Case Study

Microsoft Dynamics AX 3.0 at LifeCell

IT always has had vital applications across sectors. Healthcare and pharma have in a big way benefited by the same. At a time when stem cells are hopefully proving to be an answer to the incurable diseases, LifeCell, is a major cord blood stem cell bank, has improved its business statistics and business control by implementing IT solutions

Sonata Information Technology Limited, a Microsoft Gold Certified Partner, implemented Microsoft Dynamics AX 3.0. Sonata Information Technology offers benefits like informed decision making, improved security, reduced data entry and improves business productivity. This has been of use to many companies. One amongst them is LifeCell.

Established in 2004, LifeCell in collaboration with Cryo-Cell International, US facilitates the cryogenic preservation of stem cells at its facility in Chennai. Umbilical cord stem cell banking is now available in India. In order to spearhead its India operations, LifeCell wanted to evolve its business processes to keep pace with the rapid pace of the pharma industry.

Therefore it has collaborated with Cryo-Cell, the world's largest and oldest stem cell bank providing high quality services to expectant patients. By tying up with Cryo-Cell, LifeCell aspires to become the world's largest umbilical cord blood stem cell bank. And with the implementation of this technology they might see it coming soon.

LifeCell has set up a 21000 sq. ft laboratory with an investment of Rs 14 crore. This provides LifeCell seamless service from the collection of cord blood to harvesting and finally storing the stem cells at -196 degrees centigrade.

With the implementation of Microsoft Dynamics AX 3.0, LifeCell has been able to perform all its finance related activities, project planning, sales and inventory management as an integrated unit. Dynamics AX has streamlined operations, helped meet safety standards as well as increase the visibility of the organisation. On the advantages of implementing this programme, Shankaran R, Finance Controller, LifeCell, says "This has led to related benefits such as improved debtors and collection management."

He further adds, "We have further improved all our business functions and increased productivity by 30 percent."

It has also empowered the management to take informed business decisions due to the availability of accurate information.

The earlier accounting and financial systems did not integrate seamlessly and this led to duplication of records, inconsistent business information and inaccurate report integration.

Earlier LifeCell was using Tally for accounting and a Legacy FoxPro based inventory management solution. "Our users were unable to perform all the accounting functions, project planning, sales and inventory management on an integrated unit," says Shankaran.

He also informs that Tally and FoxPro did not provide user connectivity, authentication and it was difficult to set up user rights. Statutory localisation such as Tax Deducted at Source (TDS) was also not clearly defined. The systems were used as silos within the departments. Due to the lack of interoperability, the finance and logistics operations rarely approved the backorder status and or inventory levels. He further adds that their financing and accounting systems did not integrate seamlessly leading to duplication of records and inconsistent business information which resulted in inaccurate information management report generation.

Regarding the old system, he informs that there was no efficient set up. And since our franchisee were located across India were not connected, we were in the process of implementing specific Customer Relationship Management (CRM) packages to suit our business models, says Shankaran.

Solution

The applications used earlier had several limitations. "We evaluated Tally ERP and Oracle but finally decided to implement Microsoft Dynamics AX 3.0," says Shankaran.

Sonata Information Technology, a Microsoft Gold Partner, implemented Microsoft Dynamics AX 3.0 at LifeCells' Chennai Headquarters. The approach was to map every business requirement on Dynamics AX 3.0. The finance, trade, trade agreements and logistics modules of Microsoft Dynamics AX 3.0 were implemented. It was further customised to rectify areas where the previous solutions met with total failure. Unique requirements were also addressed with the help of Microsoft Dynamics AX 3.0. For example, revenue amortisation at LifeCell is generated from the storage service fees of the stem cell. There are several plans with varying payment options which are offered to the customer. This business process was mapped and configured accordingly.

Benefits

It has improved data consistency along with a complete information trail. It has helped to ensure the flow of accurate business information within LifeCell. "This has enabled quicker and more informed decision making," feels Shankaran. Adding to all this it has helped employees at LifeCell to work with a familiar interface and has also improved efficacy. With seamless integration of this application with third party CRM, the need to enter and re enter data has been eliminated. Plus the best part of this application Shankaran feels is that it is user friendly which helps LifeCell to obtain business information instantaneously.

(Information provided by Sonata Software, a Microsoft Certified Gold Partner.)