SMBs Get a Helping Hand in China

Feature Article | October 27, 2004 by admin

Hand Enterprise Solutions Co., Ltd., founded in 1996, is the first domestic ERP consulting service provider in China, with over 350 professional employees. Headquartered in Shanghai, Hand has branches in Beijing, Guangzhou, and San Jose, California, and an R&D and training center in Zhangjiang Hi-tech Park.
Hand is the Chinese mainland operation of Twinwood, a regional IT company specializing in consulting and implementation of packaged solutions, custom and integration solutions, mobility solutions, and outsourcing services. Its delivery model combines high-end consulting and technology-architecture skills with cost-effective development resources from China and India. Twinwood covers mainland China, Hong Kong, India, Indonesia, Malaysia and Australia.
Hand Solutions provides a local enterprise resource planning (ERP) product – MAS – as well as ERP and customer relationship management (CRM) implementation and service for such IT giants as SAP and Oracle. Services also include technical solution consulting, BPR, business strategy consulting, technical service and training.
The Hand customer base is diversified, covering such industries as machinery, electronics, automotive, pharmaceutical, chemistry, food, commerce, finance, communication and aviation. Its 150 customers include Hitachi, GE, Panasonic, and Motorola. It has partnered with SAP, Oracle, Sun, IBM, Intel and EDS.
As Hand moved into the small and midsize business (SMB) arena, it was faced with the IT requirements of SMBs for low cost and short implementation time. Hand needed a high-quality product specific to this market. mySAP All-in-One was its choice.

Industry-specific development

During development of its HSP (Hand Smart business Package) solution, based on mySAP All-in-One, Hand received support from all levels of management. Despite a shortage of manpower, the company established a dedicated solution development team that included several experienced senior consultants, led by a solution manager with overall responsibility for development, schedule and task assignment. To create the product, the team integrated general, country-specific, and industry-specific requirements.
In drafting its HSP solution for the machinery industry, Hand considered the general challenges faced by local SMBs – seasonal fluctuations in order quantities, a short life cycle for new products, complicated and diverse production processes, customized product requirements, and complicated engineering change management. The team selected and reorganized the standard functionality of SAP R/3. For example, they use the long-term planning function to simulate requirements for capacity and materials, to avoid seasonal shortages. The variable configuration and rework order functions help meet the diversity of customers’ requirements.
Hand reports strong support from SAP China and SAP Labs China for the team setup, the development plan and the detailed solution requirements. SAP Labs China held several tailored seminars and workshops, plus provided on-site support for both technical and practical matters. Hand also benefited from SAP Best Practices for mySAP All-in-One, which provided documentation, business scenarios and configuration structures. This material proved very helpful in sales presentations and producing a user guide.

Four successes

Hand has implemented HSP for four clients, meeting their requirements for low cost and rapid implementation, which resulted from the industry-specific and predefined nature of the solution. Because of this format, the firm found that it and its customers understand each other more easily and can move on to results more directly and quickly.
Shanghai Highly Nakano Refrigerators Co., Ltd., was the first customer for HSP, which was implemented from April to July 2003. The customer faces a highly competitive market and diverse product requirements, which demand complicated planning and manufacturing. An SAP R/3 implementation might have taken six to seven months, resulting in high costs and a strain on internal resources. For a fast-growing, small enterprise, the cost would have been a major burden, making the implementation a “mission impossible.” But the preconfigured HSP solution, tailored to the machinery industry, made all the difference.
Hand is now improving its implementation methodology and working to upgrade the solution.

Derek Davis

Derek Davis

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