Building Marketplace for A&D with mySAP.com Business Focus Group in strategic alliance with SAP to build region’s first mySAP.com Marketplace for shipbuilding industry

July 14, 2000 by SAP News 0

Internet portal provides platform for shipbuilders to manage every facet of business and collaborate across value chain for cost savings

Kuala LumpurBusiness Focus Group today announced a strategic alliance with SAP, a leading inter-enterprise software solutions provider to build the region’s first collaborative portal for the shipbuilding industry, serving the Malaysian market and eventually the region. The business-to-business portal, developed for the group’s subsidiaries, Penang Shipbuilding & Construction Sdn Bhd (PSC) and PSC Naval Dockyard Sdn. Bhd. will integrate engineers, architects and contractors in the value chain, enabling the company to manage every facet of their business – from communication and collaboration to managing business processes, materials sourcing, buying and selling, payment settlement, tender bidding and accessing industry-specific news and information – via the Internet.

The mySAP.com marketplace will combine collaborative e-commerce scenarios and applications to enable industry participants of various IT capabilities to participate in the shipbuilding supply chain. In this partnership, Business Focus Group brings valuable domain expertise for the shipbuilding industry, while SAP jointly with BFIT will deliver the Marketplace solutions and collaborative e-commerce scenarios through mySAP.com.

The strategic alliance with Business Focus Group would include the strategic partnership with BFIT Sdn. Bhd., the Group’s IT Arm. The partnership will focus on implementation of E-Busines solutions for the Maritime and Defense Industry as well as in the Aerospace Industry. SAP will also offer skills and expertise to work together with BFIT to develop and launch a Maritime and Defense Exchange.

Explaining the need for SAP, Yang Berbahagia Dato’ Amin Shah, Executive Chairman, Business Focus Group said, “The multimillion dollar shipbuilding industry is supported by massive foundation of paperwork and arcane business practices of the old economy. This industry needs to shift its paradigm across the digital divide to stay competitive and relevant. Business Focus Group is pleased to team with SAP Malaysia, an e-business solutions leader, to bring a new wave of collaborative e-business practices to the shipbuilding community, enabling us to stay nimble and helping us succeed against global competitors.”

Paperwork, cost overruns and other inefficiencies are estimated to add shipbuilding project costs. The e-marketplace will automate the arcane and complex processes between the stakeholders in the value chain of the industry. By leveraging web technologies to enable collaboration and communication between the stakeholders, the e-marketplace will enable players to streamline efficiency, share information like design blueprints more effectively and drive down costs. The Internet will also provide an alternative sales channel for participants.

Commenting on the partnership with Business Focus Group, Khatijah Shah, Managing Director of SAP Malaysia said, “Business Focus Group with their experience and expertise is an ideal partner for SAP as we jointly bring to market a new Internet model for the shipbuilding industry to realize the promise of the Internet.

“mySAP.com Marketplace solution will address the Internet business need as it provides an efficient infrastructure, easy-to-use commerce applications and collaborative scenarios that provide strategic value, content and community. It its robust, comprehensive and integrated – the essential lements needed by industries, be it chemicals, automotive or telecommunications, for the creation of a total collaborative Internet business solution,” she added.

The first phase of the e-marketplace construction for Business Focus Group involves setting up a system based on best business practices that go beyond mere buying and selling, into the arena of collaboration that yields the greatest value to participants. The first “tenants” of the marketplace will influence the structures and processes being laid out for future business. The second phase would be to deliver value to the industry through increased transactions as buyers and suppliers benefit from economies of scale through reduced costs and lower inventories.

Value-added Features
The e-marketplace will bring together the industries’ stakeholders into a common platform to collaborate on projects by enabling:
a) efficient sourcing of materials and supplies from a directory of suppliers,
b) efficient Buying and selling of materials and supplies,
c) automation of RFQ (Request for Quotation), run reports and transactions
d) automation of tender bidding process, and
e) collaboration and communication of shared design blueprints and paperwork.

SAP’s specific industry experience includes more than 2000 installations in the Engineering & Construction industry segment, with clients in the ShipBuilding industry and the Defence sector.

About Business Focus Group

Business Focus is a dynamic Malaysia global conglomerate with diversified interests in growth industries and particular emphasis on maritime activities. BFSB was initially set up to undertake the privatization of Penang Shipbuilding Corporation Sdn Bhd.

Through the vision of Group Executive Chairman YB Dato’ Amin Shah bin Haji Omar Shah, Business Focus has grown beyond its modest beginnings to become one of the fastest growing corporations in Malaysia. It is the ultimate holding company of several Malaysian public listed companies.

BFSB was incorporated on 18 February 1991 as a private limited company under the Companies Act 1965. The company’s principal activities are investment holding and provision of corporate, administrative and management services to its subsidiaries and associated companies. At present, BFSB has 43 subsidiaries and 6 associated companies under its flagship.