|
The
slowdown may have burnt a hole in most pockets, forcing companies
to defer expansion plans, but Denmark-based Navision Software,
an enterprise business solution provider, has been an exception
to the rule. The company now plans to invest $8 million in
the country in an effort to better target the SME segment.
As part of this initiative, the company will set up a network
of Navision Solution Centres across the country to market,
implement and support its range of products and solutions.
It has already established 42 centres and plans to increase
to 100 by the end of the year. Says Yash Nagpal, managing
director, Navision India, “The SME segment in India is
still largely untapped and offers unlimited business opportunities.
We will also be targeting solicitors, architects, hospitals,
manufacturing companies, tea estates and even nursing homes.”
It has also tied up with system integrators, value-added resellers
and consultants to expand its reach in the Indian market.
Navision is currently looking at companies with an annual
turnover of between $5-250 million, and also plans to sell
its products in independent modules to better penetrate the
market.
 |
| Nagpal
says the SME segment represents a large untapped opportunity,
where the potential for growth is phenomenal |
Navision
provides enterprise business solutions in verticals such as
financial management, CRM, manufacturing, distribution, human
resources, business intelligence and e-business. Navision’s
role involves creating a horizontal product for all categories.
The solution centres then localise the product, conduct training,
sell and implement the product and also provide support. The
company has authorised the solution centres to make changes
in the source code and customise the solution to meet customer
needs. This indirect model of marketing, which resembles the
franchisee model, has worked wonders for the company. Nagpal
believes that the indirect model is effective in the SME market
since more than 20 seedling companies have already opted for
the solution. “SME’s focus on core competencies.
They generally do not have a strong IT staff as they can’t
afford to spare any resources to focus on non-core activities.
Large vendors do not have centres in smaller towns and hence
servicing the client becomes difficult. Physical proximity
is also very important for smaller companies,” he adds.
Currently, Navision has two main products for the Indian market—Axapta
and Navision Attain. Axapta, which can support innumerable
users and can be run from multiple locations, is targeted
at the process manufacturing segment, while Navision Attain,
which is more compact is focused on the service industry.
The solutions are priced between Rs 2 lakh to Rs 2 crore,
depending on the number of modules deployed. The company,
which has been growing at a CAGR of 48 percent, is looking
at earning revenues of more than $20 million from the Indian
market by 2004.
|
