Felda Global Ventures Holdings Bhd’s (FGV) wholly-owned subsidiary Felda Prodata Sdn Bhd and plantation consortium Sinergi Perdana Sdn Bhd have collaborated to embark on a full private cloud software `ProTruz Cloud’ for five years, which could increase their agility in addressing changing business requirements.
Felda Prodata, an information and communication technology (ICT)-based system integrator would use German software corporation SAP SE’s digital core platform SAP S/4HANA, would be the solutions provider for Sinergi Perdana.
“Driven by the need to transform its operations digitally, this implementation is the faster and easier way for Sinergi Perdana to access mission critical applications such as finance, logistics and human capital management delivered in the cloud as managed services.
“Through this collaboration, Sinergi Perdana expects to strategically increase its agility in addressing changing business requirements. Financially, it foresees the optimisation of cash flow due to the conversion of capital expenditure to operating expenditure,” FGV said in a statement today.
The initiative is able to leverage on a leading enterprise resource planning (ERP) solution system via SAP S/4HANA’s optimised infrastructure and tailored professional services, without worrying on big investment of asset that would lead to high total cost of ownership depreciation cost.
Sinergi Perdana is a consortium formed by plantation agencies Federal Land Development Authority (FELDA), Felcra Bhd and The Rubber Industry Smallholders Development Authority (RISDA).
FGV said the mission of Sinergi Perdana, Prime Minister Datuk Seri Najib Razak’s brainchild, is for the three agencies to coordinate their plans and strategies in exploring various business ventures, especially in the fertiliser and agrochemical business.
Sinergi Perdana group chief financial officer Bashir Muhammad said the consortium can focus on its operation with ‘peace of mind’, through the Felda Prodata’s integrated support model.
Felda Prodata chief executive officer Azly Sham Kamaruddin said SAP S/4HANA’s private cloud deployment for Sinergi Perdana has a direct impact on its business and talent development strategy.
He said the privately-managed cloud implementation, first of its kind in Malaysia, is aimed at helping agencies and small medium enterprises that want to move from capital expense to an operating expense model with high performing infrastructure.
SAP Malaysia managing director Terrence Yong said the digital economy is having a profound impact on Malaysian enterprises and organisations that are ready to embrace the wave of digitalisation.
“With Felda Prodata, we are confident that Sinergi Perdana will be supported from adopting a digital core and embarking on its cloud journey to transform its operations and meet the demands of the digital future,” Yong added.
At 12.01pm, FGV dipped two sen or 0.02% to RM1.68, with 2.58 million shares done, for a market capitalisation of RM6.2 billion.
Article taken from: http://www.theedgemarkets.com/article/fgv-collaboration-transform-operations-digitally