Renowned software must be expensive for SME?


A while ago, our BizMagnet TVP consultant had a gathering with Mr Li, an OEM boss, and others. We were talking about an old question and I am here to share the idea.

Mr Li said instantly, “What? Oracle is so expensive, and so to Salesforce! We just can’t afford them!”. Bosses argued if IT investment was worth.

TVP consultant: “Mr Li, you are just too humble! Your business is great and should consider IT solution.” We never attempt to promote anything to him.

What is the most expensive in HK?

The most significant cost in Hong Kong are rent and salary. Food cost may not be the most for a restaurant. So everyone doing business in Hong Kong must understand the cost structure thoroughly. More importantly, what should a company consider to choose the office or the shop? What should be the consideration for hiring? It is simple: if the benefit is more than the cost. That’s why high rent and salary are always paid by someone. It is worth! Every moment a boss decides to pay or not.

Oracle? Salesforce? Expensive?

Nevertheless, Hong Kong employers tend to pay for physical stuff such as product, shop, office or working staff. They will doubt for service, online shop, system or virtual assistants etc. For example, Mr Li has a factory in mainland China and there are twenty employees in Hong Kong office. The marginal profit of OEM business is low, and the net profit can increase significantly if the business can enhance the efficiency. I just knew that someone introduced Oracle NetSuite1 The boss asked nothing but the minimum charge, and no more patience to listen.

If an Enterprise Resource Planning system (ERP) like Oracle NetSuite can save one-man cost, think about the cost to hire one employee in Hong Kong today. The minimum charge around several thousand HK Dollar cannot stay a man to work. Another common system is Customer Relations Management (CRM). For example Salesforce2 can bring income to a business. It is not easy to find salespersons nowadays.

The most common TVP project

According to Innovation Technology Commission (ITC) statistic, ERP and CRM are common TVP projects. An ERP can save resource and enhance operation efficiency. While a CRM can strengthen customer relationship to bring more business. Moreover, by the TVP, a business can obtain 75% of the technology improvement cost. Everyone goes for digital transformation in post-epidemic era and are you ready? BizMagnet TVP consultant can help you.

Further reading: 10 Successful TVP cases

  1. Wikipedia: NetSuite https://en.wikipedia.org/wiki/NetSuite
  2. Wikipedia: Salesforce https://en.wikipedia.org/wiki/Salesforce

Leave a Comment