IT Leaders, Vertex Distribution and Prevention Partners The future of ERP may lie with open source

Group: H-31 Submitted by:

Kavya SS PGP/14/276 Kulbhushan Baghel PGP/14/278 Mahtaab Kajla PGP/14/280

Kritika Gupta PGP /14/277 Lokesh Singh PGP /14/279

Agenda

Introduction - ERP Current Situation: Pros and Cons

Case Analysis

Open Source ERP

Q & A Session

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 OBrien, George M Marakas and Ramesh Behl 9e

ERP Evolution

E-Business Suites

Interenterprise ERP
Web Enabled ERP

Flexible ERP

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

Quality and Efficiency

Decreased costs

Reduce Inventories

ERP

Shorten cycle time

Decision Support & Enterprise Agility

Improve overall operations

ERP: Disadvantages

Replacements
Big & Expensive

Customization
More time and money

B C
High Costs of Installation

Failures

Low efficiency
Connectivity issues with other databases due to proprietary methods that dont 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 Didnt offer customization freedom which was essential for the companys 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

IT SOLUTION

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
IT SOLUTION

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 Next emerging technology Improved Visibility and Control Gregor bailar, CIO, Free Integrated Tools Capital One

Proprietary vs. Open Source Business Model

Open Source Business Model

Win Win Relationship between community, partner and network

Study System 0-10% Service of Integration 50-70%

Software Costs
Proprietary Business Model

Study System 0-10% Licensing Cost 30-40%

Fast Growth of Product Surplus can be diverted

Service of Integration 50-70%

Open Source ERP

Major Open Source ERP vendors

Questions