Examples of open source ERP systems

M06EKM 2010/2011

Implementation of open source ERP applications for an

organization

SID: 3068607

M06EKM 2010/2011

FACULTY OF ENGINEERING AND COMPUTING

Enterprise systems

MODULE LEADER: Nick Wright

SUBMITTED BY: Siddhardha Karanam

SID: 3068607

SID: 3068607

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

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

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

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

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

http://www.aimserve.com/en/product.html

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

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

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

http://www.erp5.com/feature

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

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

http://www.yelmon.co.th/main/index.php?option=com_content&view=article&id=1154&Itemid=471

http://www.yelmon.co.th/main/index.php?option=com_content&view=article&id=1154&Itemid=471

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

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

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

http://stricltyebusinessexpo.com/index.php?key=Integration

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

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

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

http://sourceforge.net/project/screenshots.php?group_id=196195

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

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

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

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

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

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

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

http://www.vsiapparel.com/application_integration.htm

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

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

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

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

Examples of open source ERP systems

Documents

Transcript of Examples of open source ERP systems