Open ERP Business Model

Nom du fichier – à compléter&A Management Presentation

Open ERPOpen Source Business Model Explained

- Fabien Pinckaers, CEO Tiny -

Cercle du Lac, 2010


● Director of 4 companies● Web Development● Tiny SPRL● Tiny At Work (Canada)● Tiny ERP India

● Projects:● Auction-in-europe.com (1997-Today)● Openstuff.net (1998-2005)● OpenERP (2004-Today)

● Author of Management Books

Fabien Pinckaers

CEO OpenERP

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● Editor of Open ERP● Full featured enterprise management software:

accounting, crm, sales mgt., manufacturing, project mgt, stocks, document management system, etc.

● 80 employees, self-financed and profitable

OpenERP

Open ERP, The product

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A strong product:• Full featured ERP (500 modules).

The most advanced on the market for SMEs.

• A well known mark: Open ERP• Happy references (La poste, ENA, …)

A very healthy ecosystem:• A dynamic community (1000/300

contributors)• A strong partner network (22

countries)• A world-wide demand (85 leads per

day) A profitable business:

• Team of 85 employees

Introduction

A disruptive Open Source Management Software

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182

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730

1093

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65

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2005 2006 2007 2008

Headcount

Keur

Revenues Net Result Total Headcount

Revenues & Staff


How did we achieve this ?

Open Source / Free Software

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Open Source Licence (GPL) The freedom to:

• Run the program• Study the source code• Distribute the software• Redistribute

The snowball effect !

Open Source / Free Software

It's all about freedom !

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Fast growth / Low R&D Budget

Tiny, because size matters !

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Open Source + Concentration effect:Strong brand & real market penetration

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Marketing & PR

ReferencesPartners : over 60 in 22 countries

Google Trends: OpenERP/Netsuite✔ Netsuite: 80M€ in sales and

marketing in 2008✔ OpenERP: 200k€ budget Sales &

Marketing in 2008


But how to make money ?… lots of money

Monetization & Open Source

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SAP's Income Statement

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Proprietary Business Model (*) Open ERP

25% 25%

45% 45%

15%

20%

20%

32% 20%

30% 30%8% 5%

Licences R&D G&A R&D G&A

(*) Based on SAP's annual financial report 2008.

Other Services

Support Maint.

Sales Marketing

Cost Services

Other Services

Support Maint.

Sales Marketing

Cost Services

Let's have a look at competitors that make lots of money...


Business Model

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SaaS Editions SupportPartner

ServicesSmall Projects (0-50 users) XXX X

Medium Sized (<100 users) XX X

Bigger Projects (>100 users) XXX X

Partners XXX


A lack of 25% in sales (no licences) but:● Fast growth of the product (low R&D costs)● Low sales & marketing investment● High distribution of the mark & product at

low costs

No licences revenues...… but higher margins !

Summary

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• Open ERP : http://openerp.com• On Demand Offer: http://odoo.com• Fabien Pinckaers

• [email protected]• +32.81.81.37.00

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More Information ?

http://openerp.com/

Open ERP Business Model

Business

Transcript of Open ERP Business Model