Corporate Profile
 
   
The Organization
 

Algorithm Consulting began its operations in November 1999 with a staff of a single person, who luckily won the company's first software contract to develop a “computerized system” for a leading woven apparel exporter of the country. Starting with zero capital, 6 years later, Algorithm Consulting has a staff of 56 full time employees, 3 successfully completed and 3 ongoing ERP implementations. Since January 2005, Algorithm is a private limited organization with 85% shares owned by Mr. Saquib Saeed, founder and CEO and the remaining 15% shares with Mr. Rizwan Sheikh, Director Operations. The company is based in Karachi, Pakistan.

 
   
The Product
 

AlgoERP Release P-3, the company's flagship product, is a large-scale industry specific ERP solution for apparel and home textile manufacturers. The product contains 48 modules, out of which 19 are specific to apparel manufacturing sector's needs, not met by other Western packaged ERPs. The remaining modules in P-3 are mostly comparable with other large scale ERPs, available in the market. The presence of these apparel specific modules, together with generic ERP best practices, makes AlgoERP Release P-3 a premier choice for apparel manufacturers and exporters. A smaller, low-priced version of P-3, comprising of 16 modules is called AlgoERP Release P-2.

 
 

The Business Model

Specialization is the corner stone of Algorithm Consulting's business strategy. Its only business model is to excel in Manufacturing Planning and Control Systems for apparel and home textile manufacturing industry; enhance its product, AlgoERP Release P-3, further; and generate the revenues through product license sales and ERP implementation consulting services.

 

The Focus

Algorithm Consulting has made no fundamental changes in this business model since last 6 years of its existence. The company has no other revenue generating activities such as reseller relationships with other product vendors, offshore software development services or business process outsourcing services. The company has made no attempts to make any other product for any other industry in the past, nor is there any such plan for the foreseeable future.

 
The Challenge

Recruiting, training, directing, controlling and retaining specialized work force has been the biggest challenge, even bigger than the creation of the product itself and continues to remain so. The skill set that our employees bring together generates a synergy that alone is responsible for creation of this complex product. We had to bring together professionals of five separate disciplines. We also had to learn to live together despite differences in our backgrounds and core competencies and had to cope up with the ever-present uncertainty of a novel and unproven business model. We are extremely proud of the fact that Algorithm Consulting met this challenge and institutionalized the coming together of these distinct professional disciplines.

 

The Results
The result of such a long and consistent focus on a single product, a single industry, and the creation of synergy by merging professional boundaries of many separate disciplines, has been very positive. AlgoERP release P-3 has been sold on 6 occasions at an average price of Rs. 20 million per implementation. This makes the P-3, perhaps the most expensive ERP in the country. The fact that it has been sold at all at this price is an endorsement for both, our business model, as well as, our product's excellence. Another interesting fact is that there has been no successful implementation in Pakistan of any rival ERP product within the apparel manufacturing industry. Specialization, it seems, has finally started paying dividends.
 

Current Strategy for the Local market

The P-3 has matured into a packaged ERP product with very unique features that are not available in any other generic ERP product. Consequently, it does not require heavy doses of customized developments with each new ERP implementation. We strongly feel that P-3's current price and implementation time of 2 years must be reduced by half in the future. We also hope that this would make this prohibitively expensive product affordable to hundreds rather than the current handful of apparel manufacturing giants. We understand that small and medium-sized manufacturers in the country need exactly a product like P-3 to meet their pressing needs, but they cannot afford its current price.

 

Current Strategy for the International market

Our goal is to translate P-3's interfaces into multiple languages such as Italian, Spanish, French and Chinese. We need to create reseller partnership relations with other firms operating in other garment manufacturing and exporting countries. We also need to emerge as the ‘Best of the Class Products' for Apparel Manufacturing Planning and Control Systems the world over. In this direction, we have just created our first reseller/partner in Bangladesh and are hoping to land our first overseas ERP implementation shortly.

       
       

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