Date post: | 30-Oct-2014 |
Category: |
Documents |
Upload: | siddhardha-karanam |
View: | 146 times |
Download: | 1 times |
M06EKM 2010/2011
Implementation of open source ERP applications for an
organization
SID: 3068607 Page 1
M06EKM 2010/2011
FACULTY OF ENGINEERING AND COMPUTING
Enterprise systems
MODULE LEADER: Nick Wright
SUBMITTED BY: Siddhardha Karanam
SID: 3068607
SID: 3068607 Page 2
M06EKM 2010/2011
Index
1. What is ERP?.....................................................................3
2. Open source ERP software..............................................3
3. Open source ERP available in the market......................6
a. Compiere..................................................................5
b. ERP5.........................................................................9
c. Open bravo..............................................................12
d. Apache ofBiz/Opentaps..........................................13
e. XTuple......................................................................15
4. Which open source ERP to use......................................18
5. ERP implementation........................................................21
6. References.......................................................................26
SID: 3068607 Page 3
M06EKM 2010/2011
What is ERP?
Enterprise Resource Planning system merges the methodologies of software and
hardware to integrate various back office functions across the company. An ERP
system is a combination of various modules linked with a common data base, which
enables various departments such as accounting, finance, sales, distribution, human
resource and collaboration, to integrate with each other.
Open source ERP software:
OSS is computer software whose source code is available under a license that
permits user to use, change and improve the software, and to redistribute it in
modified or unmodified form. Good examples of OSS products are Linux, Firefox, and
Apache etc. The open source ERP is often based on
My SQL and postgre SQL database systems
Php and Python web languages
Java, J2EE, SOAP web applications
Various open source CRM packages
Benefits from an open source ERP system:
Very low maintenance cost and no licensing cost
Providing the training for the staff is very easy
SID: 3068607 Page 4
M06EKM 2010/2011
Completely independent of the vendor
High levels of flexibility
More accuracy
Greater security
Reduces the overhead costs
Customization of the code according to the user needs can be possible
No need to pay royalties
Open source ERP applications available in the market:
The top most open source ERP software applications according to the user ratings
that are available in the market are
1. Compiere
2. ERP5
3. Open Bravo
4. Apache OF Bix/Opentaps
5. XTuple
1. Compiere:
Compiere is an open source ERP software application from the
Consona ERP, which was the mother company of Compiere. It mostly serves the
small and midsized businesses across various verticals. This was the early open
source leader. Compiere has the international partner channel. The technology of
the Compiere supports the windows operating system, apache and Linux platforms,
SID: 3068607 Page 5
M06EKM 2010/2011
however supports only Oracle and Enterprise DB database. Compiere is entirely
based on the concept of Active Data Dictionary (ADD). Compiere Data Dictionary
contains definitions of a data entity (type, validation, etc.), how it is displayed (label
on screens and reports, help, display sequence and position relative to other fields),
and the display rules. It also contains security and access rules. The main modules
of the Compiere ERP are
Manufacturing
Ware house management
Sales
Financial management
Order management
Material management
HR/salaries
SID: 3068607 Page 6
M06EKM 2010/2011
(Source: http://www.aimserve.com/en/product.html)
Advantages:
Possibility of changes without disturbing the source code
Easy to customize, even after going to live
Covers all possible business areas including global prospects
SID: 3068607 Page 7
M06EKM 2010/2011
Support from the company is available, all over the globe
Automatic updates of latest versions
Speed of execution is high
HR/salaries module
Easily accessible interface between the user and the software
Operation in distributed location and network
Very less hardware costs
Disadvantages:
Works good with only specific data bases
Specific services such as automatic updates and software migration of latest
versions are not free of cost
Accountability and warranty
Compatibility with other software suits is less
The project can die
Possibility of less response from the vendor regarding the support issues
SID: 3068607 Page 8
M06EKM 2010/2011
Limitations:
Needs an oracle data base with license fee and maintenance costs
Limited to the thick client- Java swing architecture
The GNU license requires that derivative work be returned to the community
(intellectual property and proprietary systems may be exposed to competitors)
No future ‘freeze point’ – pay perpetual maintenance to Compiere or revert to
an early, incompatible version
Rumours of going to closed source
2. ERP5:
ERP5 is an open source ERP application based upon ZOPE application server.
ERP5 was completely developed in python programming language and the source
code is freely available for customization under the GNU public licence. The mother
company of ERP5 is NEXEDI. It mainly serves the mid market sectors. The service
provides the modules including accounting software, distribution software, MRP
software, pay roll software, human resource, product design management, CRM and
e-commerce etc. It also offers many more vertical market solutions with aerospace,
apparel, banking, health care and government or public sector being the main stay
industry solutions.
SID: 3068607 Page 9
M06EKM 2010/2011
(Source: http://www.erp5.com/feature)
Advantages:
Sharing of innovations and knowledge transfer through internet and their
implementation is possible
All the tools and source code of ERP5 is completely open sourced
The process of deployment of ERP5 includes the advantage of quality
assurances by rapid testing of the components and its modules
Customisable work flows in each module
Built in synchronisation engine
Multi category design
Simulation based planning
Unified business model design
SID: 3068607 Page 10
M06EKM 2010/2011
Disadvantages:
Complex implementation process for budget constrains of small businesses
Having problems in loading raw data files
Update problems occurs in every module
Problems associated with workflow simulations
Must have knowledge about technical issues of HTML and XML, in order to
maintain
Limitations:
Works better only with HTML and SQL data bases
Particularly limited to the mid market sectors, not suitable for small
businesses
Source code is more vulnerable to data errors
Danger of going to closed source
More time consuming installation process
Limited accountability and scalability
SID: 3068607 Page 11
M06EKM 2010/2011
3. Openbravo:
Openbravo is an open ERP type of application, especially designed for small and
medium sized businesses. It is a web based open ERP software, which includes
many robust functionalities which are considered part of extended ERP: procurement
and warehouse management, project and service management, production
management and financial management.
(Source: http://www.yelmon.co.th/main/index.php?
option=com_content&view=article&id=1154&Itemid=471)
Open bravo supports the fallowing modules and capabilities
Master data management
Sales management and CRM
Financial management
SID: 3068607 Page 12
M06EKM 2010/2011
Business intelligence
Accounting
Production managing
Advantages:
Includes necessary functionality for complex retail management process
Allows integration with point of sale equipment, which improves sales process
Allows dynamic development and updates
Compatibility with windows and free operating system Linux
Detailed documentation
Includes simple and aesthetic graphic interface
Proper management of master data
Disadvantages:
Not suitable for large organizations
Complex installation process, includes several software installations
SID: 3068607 Page 13
M06EKM 2010/2011
Manufacturing module was not fully developed
Having problems with logins and module management
Specific training required to maintenance
Limitations:
works only with oracle database
supports only windows xp and earlier versions of operating systems
High speed internet connection is necessary to run the software
Completely web based process
4. Apache OF Bix/Opentaps:
Opentaps is an open source ERP software, it includes a set of enterprise modules
that integrates and automate many of the business processes of an organization.
The main applications of open taps are online store, CRM, warehouse applications,
financials, purchasing etc.
SID: 3068607 Page 14
M06EKM 2010/2011
(source: http://stricltyebusinessexpo.com/index.php?key=Integration)
The key modules of Opentaps are
Online store
CRM
Purchasing
Finance
Warehouse application
Administrative application
SID: 3068607 Page 15
M06EKM 2010/2011
Advantages:
Service oriented architectures
Allows group specific pricing
Online store promotion engine
Fully developed Point Of Sales (POS)
Works with all major databases
Simple installation process
Disadvantages:
Lack of clarity in documentation
Many users facing problems in serialization of inventory
Knowledge about java and apache softwares is a must
Does not support HTML databases
Limitations:
Limited licensing under apache Biz
Does not works with older versions of windows operating systems
Limited to small size businesses
SID: 3068607 Page 16
M06EKM 2010/2011
Purely limited to technical people
5. XTuple:
XTuple PostBooks Edition is a full-featured, fully-integrated accounting, ERP, and
CRM system, based on the award winning xTuple ERP Suite. Built with the open
source PostgreSQL database and the open source Qt framework for C++, it
provides the ultimate in power and flexibility for a range of businesses and
industries.
SID: 3068607 Page 17
M06EKM 2010/2011
(source: http://sourceforge.net/project/screenshots.php?group_id=196195)
It includes the fallowing modules
CRM
Sales
Accounting
Purchase
Manufacturer
SID: 3068607 Page 18
M06EKM 2010/2011
Maintenance
Advantages:
Large number of users
Suits for all sizes of business
Completely comprehensive in terms of functionality
Robust and reliable source code than any other open source
Completely integrated CRM
Very much user friendly
Disadvantages:
Some inconsistency in order tracking
Hidden installation costs
Complex to customize the finance and accounting modules
Complexity in creating backup for customer and order details
Limitations:
Limits the transactions completely to the database server
Completely object oriented but not order oriented
Limitations regarding to the liabilities
Limited consulting and support
SID: 3068607 Page 19
M06EKM 2010/2011
Which open source ERP to choose?
As our company have already using SAP ERP, it is better to choose an ERP,
which can be used as a substitute to that, which intern reduces the cost of training
the staff and inconsistency in the implementation. In my study, I observed that
ERP5 is the best open source substitute for SAP ECC. I am suggesting my boss to
look over this.
Why ERP5?
From the date of beginning, ERP5 was recognized as an excellent and
outstanding open source. The source code was very user friendly and easily
customizable everywhere.
Internet based solutions
ERP5 can be easily configurable by using the internet through any web browser.
Access through all over the world:
ERP5 is providing global level support, by hosting a single web site, which can be
accessed through all over the world over high latency VPN without loss of
performance and usability.
Multilanguage support:
SID: 3068607 Page 20
M06EKM 2010/2011
ERP5 supports many languages all over the world, which intern leads to easy
localization including Asian languages and regions
Web based configuration:
The source code of the ERP5 can be easily customizable through any internet
web browser. All the configuration tasks including class definition, workflow design,
and Python scripting or category management can be achieved with a browser.
Innovative design
Simulation based planning
Multi category design
Unified business model
Advantages over technology
ERP5 is very innovative in using the recent information technologies
Clustering support:
The innovative design of ERP5 supports clusters of inexpensive Linux servers to
provide high scalability. The ERP5 clusters can be monitored through a graphical
interface and fine tuned in order to get high performance
Built-in data warehousing engine:
SID: 3068607 Page 21
M06EKM 2010/2011
In general ERP5 stores data, entered by the user without further processing. This
process guarantees that the data will remain consistently, for a long time. To
provide efficient reporting, ERP5 includes a flexible datawarehouse engine which
converts information entered by users into pre-processed data optimised for efficient
table based reporting. ERP5 itself embeds a fast PDF reporting engine which is used
in many financial institutions.
Built-in synchronization engine:
ERP5 consists of a built-in synchronization engine to enable deployment on
remote sites with unreliable network connectivity or to enable mobile users to bring a
complete ERP5 system to their laptop and synchronise it later.
SID: 3068607 Page 22
M06EKM 2010/2011
Reasons to choose ERP5:
Completely open sourced
Well planned design
Less complex and user friendly
Good community backup
Ease of installing the modules
More than 201+ modules
Inbuilt CRM, BPM, Project Management
Cost effective
Well recognized position in the market
Well managed change management capabilities
Commitment to the results
SID: 3068607 Page 23
M06EKM 2010/2011
Experience in dealing big projects at global level
In depth infrastructure expertise
Strategic partnership with the biggest ERP vendors (SAP, Oracle etc.)
Extensive sector and function specific expertise
Unified business model
Excellence in both business and technical issues
Implementation of an enterprise system:
There are several issues in implementing an ERP system including testing and
training. A detailed diagram of implementing an ERP system in steps was shown
below:
SID: 3068607 Page 24
M06EKM 2010/2011
(Source: http://www.vsiapparel.com/application_integration.htm)
The steps involved in the successful implementation of an enterprise wide system
are
1 Strategic planning
2 Review of the procedure
3 Data collection and clean-up
SID: 3068607 Page 25
M06EKM 2010/2011
4 Testing and training
5 Go practical and evolution
1. Strategic planning:
This involves several issues
Assigning a project team:
Forming a team of employees for the implementation of the new project, from all the
departments.
Analyze the current business process:
Analysis of current business situations by examining the important documents such
as invoices, batch bills etc and cost of ownership
Set the goals and objectives:
The objects and goals should be clearly defined, before the implementation process,
such as which modules have to be implemented, how the training should be
provided etc.
Enhancing the project plan:
The team should develop a project plan which includes previously defined goals and
objectives, timelines, training procedures, as well as individual team responsibilities.
SID: 3068607 Page 26
M06EKM 2010/2011
The end result of the project plan should be a “to do” list for each project team
member.
2. Review of the procedure:
Review of software capabilities:
Review the software capabilities and educate each and every group members about
the pros and cons of the new software.
Discover the manual processes:
Identify the processes which have the involvement of human activities and have to
be integrated with the ERP system.
Identify the operating procedures:
Prior to the implementation, educate your staff about the operating procedures of the
software, such as price changes, order processing etc
3. Data collection and conversion:
Data conversion:
Determine which data of the old system has to be converted which outdated data
has not to be converted.
Data collection:
Determine the new data that has to be collected and identify the source of this new
data.
Data clean-up:
Identify the unneeded data from the newly entered data and clean-up this unneeded
and outdated data from the data base.
4. Testing and training:
SID: 3068607 Page 27
M06EKM 2010/2011
Test before implementation:
The whole team has to be test the software, prior to the implementation whether it is
working properly or not and verify the each output.
Verify the testing:
Verify the complete testing procedures and outputs performed by the team members
and determine which modifications have to be made.
Perform final testing:
The final test has to be performed by the project members, after the training was
finished and determine any adjustments that have to be made.
5. Go practical and evolution:
Develop the final list of criteria to go practical with the software such as
Business processes
Module modifications
Availability of the vendor online
The documentation and support from the vendor
Implementation process guide
Training provided to all the staff etc.
SID: 3068607 Page 28
M06EKM 2010/2011
References:
1. (n. d.) open source applications [online] available from <http://www.business-
software.com/download-offer.php?
k=cGRmPSUyRnBkZiUyRnRvcF8yMF9lcnAucGRmJnRpdGxlPVRvcCsyMCtF
UlArU29mdHdhcmUrVmVuZG9ycytSZXBvcnQmcmQ9MTI5MjA2NTc5Ng
%3D%3D> [31-dec-2010]
2. (n. d.) top 5 erp softwares [online] available from
<http://www.erpsoftware360.com/erp-open-source.htm> [16-dec-2010]
3. (n. d.) Compiere ERP & CRM [online] available from
<http://www.aimserve.com/en/product.html> [16-dec-2010]
4. (n. d.) compiere advantages [online] available from
<http://www.viennasolutions.com/compiere-advantages.html> [18-dec-2010]
5. (n. d.) compiere vs. open bravo [online] available from
<http://www.transitionaldata.com/insights/TDS_Compiere_vs_Openbravo_010
9.pdf> [21-dec-2010]
6. (n. d.) open source ERP alternatives [online] available from <http://apps.open-
libraries.com/19-opensource-erp-alternatives/> [24-dec-2010]
7. (n. d.) xtuple ERP [online] available from <http://www.openreports.org/blog?
page=8> [25-dec-2010]
8. RAY.D (n. d.) advantage and disadvantages of various open source ERP
[online] available from
<http://www.linkedin.com/answers/technology/information-technology/
databases/TCH_ITS_DBS/675082-45275596> [01-jan-2011]
9. Sean W.O' Donnell (n. d.) Implementation of new ERP software [online]
available from <http://www.datacorinc.com/articles/news/erp.pdf> [04-jan-
2011]
10. (n. d.) Why ERP5? [online] available from <http://www.erp5.com> [04-jan-
2011]
11.Module notes by Mr. Nick Wright-2010
SID: 3068607 Page 29