NUST SEECS OpenERP Presentation

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Training held at February 17- 18, 2012 of OpenERP v6 HR in NUST SEECS

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  • Hi Mr. Moshin, I will like to get your resource above. We believe it will help us in better marketing Open ERP. Regards
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  • hello Mr Mohsin
    can you please send me a copy of this presentation
    because i think to implementing OpenERP within My company
    to manage and control all project resources
    TYIA
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NUST SEECS OpenERP Presentation

  1. 1. 1OPENERP VERSION 6 TRAININGUSING HUMAN RESOURCEMANAGEMENT MODULEDr. M Masoom Alam Dr. Amir HayatAssociate Professor Assistant Professor IMSciences SEECS Mohsin Yasin System Analyst IMSciences
  2. 2. Outline2 Why Enterprise Resource Planning Systems – Part I Introduction to Open Source technologies – Part II OpenERP Introduction – Part III OpenERP VS Other Open Source ERPs – Part IV OpenERP evaluation with SAP as a reference – Part V Conclusion
  3. 3. Outline3 Why Enterprise Resource Planning Systems – Part I Introduction to Open Source technologies – Part II OpenERP Introduction – Part III OpenERP VS Other Open Source ERPs – Part IV OpenERP Evaluation with SAP as a reference – Part V Conclusion
  4. 4. Enterprise Resource Planning Systems4 Enterprise resource planning (ERP) systems automate and integrate various with an integrated software application.  activities = Finance/Accounting, Sales&Service, Customer Relationship Management, etc. The concept was born in Early 1960s In 1972 “Systems Applications Products in data processing” In 1976 Company name changed to “SAP GmBH”  SAP R/1 in 1973  SAP R/2 in 1979  SAP R/3 in 1992 Source: http://en.wikipedia.org/wiki/Enterprise_resource_planning
  5. 5. An Enterprise Landscape (without ERP)5 Sales Human resources Engineering Design Inventory Production Planning Finance Controlling Quality Maintenance legal Source: http://gyansangam.iiita.ac.in/content/cluster_2_1/ERP.ppt
  6. 6. Categories Of Information Systems 6• Operational - level systems: Support operational managers keep track of the elementary activities and transactions.• Management-level systems: Serve the monitoring, controlling, decision-making, and administrative activities• Strategic-level systems: Help senior management tackle and address strategic issues. Figure Source: http://gyansangam.iiita.ac.in/content/cluster_2_1/ERP.ppt
  7. 7. Four Major Types of Information Systems7• Transaction Processing Systems (TPS): Business level systems that serves the Operational level.• Management Information Systems (MIS): Provides feedback on daily operations.• Decision-Support Systems (DSS): Provides managers with information and support for effective decision making• Executive Support Systems (ESS): Designed for the CEO of the company Figure Source: http://gyansangam.iiita.ac.in/content/cluster_2_1/ERP.ppt
  8. 8. Enterprise without an ERP 8 Executive• Department are still located Support System on different Islands• A variety of software Decision platforms and solutions Support System• Difficult to maintain and Enterprise upgrade Management• No Seamless flow of Information System Information• … Transaction Processing System
  9. 9. What is a Business Process9 • According to Wikipedia: “A business process or business method is a collection of related, structured activities in different functional areas of an organization that produce a specific service or product (serve a particular goal) for a particular customer or customers.”
  10. 10. Order Fulfillment Business Process10 (Cross Functional) Sales Generate Submit Order Order Accounting Check Approve Generate Credit credit Invoice Manufacturing Assemble Ship and Product Product Production
  11. 11. Enterprise Systems11• Enterprise Systems, are software solutions that focuses the Enterprise needs by taking a process view of the overall Enterprise to meet the goals by tightly integrating all functional areas and under a common platform.• SAP, Oracle Applications, PeopleSoft, JD Edwards, NetSuite etc., are the world leading ERP Packages. Figure Source: http://gyansangam.iiita.ac.in/content/cluster_2_1/ERP.ppt
  12. 12. Advantages of an ERP System12 • Seamless flow of information among all functions of an enterprise in a real time. • One integrated system replaces many different software . • Reliable information access through a common DBMS • Improves the Business Processes: Eliminates data and operational redundancies (no duplication of work or data entries etc.)
  13. 13. Outline13 Why Enterprise Resource Planning Systems – Part I Introduction to Open Source technologies – Part II OpenERP Introduction – Part III OpenERP VS Other Open Source ERPs – Part IV OpenERP Evaluation with SAP as a reference – Part V Conclusion
  14. 14. Introduction14  In 1983 Richard Stallman started GNU project to launch a complete Operation System free from constraints.  In 1989, first version of GNU public license was published.  The Linux kernel, started by Linus Torvalds, was released as freely modifiable source code in 1991  Recently, viable open source ERP alternatives have begun to appear  OpenERP is one of these new kind of ERP systems
  15. 15. Open Source Products at a Glance…15  Programming Languages: LISP, C, C++,Perl, Python,Java, PHP,Ruby, ...  Computer Operating systems: Linux, freeBSD, …  Database Management System: PostgreSQL, MySQL, SQLite, …  Web Servers/Services infrastructure: Apache, Bind, Postfix, …  Content Management System: JOOMLA, Drupal, Wordpress, Alfresco, …  Application Server Infrastructure (Middleware): JBoss, Spring, Rails, OpenObject, …  Mobile Operating Systems: Android, Memo  All Credit Goes to World Wide Web!
  16. 16. Open source powers the web16 Figure Source: http://ostatic.com/blog/apache-holds-steady-market-share-still-dominating-microsoft-iis
  17. 17. Software Development Process forOpen Source17  Across the globe community of developers working together to improve the software  Distributed Versioning System (SVN, CVS, Bazar)  Not only from different countries but also from companies  “Many eyes make all bugs shallow”  That’s Why viruses does not create problems for Linux or Ubuntu  Is only suitable for top talent  More visibility & Freedom  More efficient process, avoid duplication of efforts  “Disadvantage”  New business models are needed to support developers  GTA01 – also called OpenMOKO, open source Mobile software and hardware – no future
  18. 18. Evolution of Open Source Software Stack18 Evolution of open source:  System software Linux is ever green  Database systems Major improvements in last 10 years: Full ERP Business systems (eg: MySQL) Software  Content management Content Management Major developments in last 5 years: System (eg: Joomla, Wordpress, Database Systems Alfresco)  Business software System Software E-commerce (Magento), CRM (SugarCRM), Procurement (Coupa), ...  Full ERP systems Next stage of open source (eg: OpenERP, Tryton)
  19. 19. Some Criticism on Open Source19  Open Source Business: Model or Tactic? • An article by Kristin Shoemaker  http://ostatic.com/blog/open-source-business-model-or-tactic • Now a days there are 114 open source vendors, including Red Hat,Alfresco, IBM and Oracle, MySQL DB (Owned by Oracle). • Conclusion: In a perfect world, it would be wonderful to see "proprietary add-ons" disappear, and be offered openly  Another Article:  http://blogs.the451group.com/opensource/2008/10/13/open- source-is-not-a-business-model/
  20. 20. Outline20 Why Enterprise Resource Planning Systems – Part I Introduction to Open Source technologies – Part II OpenERP Introduction – Part III OpenERP VS Other Open Source ERPs – Part IV OpenERP Evaluation with SAP as a reference – Part V Conclusion
  21. 21. What is OpenERP?21  A leading ERP system  Started in 2002 in Europe, Belgium  Indian development branch opened in 2007  Now more than 1000 modules  Global network of partners in more than 70 countries  Modern software architecture  Dynamic web interface, Desktop Client (called GTK client), python based application server, and uses XML for changing visual screens.  Completely open development process  One of most active projects on Launchpad  20 new modules per month, 1000 installations per day, 110 new customer requests per day
  22. 22. OpenERP License22  Alferro GNU Public License (AGPL) License V3 for the server plus modules, GTK client.  Covers the “Application Service Provider (ASP) loophole” present in GPL License  OPL License for the web client  Itis Mozilla Public License (MPL) with some restrictions on the logos
  23. 23. OpenERP Project at a Glance…23 2002: 1.0 version. Fabien Pinckaers launches a specific solution for an auction house 2004: first versions called TinyERP. Company name Tiny Sprl 2005: Company name changed to OpenERP. 2006: 3.0 version. First success story in Spain successfully 2007, SVN repository opened. 35 official modules and 120 extras. 2008: code in launchpad/bazaar. Community participation is opened.
  24. 24. 2002 V 1.0 for auction 2004 Called 2005 Company 2006 First 2008 Code in 2009 Version 2010 Version 2011 version house TinyERP name changed Success Story in Launchpad 5.0 114 6.0 Early View 6.1 More user to OpenERP Spain modules friendly24 2009: OpenERP 5.0 is published. 114 official modules and 250 extras. 2010: in July, OpenERP Early-Adopter Preview - 6.0-dev (alpha). Great community around the globe. It becomes the most reliable Open Source ERP. 500 published modules, 30 languages and presence in 80 countries. 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
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  32. 32. OpenERP Software Architecture32 User computer: OpenObject Web Browser Desktop / Laptop / (IE, Firefox, Safari, ...) Phone / PDA / Terminal Desktop Client Network: Web service LAN / Internet XML-RPC Server hardware OpenObject OpenObject Web Client Mobile Client OpenObject Application Server SQL Database OpenERP Modules (Postgres, MySQL, (Acct, Stock, Purch,Source: http://almacom.co.th SQL Server, Oracle...) Sales, MRP, ...)
  33. 33. OpenERP modules Diversity33 Source: http://apenobject.com
  34. 34. OpenERP Documentation34  Books  “Streamline your Manufacturing Processes with OpenERP”  Open Source Accounting with OpenERP  OpenERP evaluation with SAP as reference  http://doc.openerp.com/  http://openobject.com/  Launchpad project hosting  Forums, IRC logs  http://forum.openerp.com/
  35. 35. Outline35 Why Enterprise Resource Planning Systems – Part I Introduction to Open Source technologies – Part II OpenERP Introduction – Part III OpenERP VS Other Open Source ERPs – Part IV OpenERP Evaluation with SAP as a reference – Part V Conclusion
  36. 36. Open source ERP Business Model36  License costs are zero  Great for customers, what about developers? (the community)  What is the business model ($)?  Services Implementation, customization, training, maintenance, ...  On-demand Hosting ERP in the “cloud” Similar to Salesforce.com, Netsuite  ERP software requires lots of service  SAP, Oracle: 80% of revenue = servicesSource: http://almacom.co.th
  37. 37. Open Source Marketing Power37  Sales and marketing budget:  Netsuite: 80MEUR, OpenERP: 200kEUR (x400!)Source: http://almacom.co.th
  38. 38. Genealogy of Open Source ERPs38 2000 2006 Compiere Adempiere OpenBravo 2001 2004 Ofbiz Neogia, opentaps 2002 TinyERP 2008 OpenERP Tryton 2002 ERP5 2002 Dolibarr Source: http://almacom.co.th
  39. 39. Open source ERP Trends39 Source: Google Insight
  40. 40. Case study: ERP in Europe40  Smile.fr  Biggest open-source system integrator in France  400 people, 25MEur revenue  Started selling ERP services at end of 2007  Compared all open source ERP systems 6-month study, 110-page white-paper Result: #1: OpenERP, #2: OpenBravo  Feedback two years later: OpenBravo dropped, success with OpenERP http://rvalyi.blogspot.com/ Source: http://almacom.co.th
  41. 41. Open Source ERP Comparison41
  42. 42. Outline42 Why Enterprise Resource Planning Systems – Part I Introduction to Open Source technologies – Part II OpenERP Introduction – Part III OpenERP VS Other Open Source ERPs – Part IV OpenERP Evaluation with SAP as a reference – Part V(Source: OpenERP evaluation with SAP as a reference Book by Yves Delsart and Christelle Van) Conclusion
  43. 43. Comparison Factors43  Market Position  Strength of the Channel, offline and online available material  Features and Business Coverage  Do you have the features, I need?  Technical Quality  How does the solution supports the development of specific requirements
  44. 44. Comparison Factors Cont’d..44  Customization and Flexibility  Abilityof software to easily adapt to different users and system requirements  Productivity and Ease of Use  Latest Client requirement, i.e., user-centric approach  How much easy to use  Total Cost of Ownership  Client cannot risk unwise investments especially in SMEs
  45. 45. Market Position45  Visibility: hits number on the Google Relevant SAP OpenERP OpenERP VS Feature SAP Hits on Google 233Million 1,49M 0.6% Books on 8800 13 0.15% Amazon.com Followers on 13516 2793 20% Twitter Official Events 70 39 55%
  46. 46. Google Trend for the Keyword “SAP”46
  47. 47. Google Trend for the Keyword“OpenERP” – shows Fast Growth47
  48. 48. Google Trend for the Keyword “OpenERP”+”TinyERP”48
  49. 49. Google Trend for the Keyword“OpenERP”+”TinyERP”+”SAP”49  SAP has 268 times more searches than OpenERP
  50. 50. Red Hat Partners with OpenERP50
  51. 51. Service Offer51  OpenERP software vendor:  Medium sized company with around 200 Employees  Offices located in Belgium, United States and India (Ahmadabad)  Around 500 Partners in 78 Countries  OpenERP strategy is to invest minimum on marketing  Leverage the communities  Educate through events
  52. 52. SAP VS OpenERP52 SAP OpenERP Promote the Company (SAP vs SAP R3) Promote the Product: OpenERP Buyer and Sponsor: CFO and COO Buyer and Sponsor: IT Guys We can do every thing! We can do what you want Publish Studies, Comparisons, awards Leverage Communication through users Good, Strong Success Stories Thousands of References Remain the Leader Be the most widely used Mature Software Agile Software Brand Growth mainly supported by the Brand growth only supported by the marketing department communities
  53. 53. Features and Business Application53 Coverage (Missing Features)  Advanced Treasury Management (Cash flow statement etc.)  Budgetary management for the Public Sector i.e., fund management  Improvement of the financial reporting  Native integration with the Jasper reporting soft  Quality control management  Supplier ranking  Payroll engine and country specific pre-configuration payroll pre-configurations  Compliance with Web services (Security) Standards
  54. 54. Features and Business Application54 Coverage (Advanced Features)  High Capability of Integration with Other tools  Asterisk (keeping track of voice ip calls)  OS Commerce, Magento  Even Integration with SAP: Danone surprises the market deploying an open source ERP – OpenERP "Extraordinary project in the industry world, Danone deploys a very fast, integrated managing tool in the merging countries. Surprise: its an open source software package and the integration deadlines are astonishing! Although Danone is a significant SAP client, the industry giant decided to use an open source integrated ERP solution for the emerging countries where it operates. The OpenERP integration was done in collaboration with Octo Technology”
  55. 55. Features and Business Application Coverage (Advanced Features)55  Fully Integrated Geo Engine
  56. 56. OpeERP development Accelerators56 Year # of Modules Open source Jan 2005 40 Application Jan 2006 50  Gathers some 2500 Jan 2007 112 developers in addition Jan 2008 195 Jan 2009 350 to 200 employed Jan 2010 750 developers Jan 2011 1250 Agile Architecture Jan 2012 1950 A change in SAP will Jan 2013 2683 Expected no Jan 2014 3583 take three times more of modules Jan 2015 4606 time Jan 2016 5751
  57. 57. OpenERP and SAP way of handling Client Needs57 140 120 Client 100 Need 80 60 Features Coverage 40 20 0 SAP OpenERP
  58. 58. Total Cost of Ownership (TCO)58
  59. 59. Implementation Cost59 120 100 80 Project Management 60 Change Management Customization 40 20 0 OpenERP SAP
  60. 60. Installation Cost60 35 30 25 20 License 15 Hardware 10 5 0 OpenERP SAP
  61. 61. Maintenance Cost61 70 60 50 40 Support Maintenance (5 years) 30 Upgrade 20 10 0 OpenERP SAP
  62. 62. Technical Quality62  Efficiency  Programming language efficiency  Python VS. ABAP  Architecture efficiency  MVC, ORM, Workflow engine, Module System, Integrated Tested system, Several reports engines  Database efficiency  Object Relational Mapping on top of Postgresql
  63. 63. Object Relational Mapping Example63 class cms_city(osv.osv): """(NULL)""" _name = cms.city _columns = { name: fields.char(City, size=100, required=True), } cms_city() Object level Relational level CREATE TABLE CMS_CITY( id INT PRIMARY KEY, name VARCHAR(64) NOT NULL, )
  64. 64. Technical quality Cont’d..64  Accessibility  Web client, GTK client, mobile client  Database flexibility  No of databases are supported by SAP  Debugger  Unlike SAP, no native debugger, but thanks to Open source: Eclipse, Pydev, KOMODO IDE  Modularity  Unlike OpenERP, in SAP a module represents a whole functional area such as FI/CO covers all the financial applications.
  65. 65. Conclusion – I65 OpenERP product life cycle maturity  Product is launched some 8 years ago and now its stable OpenERP market maturity  Transition phase: “Early Majority Adopters” wait until an emerging product has been fully tried and tested Open source VS close source  Close source is known and recognized by the guarantees it offers  But Open source has made remarkable progress in:  Web Servers/Services – Apache  Database – Postgresql  Browsers – Chrome, Firefox  BackOffice – FTP, SQUID, DHCP, …
  66. 66. Conclusion – II66  OpenERP must extends its functional landscape  European and local public Institutions are constrained by the law to consider the open source solutions before trying proprietary ones.  What if, proprietary ERP providers go Open source way, like Oracle Virtual Box etc.,….
  67. 67. Backup Slides67  Success Stories:  http://www.openerp.asia/OpenERP-Success-Stories- Manufacturing  http://www.openerp.asia/OpenERP-Success-Stories  Comparison:  http://www.openerp.asia/ERP-softwares-comparison

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