Technology As Innovator

3. ERP System Characteristics

• Modular design comprising many distinct business modules such as financial, manufacturing, accounting, distribution, etc.
• Use centralized common database management system (DBMS)
• The modules are integrated and provide seamless data flow among the modules, increasing operational transparency through standard interfaces
• Flexible and offer best business practices
• Require time-consuming tailoring and configuration setups for integrating with the company’s business functions
• Modules work in real time with online and batch processing capabilities
• Internet-enabled
• Financial and business information is often generated automatically by ERP systems based on data previously entered, without further human instructions
• ERP provides business intelligence tools like Decision Support Systems, Executive Information System, Reporting, Data Mining and Easy Warning Systems for enabling people to make better decision and thus improve their business processes

ERP Series Previous Posts

ERP Series vol 1: ERP Definition & Advantages

Free & Open Source Enterprise Resource Planning Software

1. Definition

Enterprise Resource Planning Systems are software systems for business management, encompassing modules supporting functional areas such as

• Planning
• Manufacturing
• Sales
• Marketing
• Distribution
• Accounting
• Financial
• Human Resource Management
• Project Management
• Inventory Management
• Service and Maintenance
• Transportation, logistics and e-Business

The architecture of the software facilitates transparent integration of modules, providing flow of information between all functions within the enterprise in a consistently visible manner. Corporate computing with ERPs allows companies to implement a single integrated system by replacing or re-engineering their mostly incompatible legacy information systems.

2. Advantages of ERP

ERP Series Previous Posts

Free & Open Source Enterprise Resource Planning Software

ERP is free?

At first, I could believe that a highly complex software like that of ERP can be open or free.

However, it is a truth. Some communities are really committed to engage to this sophistication.

Now here it is: ERP comes open-source!

ERP is really free?

I like the way Adempiere depicts the complexion of costs:

“Information Is Free - U have to Know
People Are Not - U have to Pay
Contributors Are Priceless - U have to Be”

Open-source ERP, like any other open-source project, is not totally intended for larger enterprises seeking highly stable software and business partnership.

Open-source ERP makes it possible for SMEs to go in for Enterprise Resource Planning at a more affordable price. This is a wise step of initiators in that this kind of collaboration would benefit both parties.

• Users get the software for free, and pay a relatively reasonable amount for supports and customization
• Some R&D departments from these ‘purchasers’ even involve in developing the software, thus enlarging the community to people inside businesses
• Some companies such as Compiere offer free packages and products with fee. This gives their customers more options

Personally I don’t think the “sense of open-source” including flexibility, community-knowledge, freedom and such is the most significant factor for enterprises to go for these products. They’re simply looking for a product that works with a more affordable price. Instead of doing separate accounting, financial management, CRM, SCM, HRM etc., they have the option to start doing ERP at an earlier stage.

It’s all about Open-source

People in Open-source community have their manifesto. Communities have gone from developing open Operating Systems to open File-Sharing, from Office to Browsers. There is no reason why they can’t be doing ERP now.

Entrepreneurship & OSS

ERP has “enterprise” in it. Correct! ERP OSS is not software for individuals, but for Organizations. Enterprises. And Enterprises do business.

An ERP, though require a tremendous technology commitment, is far less geeky than any other OSS ever developed. It’s business, which so unfortunately a number of geeks take a distance from afar.

Because ERP is developed to solve the problem of and boost business, ERP OSS requires entrepreneurship and business minds! That’s where the leading heads and consultants are called.

Development Prospects

People talk ERP. People use ERP. People do ERP. Everywhere is ERP.

Some sell ERP. Some give ERP for free.

It’s obvious, Open-source ERP is in a terribly good jumpstart to develop. If they can overcome some difficulties such as commitment, simplification of complexity and harmonization of business and technology, the future is bright for them.

And for SMEs too.

Some Open-source and Free Enterprise Resource Planning Vendors

Compiere http://www.compiere.com

Adempiere http://adempiere.red1.org

JFire https://www.jfire.org

Opentaps http://www.opentaps.org

OpenBlueLab http://www.openbluelab.org

OFBiz http://ofbiz.apache.org

SQL-Ledger http://www.sql-ledger.org

WebERP http://www.weberp.org

GNU Enterprise http://www.gnuenterprise.org