December 2008: Software as a Service (SaaS) is the approach adopted by local business software firm Bizpoint System in selling its products in China.

The software package is Internet-ready and has good security features, and can be tapped directly on the Web, without the need for VPN, says founder and chairman Teo Yee Cheong.

An old China hand who has been in the software business since 1983, Mr Teo offers the software products packaged through a major telco company in Hangzhou. “Working through the telco gives me important branding advantages,” he points out, as Bizpoint by itself is just a small player in that huge country.

Even working through a telco has not been easy. In 2005 and 2006, Mr Teo tried to talk to the telco management directly. “There were simply too many layers of executives for me to meet. In the end, I did not achieve anything,” he says.

So, Mr Teo changed tactics and worked through the telco’s subsidiary, a much smaller organisation and easier for him to interact.

Bizpoint has about 90-100 IT employees working in its premises in the Wuhu software park in Anhui province. It offers a series of ERP solutions under the E8 trademark, including business resource management, and property management.

Hands-on supervision in China

On his investment in China, Mr Teo says cost is low and Chinese IT professionals are good in software development. However, he cautions that in general they lack initiative, so the manager or supervisor must be very detailed and hands-on in guiding them.

Mr Teo reveals that he keeps a developers’ diary in the office for the staff to write down in detail every day what they would be doing. “I walk around the office between 4.30 and 5 pm to ask if they have completed what they have set out for the day,” he adds.

“In China, you can’t operate on remote. You have to be physically present to give instructions. But once you have given clear specifications, the developers can do their coding very well. But don’t allow them to use their common sense, because common sense will tell them to take the road of least resistance, to do only the minimal to get by!”

Success in the China software sector means to pay above market rates so that the staff, especially the senior ones, are willing to commit themselves to the company.

Mr Teo notes that IT talent is still in short supply in China. Here’s his company’s recruitment process to ensure he gets the right kind of people for his software development:

An initial test is conduct to pick the individuals with the right skills. Then in the first month, these people are being trained by the company. They are not yet employees, and are paid an allowance. At the end of the training, they are re-tested. If they passed, they are taken in on probation. After their probation, they are tested for the third time before they get confirmed as full-time employees.

Bizpoint uses JADE, a complete object-oriented platform as the development tool in program and database design. As this platform is rather niche, the employees who become highly skilled, would not be likely to look for jobs elsewhere because they are now too specialised! As a result, most of them stick to the company. “Our team leader has been with us for eight years,” says Mr Teo.

Key products

Bizpoint’s three key products are the E8 BRM, PMS and International School accounting packages.

The E8 Business Resource Management system is a complete package that provides management and analysis on human, financial and logistic resources, in three main management domains:

• Financial Management
• Supply Chain Management
• Human Resource Management

E8 BRM combines advanced management concepts with knowledge management and resource management. By centralising the business resources and information management, it improves management productivity and efficiency.

The E8 PMS (Property Management System) is based on the management concepts of international property management, suitable for managing both office buildings as well as residential properties.

The system is equipped with a maintenance management module that provides planning and decision-making functions in all aspect of maintenance management. It allows all interested parties (management, technician, resident, tenant, vendor) to access the system for a collaborative operation – maintenance schedule, service request, and inspection.

The system reduces down time and cost, improves quality, provides a better basis for decision-making, and ultimately boosts profitability.

The SchoolBiz (Accounting Solutions for International Schools) system has been developed with knowledge gained from more than 20 years of experience in the international school business and management.

SchoolBiz handles student admission, student database with medical record, teacher database, parent database, busing, after-school activities, student academic record, student re-enrollment exercise and marketing.

The system also includes an accounting and financial management with emphasis on budget control and purchasing. Optional functions are fixed assets management, stock control, human resources management, leave management and compensation and contract management. The system is also able to interface with other third party systems for the international school.

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