Mesiniaga Berhad Technology, Research and Innovation (TRI)

Mesiniaga e-HR Business Proposal

Prepared by: annet !a"ala #nthony $%th &ctober '$()

.

1.0 Executive Summary This is a business proposal paper on the develop"ent o* a e-HR, a Hu"an Resource +o*t,are application- This proposal: e.plains the reasoning behind choosing to produce a hu"an resource application solution, shares the technical details o* the proposed product, analy/es the "ar0et and its potential, suggests a product and "ar0eting strategy to go a*ter this "ar0et, loo0s at the *inancial i"plications o* running the business, "a0es a reco""endation to build the product-

1nclosed ,ith this business proposal is the presentation that ,as delivered to 2atu0 3an 4usil, 5hair"an o* Mesiniaga Berhad by Mesiniaga e"ployee, Ms- annet !a"ala #nthony-

2.0

Introduction

Mesiniaga is a listed co"pany on Bursa +ecurities and one o* Malaysia6s leading, bu"iputera I5T solutions providers and integrators- Initially established in (78( to serve as IBM6s sole agent and dealer, the co"pany has no, evolved into a "ulti-plat*or" business solutions provider ,ith a paid-up capital o* RM9$-: "illion- Mesiniaga6s head;uarter is located at +ubang aya, +elangor ,ith branches in Penang and ohor Bahru- Mesiniaga has a sta** strength o* (,($$ e"ployees- Mesiniaga provides a range o* IT solutions and services and is supported by "any internationally reno,ned technology co"panies- These innovative solutions are able to provide the building bloc0s, "anage"ent capabilities and security *or any IT in*rastructure- They are also best o* breed business ans,ers "eant to e"po,er client6s productivity, co"petitive advantage and pro*itability- In the last )$ years, the technology landscape has changed tre"endously- <e, trends have e"erged resulting in a sea o* change in the ,ay co"panies do business- #cross the board, co"panies these days are constantly on the loo0out *or solutions that ,ill give the" an edge over their co"petition- #s such, Mesiniaga is constantly striving *or ,ays to provide its custo"ers ,ith an e.perience that ,ill allo, the" to achieve their business ob=ectivesThe co"pany6s "ission is to help custo"ers succeed- #s such, technology is used as an enabler in i"proving business per*or"ance and the co"pany6s "ain ai" is to "a.i"ise custo"er6s returns on IT invest"ents- There*ore, ,hile Mesiniaga continues to leverage on its strong partnerships ,ith globally reno,ned partners to provide custo"ers ,ith innovative technology, Mesiniaga6s value to the" lies in its understanding o* their custo"er6s environ"ent and challenges#nother i"portant ele"ent in helping custo"ers succeed is in the "anage"ent o* custo"er satis*action- To this e**ect, Mesiniaga has i"ple"ented "ultiple initiatives that are ai"ed at i"proving service delivery and understanding o* its custo"er needs- Their people are already ac0no,ledged as having superior technical s0ills, "ainly because they actively encourage the" to pursue or upgrade their pro*essional certi*ications- They also undergo nu"erous so*t s0ills training sessions in order to i"prove their understanding o* custo"er re;uire"ents and ho, best

to "eet the"- The end ob=ective o* these initiatives is to give their custo"ers the least possible ,orry in their dealings ,ith the co"pany-

3.0

Solution for Human esource on !utting the "e# in H

HR depart"ents are typically buried in paper,or0, and thus there is de*initely a need to provide auto"ated, paperless support- #lso, since records retention periods *or e"ployee records are lengthy, the need to "a0e sure that both HR and content "anage"ent syste"s can handle record retention and storage properly is vital in any organi/atione-HR ,ill potentially address these issues ,hile providing records "anage"ent, hierarchical ,or0*lo, processes, assess"ents, and a recruit"ent "anage"ent syste"-

3.1

$hy an H Solution%

The idea to ,or0 on an >e6 solution *or hu"an resources ca"e about *ro" I+#- &ver the past year, there have been "any custo"er re;uests *or "ediu" and large enterprises *or an HR syste" that can be tailored to the custo"ers needs, but that can also be deployed in a very short period- Many o* these opportunities, ,e ,ere not able to capitali/e on, not because ,e lac0ed the s0ill to produce the product, but because ,e could not produce it ,ithin the li"ited ti"e*ra"e set by the custo"er- Hence, the idea to producti/e an HR solution ,as brought about# solution that is based on a "odular, base plat*or" that can be deployed as is, or custo"i/ed as necessary to *it a custo"er6s environ"ent4ro" a solution provider standpoint, ,e e.pect a high degree o* success as ,e have the necessary technical s0ills and resources and ,e have been e.posed to prior e.perience developing an HR solution *or 5IMB, ,hich has given us a tested plat*or" to build upon and re*ine into a "atured product- In addition, this has a**orded us valuable insight o* an HR *unction "odel and its outlay- 4urther, an HR solutions opportunity is a desirable business to be in, especially *or large and "ediu" enterprises, as it carries a high services and licensing co"ponent- 5o"bined, this ,ill "a0e up ?$@ o* the total value o* the pro=ect-

3.2

Ho& does it 'it%

e-HR is targeted at co"ple"enting our >#ccelerate6 solution seg"ent ,here ,e see the solution being able to provide in*or"ation ne,*ound business ,or0ers control ,ith over

co""unications,

helping organi/ations ,or0 "ore e**iciently and productivelye-HR elevates ,hat used to be hard and "anual ,or0 o* gathering, storing and generating in*or"ation into a "ore si"plistic, e**icient and organi/ed "anner3.3 (alue to Mesiniaga

#n e-HR opportunity brings ,ith it "ore than =ust revenue *or hard,are and licenses- Mesiniaga ,ill bene*it *ro": The opportunity to capture drag along business such as training services, hard,are, storage "anage"ent, etcIncreasing returns o* scale *ro" "aintenance chargesBuilding custo"er loyalty to Mesiniaga not only *ro" the delivery o* our services but *ro" our o,n so*t,are brand as ,ell a la custo"er loyalty to +#P, or 2o"inoThe ability to access the entire custo"er organi/ation since the HR app is presu"ably used by the entire co"pany&pportunity to "ove into portal develop"ent *ro" re;uests to >,ebi*y6 the HR application-

3.)

*ritical Success 'actors+ is,s and -otential *hallenges

5ritical success *actors *or e-HR lie in ' areas, one ,hich ,e can directly control, and the other, ,hich is beyond our control3ithin our control are the ;uality o* the product itsel* and the go to "ar0et strategy, this includes: The decision to sell to custo"ers that are outside our e.isting 2PA baseThe decision to sell to custo"ers that "ay be considered >too s"all6- This is critical in gaining "ar0et share The section on "ar0eting strategy ,ill provide a clearer understanding o* this reasoningProducing a product that delivers on ,hat it pro"ises, ,hich is a highly custo"i/able e-HR plat*or" that can be rapidly deployed, all the ,hile, "eeting the custo"er6s *unctional re;uire"ents 5ontinual enhance"ents on the product, to ta0e advantage o* the latest technologies ,hilst providing *unctionality to support the latest custo"er HR practices# pre-sales and sales tea" that are ,ell e;uipped (enabled) and geared to push the product# syste"atic and ,ell e.ecuted "ar0eting and sales strategy1ngaging a +ub=ect Matter 1.pert (consultant) to advice on 0ey areas o* develop"ent and relevantBlatestBaccepted HR "odelBeyond our control are the *ollo,ing: Initial "ar0et acceptance o* our product ,ill be a di**icult phase *or us as ,e are an un0no,n HR syste"s player5o"petition *ro" cheaper lo, end products5ontinuous availability o* an ine.pensive or open source database engine *or use in e-HR *or "ediu" enterprisesTechnology develop"ent in the products and tools that ,e use to build our solution on, e-g- M+ +CD +erver, etc-

The *ollo,ing sections o* this paper provide avenues on ho, these *actors can be addressed and neutrali/ed, or at the very least, "ini"i/ed).0 .vervie& of the Mesiniaga e/H Solution Meets the custo"ers *unctionalBoperational re;uire"ents Is highly custo"i/able so that it can be tailored to a custo"er6s speci*ic environ"ent 5an be deployed ,ithin a very short ti"e span (:$ "an days average)-

The Mesiniaga e-HR solution is pri"arily built to deliver on a pro"ise o* a product that:

).1 'eatures Belo, is a table o* "odules that ,e serve as a starting pointModules 0escri!tion 1eneral Aeneral Maintenance "anages core con*iguration settings such Maintenance and 2ccess *ontrol3 as organi/ation setup, co""ons re*erence codes and reservation resources in*or"ation used by various "odules throughout eHR#ccess 5ontrol "anages user per"issions *or accessing e-HR Em!loyee -rofile Management (via ,eb and ,indo,s shell application)Manages e"ployees personal and e"ploy"ent pro*ile in*or"ationEser grouping and routing "atri. table is also "anaged by this 4eave 2!!lication Em!loyee Hand5oo, "oduleDeave entitle"ent con*iguration, approval ,or0*lo, and leave su""ary reporting# repository o* docu"ents uploaded and co"posed by HR or designated sta** *or e"ployee re*erences ,hich typically consists o* but not li"ited to co"pany Policies and Procedures-

6raining e7uest

Training can be co"posed and published by HR into the e-HR syste" or e"ployees co"pose ad-hoc training the"selves *or

Modules

0escri!tion approval ,or0*lo,s- Integrates ,ith clai" syste" *or training cost repay"ent5onsists o* : sub "odules : Medical *laim +ub"ission and su""ary reports o* "edical clai"sEx!enses *laim 5o"position o* e.penses clai"s (type o* clai"s is "aintainable by HR) ,hich can be charged to di**erent cost center .vertime *laim 5o"position o* clai"s *or overti"e hours B ,or0ing holidays 6raining *laim 5lai"s on the cost o* training attended by the 1"ployee +el*-Per*or"ance evaluation, "anager approval and report generation on annual basis+alary, deductibles, bene*its, bonuses and clai"s in*or"ation accessible only by the respective e"ployees# "odule *or e"ployees to re;uest special letters to be generated by HR- Typical types o* letters include: 5on*ir"ation Detter I""igration

*laim 2!!lication System

-erformance Management -lan 6otal emuneration3 *om!any 4etter

*areer -rogression

Marital +tatus #n e.tension to e.isting 1"ployee Pro*ile Manage"ent syste" that 0eep trac0 o* e"ployee trans*ers, pro"otion and de"otionThis allo,s co"pany to "onitor e"ployee career progression throughout their e"ploy"entThe central reporting "odule in e-HR ,ith regards to sta** co"position, per*or"ance, *inancial and trainingThis co"prehensive "odule catered "a=ority aspects o* a recruit"ent process, consisting o*: Man!o&er -lanning

e!orting

System ecruitment .nline

Modules

0escri!tion Fear-end planning *or ne.t year6s "anpo,er *ro" unit up to co"pany level Man!o&er e7uest personnel 8o5 -u5lication o* vacancies 2!!lication and 'iltering &nline publication and trac0ing o* )rd party publication

Re;uest o* "anpo,er initiated by "anagers or HR

5o"position o* ne, application (internal, hardcopy and ,ebsite) and candidate shortlist *iltering process Intervie& 2rrangement #rrange intervie, session ,ith candidates and intervie,er (integrates ,ith roo" reservation syste")G and storing intervie, *eedbac0s *or *uture re*erences ecruitment *hec,list

#ssign"ent o* tas0s to di**erent units (eg- IT and HR) in preparation o* ne, e"ployees (such as <a"e cards, <et,or0 I2, 3or0station) Hiring -rocess Integrates ,ith 1"ployee Pro*ile Manage"ent syste" and 5areer Progression ,hich i"ports the in*or"ation *ro" Recruit"ent &nline6a5le 19 e/H Modules

:.0

Soft&are 2rchitecture

The architecture diagra" belo, graphically illustrates the logical co"ponents o* 1-HR-

0iagram 19 4ogical *om!onent .vervie&

1-HR ,ill be a "ulti-tier, distributed enterprise application built using Microso*t -<1T- Its design, develop"ent, and deploy"ent leverages on the -<1T develop"ent plat*or" to build reliable, scalable ,eb applications- The technology architecture is divided into *our logical layers:.1 ;ser Interface <$e5 4ayer=

This is the interaction layer that *acilitates end user to interact directly via a Portal- The ,eb layer serves as the user inter*ace, providing access to applications and data- The ,eb layer consists o* #+P-<1T 3eb 4or"s and code-behind *iles- The 3eb 4or"s si"ply provide HTMD user e.perience, ,hile the code-behind *iles i"ple"ent event handling *or the various controls-

:.2

Business 'acade 4ayer

This layer controls the *lo, o* re;uests and corresponding responses ,ith the Business Dogic layer- It segregates the user inter*ace *ro" the i"ple"entation o* the various business *unctions#part *ro" lo,-level syste" and support *unctions, all calls to database servers are "ade through this layer:.3 Business 4ogic 4ayer

This layer processes re;uests according to the business scenario or, in this case, an HR processIt contains business rules that en*orce a particular HR process- The business rules are located in the server entirely- #s such, this solution is not li"ited to supporting only P5s as clients, but can also be e.tended to support P2#s and s"art phones- #ll veri*ication rules during data sub"ission, validation chec0 on sub"itted statistical data or processing rules during data processing are "aintained on this layer- 1ach rule is i"ple"ented in one place to ensure easy updates in response to changing business needs- The business rules can also be used *or "ultiple applications:.) 0ata 2ccess 4ayer

This layer "anages the storage o* records *or persistent purposes- This layer provides data services to the Business Dogic layer- #ll the database activities are done in this layer- Etili/ing Microso*t6s latest data access technology, #2&-<1T, our application ,ill bene*it *ro" its *eatures *or: # disconnected data architecture # tight integration ,ith HMD # co""on data representation ,ith the ability to co"bine data *ro" "ultiple and varied data sources4acilities opti"i/ed *or interaction ,ith a database, all native to the -<1T 4ra"e,or0-

#s a result, 1-HR bene*its *ro" being easier to "anage, *ro" a code "anage"ent point o* vie,, as ,ell as having better per*or"ance-

In su""ary, the application "odules ,ill be segregated into a *e, co"ponents, ,hich are the interaction co"ponents, business logic co"ponents and data access co"ponents *or "odularity and agility purposes- This also allo,s *or i""ediate "odi*ication and *uture enhance"ent to be incorporated ,ithout the need to change the entire application in*rastructure- Hence, it provides a *aster and *le.ible "odi*ication process, as ,ell as, gives a syste"atic approach (*or the application) *or rapid develop"ent and ease o* "aintenance:.: ecommended Hard&are

The opti"u" hard,are re;uired to run e-HR 1nterprise is listed belo,- <ote that e-HR *or +M1 re;uires a lo,er con*iguration and as such, is o"ittedServer #pplicationB3eb +erver *onfiguration Hard&are Intel Heon ,ith ' Processor 'AB R#M Me"ory ($$ AB Hardis0 Tape 2rive 52 Ro" Soft&are &perating +yste" I 3indo,s '$$) +erver Microso*t II+ 2atabase +erver -<1T *ra"e,or0 Hard&are Intel Heon ,ith ' Processor 'AB R#M Me"ory '$$ AB Hardis0 Tape 2rive 52 Ro" Soft&are &perating +yste" I 3indo,s '$$) +erver Microso*t +CD '$$% 2atabase

Server

*onfiguration Bac0up +o*t,are *or 2atabase 6a5le 29 Hard&are and Soft&are e7uirements

>.0 Mar,et 4andsca!e Here are so"e statistics that provide a vie, o* the potential "ar0et *or 1-HR6otal 4ocal Mar,et 4arge Enter!rise SMEs <@@.2A= <0.?@A= Micro Enter!rise <?@.)A= )+13> )11+B@)

Small Enter!rise <1B.)A= @:+)@0

Medium Enter!rise <2.2A= 11+>:?

6a5le 39 Co of registered com!anies in Malaysia1 -rimary Micro Small Medium Manufacturing Services Sector

2griculture J % e"ployees J % e"ployees %Je"ployeesJ(7 '$Je"ployeesJ%$ 20Dem!loyeesD:0 :1Dem!loyeesD1:0 6a5le )9 0efinition of SMEs2

<including I*6= D : em!loyees :Dem!loyeesD1@ 20Dem!loyeesD:0

2%

1%

18%
(

Micro Enterprise

Small Enterprise 5ensus o* 1stablish"ents and 1nterprises '$$%, <ational +M1 2evelop"ent 5ouncil '$$%- Enterprise Medium ' 5ensus o* 1stablish"ents and 1nterprises '$$%, <ational +M1 2evelop"ent 5ouncil '$$%Large Enterprise

79%

0iagram 29 A Esta5lishments in Malaysia3 The tables and diagra"s above provide a picture o* the "ar0et in its entirety- The total nu"ber o* co"panies that could potentially buy our solution totals to %'),(??- Ho,ever, this also includes all the RM' co"panies, and co"panies too s"all to consider using our product- 3e ,ill later use this data to derive a "ore accurate *igure that de*ines our potential "ar0et# point to note here is the absence o* public sector custo"ers- They are not listed as being ,ithin our potential "ar0et as all govern"ent agencies are obligated by policy to use the H1RM1+ HR *lagship application- #lthough there is a potential *or us to sell speci*ic "odules that integrate ,ith their e.isting application, this involves e.tensive custo"i/ation ,or0 and deviates *ro" our ob=ectives o* providing a solution that reduces custo"i/ation ti"e and allo,s *or ;uic0 delivery o* our product and services- That said, *or no,, ,e ,ill e.clude the public sector as a target "ar0et#s *ar as co"petition goes, the co""on local players in the "ar0et are as *ollo,s: I-Po,er e-HR eB&+ online &riso*t !ai/enHR EB+ HEM#< R1+&ER51 M#<#A1M1<T +F+T1M HR2Po,er-net eHRI+ I #5#Paci*ic CEI5! P#F - 3indo,s Payroll, Hu"an Resource so*t,are

4ro" the list above, Cuic0 Pay has the "ost nu"ber o* 0no,n clients at 7: co"panies, *ollo,ed by !ai/enHR, ?? co"panies and HR2Po,er-net ,ith :: co"panies- Ma=or players li0e +#P and &racle have very lo, penetration rates locally because o* the *act that they price the"selves out o* range *or +M1s- They end up tending to very large co"panies speci*ically in the ban0ing industry and so"e high pro*ile "anu*acturing co"panies)

5ensus o* 1stablish"ents and 1nterprises '$$%, <ational +M1 2evelop"ent 5ouncil '$$%-

+#P and &racle are *ocusing their high end solutions on a very niche "ar0et o* certain ban0s and "ultinational organi/ations- 2espite being e.tre"ely reliable, their price pac0age li"its the" to only >*ans6 o* their brands as "ost o* the "ar0et choose to loo0 *or other "ore costI e**ective alternativesThe rest o* the local players have a "i.ed "ar0et o* custo"ers ranging *ro" +M1s to large enterprises, non-speci*ic to any industries in particular>.1 -otential Mar,et

3ithin the overall landscape, it is obvious that ,e ,ant to *ocus speci*ically on the "ar0et seg"ent that can bring us the best returns, considering our sales *orce, and "ar0et presence- In loose ter"s, ,e shall identi*y this target seg"ent as t,o distinct seg"ents: (- large enterprises and '- "ediu" enterprises3e esti"ate that there are appro.i"ately )$,$87 custo"ers in both seg"ents co"bined- 3e derive this *igure based on the *ollo,ing &* the entire +M16s registered in Malaysia, %@ have *ully auto"ated their operations, ,hilst :%@ ,ere still labour-intensive- 4urther"ore, :8@ o* the +M1s reported lo, usage o* co"puters in their daily ,or0- : +ince there are a total o* %(7,$:( +M1s, %@ leaves us ,ith '%,7%' co"panies There are a total o* :,()9 large enterprises registered in MalaysiaHence our target "ar0et is a total o* both auto"ated +M16s and large enterprises, ,hich co"es to )$,$87 custo"ers?.0 -roduct Strategy and oadma!

The strategy and road"ap *or e-HR is dictated by the potential "ar0et that ,e are a*ter- !ey ele"ents o* the strategy are: There ,ill be t,o versions to cater, one *or enterprise custo"ers ,ith ($$ or "ore e"ployees, and one *or s"all and "ediu" businesses ,ith e"ployees nu"bering bet,een '$ to %$- The "ain *ocus ,ill be on enterprise custo"ers:

+M1 +urvey '$$(, Ban0 <egara Malaysia-

e-HR *or the enterprise ,ill be built "odular, a**ording custo"i/ability and *le.ibility to suit enterprise custo"ers, ,hile also allo,ing *or ;uic0 deploy"entse-HR *or s"all businesses ,ill be positioned as a**ordable, easy to purchase, easy to install, and easy to usee-HR ,ill provide a *ootprint *or Mesiniaga to ,or0 to,ards building a plat*or" *or an 1RP solution in the *uture-

?.1

Mar,eting Strategy .5Eective 5apture $-(@ (or one tenth o* ( percent) "ar0et share per annu" o* our de*ined "ar0etMathe"atically, this yields )$ custo"ers per year, *ro" a total o* )$,$87 custo"ers in our de*ined "ar0et 4ir"ly establish the Mesiniaga na"e in the HR solutions "ar0et space, as a prelude to our entrance as a player in 1RP solutions provider in years to co"e, i* ,e later choose to3in "indshare *or Mesiniaga, pri"arily as an HR solutions provider, and as an IT Partner o* 5hoice in general-

#t this point, our "ar0eting strategy targets to achieve three ob=ectives:

&n the ground, e.ecuting the strategy ,ill begin ,ith a t,o pronged approach: ?.2 4arge enter!rise focus

This ,ill be a *ocused ca"paign targeted at large custo"ers- The e.pectation is that the approach *or these custo"ers ,ill be si"ilar to ho, ,e sell to our e.isting 2PA custo"ersThe e**ort to e.ecute this ca"paign ,ill re;uire resources *ro" TRKI, I+#, and +ales- # product "anager *ro" I+# and TRKI ,ill ,or0 together to run "ar0eting progra"s to generate leads, ,hilst the opportunities that are validated ,ill then be account "anager drivene-HR so*t,are sold to these custo"ers ,ill have signi*icantly "ore custo"i/ation than the so*t,are sold to "ediu" enterprises, and thus the transactions ,ill co""and a higher services co"ponent-

Fear on year, the target is to sell a "ini"u" o* ) e-HR licenses ,ithin this seg"ent, ,hich ,ill yield an esti"ated RM :)(,%8) in revenue and RM )'',))% gross pro*it- 4urther details *or costs, revenues, and pro*its pro=ections can be *ound in the Business 5osts and Returns section?.3 Mass mar,et a!!roach to medium enter!rises

This strategy targets to capture custo"ers in nu"bers- The version o* e-HR sold to these custo"ers ,ill be a scaled do,n and non-custo"i/able version o*# typical custo"er ,ill have bet,een '$ to %$ e"ployees, and the revenue *or one sale is e.pected to be a "a.i"u" o* RM 9,$$$- #n initial target o* '? licenses year on year ,ill see us registering RM (9',$$$ revenue and RM )?,%8: gross pro*it- #gain, a *orecast is included in the Business 5osts and Returns section, ,hich illustrates a detailed pro=ection o* cost, revenues, and pro*itsThis approach consists o* the *ollo,ing 0ey ele"ents: T,ice ;uarterly production o* sales adverts and *liers to our target seg"ent, a la 2ell ads in The +un&ne telesales representative to handle sales to this target seg"entThe telesales representative ,ill per*or" cold calls to custo"ers in the target custo"er list- 3hen a lead is validated, the opportunity ,ill be handed to an account "anager *or closure Mini"al installation support- 1nable"ent ,ill be provided to identi*ied resource ,ithin I+# *or installation and post sales supporte-HR is produced in a bo.ed pac0age and is easy to buy and install, ,ith /ero custo" "odi*ications to e-HR "odules (only con*igurations are allo,ed)e-HR "ust be positioned as a**ordable, ,ith an esti"ated price o* RM (8$ per license and a total bundled pac0age *or so*t,are and hard,are priced at no higher than RM 9,$$$#lthough this seg"ent is e.pected to contribute only '?@ o* the total sales revenue and ($@ o* the total gross pro*it *or the e-HR product, ,e believe it is i"portant to establish ourselves in this space *or the *ollo,ing reasons:

It ,ill contribute to our ob=ective o* capturing incre"ental "ar0et share It ,ill establish our na"e as a player in the HR space, and It ,ill provide collateral in our "ar0eting ca"paign to gain "indshare in the industry-

3ith this "ar0eting strategy de*ined, our e.pectation is to "eet our annual targets *or revenue and "ar0et share, ,hilst progressively establishing our presence in the industryB.0 Business *osts and eturns

*a!ital Ex!enses To start the business, the *ollo,ing 5#P1H ,ill be incurred: Co ( ' ) esource 2evelop"ent 3or0stations Test +ervers (+yste" H) - #pplication +erver - 2atabase +erver +o*t,are Dicenses - 3indo,s +erver Dic - +CD +erver Dic - Bac0up 1.ec 2es0top P5 *or Tele+ales ;nit *ost 9,$$$ ($,$$$ 7,$87 Fty ) ' ( 6. *ost (8,$$$L '$,$$$L 7,$87

( :,$$$L *2-EG :1+0B@ L This cost can be ta0en up over ) years, thus reducing year ( 5#P1H to RM '),$87- Ho,ever to si"pli*y this calculation, it is assu"ed to be ta0en up over a single year6a5le9 *a!ital Ex!enses <ote that although the tea" ,ill also have a Pro=ect Deader and a Product Manager, they are e.isting e"ployees in the co"pany ,ith e.isting ,or0stations that can be used *or this pro=ectHence, this does not a**ect initial invest"ent *igures-

:,$$$

B.1

.!erating Ex!enses

The table belo, details the pro=ected annual costs involved to run the e-HR businessC o ( ' ) : % 9 ? 8 6ime 2llocatio n Progra""er : Dab M I"ple"entation ($$@ +upport Progra""er : 4i.es and Patches ($$@ #d"inistrative #ssistant ($@ Pro=ect Deader :$@ Manager '$@ Product Manager )$@ 5ontract Telesales Rep ($$@ Product Mar0eting 1.penses ($$@ esource Salary :,$$$ :,$$$ (,'$$ %,$$$ 8,$$$ %,$$$ (,%$$ ),$$$ .-EG .-EG Multi!lie r (L (L '-' '-' '-' '-' '-' (L Month 2nnual -er 6ime 2lloc :,$$$ :,$$$ '9: :,:$$ ),%'$ ),)$$ ),)$$ ),$$$ 2:+?B) 30@+)0B

L 5ontract based e"ployees or "onthly e.penses 6a5le9 .!erating Ex!enses B.2 'orecasted evenues The revenue target is derived *ro" the a"ount needed to recover cost o* operations *or ( year, ,hich a"ounts to RM )9$,:7?- This includes the *irst year 5#P1H and annual &P1H 3e target to capture $-(@ "ar0et share every year *ro" our total de*ined "ar0et space o* )$,$87 potential custo"ers- This co"es to )$ custo"ers per year&* the )$ custo"ers per year, the target "i. is *or a "ini"u" o* ) custo"ers to be *ro" the large enterprise ,hilst the re"aining are *ro" +M1s3e assu"e that *or each large enterprise custo"er, there ,ill be a "ini"u" o* :$ "an days services revenue *or deploy"ent and custo"i/ation1ach large enterprise custo"er ,ill purchase a '$$ user license-

The revenue *orecast is "ade based on the *ollo,ing assu"ptions:

Co. ( ' ) : % 9 ? 8 7

0escri!tion e-HR 1nterprise e-HR *or +M1 IBM +yste" H (high end) IBM +yste" H (entry level) M+ 3indo,s +erver M+ +CD +erver ()5#D) MM+ Installation +ervices I+# +o*t,are 5usto"i/ation +ervices TRKI +o*t,are +ubscription

*ategory Mesiniaga +o*t,are Dicense Mesiniaga +o*t,are Dicense Hard,are Hard,are Microso*t +o*t,are Microso*t +o*t,are Mesiniaga +ervices Mesiniaga +ervices Mesiniaga +ervices 6.624

6otal ev ($9,8$$ :,89$ 77,)7) ?$,'$$ ?%,9$$ (),8%( '(,7$$ (8$,$$$ (:,:$$ :B?+00)

L Includes ( 5#D LL Includes ) +CD 5#D *or e-HR 1nterprise6a5le9 'orecasted evenues

B.3

'orecasted -H4

The table belo, provides a *orecasted pro*it and loss outloo0, based on achieving the *irst year target o* $-( @ "ar0et share, ,ith a "i. o* ) enterprise custo"ers and '? s"all businessesIncome ( e-HR 1nterprise ' e-HR *or +M1 ) IBM +yste" H (high end) : IBM +yste" H (entry level) % M+ 3indo,s +erver 9 M+ +CD +erver ? MM+ Installation +ervices 8 I+# +o*t,are 5usto"i/ation +ervices 7 TRKI +o*t,are +ubscription 6otal Income *ost of 1oods Sold ( IBM +yste" H (high end) ' IBM +yste" H (entry level) ) M+ 3indo,s +erver : M+ +CD +erver 'I1 ($9,8$$ :,89$ 77,)7) ?$,'$$ ?%,9$$ (),8%( '(,7$$ (8$,$$$ (:,:$$ :B?+00) 87,:%: 9),(8$ 98,$:$ (',:98

6otal *o1S 1 .SS - .'I6 1 .SS M2 1IC .!erating Ex!ense ( 1"ployee +alaries ' Product Mar0eting 1.penses 6otal .!erating Ex!ense CE66 .-E 26IC1 - .'I6 BE'. E 62G

233+1)2 3:3+B>2 9$@ '?),:$8 )9,$$$ 30@+)0B ))+):)

@.0

*onclusion

Based on ,hat has been tabled in this paper, ,e *eel that e-HR presents a good opportunity *or us to build a business that ,e can be success*ul in- It is a solution that ,e are *a"iliar ,ith *ro" a technical point o* vie,, as ,ell as a solution that ,e already 0no, ho, to sell- In addition, the startup invest"ent is relatively s"all, as is the re;uired headcount#s such, ,e are reco""ending to proceed establishing the tea" and resources re;uired to co""ence ,or0 on building the *irst version o* e-HR-

2!!endices Sam!le Sales 6ransaction for Small Businesses

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