Ramanathan-Arun-m06EKM

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Cour s e w or k co v er sheet be sure to keep a c o p y of all w or k s ubmitted for refe r en c e p u rposes

SubmitviaMoodle onlineathtt p ://m oodle.c o v entr y .ac.ukSectionA-TobecompletedbythestudentPLEASEPRINTCLEARLYFamily Name(s)Ramanathan

ModuleNo.

M06EKM

Faculty Date Stamp(or signature and date)

Forename(s)Arun

ID Number(s) (from your student card)

2970961

Time taken (hrs) (per student for group coursework)

Lecturer

Nick WrightLab group / Tutorial group / Tutor (if applicable)

Module Code and Title

M06EKM Enterprise SystemsDue date:

12 January 2011

Assignment No. / Title

Enterprise systems Individual ReportExtensions & late submissions allowed:

Yes

Estimated Time (hrs)

15

Assignment type:

Individual

% of Module

Mark40

Hand out date:

23 November 2010

Penalties: Marks will be reduced by 10% of the original mark for every week late. No work will be accepted that is morethan two weeks late. If you are unable to submit coursework on time due to extenuating circumstances you may be eligiblefor an extension. Full details on Faculty coursework policy and procedures are available athttp://w w w .c o v en tr y .a c .uk/s w ift/Open/Stud e nt/Regulation s /06st c w p r o c .doc

Declaration: I/we the undersigned confirm that I/we have read and agree to abide by the University regulations onplagiarism and cheating and Faculty coursework policies and procedures. I/we confirm that this piece of work is my/ourown. I/we consent to appropriate storage of our work for checking to ensure that there is no plagiarism/ academiccheating.

ArunSignature(s): -------------------------------------- -------------------------------------- -------------------------------------- -----------

SectionB-TobecompletedbytheassessorIntended Learning Outcomes assessed by this work.

(1) Critically evaluate the suitability of enterprise wide systems & their alternatives against established theory(2) Synthesise a strategy for an enterprise wide system implementation based on appropriate theory and

practical experience within a given environment(4) Analyse the limitations, advantages and disadvantages of the use of ERP packagesMarks breakdown Max Awarded

Lists and describes the various Open Source ERP type applications that arecurrently available.Analyses the limitations, advantages and disadvantages of the use of each ofthe ERP type applications you have identifiedJustify the choice of one of the ERP type applications for implementation atyour workplaceDevelop a strategy for an enterprise wide system implementation based onappropriate theory and practical experience mentioned in academic literature

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10

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40Total

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Programme Leader Signature:

Penalty Due:

(Yes / No)

Penalty Final Mark

Signed internal moderator: This work may have been moderated. You may find additionalcomments in the work.

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The Faculty Policy on Assessed Coursework applies to this coursework. You are advised to read theguidelines available at http://www.c o ventry.ac.u k /swift/Op e n /Student/Regu la tions/0 6 s tcw p roc.d oc

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Faculty of Engineering and Computing

Enterprise Systems

M06EKM

Module Tutor

Nick Wright

AssignmentBy

Arun Ramanathan (2970961)

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TABLE OF CONTENTS

1. Introduction 5

2. Open Source ERP 6

3. List of Open Source ERPApplications 6

3.1 SQL- Ledger 6

3.2 ERP5 7

3.3 COMPIERE 8

3.4 Opentaps-OfBiz 9

3.5 xTuple 9

4. Pros and Cons of Different Open source ERP System 10

5. Recommended/Apt Open source ERP 11

6. Strategy for Implementing ERP System 11

7. Conclusion 12

8. Bibliography 13

Note

Actual Word Count :2144

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1. INTRODUCTION

In todays challenging business world, companies try to out play their competitors by

providing goods to customers with faster service and at lower cost. How is it possible? This is

achieved by having an effective integrated information system. Efficient management of the

business process depends on the efficiency of the information system. Companies prove to be

more competitive when a company has an efficient business process. The above process of

integrating the various operations of a business can be done with a help of an Enterprise

Resource Planning (ERP) systems. ERP systems integrate all the business processes of a

company into a centrally shared database which is available to all the functional areas of the

company. During 1960s and 1970s manufacturing softwares were developed and which led to

evolution of Material Requirements Planning (MRP) softwares, these softwares were run on

mainframe computers. Business documents were exchanged by the direct computer to computer

technique called Electronic Data Interchange (EDI), which allowed companies to deal

electronically with the purchasing process.ERP came into existence from the early 1990s though

many believed that it is the improvisation of the early MRP 1 and MRP 2 softwares. Many

companies came with different ERP softwares namely SAP, larson software, oracle and Bann

corporation.

The below report will showcase the various open source ERP type application that are currently

available in the market, and analyses their pros & cons. The report will also suggest the company

to choose the apt ERP type application. This will follow up with developing a strategy for an

enterprise wide system implementation.

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2. OPEN SOURCE ERP

The companies are allowed to download these software programs for free and use them. The

important factor is that the source code is also available. Some of the features of Open Source

ERP are as follows:

Low cost

The most important advantage of open ERP application is that when companies find it difficult

task to pay the excess money for the renewal of the existing license system. The above problem

is completely avoided with the help of intervention of open source ERP.

Relying less on the vendor

Open Source ERP application reduces the dependence on vendor. The company can saveenormous amount of time and money by reducing the dependency on the vendor. Open source

ERP provides everything including source code which helps the companies to customize

according to their own specifications. In case of any issues with the open source ERP the

company need not entirely depend on the vendor to solve the issue.

Some of the other reasons for the popularity of open source ERP are as follows

Flexibility

Easy to understand and use

Training and security and so on.

3. LIST OF OPEN SOURCE ERP APLLICATIONS

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3.1 SQL -Ledger

SQL Ledgeris an open source ERP type application used in the core areas like accounting, order

processing and stock control and it is said to follow a traditional architecture. SQL Ledger uses

PostgreSQL, which is a highly valued and error free open source database system, for datastorage, but it can also be used with databases like oracle and DB2.SQL Ledger is available for

free from DWS Systems Inc. DWS Systems Inc is the main developer, it also provides free

services like documentation, support and customization services. SQL Ledger is an accounting,

commercial and production application used mainly by small enterprises and some medium

enterprises which has basic requirements.

The software also includes reference manual, ER diagrams, and integration and customization

examples along with these, it give access to the current development version. The project is often

reviewed in the media.SQL Ledger partners are located in Australia, Italy, Belgium, Switzerland,

Holland, United Kingdom and United States of America . The tracking of bugs and versioning of

the systems are not made public. Often support of the developer is offered on a commercial

basis.

OS Compatibility- Windows, Linux, UNIX, Mac OS

Database Compatibility- IBM DB2, Oracle, PostgreSQL

3.2 ERP5

Another type of open source ERP application is the ERP5, which is said to have transparency,

flexibility and evolutivity. Since ERP5 is an open source ERP solution it requires no license and

available free over the internet. ERP5 allows its users to interact with the developers for

assistance using its own user community which also allows the users to share their ideas.ERP5

depends largely on XML technologies and is also believed to have a flexible framework for

developing business applications, as it is capable of adjusting to various business models without

having to pay high costs for maintenance.

ERP5 was initiated in 2001 by 2 companies namely Nexedi; a Zope open source application

provider and Coramy; apparel manufacturing company .This software was developed to provide

ERP solutions to SMEs. Additional to the source code, the software also provides education

material which clearly defines the theoretical model. Some of the core components of ERP 5 are

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Planning

Customer Relationship Management (CRM)

Content Management System

E-Business

Groupware

Product Data Management

HR

Accounting

Manufacture Requirements Planning.

OS Compatibility- Windows, Linux, UNIX45, Mac OSDatabase Compatibility- ZOPE DB.

3.3 COMPIERE

Compiere is yet another open source ERP application used by most of the medium size

companies. Compiere is totally java based built on oracle technologies along with J2EE

standards. It is platform independent and supports many databases. Nowadays, Compiere is said

to be the one of the most popular open source ERP system. The community is said to very activehaving more than 660,000 downloads since 2002. The forum has 50,000 and more unique

visitors per month. Compiere first production took place in the year 2001 and it is available with

Mozilla license version 1.1. Compiere operates well in retail, distribution and service areas of a

medium sized company. Though Compiere is handy it is rated second in its functionality mainly

because the Saas (Software as a Service) option which is yet to be available for its users.

Compiere isnt going great among the ERP solutions but feels like it can catch up in the list once

it adds Saas to its current offerings. Some of its functionalities are as follows

Whole of the sales process starting from customer, pre sales activity and order which are

considered to have strong functionality is done through Quote to Cash.

The whole supplier process is carried out using Requisition to Pay.

CRM is integrated with other modules.

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Basic inventory system is integrated with the core ERP system and is carried out using

Web store.

Additional to all the above functionalities service and project management facilities are

also available.


Database Compatibility-Sybase, Oracle

3.4 OPENTAPS- OfBiz

Opentaps is an open source ERP which is said to be the available version of the OfBiz that offers

patches for upgrade and other stable releases. OfBiz stands for Open for Business; the

architecture of the software is designed for developing custom business applications in the

enterprise. Initially the company focused on providing e-Commerce solutions, later it developed

its framework into an ERP development platform. The software is focused on the business

retailers, manufacturing and distributors. The functionality of the software includes modules for

inventory management, e-commerce, sales order, CRM, manufacturing and content management.

The software is released under a GPL license which gives an additional option of buying it as a

commercial license. It also supports different sites, different costing methods and different file

oriented interfaces to applications of general ledger. The forecasting and planning of the budget

is carried out using the data model.


Database Compatibility-MySQL, PostgreSQL, Oracle, DB2, Microsoft SQL

3.5 xTUPLE

xTuple was initially known as OpenMFG which started its development in early 2000. xTuple is

generally used in small and medium size companies and manufacturers. In 2007, the company

released its postbooks edition; an open source ERP system. The software is available for free, it

is a CRM and accounting fully integrated system. The software functionality includes the

modules such as Accounting, Sales, Purchasing, Pre sales, Inventory management and

manufacturing, open-source report writer. The software is licensed by CPAL. xTUPLE provides

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its customers an opportunity to experience the software by allowing free hosted demo for its

manufacturing edition.

xTuple gives more importance and focus on ERP to that of CRM. xTuple can make it bigger in

the global market along with its competitors if the company can find a way to integrate its

different offerings including PostBooks, Standard, and OpenMFG.


Database Compatibility- PostgreSQL, xTUPLE DB.

4. PROS AND CONS OF DIFFERENT OPEN SOURCE ERP SYSTEMS

The below table will summarize the pros and cons of different open source ERP systems.

OPENSOURCE ERP PROS CONS

SQL LEDGER

Web based and secure.

Easy to install and use

Used for any type of

organisation

Missing payroll managemen

Difficult to program.

Not suited for perso

finance.

ERP5

Simulation based planning.

Unified business.

Built-in Data warehouse.

Web based multilingual

interface.

Limitations with dynam

accessor generating system.

Multiple ERP instan

problem.

COMPIERE

Better Completeness.

Robust.

Non- Constraining.

Faster and easy implementation.

Better functionality than other

OSS.

Model driven architecture.

Its not Database independe

Less Publicity.

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OPENTAPS-OfBiz

Possibility of multilevel BOM.

Variety of different functions.

Easy installation of the software.

Unclear work plans.

Problem of multitasking.

5. RECOMMENDED/Apt OPEN SOURECE ERP

Selection of an appropriate open source ERP system can be made by considering different

functionalities of the software and also depending on the companys requirement. As stated the

company had been using SAP ECC, since the cost involved in configuration and licensing cost

prove to be heavy, so we now recommend an alternative open source ERP. The most suited and

recommend open source ERP is undoubtedly Compiere. Selection was done keeping in mind the

following.

Functionality score- 3.3 (on the scale of 5)

Customizations- Highly flexible Meta data customization.

Usability/ User Experience- Flexible layout.

Security- Highly granulated user access control.

Architecture-2 and 3 tier architecturesupport.

Along with the above criterias OS and DB dependence as discussed under each Open source

ERP are also taken in to consideration.

Benefits

Customization and implementation cost are inexpensive.

Lower upgrading cost.

Less programming to adapt to new business requirements.

Satisfying customer service.

Compiere has integrated rich business functionality

Better for medium sized companies.

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6. STRATEGY FOR IMPLEMENTING ERP SYSTEM

Step I: Analyze the Requirement

The first step of any company before implementing an ERP system is to analyze the companys

current requirement. ERP tools are basically general tools which might be well suited for a

companys specific requirement. Whatever may be the company, may it be a manufacturing

company or distribution company it requires a system to track all orders, materials, and

inventory. Determining the requirement functionality is important in building an ERP strategy.

Find the apt ERP and analyzes the efficiency.

Step II: Asses the organization readiness

The implementation of ERP will be the complex process that a company undertakes. It is better

to perform a GAP and SWOT analysis before implementing a ERP system. This type of

readiness assessment is essential but only very few companies perform them.

Step III: Vendor Selection

Only few companies implement an ERP system on their own. Often companies try to find a

service provider helping with the implementation. There many vendors that help companies to

understand the requirements and to analyze the importance of ERP with the current

infrastructure. A company must ensure its constant interaction with the vendor technically and

financially. If the companies are rooted to open source and if the vendor tries to guide towards

proprietary software, better move to another vendor.

Step IV: Product selection

After performing the above steps a company must be in a position to select a apt product for

implementation. If the company is left with too many options then it is suggested to choose a

product that suits the companys infrastructure and technical specification. Choose a product that

should satisfy the default features and addresses the company target goal.

Step V: Implement the system

To ensure a smooth functioning and implementation, a well designed plan is vital. It is alsoimportant to ensure that development of new system should not affect the companys current

datas. At the same time end users must also be kept in mind while implementing an ERP

system, any crashes in technical or non technical aspect will prove to be a great loss to the

customer.

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7. CONCLUSION

It is recommended to implement an open source ERP for a company, as it offers a wide range of

functionality to make the business function more efficiently and profitably.

8. BIBLIOGRAPHY

Alpenconsulting (2010) xTuple ERP [online] available from [2011]

B. Johansson and F. Sudzina (2008) 'ERP systems and open source: an initial review and some

implications for SMEs.' Emerald Group 21, 649-658. Available from < http://

www.emeraldinsight.com/1741-0398.htm > [2011]

CRM (2008) Open Source CRM[online] available from

[2011]

Ellen F. Monk.(2009) Concepts in Enterprise Resource Planning. USA: Course Technology

Java-source.net (2010) Open Source & CRM[online] available from < http://java-

source.net/open-source/erp-crm> [2011]

Linux-Kongress (2009) Open Source ERP solutions [online] available from < http://www.linux-

kongress.org/2009/slides/opensource_erp_falk_neubert.pdf> [2011]

Minh Q. Huynh Hung W. Chu (2010) 'EXPLORING THE OPEN-SOURCE ERP

ALTERNATIVE FOR TEACHING BUSINESS PROCESS INTEGRATION IN SUPPLY

CHAIN MANAGEMENT.' New Orleans 14, 32-36. Available from [2011]

Moverve (2010)Review of SQL-Ledger[online] available from [2011]

Nickmutt (2010) Types of ERP software [online] available from [2011]

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http://www.openjamb.com/downloads/Compiere/Compiere%20Brochure.pdfhttp://www.emeraldinsight.com/1741-0398.htmhttp://content.ebscohost.com/pdf9/pdf/2008/T5D/01Sep08/34193401.pdf?T=P&P=AN&K=34193401&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqe4TLWWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://content.ebscohost.com/pdf9/pdf/2008/T5D/01Sep08/34193401.pdf?T=P&P=AN&K=34193401&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqe4TLWWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://content.ebscohost.com/pdf9/pdf/2008/T5D/01Sep08/34193401.pdf?T=P&P=AN&K=34193401&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqe4TLWWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://java-source.net/open-source/erp-crmhttp://java-source.net/open-source/erp-crmhttp://java-source.net/open-source/erp-crmhttp://www.linux-kongress.org/2009/slides/opensource_erp_falk_neubert.pdfhttp://www.linux-kongress.org/2009/slides/opensource_erp_falk_neubert.pdfhttp://content.ebscohost.com/pdf23_24/pdf/2010/84O5/01Apr10/51381171.pdf?T=P&P=AN&K=51381171&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqa4SLGWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://content.ebscohost.com/pdf23_24/pdf/2010/84O5/01Apr10/51381171.pdf?T=P&P=AN&K=51381171&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqa4SLGWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://content.ebscohost.com/pdf23_24/pdf/2010/84O5/01Apr10/51381171.pdf?T=P&P=AN&K=51381171&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqa4SLGWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://moverve.com/blog/review-of-sql-ledger/http://moverve.com/blog/review-of-sql-ledger/http://www.nickmutt.com/types-of-erp-software.htmhttp://www.openjamb.com/downloads/Compiere/Compiere%20Brochure.pdfhttp://www.emeraldinsight.com/1741-0398.htmhttp://content.ebscohost.com/pdf9/pdf/2008/T5D/01Sep08/34193401.pdf?T=P&P=AN&K=34193401&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqe4TLWWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://content.ebscohost.com/pdf9/pdf/2008/T5D/01Sep08/34193401.pdf?T=P&P=AN&K=34193401&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqe4TLWWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://content.ebscohost.com/pdf9/pdf/2008/T5D/01Sep08/34193401.pdf?T=P&P=AN&K=34193401&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqe4TLWWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://java-source.net/open-source/erp-crmhttp://java-source.net/open-source/erp-crmhttp://www.linux-kongress.org/2009/slides/opensource_erp_falk_neubert.pdfhttp://www.linux-kongress.org/2009/slides/opensource_erp_falk_neubert.pdfhttp://content.ebscohost.com/pdf23_24/pdf/2010/84O5/01Apr10/51381171.pdf?T=P&P=AN&K=51381171&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqa4SLGWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://content.ebscohost.com/pdf23_24/pdf/2010/84O5/01Apr10/51381171.pdf?T=P&P=AN&K=51381171&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqa4SLGWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://content.ebscohost.com/pdf23_24/pdf/2010/84O5/01Apr10/51381171.pdf?T=P&P=AN&K=51381171&S=R&D=bth&EbscoContent=dGJyMNLr40Sep684yNfsOLCmr0mep7VSsqa4SLGWxWXS&ContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIAhttp://moverve.com/blog/review-of-sql-ledger/http://www.nickmutt.com/types-of-erp-software.htm


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Openjamp (2010) Compiere ERP & CRM[online] available from [2011]

Ronald E. McGaughey (1994) 'Benchmarking: An International Journal.' Emerald Group 14,

463-577. Available from [2011]

Viennasolutions (2010) Compiere ERP & CRM[online] available from [2011]

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http://www.openjamb.com/downloads/Compiere/Compiere%20Brochure.pdfhttp://www.emeraldinsight.com/journals.htm?issn=1463-%205771&volume=14&issue=4&articleid=1615886&show=htmlhttp://www.emeraldinsight.com/journals.htm?issn=1463-%205771&volume=14&issue=4&articleid=1615886&show=htmlhttp://www.viennasolutions.com/compiere.htmlhttp://www.openjamb.com/downloads/Compiere/Compiere%20Brochure.pdfhttp://www.emeraldinsight.com/journals.htm?issn=1463-%205771&volume=14&issue=4&articleid=1615886&show=htmlhttp://www.emeraldinsight.com/journals.htm?issn=1463-%205771&volume=14&issue=4&articleid=1615886&show=htmlhttp://www.viennasolutions.com/compiere.html

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