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Posted: Mon, May 17, 2004

CGram repositions, focuses on ERP for SMEs

By Basheera Khan

Enterprise resource planning, or ERP as it's commonly referred to, is crucial to the success of any business, particularly those involved in manufacturing.

Using software applications developed solely for these tasks, companies can manage critical aspects of their business such as product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing improved and more relevant customer service, and tracking orders.

Additionally, ERP software can include modules to manage the finance and human resources aspects of a business.

While ERP software development has traditionally been the stomping ground of larger vendors catering to equally large manufacturing companies, smaller ERP developers have been working on making ERP software more relevant to the small and medium sized enterprise, and just as importantly, on tailoring the price to fit the SME pocket.

Swansea-based CGram Software is one such company. It's been going for more than 20 years, having started out with a software product developed specifically for the manufacturing industry, and used by clients like Ikeda Hoover, which supplies Nissan manufacturing plants with car seats. Other big name clients include Abbey, Surrey County Council and St Ivel, the dairy products manufacturer.

Managing director Emrys Jones says the company spent many years working solely with these larger customers, providing a high level of systems support and maintenance service.

This model proved very lucrative, says Jones, but after he suffered a period of ill health, the company re-evaluated its position and began work on a new suite of ERP applications with a view to repositioning its product offering.

"We had a whole lot of ideas for what a new product should be like, some very nice ideas, and we started to write it, and we put the first system live two or three years ago. It's a very good system, it's got some very nice ideas in it, having grown out of the roots of the old product."

The CGram ERP suite is based largely on server-based computing. The applications, which include modules to manage CRM & telesales, accounts, sales and invoicing, supply chain management and costing systems, are hosted and executed on a server, and all information processed by the modules can then be pulled on demand to the user's desktop computer.

One of the key strengths of the CGram solution, says Jones, is that it is operating system neutral; it will run equally well under Windows, Linux or Mac. The only fixed requirement is a Linux server supporting the applications.

Another advantage to its customers is simplified licensing. CGram offers its ERP suite at a flat rate, with all modules included in the price and free access to new models. The software is also partially open source, allowing customers with the necessary technical expertise to customise it to their requirements.

Those without the skills can request a similar level of customisation from CGram itself. A significant driver behind the CGram business strategy is that of keeping the cost of systems maintenance low, which means a substantial percentage of its revenue comes from maintenance and support services.

"We have one customer which doesn't do anything. They used to have three IT people, now they have half an IT person, and they have a much better system. We have another customer which has two IT people who do everything."

The new product and re-adjusted focus have led CGram to embark on a focussed marketing campaign, which it kicked off with a rebranding exercise. The company's efforts at repositioning itself have been underway since June 2003, fuelled in no small way by business support grants from the Welsh Development Agency. It's allowed the company to take on more staff and added a bit of oomph to its marketing activities.

"Our marketing in [the past] wasn't exactly wonderful, to say the least, and there was no marketing assistance. If you rang up the WDA, they would say, well we could give you some help with training - and as we did the training in our industry, that was that. It's a very different organisation now," says Jones.

"The WDA used to be stunningly unhelpful; they have become a very helpful organisation, and as they're a government organisation that should be recognised. They should be criticised when they're not helpful, and they should be praised when they are helpful, and we would like to praise them."

CGram was shortlisted in the category of Best Business Solution at this year's Linux User & Developer trade show, alongside Novell, Red Hat and iTS LiNUX, a SuSE advance partner. It took the latter six years to make the shortlists, a benchmark which CGram sees as proof enough that its marketing is paying off.

And though iTS LiNUX, a Cheshire-based SME, won the award, CGram is delighted at the outcome; it has already agreed to join the rapidly expanding CGram reseller programme. The company is actively recruiting resellers and prospectors, and hopes to swell their ranks in the next six months, both locally and in North America and Canada. It has a single user version of its product in the pipeline, with the working title CGram Trader, which will be released in the same timeframe.

Right now though, the company is focussed on expanding its customer base in the Welsh SME market. With the business support funding in place to support companies looking to invest in IT systems, CGram is hoping that SMEs will take the leap and invest in a system which it says will give directors more time for strategic business decision-making, and save money in the long run.

"Very often, SMEs don't realise what can be done, and they don't understand how - frankly, from a director's point of view - how their lives can be transformed. If you take the fire fighting away from directors, they don't eat so many Gaviscon tablets. We give them the freedom to run their company the way they want to run it," says Jones.

Contacts

CGram Software
Tel: 01792 518 000
E-mail: enquiries@cgram.com
Web: http://www.cgram.com







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