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OpenERP Vision Fabien Pinckaers

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OpenERP Vision Fabien Pinckaers

  1. 1. OpenERPs Vision Fabien Pinckaers, Founder & CEO Fabien Pinckaers, Founder & CEONom du fichier – à compléter Management Presentation 1
  2. 2. In only 6 years, we developed the most installed(*) and advanced(**) management software for SMEs ever made. Together, we did... (*) 1000 installations per day (**) 1000+ modulesNom du fichier – à compléter Management Presentation
  3. 3. A strong product & referencesNom du fichier – à compléter Management Presentation
  4. 4. 1000+ Open Source AppsNom du fichier – à compléter Management Presentation
  5. 5. A strong brand Twice the visibility of the #2 open source, 7x less fund raising :)500 leads per day ! Nom du fichier – à compléter Management Presentation
  6. 6. How did we succeed... How did we succeed...Nom du fichier – à compléter Management Presentation 6
  7. 7. The OpenERP HistoryUsers Phase 1 : Phase 2 : • Product Dev. Switch in the • Direct Implem. business model Phase 3 : 5.000.000 Users 2005 2010 2011 Time Nom du fichier – à compléter Management Presentation
  8. 8. Our vision since 2005... We believe in a fully open source model... We believe in a fully open source model...Ideas that drove OpenERPs business: Ideas that drove OpenERPs business: Open Source allows the development of better products Open Source allows the development of better products What matters more is the product, not the brand or marketing What matters more is the product, not the brand or marketing You can be 100% open source and develop a sustainable business You can be 100% open source and develop a sustainable business Prove and fine tune the model before scaling (fund raising) Prove and fine tune the model before scaling (fund raising) Proprietary ERP failed on SMEs, its a blue ocean market Proprietary ERP failed on SMEs, its a blue ocean marketNom du fichier – à compléter Management Presentation 8
  9. 9. 2010: Switch in the model In 2010, our model proved it worked; we stopped In 2010, our model proved it worked; we stopped implementation services to focus on Publisher activities. implementation services to focus on Publisher activities. We reorganized OpenERP around only 3 processes ! We reorganized OpenERP around only 3 processes !Nom du fichier – à compléter Management Presentation 9
  10. 10. Process 1: Partner recruitmentThe demand on OpenERP is exploding. Our bottleneck in theThe demand on OpenERP is exploding. Our bottleneck in the growth of OpenERP is the availability of offers. growth of OpenERP is the availability of offers. Nom du fichier – à compléter Management Presentation 10
  11. 11. Process 2: Partner development In 2010, we re-organized all our activities around the In 2010, we re-organized all our activities around the partner development and OPW offers for customers. partner development and OPW offers for customers.Nom du fichier – à compléter Management Presentation 11
  12. 12. Process 3: R&DAll our R&D processes have been reorganised in scrumAll our R&D processes have been reorganised in scrum teams of ~6 people each: 120 developers in total. teams of ~6 people each: 120 developers in total. New Release Cycle: New Release Cycle:  Stable Version: every 6 months Stable Version: every 6 months  Long-Term Support: every 18 months Long-Term Support: every 18 months Streamlined R&D Deliverables Streamlined R&D DeliverablesNom du fichier – à compléter Management Presentation 12
  13. 13. And it worked...OpenERP SA is mature:OpenERP SA is mature: 185 employees: BE, IN, US 185 employees: BE, IN, US 200% growth in 2011 (x3) 200% growth in 2011 (x3) High margins → strong R&D High margins → strong R&D investment: 32% R&D, 32% investment: 32% R&D, 32% Sales, 25% Services, 11% G&A Sales, 25% Services, 11% G&A (competitors: <11% R&D) (competitors: <11% R&D)Partners are growing:Partners are growing: 300 partners in 60 countries 300 partners in 60 countries 75% of partners do more than 50% 75% of partners do more than 50% turnover on OpenERP turnover on OpenERP On average, based on latest survey, On average, based on latest survey, partners expect to triple their partners expect to triple their OpenERP revenues in 2011 OpenERP revenues in 2011 Nom du fichier – à compléter Management Presentation 13
  14. 14. And the business is scalable.. The OpenERP Publisher Warranty allows partners, The OpenERP Publisher Warranty allows partners, Customers and OpenERP SA to work together Customers and OpenERP SA to work together in the long term in a win-win relationship. in the long term in a win-win relationship. Without the OPW Without the OPW With the OPW With the OPWThe CustomerThe Customer The Customer The Customer Could not benefit from new Could not benefit from new  Can benefit from new features Can benefit from new features features (of new versions) features (of new versions) with guaranteed migration with guaranteed migration Has hidden costs (migrations...) Has hidden costs (migrations...)  Has no hidden costs Has no hidden costsThe PartnerThe Partner The Partner The Partner Had to fix bugs at his charge Had to fix bugs at his charge  Have better margins Have better margins Had to do his business mainly on Had to do his business mainly on  Can capitalize on existing cust. Can capitalize on existing cust. acquisition of new customers acquisition of new customers by proposing valuable features by proposing valuable featuresOpenERP SAOpenERP SA OpenERP SA OpenERP SA Had no interest in working with Had no interest in working with Have strong interest to work with Have strong interest to work with Partners and did direct implem. Partners and did direct implem. and for partners and for partners Nom du fichier – à compléter Management Presentation 14
  15. 15. Current Situation Current SituationNom du fichier – à compléter Management Presentation 15
  16. 16. A Disruptive Business Model Sorry competitors :) Sorry competitors :)Online/Cloud Offers:Online/Cloud Offers: On Site Implementations: On Site Implementations: •• OpenERP Online: 39€ user/month OpenERP Online: 39€ user/month  No licence costs (-25%) No licence costs (-25%) •• Netsuite: 125€ user/month Netsuite: 125€ user/month  Low-cost maintenance (OPW) Low-cost maintenance (OPW) •• Salesforce: 125 € user/month Salesforce: 125 € user/month  Flexible for custom needs Flexible for custom needsOpenERP is at least 3x cheaper than allOpenERP is at least 3x cheaper than all TCO usually 2x cheaper than TCO usually 2x cheaper thanother ERPs.other ERPs. Proprietary competitors Proprietary competitors → Market Killer... → Market Killer... Open Source competitors, Open Source competitors, maintenance cost: maintenance cost:  Compiere: 550€ user/year Compiere: 550€ user/year  Openbravo: 450€ user/year Openbravo: 450€ user/year  OpenERP: Avg 120 € user/year OpenERP: Avg 120 € user/year → The only one to guarantee → The only one to guarantee Migrations, 4x cheaper ! Migrations, 4x cheaper ! Nom du fichier – à compléter Management Presentation 16
  17. 17. An incredible product 1000+ Standalone & Integrated Applications: 1000+ Standalone & Integrated Applications: •• Payroll Payroll •• Accounting Accounting •• Point-of-Sale Point-of-Sale •• CRM CRM •• Inventory Management Inventory Management •• Project Management Project Management •• Purchases Purchases •• Manufacturing, … Manufacturing, …•• Strong Verticals: Strong Verticals: •• Fleet Management, Fleet Management, •• Medical, Medical, •• Food Industries, Food Industries, •• Training Centers, ... Training Centers, ...Nom du fichier – à compléter Management Presentation 17
  18. 18. Next Steps Next StepsNom du fichier – à compléter Management Presentation 18
  19. 19. Lets conquer the world... Our priority is not to... Our priority is not to... •• Create a strong brand in a traditional way Create a strong brand in a traditional way •• Invest heavily in marketing and PR Invest heavily in marketing and PR •• Develop a lot of new features Develop a lot of new features Product and users are our best PR agents Product and users are our best PR agents•• We focus on attracting more users. Our target: We focus on attracting more users. Our target: •• 1.000.000 users: Q1 2012 1.000.000 users: Q1 2012 •• 5.000.000 users: Q1 2013 5.000.000 users: Q1 2013•• Users will automatically create: Users will automatically create: •• Brand awareness, marketing, finance of new features, etc... Brand awareness, marketing, finance of new features, etc... Nom du fichier – à compléter Management Presentation 19
  20. 20. Getting users is the key Focus on users acquisition... Focus on users acquisition... Open Source Competitors try to: Open Source Competitors try to: •• Transform every user into paying customer Transform every user into paying customer •• Sell extra modules on top of the open source core Sell extra modules on top of the open source core We dont trust in the “Professional Edition” or the “Open We dont trust in the “Professional Edition” or the “Open Source Core, Modules for a fee” model. Source Core, Modules for a fee” model. We dont care if only 30% of users buy services, but we We dont care if only 30% of users buy services, but we want millions of users. want millions of users.Nom du fichier – à compléter Management Presentation 20
  21. 21. How we will get 5.000.000 users How we will get 5.000.000 users within two years ? within two years ? High R&D Investments High R&D InvestmentsNom du fichier – à compléter Management Presentation 21
  22. 22. High R&D Investments• Increase # of users: – Integration of « viral » tools – Auto-importation from salesforce, quickbooks, SugarCRM, etc. – Integration in Google Apps Marketplace• Increase conversion rate: – Ease of use – Better Usability – Easy Configuration & deployment• Develop highly generic features – Touchscreen Point-of-Sale – Payroll EngineNom du fichier – à compléter Management Presentation 22
  23. 23. Example 1: viral tools•• Automated emails at some steps: Automated emails at some steps: •• Validation Invoice, Expenses, PO, Validation Invoice, Expenses, PO, Task to a partner, etc. Task to a partner, etc. •• → Estimated: 5M mails/month → Estimated: 5M mails/month•• “Share” any documents like in “Share” any documents like in Google Docs to partners Google Docs to partners•• Portal for customers & suppliers Portal for customers & suppliers•• EDI Inter-OpenERP EDI Inter-OpenERP Nom du fichier – à compléter Management Presentation 23
  24. 24. Example 2: mass migrationsAutomated migrations:Automated migrations: •• Salesforce, quickbooks, SugarCRM, Sage, etc. Salesforce, quickbooks, SugarCRM, Sage, etc. → 1 click to migrate and cut your costs by 3 ! → 1 click to migrate and cut your costs by 3 !Integration:Integration: •• Google Apps, Google Apps, •• Magento, ... Magento, ...Nom du fichier – à compléter Management Presentation 24
  25. 25. How we will get 5.000.000 users How we will get 5.000.000 users Within two years ? Within two years ? Develop the partner network Develop the partner networkNom du fichier – à compléter Management Presentation 25
  26. 26. Develop the partner networkWe plan to increase a lot the OpenERP offer:We plan to increase a lot the OpenERP offer: Get more partners Get more partners Have partners who grow Have partners who grow •• Lead generation & forward, Lead generation & forward, •• Continuous trainings, Continuous trainings, •• Business development with account managers. Business development with account managers. Schema partner processScale more:Scale more: Certified Training Partner Program Certified Training Partner Program Train the trainers Train the trainersNom du fichier – à compléter Management Presentation 26
  27. 27. How we will get 5.000.000 users How we will get 5.000.000 users Within two years ? Within two years ? Develop the Online offer Develop the Online offerNom du fichier – à compléter Management Presentation 27
  28. 28. Segmentation of the market The OpenERP Online offer allows to reach the mass of small businesses that do not want to buy consulting days. Reduce time to implement for companies of 3 users. Small Companies Medium / Big Companies√ out-of-the-box solution √ have specific needs√ low costs √ need custom developments√ fast √ on site services- no custom developments - pay per day of service- official modules only Ideal for >15, <15000 users Ideal for <15 users Nom du fichier – à compléter Management Presentation
  29. 29. SummaryNom du fichier – à compléter Management Presentation 29
  30. 30. Conclusion If we succeeded its mainly due the strong relationship we have with partners and the community. They are the reason why OpenERP is smarter than the others. ...thank you !Nom du fichier – à compléter Management Presentation

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