introduction to open erp
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Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need OpenERP?
OpenERP: Open Source Business Application
Alex Rayón Jerez © 2011Atlantis – IBIM Program at the University of Deusto
29th of March 2011
Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Main objectives
Explain and detail why any given company should deploy an ERP information system within its organization
Expose the main advantages of adopting an Open Source Business Application
Brief review of OpenERP as a tool that improves the management of enterpresarial resources
Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Table of contents
Introduction to Information Systems Why does my company need and ERP solution? ERP implementation What is OpenERP? OpenERP project OpenERP community OpenERP technology How does OpenERP do business? Implementation approaches
4Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsOrganizational management
21st Century organization: coordinated decision-taking process → any given employee must have access to any given resource withing the company
We need an information system to make that possible→ “A set of organized elements that receive information, process it and generate a result that will later be used to achieve some of the established goals”
In the business management field, we will mainly be interested in business information systems (also known as management information systems)
“A business or management information system is a set of people, technologies and procedures that resolve business problems”
Compared to other information systems, these ones mainly focus in automatizing and giving support to the decision taking process
They play a key role within organizations
They channel information along different departments in the company
5Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsComponents
Humancomponent
Technologicalcomponent
Organizationalcomponent Information
InformationInformation
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Introduction to Information SystemsEverything is about information
Data: gathered facts within the organization. They are raw data, this is, not processed yet
Information: processed data and presented personalized to the end-user
Knowledge: solutions for problems. Needed information and rules to resolve some given problems
Wisdom: it simulates the behavior of an expert in a particular domain (expert systems, Data Mining, etc.)
Intelligence
-
+
7Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsHistory
ERP: 1990
MRP II: 1970
MRP: 1960
Controlling Sales & Distribution Material management
Financial accounting
Investment management
Personal management
Quality management
Human Resource Management
Plant maintenance
Sales & Operations Planning
SimulationForecasting
Master Production Schedule
Material Requirements Planning
Capacity Requirements Planning
Execute capacity plansExecute material plans
8Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsClassification
Business Management Support systems (chronological order)
TPS: Transactional Processing Systems. Management of the information linked to the transactions within the organization
A TPS must pass ACID test (Atomicity, Consistency, Isolation and Durability). Main characteristics: agile answer, reliability, not so flexible and controlled processing
MIS: Managerial Information Systems. Solution for general business problems, mainly ones linked to C-level domain
They are based in the information received from administrative reports (generally standardized), general statistics and some other less formal sources (buzzes, unofficial discussions, political trends, education, previous experiences, etc.). Nowadays, they are not so frequently used, since they are not so unbias
9Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsClassification (II)
Business Management Support systems (chronological order)
OAS: Office Automation Systems. It helps for the classic office work that must be done within an organization. For example: office suites (OpenOffice, Microsoft Office, etc.), calendars (GCalendar, etc.), etc.
ERP: Enterprise resource planning. Unified and coordinated management of all the resources used within the organization, taking advantage of the information generated across all the departments and functional areas
Resource scheduling
A set of functional modules
Software architecture that eases the flow of information
Management information system that supports the decision-taking process
10Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsClassification (III)
Business Management Support systems (chronological order)
CRM: Customer Relationship Management. Integral management of customers' relationships, analyzing gathered data through external sources
Look for patterns or profiles within clients (Behavioral targeting)
i.e. SugarSugarCRM
Open Source (Sugar Community Edition) based on LAMP (Linux-Apache-MySQL-PHP)Personalized solutions developing own-modules (open source)Business model based on open source: Irontec
11Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsClassification (IV)
Business Management Support systems (chronological order)
SCM: Supply Chain Management. It helps the company in the way it receives raw material that later employs in the development of the product or the service, besides of the later distribution to the clients
A nice management of the supply chain will consider every event related to the company and every aspect that could alter the supply
The MIT Beer Game: http://beergame.mit.edu/
The management of the supply chains deals with these problems:
Distribution network's set-up and configurationDistribution strategyInformationStock management
12Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsClassification (V)
Support for decision-taking process (Business Intelligence)
Knowledge generation based on data flows (manufacturing, enterprise scope, macroeconomic indicators, etc.) a company owns in order to gain a competitive advantage over main competitors
Data gathering techniques:
ELT: Extract, Load, Transform
ETL: Extract, Transform, Load (the most used one)
Through Business Intelligence solutions, we will achieve computer models for an optimum performance
Is so profitable a Business Intelligence solution?
It depends on the organizational expectations
7.500.000 results in Google entering business intelligence failure
Main big software companies (IBM, Microsoft, Google, Accenture, SAP AG, HP, Yahoo!, etc.) are betting for BI tools
13Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsClassification (VI)
Support for decision-taking process (Business Intelligence)
DSS: Decision Support Systems. It helps analyzing key business variables in order to support decision-taking process
EIS: Executive Information System. Focused on executive business management, it analyzes current situation and values business evaluation in order to ease decision-taking process. Goals:
Inform about important management aspects
Help in the decision-taking process in every step involved in the business life cycle, gathering information from them
Offer a whole view of the business
It exposes stakeholders' information (competitors, economic indicators, clients, etc.) to take decisions
14Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Introduction to Information SystemsClassification (VII)
Support for decision-taking process (Business Intelligence)
Datawarehousing: collection, storage and management of huge volumes of data
OLAP: On-Line Analytical Processing. It helps data analysis through queries to multidimensional structures
Datamining: advanced methods that allow explorations throughout huge volumes of data in order to find/generate implicit information, this is, not obvious business information. i.e. client behavior patterns (beers and diapers), product associations (mint and wine), game patterns (NBA), etc.
Knowledge Management Systems (Expert systems): emulate the behavior of an expert in a specific domain, employing its knowledge
15Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?Introduction to ERPs
A brief history of the Enterprise Resource Planning systems
1960 - 1970: tailor-made software
1970 - 1990: standard software
1990 - 2000: first ERPs
From 2000 onwards: ERP, e-Business, ¿s-Business?
Tailor-madesoftware
Internet
16Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?Improvements
Information access → centralized database
Process and resource management
International operations → supporting different tax systems, bank regulations, invoicing systems, currencies, languages, etc. (i.e. IFRS and Basilea regulations)
It reduces paper documentation, since it just uses online documents, easily accessible and easy to update (Online business vs. Physical business)
Some news backing the apparent improvements
“IDC report: 8,1% CAGR for the ERP market in 2011”
“Gartner Says Worldwide Enterprise Software Revenue to Surpass $232.000 million in 2010”
17Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?Improvements (II)
Information management
18Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?Improvements (III)
Enterprise resource coordinated management
Internet
Internet
Internet
19Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?Improvements (IV)
Enterprise resource coordinated management (cont)
Modern global supply chains, experts say, mirror complex biological systems like the human body in many ways → ERP is absolutely compulsory!
The global flow of goods routinely adapts to all kinds of glitches and setbacks
A supply breakdown in one factory in one country, for example, is quickly replaced by added shipments from suppliers elsewhere in the network
i.e. When a volcano erupted in Iceland last spring, spewing ash across northern Europe and grounding air travel, supply-chain wizards were put to a test, juggling production and shipments worldwide to keep supplies flowing
Consider computing and electronics
In the early 1990s, virtually all 486-microprocessors were made at a single Intel factory near Jerusalem
In 2011, production for major components (semiconductors, screens, microprocessors, etc.) is spread across several countries
20Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?Improvements (V)
Enterprise resource coordinated management (cont)
Apple, like all major companies these days, treats its supply-chain operations as a trade secret
The field of buying and shipping supplies has been transformed in the last 20 years
Globalization and technology have been the driving forces → supply lines are longer and far more complex than in the past
The ability to manage these complex networks, experts say, has become possible because of technology
Sophisticated software for tracking and orchestrating the flow of goods worldwide
21Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?Improvements (VI)
Aalsmer, Noord-Holland: the flowerCapital of the world
22Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?Productivity
Many studies have shown that the wider use of information and communication technologies (ICT) explains why the USA is more productive than the European Union
Until the mid-1990s, EU productivity had been converging towards US productivity
Since then, US growth has accelerated and the US-EU gap has widened
The production and use of information and communication technologies (ICT) are much lower in the EU than in the US and that this explains much of the relative slowdown
Why has the adoption of the new ICT been much slower in the EU?
The adoption is associated with an increase in the variance of firm productivity
For example, implementation of advanced business software like SAP and Oracle requires a new organizational structure and the outcome is inherently uncertain
The variance of firm productivity is therefore relatively large in sectors that intensively use ICT
23Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?What does it mean for me as a company?
Analysis: client needs + projects' dimensions
Methodology: it is more than a tool, since it allows to establish a management philosophy in the company → organizational model
Training: for employees and other companies
24Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Why does my company need an ERP?DIKW Pyramid
+ Intelli gence
Data
Information
Knowledge
Wisdom
Data
Evaluation
Challenges
DIKW Pyramid
Data
Wisdom
25Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementationChronological process
Chronological steps prior to being in production phase the ERP
1) Take the decision to implement an ERP
2) ERP selection
3) BPR (Business Process Reengineering)
4) Implementation
5) Entering to production
6) Success analysis
26Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementationChronological process (II)
Why it is recommended to change business practice to suit the ERP software rather than customizing the software?
Before implementing an ERP software the organization needs to:
Analyze current processes
Identify non-value adding activities
Redesign the process to create value for the customer
Then, develop an ERP system package to suit the organizations requirements
A key contribution of ERP software is the bundled business process knowledge that comes along with ERP software
These processes have evolved over the past two decades of ERP implementation in some of the most well-managed corporations around the world
By adapting to those processes that have proved successful in some of the finest corporations around the world, an organization implementing ERP would get the advantage of these best of the breed practices → consultant recommendations
27Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementation1) Take the decision to implement an ERP
Do we already have clear that we need an ERP for our company?
Fast technological changes have provoked companies not to demand specific solutions for their problems, but integrated solutions such as ERP
When C-level managers realize that profits exceed costs when every single department is sharing information through an ERP, they ask a consulting firm to assess them in choosing and deploying an ERP solution
Some questions to answer:
Where is the company right now?
Where does the company want to be?
What is exactly what the company needs?
Where exactly do we must start?
Who is the responsible?
28Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementation2) ERP selection
Prior to choose a specific solution, we must check that
Every single functional aspect is properly covered
Processes are properly integrated
Lately deployed IT → Are they compatible with the new solution?
Customization capacity (specific software) and parametrization utilities
Can the business absorb implicit cost?
Is the ROI positive? (regarding also opportunity costs)
29Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementation2) ERP selection (II)
Proprietary ERP software
Microsoft Dynamics NAV, Sage/API, SAP R/3, BAAN, Oracle E-Business Suite y JD Edwards, Eurowin, etc.
Free and Open Source ERP software
OpenERP, Compiere, Open Bravo, Apache OFBix/opentaps, ERP5, OpenMFG, OpenPro, etc.
List of ERP software packages
http://en.wikipedia.org/wiki/List_of_ERP_software_packages
30Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementation2) ERP selection (III)
31Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementation2) ERP selection (IV)
32Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementation2) ERP selection (V)
In 2010 (of over 1.600 companies)
Tier II solutions have increased their market share by 30% since 2008
SAP is still the benchmark in the ERP market
Oracle eBusiness has been the most demanded solution
Dynamics the most profitable one (payback and ROI)
In almost 72% of the implementations, parameterizations were done, while in up to 24% of them almost full parameterizations
Tier I solutions usually require more parameterizations than Tier II and III solutions
Albeit 72% of the companies answer satisfactorily to the performance of its vendor, 55% of them expose how their solutions provided 30% or less of the expected profits
33Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementation2) ERP selection (VI)
34Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP implementation2) ERP selection (VII)
The closest future
CRM and SCM integration (OpenERP has some modules that already do it CRM & SRM)
“With GSI Deal, eBay Shifts to Big Retail: EBay, synonymous with second-hand wares, is seeking a new retail identity, from small power sellers to connect with large retailers (Toys “R” Us,
Aéropostale and Kenneth Cole, etc.).” [03/29/2011]
Web architecture instead of desktop (OpenERP offers both GTK client and web)
Wireless technologies and progress in mobile technologies
“Why SAP Is Buying Sybase for $5.8 billion”; “SAP relies on Sybase’s strengths in transporting data to and from the smartphones of customers.” [05/12/2011]
Open Source ERPs are a down to earth solution (both on functionality and acceptance)
Big corporations were the first ones to deploy ERPs
But, recently, SME (95% of employment in Spain) are starting to grab market share
“SAP launches innovative new solution for U.S. SME businesses”; “While many SME have invested in multiple software applications, several report that they lack the ability to access the
information they need, when they need it, to make critical decisions.” [09/14/2011]
35Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation3) BPR (Business Process Reengineering)
It is a key pre-requirement to any implementation
It emphasizes current system's drawbacks
It stresses and tries to maximize the productivity restructuring and reorganizing human resources, departments, functions, etc.
Basic principles:
Understand
Simplify
Automate
Tools: brain storming, previous complaints, interviews with the responsibles, job title definitions, etc.
36Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation4) Implementation
An ERP implementation it is a long process that implies two working groups:
Parameterizing group: consulting firm
Implementation group: within the organization or a consulting firm
Classic question: how long will it take the implementation?
Commercials usually say that 6 to up to maximum 9 months
However, it usually takes between 18 and 24 months usually (a recent study to 1.600 ERP implementations over the world fiexed the average on 18 months)
Problem: those are the months for the “go-live” (one the main phases, see next slide)
This includes the implementation of the basic functionality, but it is just an initial step until the company really sees a Return On Investment (ROI)
Similar to what happens with the Social Media strategyHow can I know that an ERP will be profitable for my company?
37Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation4) Implementation (II)
38Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation4) Implementation (III)
The Great Mystery of the ERP 10-Year Itch: Why Businesses Can't Seem to Stick with Their ERP Software for More Than 10 Years?
Like most capital investments, CIOs and CFOs typically expect the investment in their new ERP software to last ten or more years
Problem: technology → fast changes that it is simply not feasible to remain too far behind the curve for too long
What is new in 2011? SaaS, cloud-based and hosted ERP software
Even if your software isn't outdated per se, there are enough ERP vendors developing compelling new solutions that make it tough to not at least think about replacing your current system
In most cases, however, the software itself isn't the problem
Most of the leading vendors in the marketplace have been around for 20 years or more, so you would think that their offerings would be keeping up to date with technology trends (JD Edwards from Oracle, BAAN from Infor, and Epicor)
39Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation4) Implementation (IV)
It all comes back to misalignment between the business and the software itself
40Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation4) Implementation (V)
The business is not going to stand still just because you don't want to deal with replacing your ERP software
ERP vendor isn't going to create a custom application just for you that meets all of your evolving business needs
First: do not stop upgrading your software. ERP vendors spend millions of dollars each year on making their software better, faster, and more robust to meet changing business needs, so the longer you wait to upgrade, the more you are exposing misalignments in the software
Second: revisit your software on an ongoing basis. You may find that it's time to replace it with something new, but you may also find that some simple configuration changes to the software or business process improvements will close the gap between what it's doing now and what the business needs. It's unlikely you will delay the need for an ERP software selection indefinitely, but it will buy you more time and a higher ROI on the original investment in the meantime
41Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation5) Entering to production
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ERP Implementation6) Success analysis
Profits and returns will arrive, but we must be patient
Basic functionality of the Phase 1 just provides a 30 – 50% of the profits
Some companies see how their expectations are not satisfied (perhaps the problem is that they had not established well their expectations). Perhaps, that is why 72% of them do not go over this initial phase
The important fact is to step up next two phases:
Phase 2: adding modules for report generation, exhaustive analysis, mobility, etc.
Phase 3: Business Intelligence modules. Take advantage of the full potential of an ERP, this is, generate wisdom from it
Just 28% of the companies arrive to this finish line :-(
These ones are the phases for business processes' restructuring (Business Process Management, GexAP of Ibermática, SAP Starter Kit) and change in organizational model
43Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation6) Success analysis (II)
So, if an ERP offers me competitive advantages and a ROI, how can I measure those returns? i.e. Panorama Consulting Group: ROI calculator
44Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation6) Success analysis (III)
Some of the main benefits of implementing and ERP solutions:
More accurate information
Tighter control of the costs
Faster answer to our clients
Tracking and monitoring activities
Quick answer to technological and market changes
Improvement of the interrelations in the value chain
It allows to have a unique client database table for all the companies within the group
It will make easier for the international operations
It allows daily accounting
Reduces paper documentation
Reduces activity duplication
45Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation6) Success analysis (IV)
Some of the main benefits of implementing and ERP solutions (continuation)
Better stock management
Quality improvement
Reliability in service dates
Reduces operational costs
46Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation6) Success analysis (V)
Some of the main costs of implementing and ERP solutions
Obvious costs (€/$)
Licensing (if applicable)
Parameterizing and consulting firms
Internal team hours,
Learning courses
Administration costs
Resource and function adaptation
Development of new functionalities
Other maintenance costs (back-ups, updates, etc.)
47Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation6) Success analysis (VI)
Some of the main costs of implementing and ERP solutions
Less obvious costs (€/$)
Loss of clients when the system fails
Operational delays
Fails while parameterizing, defining, etc.
Uncertainty risks when choosing software supplier
Some employees' responsibilities
Migration of databases
Structural organizational problems are not fixed just by implementing and ERP
They do not imply previous and later steps/phases if it is a partial implementation
48Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ERP Implementation6) Success analysis (VII)
The parameterizing of some ERPs is quite limited
Some ERP are quite expensive (SAP Business One 20.000 € + programmer for about 3.000 €)
Some ERP are seen by the market as very stiff and hardly adaptable solutions for the organizational workflow and business process requirements (in OpenERP both workflow and business processes are quite intuitive)
http://doc.openerp.com/book/1/1_2_Guided_Tour/1_2_Guided_Tour_openerp.html#process-management
This latest argument is the most important one when refusing to implement an ERP in the organizations
And what aboutselecting an
Open Source solution for
my company?
49Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
What is OpenERP?
A set of integrated solutions (all the pieces in the puzzle) for enterprise management
It automates and organizes business processes
What is a business process? Porter's value chain
Infrastructure
Internallogistics Operations
Externallogistics
Salesand
marketing
After-sales services
Research and Development
Human Resources
Administration
50Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
What is OpenERP? (II)
Free license, cross-platform and web and desktop clients
Integral: it makes possibleto control all the business
process of any givenorganization coordinating everyfunctional area. Everything in
the same software package
Modular: functionality isdivided into individual
modules. Parameterization and configuration of modules based
on the requirements of those functions.Modules: purchases, sales, stocks,
accounting, Human Resources, CRM,SRM, etc.
Adaptable: “Every company isa unique world”. Configuration and
parameterization of the businessprocesses and models. It allows
the development of modules
A-GPL License for the server + modules, GTK client and Koo client. OPL License (OpenERP
Public license) for the web client (it is a MPLWith some restrictions in the logos)
51Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
OpenERP Project
2002: 1.0 version. Originally developed as an Open Source solution by Fabien Pinckaers as a specific solution for an auction house
2004: first versions of TinyERP. Fabien Pinckaers sets the Belgian company Tiny Sprl
2005: OpenERP founded by CEO Fabien Pinckaers. Fabien's vision was that Open Source provided a better way to meet customers' expectations.
2006: 3.0 version. First version of OpenERP implemented in Spain successfully
2007: SVN repository opened. Some successful implementations. 35 official modules and 120 extras
2008: code in launchpad/bazaar. Community participation is opened. TinyERP becomes OpenERP. First Spanish OpenERP Conference in Zaragoza
52Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
OpenERP Project (II)
2009: OpenERP 5.0 is published. 114 official modules and 250 extras. It supposes the real launch of the OpenERP project. Implementations are done world wide. Second Spanish OpenERP Conference hold in Vilanova I La Geltru, Catalunya
2010: in July, OpenERP Early-Adopter Preview - 6.0-dev (alpha). Great community around the globle. It becomes the most reliable Open Source ERP. 500 published modules, 30 languages and presence in 80 countries. 3 million investment of venture capital to OpenERP. Third Spanish OpenERP Conference hold in the University of Deusto in Bilbao
2011: OpenERP has released its new version 6.0. More user-friendly, accessible, intuitive and ready to boost up a business. Response to the needs of customers, community and industries and the answer to today’s market
53Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
OpenERP Project (III)
Partners: over 150 partners deploy our software and support our customers in over 37 countries
Community: more than 1000 individuals contribute to improving the software every day
Investors: OpenERP went through a first round of financing with Sofinnova a leading European Venture capital firm and Iliad managers Xavier Niel and Olivier Rosenfeld
Employees: over 100 employees. Constantly reinforcing the team
Careers: availabilities on the web site or by email jobs@openerp.com ;-)
54Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
OpenERP Community
More than 1000 individuals contribute to improving the software every day. Working groups:
Expert Team
Accounting https://launchpad.net/~openerp-expert-accounting/+members
Services Management https://launchpad.net/~openerp-expert-service/+members
Manufacturing Industries https://launchpad.net/~openerp-expert-production/+members
Translators Team
Developer Team
Quality team
Committee team
Community team
Spain
Openerp Spanish Localization Project
https://launchpad.net/openerp-spain
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OpenERP Community (II)
Launchpad Community (https://launchpad.net)
Supported by Canonical, it is a collaborative development platform that includes following tools:
Code hosting: branches. Managed by Bazaar
Bug tracking: bugs y bugtracker
Specifications monitoring: blueprints
Collaborative translations: translations
Documentation: sphinx y Bazaar
Management done depending on 3 profiles:
Projects
Workteams
Member
Many projects and work teams around OpenERPhttps://launchpad.net/openobject
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OpenERP Community (III)
OpenERP community is very young
Most of the teams, communication channels and collaborative tools have been set up along 2009 and 2010.
They are still being defined and adjusting some of the processes for collaboration
From 2010 February, exists the leader position, dedicated for the community
The leader, it is the one that communicates the community with Enterprise needs, defining and documenting processes, etc.
More detailed information about OpenERP communityhttp://www.slideshare.net/ejordi/comunidades-software-libre-comunidad-openerp
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OpenERP Technology
PostgreSQL
eTiny
OpenERPServer
Desktopclient:
Gtk, Koo
Webclient
XML-RPCNET-RPC
NET-RPC
All-in-one install kit
GNU/Linux and Windows
Multiplatform
GNU/Linux, Windows, Mac (there is no native version http://devteam.taktik.be)
Potent clients
Web, GTK, Koo (Qt)
MVC scheme
Model: PostgreSQL
View: XML (calendar, graphics, list, form)
Controller: Python
58Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
OpenERP Technology (II)
Gateways for connecting with other applications:
Office suites: OOffice, MSOffice
Virtual shops: Magento, OssCommerce, VirtueMart
e-mail: Mozilla Thunderbird, Microsoft Outlook
Report generators: Jasper Reports, Ooffice
Launch cycles
Small versions (bugfixes): once a month (first days of the month)
Big versions (new functionalities): once a year (more or less)
59Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
How does OpenERP do business?
Some Frequently Asked Questions about OpenERP and business
Does my company really need an ERP? And OpenERP?
How does OpenERP make business with an Open Source solution?
And what about OpenERP decides to give up offering an ERP as Open Source? Will my company let by abandoned?
After downloading by myself OpenERP package, will I not be able to install it by myself?
Now that VAT has changed in Spain, will I be affected?
Will OpenERP be able to adapt to my working style?
Why do companies charge different tariffs for deploying OpenERP?
Will I have many bugs/errors for choosing an Open Source solution? Will it stop working some day?
60Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Implementation approaches
Traditional ERP systems
Independent applications that must later be integrated
Dedicated information to every functional area
Each application, own database, own execution and development environment, etc.
Not easy control and maintenance of the ERP
61Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Implementation approaches (II)
OpenERP
Modular integration
Wide variety of companies' functional areas (and if for any is not covered, it can always be extended)
It eases the flow of information focused on the business processes
Centralized database
Processes' internal reviews promotion
62Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Implementation approaches (III)
Analysis + Methodology + Training
Analysis: Which problems do you want to be fixed for your company?
Design: design of the most suitable solution
Development + Integration
Implementation: install, configuration, training, support, set-up and documentation
Analysis Design Development Integration Implementation
63Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Implementation approaches (IV)
Main activities' implementations
Minimum: invoicing and accounting
Standard SMEs: invoicing, accounting, purchases, sales and stocks
Standard Services: invoicing, accounting, purchases, sales, analytics and projects
Standard Production: invoicing, accounting, purchases, sales, analytics and manufacturing
Others: on-line shopping (oscommerce, magento, spree), etc.
Analysis Design Development Integration Implementation
64Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Implementation approaches (V)
Structural implementation (support activities)
CRM and SRM
Human Resource Management
Documentary Management
Email management: poweremail
Reports: designer, jasper_reports, etc.
Evolution in module quantity
Analysis Design Development Integration Implementation
65Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Implementation approaches (VI)
Specific solutions
Vehicles: tracking, barcodes, quality documents, etc.
Education: Standard SME + CRM + personalized education modules
Renting: Standard SME + periodical invoicing
Food: tracking (by national laws), etc.
Catering: personalized modules
Business Intelligence, Direct Marketing, etc.
Analysis Design Development Integration Implementation
Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
ReferencesWeb sites
Break on Through to the Other Side: Moving Beyond ERP "Go-Live" to Competitive Edge and ROI http://it.toolbox.com/blogs/erp-roi/break-on-through-to-the-other-side-moving-beyond-erp-golive-to-competitive-edge-and-roi-40982
ERP Implementation http://panorama-consulting.com/services/erp-software-implementation/ERP ROI Calculator http://panorama-consulting.com/resource-center/erp-roi-calculator/Tier I and Tier II ERP Comparison 2008 http://whatiserp.net/erp-comparison/erp-comparison-saporaclemicrosoft-and-tier-2/ERP Market Share And Evaluation 2010 http://whatiserp.net/erp-comparison/erp-vendor-evaluation-2010/The 2010 ERP Vendor Analysis Results Are In, and the Winner Is...
http://www.backbonemag.com/Backblog/the-2010-erp-vendor-analysis-results-are-in-and-the-winner-is.aspxOpenERP: posicionamiento en el mercado http://www.slideshare.net/izquierdosusana/openerp-presentacionComunidad OpenERP http://www.slideshare.net/ejordi/comunidades-software-libre-comunidad-openerpIII Jornadas Estatales OpenERP http://www.slideshare.net/openerpsite/open-erp-jornadas-bilbao-2010-presentacin-carlos-libana-ting-y-ana-juaristiAnalysis: Why SAP Is Buying Sybase for $5.8B http://gigaom.com/2010/05/12/analysis-why-sap-bought-sybase-for-5-8-billion/SAP launches innovative new solution for US Small and Midsize Businesses http://www.sap.com/press.epx?pressID=2128OpenERP http://www.openerp.com/The Great Mystery of the ERP 10-Year Itch: Why Businesses Can't Seem to Stick with Their ERP Software for More Than 10 Years
http://it.toolbox.com/blogs/erp-roi/the-great-mystery-of-the-erp-10year-itch-why-businesses-cant-seem-to-stick-with-their-erp-software-for-more-than-10-years-41795?utm_source=twitterfeed&utm_medium=twitterGartner Says Worldwide Enterprise Software Revenue to Surpass $232 Billion in 2010 http://www.gartner.com/it/page.jsp?id=1437613Why it is recommended to change business practice to suit the ERP software rather than customizing the software?
http://www.eresourceerp.com/Why-it-is-recommended-to-change-business-practice.htmlStress Test for the Global Supply Chain http://www.nytimes.com/2011/03/20/business/20supply.html?pagewanted=1&_r=1&seid=auto&smid=tw-nytimestechEmployment protection and technology choice http://www.voxeu.org/index.php?q=node/6291With GSI Deal, eBay Shifts to Big Retail http://dealbook.nytimes.com/2011/03/28/ebay-to-buy-gsi-commerce-for-2-4-billion-bid/?smid=tw-
nytimes&seid=auto
Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Copyright (c) 2011 Alex Rayón JerezThis work (but the quoted images, whose rights are reserved to their owners*) is licensed
under the Creative Commons “Attribution-ShareAlike” License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
* http://img.tecnologiapyme.com/2009/12/openerp2.jpg, http://1thought2many.files.wordpress.com/2010/02/word-paperclip.jpg, http://www.nytimes.com/imagepages/2010/07/05/technology/20100706-iphone-graphic.html?ref=technology,
Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
Profesor: Ing. Alex Rayón JerezBilbao, March 2011
Facultad de Ingeniería, ESIDEUniversidad de Deusto
Departamento de Tecnologías Industriales, Facultad de Ingeniería, Universidad de DeustoAvda. de las Universidades, 24, 48007 Bilbao, País Vasco, España
Alex Rayón Jerez
alex.rayon@deusto.esTo contact me, so many other ways :-)
http://alexrayon.es/alex-rayon-20/
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