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Friday, 6 December 2013

A Malaysia Cisco or Dell in the making

AmResearch recently give a Hold call on Alliance Financial Group (AFG). Last week, The Star's Leaderonomics rated Alliance Bank as one of Top 3 great places to develop leadership.

Roshan Thiran, CEO of Leaderonomics stated : "
Alliance is not only committed to developing its employees through various leadership offerings but it recently began leadership development for “potential” customers.
The Alliance Bank BizSmart programme, although a competition, is rooted in helping develop entrepreneurs into great leaders.
You would be hard pressed to find banks committed to not only developing their employees but also their potential customers"

Three finalists: (from left) Founders Christy Ng and Lee (Smooshie) and TextbookAsia director Ong.
Three finalists: (from left) Founders Christy Ng and Lee (Smooshie) and TextbookAsia director Ong.

Top 3 finalist of  Alliance Bank BizSmart SME Innovation Challenge are TextbookAsia, Smooshie and Christy Ng .

Out of the 3, Two in traditional business. Only one can consider technology Startup......Christy Ng. Malaysia do not lack of Ecommerce Startup. However, majority of them work like an online hawker, Only a handful like Christy Ng have online, real time stock management software. Despite it just used a simple MYOB software. Not sophisticated ERP software. It is far ahead of many Ecommerce operator in the country, which might not track their stock online real time. "If there is fire accident in our office. We able to claim fire insurance as we have an online real time stock record" said Christy on a television interview by Astro.  Not bad for a Biotech graduate with no knowledge of accounting nor software. It is like a Malaysia version of Zappos.com.

She said she is sick of being constantly get scold from doctor, nurse etc as a medical Salesman and decided to venture out on her own. Malaysia Biotech industry might loss one Biotech talent but it seem Malaysia get one talent in Ecommerce industry.

If a traditional business want to go online. There is four stage. First, it is online catalog with no Ecommerce facility. Second, it have a store front with Ecommerce facility where customer can order and pay online. Third, there is ERP software to automate all inhouse process. Eventually, there will be a Supply Chain Management software (SCM) to connect with supplier. This is much more difficult as a outsider like supplier is involve.

Even until today, only a handful of company can have all the 4 stages above. Well known company that have all 4 stages above is Amazon.com,Cisco and Dell.

What Christy Ng hopes to achieve if she wins grand prize of RM250,000, the challenge is to launch her shoes and handbags customisation application online. The “shoe-making engine” promises to elevate online customised retail shopping to a new level, giving customers complete control over how they want their shoes to look and fit.

Thus, if customisation is involve, Then amazon.com is out. As amazon product do not required customisation. Anyhow, like Cisco, Amazon.com used Oracle database software to build it engine. today, much more cheaper software available in the market.

Cisco also used Oracle ERP system plus a Selectica 's Quote to Cash.

Unlike Cisco which used single vendor ERP.

Dell used multi vendor, best of breed ERP:

Dell start with single vendor SAP ERP system. However, find it not suitable for it custom made manufacturing operation. Thus, it change to less popular Glovia ERP for manufacturing control, stock control, warehouse management and material management. For Supply Chain Management (SCM), Dell used i2 technologies for Raw Material Management and advanced planning system, APS. Dell also used Oracle for order management only. Dell keep SAP's HR module only. Dell have it own in house custom design shop floor management software. Dell used Microsoft ProClarity Business Intelligence software in addition of the above.

Dell get less order for custom build product recently as people now order standard product like tablet. Thus, Dell change to Microsoft Dynamic AX.

Ng says it has been an ‘enriching experience’.
Ng says it has been an ‘enriching experience’.

It seem the winner prize of RM250,000.00 might not sufficient to install all the software above. However, I don't vote the other two. First, I don't understand business model of TextbookAsia. I feel it is high risk as now text book get obsolete faster than previously. There is also risk than text book might be on tablet in  future rather than carry a book. I feel it is high risk or I might not understand it business model. Whereas I consider Smooshie a traditional business and it would not elevate our country value chain. I like the idea of shoes and handbags customisation application. As only a handful of such company even in the world. This definitely put Malaysia on world map.

Interested voters may show their support on Alliance Bank’s Facebook page, under the BizSmart tab.

The voting period runs from Nov 28 to Dec 8, and results will contribute to 40% of the finalists’ evaluations.




Update: After a priceless experience, winner can pursue dream
 Christy Ng wins SME challenge



























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