IT Leaders, Vertex Distribution and Prevention Partners
The future of ERP may lie with open source
Kavya SS PGP/14/276 Kritika Gupta PGP /14/277 Kulbhushan Baghel PGP/14/278 Lokesh Singh PGP /14/279 Mahtaab Kajla PGP/14/280
Submitted by: Group: H-31
Agenda
Q & A Session
Open Source ERP
Case Analysis
Current Situation: Pros and Cons
Introduction - ERP
Presentation Time: 12 mins
Q & A Session: 3 mins
What is ERP?
ERP is the technological backbone of the e business, an
enterprisewide transaction framework with links into sales
order processing, inventory management and control,
production and distribution planning, and finance.
Source: James A O’Brien, George M Marakas and Ramesh Behl 9e
ERP Evolution
Flexible ERP
Web Enabled ERP
Interenterprise ERP
E-Business Suites
Features: ERP
Based on a common database and a modular
software design
Cover a wide range of functions and integrate
them into one unified database
Gives a company an integrated real time view of
its core business processes
Current Situation
Oligopoly: Oracle and SAP biggest vendors
No pressure to innovate or slim down because of lack of
competition
These vendors targeting only large enterprises
Vendors providing packaged applications to small
enterprises, thereby limiting the customization
Small and midsize enterprises finding it very difficult to
replace or customize old ERP systems
ERP deployments are in-house teams or system
integrators, not the commercial software vendors
ERP: Advantages
ERP
Decreased costs Quality and Efficiency
Shorten cycle
time
Improve overall operations
Reduce Inventories
Decision Support &
Enterprise Agility
ERP: Disadvantages
A Replacements
B
C
D
Big & Expensive
Customization
More time and money
Failures
High Costs of Installation
Low efficiency Connectivity issues with other databases due to proprietary
methods that don’t allow competitive systems to access them
Vertex Distribution
Decision Maker: Mark Alperin, COO with CIO responsibilities
Company Profile:
Manufacturer and distributors of screws, rivets and other
fasteners
Issues:
Wanted to replace existing ERP systems due to lack of
flexibility
Old ERP system not built around relational database
Didn’t offer customization freedom which was essential for
the company’s growth
Unhappy with the 2 main packages for his industry, from
Activant solutions and Microsoft
Vertex Distribution
After consultation with systems integrator, chose to use the
Compiere open-source ERP suite
Using an open source base eliminated 30-50 % of the
coding needed.
Resulted in flexibility to customize services and move
quickly on business needs
Ability to control their own destiny
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Prevention Partners
Decision Maker: Scott Rosa, CTO
Company Profile:
Makers of prevention program posters, buttons and other
health related signage
Issues:
Its windows based ERP software could not scale with its
growth and was becoming unreliable
Large vendors like Oracle, SAP and Baan were out of there
price range
Mid market oriented vendors were cheaper than the larger
vendors but had high licensing and customizing costs
Prevention Partners
Company deployed open-source WebERP software for its
manufacturing arm resulting in freedom of customization
Money saved on licensing was redirected to additional
efforts
Resulting in a better fit with the company
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Shifting the trends: Open Source
ERP
Formerly known as Tiny ERP; 500+ modules
Enables an organization to control and optimize its
activities
Complete and Feature Rich – ERP and CRM System
Free of charge
Code available – Case of Vertex Distribution
Redistributions of versions under GNU.
Marketing overhead is reduced
Quality of resulting software benefits greatly from the
expertise of contributors and partners
Differentiated Modules
Improved Visibility and Control
Free Integrated Tools
Next emerging
technology –
Gregor bailar, CIO,
Capital One
Proprietary vs. Open Source
Business Model
Software Costs
Study System
0-10%
Licensing Cost
30-40%
Service of Integration
50-70%
Study System
0-10%
Service of Integration
50-70%
Fast Growth of Product
Surplus can be diverted
Win – Win Relationship between community,
partner and network
Proprietary Business Model
Open Source Business Model
Open Source ERP
Major Open Source ERP vendors
Questions
