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About the company

MARKAN LTD. possesses seven subsidiary companies, covering different aspects of the construction activities. Among those are: research and design; electricity, water supply, and sewerage maintenance; maintenance of air-conditioning, heating, and ventilation installations; interior design and many others. Thanks to its structure and its rich product portfolio, MARKAN LTD. gives its clients a full variety of services, which guarantees the coordinated project execution and construction supervision efficiency.

Situation

Since its founding, MARKAN LTD. has established and handles intensive communication with many subcontractors and suppliers. This necessitates tracking and maintenance of a large number of contracts, each with specific conditions and clauses. Use of various non-integrated software systems in each of the company departments (Procurement, Finance and Accounting, etc.), as well as use of separate databases, makes tracking of contract execution a very difficult task. This time consuming process takes lots of human resources, and is a prerequisite for mistakes when obligations are paid.

Another basic problem for the executive and the operative staff of the company is the management of the warehouse facilities. This includes available materials in the main warehouse as well as materials on construction sites. Tracking their movement between locations is also difficult due to lack of integration between the separate databases and complexity of working with unfriendly system interfaces.

The biggest challenge for MARKAN LTD. is the time departments need to prepare and present precise and thorough inquiries on key performance indicators (KPIs). It usually takes the employees from different departments two weeks to collect data from various sources (accounting software; electronic tables and even paper), and to provide the management all the reports they need.

Solution

Facing all these difficulties on a daily basis, the managers at MARKAN LTD. realizes that if they want the company to prosper in the future all these problems should be solved in fast and effective manner. That’s how the active research of the local Business software market begins. After thorough analysis of the available products and vendors, the company chooses the high-end business management system Microsoft Dynamics AX with executor of the project Intelligent Systems. The reasons are that the preferred software and implementer meet exactly the customer’s requirements.

The process of Microsoft Dynamics AX implementation starts in July 2011 and the modules that will be implemented are Finance and accounting, Supply chain management, Warehouse management, Project management, Customer relationship management, and Sales management.

Challenging in this implementation process is not the complexity or specifics of the IT settings, but the fact that the project at Markan Ltd. is the first in Bulgaria to introduce a Microsoft Dynamics system as a cloud service (IaaS/SaaS). This way, instead of investing in the creation of their own highly protected hardware environment, the client simply rents one that is expressly designed for this purpose. Besides the virtual SQL server on which the integrated business management solution is set, the construction company also rents the application itself. This way the company uses Microsoft Dynamics AX functionalities through the flexible SPLA /Service Provider License Agreement/ license model, which gives customers the opportunity to pay only what they use. Being the first of its kind project in the country, the subject of greatest interest is the time the deployment process will take.

The answer comes a couple of months later when Microsoft Dynamics AX starts to function in Markan Ltd. with data, successfully migrated from the accounting system used prior to the implementation. The project also includes a couple of services which provide not only wireless access to the Microsoft Dynamics AX ERP system, but also gives Markan Ltd. employees the opportunity to work with an Active directory and e-mail client through the cloud. OS MS Windows Server 2008 is also rented as well as MS Exchange Server 2010. The final stage of the deployment requires installation and setup of business intelligence (BI) solution, thanks to which the management instantly identifies problem areas on the basis of the data stored in Microsoft Dynamics AX.

With the full set of services that Intelligent Systems provides, the management team at Markan Ltd. can already feel a number of improvements in the areas that to the deployment of an integrated business management solution. The company now can easily plan and carry out new projects, estimate budgets and decrease expenses related to both tangible and intangible resources and assets.

“Providing Microsoft Dynamics AX in a cloud structure was a challenge, which we took with great pleasure. We want to thank MARKAN Ltd. for the trust they placed in us at the implementation of this first for Bulgaria project. Without the active participation of everyone in the company and especially the directly involved employees, the whole process wouldn’t have gone so well.”

Vladimir Dimitrov
System Integrator in Intelligent Systems

Benefits

Among the most distinguishable advantages for MARKAN Ltd. are:

  • Improvement in the relationship with subcontractors and vendors and precise performance of the taken obligations
  • Improvement of the communication, data exchange, and collaboration between separate departments, sites, and employees
  • Automation of standard procedures and optimization of the company activities
  • Assistance in planning current and future capacity in the context of the available resources
  • Fast reactions when new trends and opportunities emerge
  • Improvement in handling relevant legislative regulations
  • Improved employee productivity and better allocation of idle resources to other projects and activities of high priority to the company
  • Maintenance of up-to-date inventories and determination of their exact location throughout sites and warehouses

In addition, the management discovered many advantages of the cloud technologies:

  • Decreased expenses related to initial investment in hardware, software, premises, and hiring skilled stuff to maintain them
  • Assigned the maintenance of data and systems used by the company to professionals
  • Easily adapt the necessary IT resources according to the ups and downs in the business environment
  • Real time access to the newest business data, consistent with the role and needs of each user

For a very short period we improved many important business processes related to our competitiveness. However, the biggest benefit is that we found an easier, faster and at the same time much more effective operating model.

Valentin Kanazirev

Valentin Kanazirev

Manager, Markan Ltd.

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