-friendly reporting tools.” This is particularly important due to the varied business natures of the companies under the Group. “We need to consolidate data into a system that is able to cater to various business and reporting requirements, yet still maintain control and visibility from the headquarters.”

Real-time data for insightful business decisions. With Microsoft Dynamics NAV, the company is now more agile in making business decisions based on information from various subsidiaries under the group, and this happens in real-time. “The standardization of reporting and documents, chart of accounts, and streamlining of the accounting process flow empowers the management in planning and controlling the costs,” says Ms. Kok. “We are able to track project costing and product costing easily. Each month, we save 8 man-hours of work from having to consolidate financial reports and analysis work on the Group results, not to mention the time spent having to wait for individual reports to come in.”

Significant cost savings from streamlined business processes. According to Ms. Kok, Daya Materials uses Microsoft Dynamics NAV to run and support many of its mission-critical business processes throughout the region. “We use Microsoft Dynamics NAV for our entire operation, which includes billing, jobs monitoring, purchasing, asset maintenance, stock control and financial management. Each month, we save 8 to 12 man-hours, from HQ alone, in developing inventory reports, product costing reports and project cost tracking reports.”

Standardized reporting, documents and chart of accounts. Daya Materials chose Microsoft Dynamics NAV due to flexibility and ease of use. According to Ms. Kok, partner Synergistic’s experience in building solutions for other reputable organizations in Malaysia contributed to Daya’s decision to deploy Microsoft Dynamics NAV through the partner. “The template helps us standardize the operations process in an effective manner. This allows us to streamline our processes and deploy more quickly.”

As its next steps, Daya Materials is planning to upgrade its Dynamics NAV deployment to the latest version, which one of its newest subsidiaries is actually already running. The company is currently working on incorporating goods and services tax (GST), a new requirement for Malaysian companies. According to Daya Materials, its Dynamics NAV deployment should easily incorporate this feature, and the company no longer has to worry about finding a supplier or vendor to cater to this particular need.

FACTS

Customer Profile

Ernst & Young (Malaysia) is the largest provider of Professional Services with 13 offices and 2500 employees in Malaysia

Business Situation

Acquisition of a competitor doubled staff size and they needed to find a financial solution to integrate with their new front-office system which needed to be up and running in two months.

Solution

• Microsoft Business Solutions - NAV (Navision)
• Financial Ledger
• Accounts Payable
• Accounts Receivable
• Cash Manager

Benefits

• Seamless integration with front office application
• Faster and more accurate quarterly closing
• Flexible base for future expansion

Software and Services

• Microsoft Windows 2000
• Microsoft SQL Server

Hardware

Compaq Server with Terminal Services

Users

50 user license for Kuala Lumpur Headquarters

The history of Professional Services firms worldwide has been one of growth, acquisitions and mergers. The firm of Ernst & Young can trace their heritage back to AC Ernst and Arthur Young who worked for separate accountancy firms in the United States of America in the late nineteenth century, but surprisingly, they never met!

Ernst & Young (Malaysia) was established in1909 as the country's first internationally linked public accounting firm and today they are the auditors for over 50% of the companies on the KL Stock Exchange. Most recently, Ernst & Young has taken over the practices of Arthur Anderson in many countries across the world, including Malaysia. Here, this recent acquisition caused the company to double in size to over 2500 staff, who operate from offices in each of the country's 13 states.

Their IT functions fall broadly into three main groups. The key front-end is the Practice Management Application (PMA) which is used by the associates to track time and billing.The IT backbone is the financial and reporting system and finally there is a collection of in-house developed applications for more specialized tasks such as tax preparation, claims and payroll.

ACQUISITIONS CHALLENGE INFORMATION TECHNOLOGY

The takeover of Arthur Anderson happened very quickly. Alex Goh, Ernst & Young (Malaysia)'s Administration and Finance Director was faced with a huge challenge! From the announcement of the acquisition to the actual event was a scant three months.The main problem was that their previous systems were only barely able to cope with the E&Y team of 1400 staff, and that was to grow almost immediately by another 1200.(Anderson had used a global IT system that would "disappear" overnight at the take-over.) Obviously a new and more robust system was needed - quickly!

At the end of May 2002, E&Y started to look into new solutions. Their original goal was to get a one-stop solution that covered everything from front-office to back-end, and have it up and running in two months. One of the key needs was for a multi-site system so that each of their 13 offices in East and West Malaysia could function independently as well as providing shared functions.

Their previous Practice Management Application (PMA) had served them well and the new upgraded version was also evaluated for both the front-office and back-office functions.

Alex continued, "We anticipate that we will be moving to a global reporting system sometime in the next two years so we had to bear that in mind as we looked at the new system.We will definitely need a good tool set in the financials."

A key requirement was the ability to report financials based on two different systems.E&Y global uses the "full-accrual" accounting system, whereas for local reporting in Malaysia the "billing-basis" is used.

Although the PMAs included their own back-office financials, Alex "was not convinced by their story. We needed a lot of functionality, much more than the integrated financials could provide-and i am sure that my management will demand more and more as we move to more global reporting."

The financial solution needed to be able to provide 90% of their needs without modification and be used by other Malaysian companies to handle both book-keeping methods. In addition it must support a high degree of customization when needed and be well supported by good partners. Many of the possible alternatives were "too complex-or too expensive!" said Alex.

A reputable and experienced partner was a very important component and he found that with Synergistic Innovations. Sam Yap, their Managing Director said, "after spending time understanding their needs (both immediate and future), we were convinced that Microsoft Navision was the ideal solution. Microsoft Navision is being used by many customers in Malaysia and is fully compatible with the government's reporting needs." Thus the final solution was to use the upgraded front-office PMA integrated with Microsoft Navision for the back-office financials.

AN AGGRESSIVE DEADLINE

With so many system changes needed, a dual time frame approach was taken. Bernadette Chia, E&Y's Finance Manager, continued the story. "Accurately capturing client data was our first priority. So in August, we installed the new PMA systems in the branch offices and had them run in standalone mode. Then we linked those systems together to give us full countrywide roll-ups." The Microsoft Navision implementation, managed by Synergistic Innovations, followed on a separate timeline.

Their deadline was to produce the quarter end reports for July to September. The challenge was that data from the first part of the quarter was still on the legacy system, and the more recent data was coming in from the new PMA. To handle this, Synergistic Innovations created some templates that enabled the thousands of transactions from the other systems to be simply brought in to Microsoft Navision.

Bernadette set an aggressive goal."Previously, the complete quarter-end process took us a month to shut down the legacy system, process the data and then produce a set of reports." As they gained experience and confidence with Microsoft Navision during the implementation stage, they set a target of October 15-just two weeks to close the books-and they met it! With the first quarter end behind them, there are still some pieces left to implement. For example, Synergistic Innovations will be creating linkages to directly import the PMA data into Microsoft Navision in real time.

JUST THE BEGINNING

Alex believes that there is still too much manual work. "Now that we are up and running,we need to take time to learn the system and tools. We have been very happy with Synergistic Innovations; they have quickly attended to our needs and the partnership has kept us on track."

" The result was amazing! We met our two-week closing target, half the time as before, and i was very pleasantly surprised how clean the data was. Microsoft Navision will enable us to Improve our processes and get us ready for whatever global reporting we will need in the future."

Alex Goh Administration and Finance Director, Ernst & Young(Malaysia)

(From left) Alex Goh, administration and finance director and Bernadette Chia, Finance Manager, Ernst and Young (Malaysia)

Customer

Kamdar Group (M) Berhad, Kuala Lumpur, Malaysia.

Business Solution

Microsoft Dynamics NAV® (formerly Microsoft Navision)

Benefits

1. SPEED:
   Near real-time updates made possible through integrated, remote access systems
2. EFFICIENCY:
   Integration renders repeat data entry obsolete, while helping to forecast stock requirements
3. SATISFACTION:
   Goods in store can be better matched to customers' needs
4. ACCURACY:
   Accurate drill down information for inventory control, purchasing, sales order processing, demand planning and more
5. PROFITABILITY:
   Better managed inventory turnover from reduced stock holding improves cash flow and profitability

The Client

Kamdar, a household name for textile and fabric, is owned and managed by Kamdar Group (M) Berhad (KGMB). KGMB's main business is as an importer, exporter, retailer, and wholesaler of textile and textile - based products. Operating out of its headquarters in Kuala Lumpur, KGMB manages a commendable chain of 24 departmental stores throughout Malaysia; offering not only textiles, but also ready-to-wear clothes in various styles and Fashions.

The Situation

From its humble origins in 1950, KGMB has since grown dramatically and is now listed on Bursa Malaysia. It is said that success is often the envy of many. But for one Mr. Jayesh Kamdar, the Chief Executive of KGMB, it is also a prestige that is hard to maintain. With 24 stores throughout the nation and a whopping headcount of 1,300, the efforts and decision making process of KGMB's management was severely impeded by disparate and antiquated systems.

The Challenge

Mr. Jayesh is well aware that the difficulty to both manage and grow a business increases exponentially as the business increases in size. To him, one particular business headache involved synchronizing business operations. "We had to open up different applications, drag, recast information and ended up wasting a lot of time. The systems couldn't tally and I wouldn't know what the stock balance was," Jayesh recalls.

The Need

KGMB needed a fully integrated business management solution that could support the group's rapidly expanding business. Thus, according to Jayesh, would make the lives of Kamdar's staff easier while increasing overall efficiency. For Jayesh, this new business support system had to (be):

• process information in real time due to the fast paced nature of the retail business.
• consolidate and facilitate transfer of information from all quarters into one seamless, easy to access database.
• facilitate KGMB management in making effective critical business decisions, forecasting and budgeting.
• manage stocks effectively through inventory control, purchasing and sales order processing with demand planning.
• remotely accessible, to address the geographic distribution of stores across the nation.

The Solution

The group started evaluating prospective systems from SAP, Oracle and Microsoft over a two-year period from 2004, and had come to agree that Microsoft Dynamics NAV was the ideal solution of choice. In 2006, KGMB appointed Synergistic Innovations Sdn Bhd as their implementation partner. Additional plans were made to include the Microsoft Dynamics NAV business intelligence module in the future. The solution was implemented in phases and at the same time, integrated with a front end POS system that was deployed at all Kamdar stores. The seamless, highly automated and accurate solution allowed KGMB greater flexibility and degree of control over the management of their stores.

The Improvements

The implementation of the Microsoft Dynamics NAV solution saw a tremendous change on several fronts:

• Better inventory management:
  Process automation and item tracking made it possible for KGMB to improve on inventory accuracy and goods supply to customer demand matching. This reduces the amount of stock held, improving financial liquidity and cash flow.
• Enhanced decision-making:
  Microsoft Dynamics NAV allows users to access desired information directly, allowing for greater business insight and trend spotting. Because of detailed and discrete information tracking, decisions are no longer made subjectively, leading to more constructive discussions and improved business decisions.
• Time-saving data collation and access:
  Thanks to system integration , business information is more effectively collated and easily accessed. In addition, there is no longer any need for repeat data entry.
• Resource optimization:
  Process automation frees up staff for shop floor sales as opposed to back end work. Efficiency and productivity gains directly translate to a reduction in headcount by 15 to 20 percent. Not only is quality of life (for Kamdar's staff) improved, but more is achieved with better results.
• Business transformation:
  With major improvements to forecasting, budgeting and planning, NAV gives KGMB a clearer view of what works, what doesn't and what needs to be done . "It's all about getting the right information to make the right decisions" shares Jayesh.

"The savings of RM20 million over the next 2 years, more than justified Kamdar's investment in Microsoft Dynamics NAV. The ROI is certainly impressive by any measure." Yap Yen Sam Managing Director

"In Microsoft Dynamics NAV, we found a solution that is helping Kamdar transform itself to stay competitive and gain a strategic advantage in a tough environment where new rivals such as foreign-owned hypermarkets are eating into the market share of local players." Jayesh Kamdar Chief Executive

A Successful Partnership

Through significant cost reductions and improved cash flow, KGMB noted an impressive savings of up to RM20 million over a 2 year period. Jayesh acknowledges that the deployment of Microsoft Dynamics NAV marked the beginning of the company's transformation of its business operations. "I am very, very satisfied with it . I think it has helped resolve a lot of issues that were limiting us under the previous systems," he says. He adds that given the user-friendliness of Microsoft Dynamics NAV, the process of training the users was much smoother and less onerous.

About Microsoft Dynamics NAV

The Microsoft Dynamics NAV system, an award-winning business management solution for small and midsize businesses, runs on Windows Server 2003.

Microsoft Dynamics NAV is modular, scalable, reliable and flexible. Any or all of the modules may be combined, integrated and customized to create a perfectly tailored retail management solution.

FACT

Customer

Phnom Penh Water Supply Authority, Phnom Penh City, Cambodia

Business Solution

Synergistic Utilities Management System.Water(SUMS.WATER)

Benefits

1. SPEED:
   Accurate real-time financial updates are now compiled13 times faster on the replacement system
2. EFFICIENCY:
   City-wide on-demand transaction processing increases counter service levels
3. SATISFACTION:
   New, ready-to-bill customer record creation within 72hours that guarantees customer satisfaction
4. ACCURACY:
   Accurate drill down accountability, with complete audit trail to help decision makers and regulators
5. PROFITABILITY:
   Improve billing collections from 130,000 metered connections by 20 times,improved bottom line

The Client

Providing a clean and safe water supply to the population of Phnom Penh City was important to Mr. EkSonn Chan - the then newly appointed General Director of Phnom Penh Water Supply Authority (PPWSA) in 1993. Since 1993, PPWSA has become a public water enterprise and improved its water connection network to serve 70 percent of Phnom Penh City from a mere 20 percent in 1993. In order to supply clean and safe water, PPWSA must grow its piped water distribution network and income generating activities.

The Situation

PPWSA currently manages a water distribution network of more than 280 kilometers, supplying 63,000m of water daily, with the newest of pipes more than 40 years old and the oldest, laid more than a century ago. These aging pipes leaked water and must be replaced utilizing funds generated from its billing income. At the time, PPWSA operated at a loss with an annual billing income of KHR 0.7 billion (USD187, 909), against an operating cost of KHR 1.4 billion (USD 375,819).

The Challenge

Mr. Ek realized the public water enterprise faced many challenges like leaky old pipes,illegal connections, insufficient water meters,poor record keeping, inaccurate customer billing and poor accounting discipline.To highlight its billing inadequacies, PPWSA had at the time, a grossly inadequate, standalone billing system. The billing system had been in use since 1995 to process a maximum of 3,000 monthly bills. However, PPWSA needed to bill 20,000 metered connections per month. Mr. Ek had also planned to install 15,000 new metered connections per year and process more than 90,000 monthly bills.

The Need

PPWSA sought for a complete, fully integrated and customizable ERP water utility system for water / public utilities companies that could function in a modularized manner with subsystems such as Water Billing and Management, Job and Resource Management, Human Resources and Payroll and Inventory Control and more.

For Mr. Ek, the new water utility solution must /must be (able to):

• Correct metering inaccuracies and improper billing records. PPWSA had a poor collection ratio of only 50 percent in 1993 as it used a standalone billing system which had many limitations; it couldn't operate in a client-server environment or distributed processing environment, and doesn't operate in real-time.
• Handle customer records, record meter readings, human resources and fixed assets management, secure billing collection records,provide accurate accounting and produce financial statements.
• Scalable to cope with PPWSA's increased customer base and meter connections – the application processing backlog was in months, not days.
• Capture current billing information, customer information and water usage history in real time.

"Apart from functionality, we sought a technology partner with cross-border multicultural experience who can solve the challenge of changing mindsets and work habits," shared Mr. Ek.

The Solution

In 2000, a team of PPWSA top executives and World Bank consultants visited Synergistic Innovations Sdn. Bhd, headquartered in Kuala Lumpur, who then proposed the use of Synergistic Utilities Management System.Water(SUMS.Water).

"SUMS.Water fulfilled our stringent requirements and it's a very cost effective solution," said PPWSA accounting and finance director Mr. Ros Kimleang. A parallel run approach was used to implement SUMS.Water - deploying modules like General Ledger, Fixed Assets, Inventory Control, Accounts Receivable, Accounts Payable, Job Costing / Project Management, Human Resources, Payroll, Water Billing and House Connection.

The Improvements

The post-deployment results justified PPWSA's conviction in SUMS.Water. "SUMS.Water can process cash payments received at our counters," he said. "Transactions are updated real-time to our Account Receivable and General Ledger," he said, adding that both were previously not possible. PPWSA also experienced other benefits like:

• On demand transaction processing:
  New customer applications were processed in 72 hours. "This is a marked improvement from the previous system that took up to 2 months. When users apply, we make the connection but billing only starts after the fourth month. It took ages to create a new customer account in the old system. With SUMS.Water, it helped increase our financial liquidity and cash flow.
• Quicker information processing period:
  SUMS.Water improved PPWSA's update frequency by 13 times. Its ledgers were up-to date within seven days compared to 90 days in the previous system.
• Accurate drill down accountability and audit trail:
  SUMS.Water accurately showed PPWSA's financial health. "With SUMS.Water, we can determine our financial status every quarter. Previously, such an assessment would have taken us a year," reveals Ros; adding he was now able to drill down to the source level.
• Improved billing income:
  In year 2005, SUMS.Water handled records of more than 130,000 metered connections. This accuracy increased PPWSA's billing income by 20 times and generated an average monthly billing income of KHR100 million (USD26, 844). "SUMS.Water can comfortably handle more than twice its present capacity, well within PPWSA's metered water connection growth plans," said Mr. Ek.

A Successful Partnership

The successful partnership between PPWSA and Synergistic Innovations is based on trust and mutual respect. "We commend Synergistic Innovation's expertise in managing change. Their level of professionalism and cultural sensitivity was a key differentiating factor," said Mr. Ek. The collaboration effort overcame language barriers and lowered the initial resistance to change. "We credit PPWSA's enthusiasm and commitment in making this a successful deployment. Their support was instrumental," remarked Synergistic Innovations managing director Yap Yen Sam. The partnership was unique, according to Synergistic Innovations general manager CJ Oon. "We were unable to speak Khmer and were initially worried about our ability to effectively exchange ideas with PPWSA. However the overwhelming enthusiasm from PPWSA quickly put this matter to rest." In addition, SUMS.WATER robustness and zero fault tolerance qualities help add a layer of assurance.

Building On Success

Since the implementation of SUMS.WATER, PPWSA has moved on to become the proud recipient of several internationally recognized awards - namely, the Asia Development Bank (ADB) Water Prize in 2004 for integrated water management advancements within the Asian region, and more recently, the Stockholm Industry Water Award in 2010 for sustainable water management.

In a rare recognition for his contributions to society, Mr. Ek himself has been given the honor of the highly coveted Ramon Magsaysay Award awarded by the Philippines government (2006).

About SUMS.Water

Synergistic Utilities Management System.Water (SUMS.WATER) is a total solution with integrated modules like Financials, Water Billing and Management, Accounts Receivable, Accounts Payable, Inventory Control, Job and Resource Management, Fixed Assets, Human Resource and Payroll; providing a rich environment for quick decision making.

SUMS.Water - powered by Microsoft Navision, is modular, scalable, reliable and flexible. Any or all of the modules may be combined, integrated and customized to create a perfectly tailored water management solution.

"We credit PPWSA's enthusiasm and commitment to make this a successful deployment. Their support was instrumental," Yap Yen Sam, Managing Director

"We commend Synergistic Innovation's expertise in managing change. Their level of professionalism and cultural sensitivity was a key differentiators," EkSonn Chan, General Director

FACTS

Customer Profile

Largest Fishmeal powder manufacturer and one of the largest surimi and surimi-based products in Malaysia

Business Situation

Nationwide operations with diverse business ventures. Currently undergoing rapid expansions, thus requiring business integration for efficient consolidation of information.

Solution

Microsoft Dynamics NAV

• Financial Management
• Sales & Distribution
• Purchases & Logistic
• Inventory Management
• Fixed Asset
• Customised modules for different business entities.

Benefits

• Integrated Functionalities
• Efficient Consolidation
• Real-time information
• Accurate Reporting
• User friendly
• Technology Advancement

The Situation

QL Resources Bhd has a unique name among companies listed on the Kuala Lumpur Stock Exchange. QL is an abbreviation of 'Quan Li', which means "win-win" in Chinese. Indeed, this winning mentality has seen QL Resources transform itself from a small marine-based products business into one of Malaysia's largest integrated resource-based food agriculture groups.

It is the largest fishmeal powder manufacturer and one of the largest producers of surimi (raw fish paste) and surimi-based products in Malaysia.

Founded in 1987, the QL Group is now a diversified group of some 30 companies involved principally in marine products manufacturing, integrated livestock farming and crude palm oil milling. The Group has 1,600 employees and its operations are spread out nationwide in states such as Selangor, Perak, Johor, Negeri Sembilan, Sabah and Sarawak. The rapid expansion of its businesses and turnover over the past decade eventually stretched its information technology systems and resources to its limits. By the year 2001, QL Resources decided it was time to upgrade its old DOS-based accounting systems to a more flexible and scalable Windows-based system which could handle the Group's increasingly diverse businesses.

According to Feddie Yap Beng Yean, The group Accountant, the subsidiaries within the QL Group at that time were using different DOS-based accounting applications and various business processes were done manually. The applications couldn't provide the flexibility to cater for the QL Group's business expension as it had limited scalability and capacity to handle large volumes of data. There was unnecessary re-keying in of data and a lot of numbers crunching work had to be done.

"There was also no integration for most of the functionalities. It was lacking important functionalities for business processes such as credit control, post-dated cheques, special treatment on shipping, distribution, billing and packing," he adds.

The Solution

Yap says the Group really needed a new solution to efficiently consolidate information between remote offices and subsidiaries with the head office; streamline data entry and reporting processes; and cut down the time taken for month-end closing. In addition, it also had to provide the management with real time financial information to make the right decisions in response to business opportunities and competitors' moves.

After evaluating several offerings, QL Resources selected Microsoft Business Solutions–Navision®, a business solution used by over 35,000 small to mid-sized companies in over 50 countries. Navision's financial management and distribution modules were first implemented at QL Resources' head office in 2001, and subsequently rolled out progressively to six other subsidiaries nationwide over the next two years.

The latest Navision deployment was for its subsidiary QL Foods Sdn Bhd based in Hutan Melintang, Perak. The deployment began in December 2003 and the system went live in mid-January, says Yap. He confirms that the company's board has committed itself to implement the Navision solution for the whole group, starting with the major subsidiaries first. The next phase of deployment will include implementing the warehouse management and manufacturing modules for some of its subsidiaries.

Depending on the subsidiary concerned, Navision runs on various Microsoft operating systems such as Windows NT, Windows 2000 and Windows Server 2003. The various deployments were handled by Microsoft partner Synergistic Innovations Sdn Bhd which also help to customize additional functionalities where required. Yap says that each Navision implementation typically took between three and six months to complete. "Each business unit had its own peculiar requirements which needed to be addressed, and Synergistic Innovations helped to incorporate minor business process improvements as well as train staff to use Navision," he says.

For each deployment, Synergistic Innovations will establish the gaps compared to Navision's functionalities because there's usually "not a 100 per cent fit in the business."

"Based on our gaps analysis, we will advise them to take advantage of Navision's functionalities to address the issues or we will modify Navision to meet their requirements and workflow," says CJ Oon, General Manager of Synergistic Innovations. For example, the customization done includes features for space optimization in the packing of goods in containers and tracking of shipments of raw materials.

QL Resources was pleased that the partner helped ensure Navision follows the flow of their business rather than they having to change their rules and practices to adopt. Navision's functionalities. Yap points out that the flexibility of Navision was one of the key reasons why Navision was selected. "Our business is much diversified and Navision's flexibility and adaptability means that it is able to adapt to various types of industries."

Benefits: Halving Time for Data Consolidation

With the Navision financial management module, the head office no longer needs to spend extra hours reconciling financial data. Navision also enables the QL Group to streamline the data entry and reporting process, and eliminates inaccurate consolidation of financial information, Yap says. Most reports are automatically generated by the Navision system.

Data flow to the QL Resources HQ in Klang, Selangor, is now more efficient as Navision easily exports files to be sent via email for consolidation. The accounts used to be printed in hard copies and couriered back to the HQ. That cuts down on the work of doing manual consolidation and reconciliation, and we save a lot of time. Now with Navision, month-end closing at the HQ is cut from 4 weeks to 2 weeks. "We are working towards cutting it down further," he adds. The system also enables QL Resources to meet stock exchange requirement to submit financial results on a quarterly basis. "If we were running on the old system, we would have problems complying with this requirement. My staff would have to work long hours and do overtime just to finish the reports".

The efficiencies achieved translate into cost savings as staff overtime has been reduced significantly, Yap says.

Transforming Work Processes

Work processes has been transformed in the parts of the Group's businesses where Navision has been deployed, automating various tasks which used to be done manually. "Productivity was low under the old DOS-based software," Yap remembers.

Among the processes automated by Navision include shipping handling and billing for QL Feedingstuffs Sdn Bhd; special packing requirements (QL Foods Sdn Bhd); stock keeping for remote sites (Maxincome Resources Sdn Bhd) and consolidation operations between remote offices and the QL Group head office.

Navision allows for single entry of data such as on stocks issuance and finished goods, and cost capturing. "There's no need for re-keying in of data, and this cuts down on data entry errors," adds Yap. For example, the bar-coding capabilities found in Navision have helped improve efficiency for its subsidiary, QL Foods. An additional functionality built into Navision by Synergistic Innovations has helped to optimize the packing of goods into containers.

"Our staff used to do manual calculations on how many packs of goods could go into a container. Navision automates such calculations and efficiency has improved significantly," Yap explains.

"It also allows us to call up customers and tell them there is still space available in the container, so why don't you order more. Our sales have actually increased" he adds.

Apart from enjoying savings in transportation costs, customers have the added benefit of special pricing if they order more. The Navision distribution module also provided the QL Group with real-time tracking capabilities for its various shipments. "We needed the capability to track our stock almost in real-time. That was one of the key parameters which we stipulated the software must meet - and Navision met this criteria."

Affordable and powerful solution

For a group with some 30 subsidiaries, a cost effective integrated business solution which was easy to implement and maintain was major consideration for the QL Group.

Yap pointed to an "expensive lesson" learnt by one of the company's subsidiaries which had deployed Tier-1 software some years earlier. It is an expensive system, and if don't set it up properly you will encounter costly problems", he adds.

So when the broad of directors decided to upgrade the IT capabilities of the Group, it sourced for another more cost effective solution which had all the functionalities required by its diverse business operations.

"We felt that Navision could better cater to the needs of the whole group. Compared to other systems, Navision is definitely more cost effective. It is easier to implement, is more user friendly and the reports generated are generally better," he adds. He said the Group also had the flexibility to "pick and choose which Navision module we want rather than get the whole suite."

Yap says that "with Synergistic Innovations guiding us in the implementation, we feel we are on safer ground." He says that Navision's intuitive Windows interface, which was similar to Microsoft Office, meant that the learning curve for the company's staff was not as steep as expected. He says that the consistent Window interface had reduced training costs.

According to Oon of Synergistic Innovations, Navision is a "very stable product." "We have been supporting QL Resources for almost four years. So far, we have not encountered any major support issues," he adds. Yap was also happy with the advantages of the Microsoft platform. "It's a self sufficient platform, we don't even need to have an IT department," he says. Essentially, the Group outsource its requirements for IT solutions, networks and infrastructure to Synergistic Innovations.

"With Microsoft, you are assured of the advancement in technologies. There's no stagnant technology. Furthermore, Microsoft resources are readily available and it is not difficult to get support."

Ahead of the Competition

By providing real time access to financial and business data, the Navision solution has made the company's management more agile and able to respond quicker to changing market situations. Yap says that the instant extraction of information in real time allows managers to forecast the market demand and respond to customers enquiries promptly.

"Its drill-down features allows individual transactions to be explored by department heads, information can be shared to make effective and timely decisions."

"If you know your cost structure and profit margins in real time, you can monitor your parameters and key performances indices (KPIs). This arms us with key competitive advantages," he adds.

SYNERGISTIC INNOVATIONS SDN. BHD. (495840-X)

No. 02-18, Jalan PJU 8/5G,
THE PLACE,
Damansara Perdana,
47820 Petaling Jaya,
Selangor, Malaysia.
T 603-7710 9396
F 603-7728 0069

Situation

MPH Bookstores Sdn Bhd is one of the largest retail bookstore chains in Malaysia with about 30 outlets all over the country. It is also one of the oldest in the book business. MPH traces its roots to 1815 when a missionary chose to establish a permanent mission press in Malacca.

This eventually led to its establishment as the Methodist Publishing House in Singapore in 1890. In 1927, MPH was incorporated as Malaya Publishing House when it became a public stock company. Over the years, the company underwent several name changes to reflect ownership changes.

Since the 1970s, MPH Bookstores has been a subsidiary of MPH Ltd, a public company listed on the stock exchange of Singapore. In 2002, it was bought over by a Malaysian company, MPH Group (M) Sdn Bhd.

Over the last four years, MPH has been on an active expansion drive and has almost doubled the number of its bookstores nationwide. In 2000, MPH opened its largest bookstore at the Mid Valley Megamall in Kuala Lumpur. The record was broken in December 2003 with the opening of another megastore in One Utama Two Complex, occupying two floors of retail space.

These mega bookstores are among Malaysia's most innovative in terms of concept and services, and epitomizes MPH's endeavor to bring the book retail business to a higher plane. The company is also one of the first bookstores in Malaysia to tap the Internet's potential by selling books online via its website, www.mph.com.my.

This focus on innovation, customer service and efficient business operations has led MPH to improve its backend operations, in particular, its financial system. The initiative was prompted by the need to replace its outdated DOS-based accounting application, which was installed in the mid-1990s.

"There were limitations to this DOS-based system, and the information which it could capture was also limited. It had trouble coping with our expanding business operations," says Lee Kim Hock, MIS Manager, MPH Bookstores Sdn Bhd.

The problem was compounded because the seven subsidiaries within the MPH Group at that time were running different accounting systems. And consolidating the financial statements of the various subsidiaries was no easy task.

"We needed to source for another system which was more flexible and which could cater for future expansion," says Lee.

Solution

By mid 2001, MPH had evaluated Microsoft Dynamics NAV and other competing solutions. It also considered having a customized solution developed by a third party. In fact, Microsoft Dynamics NAV was already deployed at MPH's headquarters in Singapore.

Deciding it was also the best fit for its business requirements in Malaysia, MPH opted for the Microsoft Dynamics NAV solution.

Lee says that Microsoft Dynamics NAV had all the functionalities required by MPH yet cost only about 25 per cent compared to other competing offerings. "From a purely cost perspective, it was a very straight forward decision, he explains.

However, the lower total cost of ownership was not the only criteria. Microsoft Dynamics NAV's flexibility and ability to integrate easily with other systems was also a key factor in MPH's decision. At that time MPH was developing its online book sales business and Microsoft Dynamics NAV was able to interface with the online business' accounting application.

Being ODBC compliance also meant that SQL Server could ‘talk' to other third party applications, eliminating the prospect of incompatibility issues. "I can use any ODBC compliant software to extract information from SQL Server and that is very important," says Lee.

The Microsoft Dynamics NAV modules currently deployed include the general ledger, cash manager, sales receivables, purchase payable and multi currency modules. The modules run on Microsoft Windows 2000 and SQL Server 7 on a single Hewlett-Packard server.

Microsoft partner Synergistic Innovations Sdn Bhd was appointed to handle the deployment which began end 2001 and was completed by April 2002. Synergistic Innovations also helped to customize additional functionalities for the solutions, says Lee

According to Lee, several vendors approached MPH to implement the project but Synergistic Innovations was chosen "because we found them to be more knowledgeable about Microsoft Dynamics NAV, most importantly they understood our requirements and problems, and demonstrated capability to help us to resolve it within very short period of time."

The implementation of Microsoft Dynamics NAV has helped improve a number of business processes at MPH. For one, it has simplified the management of databases.

Under the previous solution, there was a raft of information silos as separate database was created for each branch unlike Microsoft Dynamics NAV which utilizes a centralized database. This provides management and staff with easier and faster access to the company's financial information.

Microsoft Dynamics NAV is able to capture much more information and this provides the management with greater insight into its business. "For example, when we process an invoice we can see from the system if there are any claims pending. This helps in determining whether the invoice can be paid. This enables the staff to manage the accounts better," he adds.

BENEFITS

Improves Productivity, Reduces Manual Processes

Microsoft Dynamics NAV has significantly improved productivity at MPH through automating a number of processes. Under the old DOS-based system, the accounts staff often had to manually search files or source documents for verification purposes.

"With Microsoft Dynamics NAV, they can drilldown to the source level documents. This makes it very easy for the staff to check the necessary documents, especially where payment is concerned." Lee says staff can now spend more time doing checking and less time looking for the source documents.

Issuing of payment vouchers has also been speeded up with Microsoft Dynamics NAV. Details of the payments used to be written out by hand and it was "a tedious exercise," says Soo Kam Hoo, Senior Accountant, MPH Bookstores.

Now, Microsoft Dynamics NAV enables the payment vouchers to be printed out with just a few clicks of the mouse. "This helps save a lot of time for the staff," Soo adds.

Re-keying in of data has also been reduced as Microsoft Dynamics NAV allows for both import and export of files. This flexibility is especially useful for consolidation where the import and export of data in a meaningful format is important, says Lee.

Easy Access to Business Information

As Microsoft Dynamics NAV allows for more data fields, it is able to capture much more information compared to the previous solution. Detailed information on promotional and sales campaigns, book purchases and suppliers are input into a single SQL database and are directly accessed by the management and staff.

Previously, getting such information was problematic as it was "parked in different databases." "At that time we had 17 branches, so we had to pull out the information from 17 databases, add it up and analyze it with Microsoft Excel before printing it out," Lee explains.

"But with Microsoft Dynamics NAV, we have a single database that caters to all the branches. Opening a branch is also very easy – you just enter the dimension number and a new department code, and that's it," he adds.

This means that accessing information from the various branches has now been simplified. "Previously if you wanted to see the accounts of a particular branch, you need to call up the relevant accounts staff to get a hardcopy or a soft copy in a disk. With Microsoft Dynamics NAV, you just key in the branch code and the branch data will be instantly available."

Faster Turnaround for Financial Reports

With Microsoft Dynamics NAV, MPH is now able to produce financial reports on a more timely basis and this has helped the company to make better and faster business decisions.

Under the previous ponderous system, MPH could only manage to churn out reports such as nett purchases by supplier either at quarterly or half-yearly intervals. But with Microsoft Dynamics NAV, MPH is able to churn out the reports on a monthly basis.

Soo adds that Microsoft Dynamics NAV is able to produce the reports much faster because all the relevant information is in a single database. Though the reports are churned out on a monthly basis, the management can actually get the reports earlier – as soon as the accounts are closed.

Ideal Platform for Expansion

"SQL Server is one of the most cost effective and reliable databases available. It can easily handle huge volumes of data," he says. When the Microsoft Dynamics NAV solution was first deployed, MPH then had 17 branches. Today, it has 29 branches and has proven it can easily handle even more business from new branches. Lee acknowledges he doesn't have to worry about needing to switch to another database to cope with business expansion.

"Being on the Windows platform, you just need to buy more memory and a faster server. It is an easy choice," he adds.

The comprehensive range of Microsoft Dynamics NAV modules available such as Customer Relationship Management (CRM), Enterprise Resource Management, Supply Chain Management means that MPH can easily add on new functionalities whenever the needs arises.

"Microsoft Dynamics NAV is very scalable and provides the option for us to add and integrate new modules as and when we require it," says Lee, adding that Microsoft Dynamics NAV will accommodate the growth of MPH's business in the future.

Synergistic Innovations Sdn Bhd (495840-X)

02-18, Jalan PJU 8/5G
The Place, Damansara Perdana
47820 Petaling Jaya
Selangor Darul Ehsan
Malaysia
T +60 3 7710 9396
F +60 3 7728 0069
www.innovationsgroup.com.my