Introduction to Open ERP

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Brief introduction to Open ERP for international students of the International Bachelor in Information Management Programa. Deusto University is taking part in that program, besides of Tilburg University in Netherlands and Bentley University in Boston, MA, USA.

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Introduction to Open ERP

  1. 1. Why does my company need OpenERP?OpenERP: Open Source Business Application Alex Rayón Jerez © 2011 Atlantis – 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?
  2. 2. 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?
  3. 3. 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?
  4. 4. Introduction to Information Systems Organizational management21st Century organization: coordinated decision-taking process → any given employeemust have access to any given resource withing the companyWe need an information system to make that possible→ “A set of organized elements thatreceive information, process it and generate a result that will later be used to achievesome of the established goals”In the business management field, we will mainly be interested in business informationsystems (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 processThey play a key role within organizations They channel information along different departments in the company Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 4
  5. 5. Introduction to Information Systems Components Human component Information InformationOrganizational Technological component Information component Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 5
  6. 6. Introduction to Information Systems Everything 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-userIntelligence 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.) Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 6
  7. 7. Introduction to Information Systems HistoryERP: 1990 Controlling Sales & Distribution Material management Financial accounting MRP II: 1970 Sales & Operations Planning Investment management Forecasting Simulation Quality management Personal management MRP: 1960 Master Production Schedule Human Resource Management Material Requirements Planning Capacity Requirements Planning Plant maintenance Execute capacity plans Execute material plans Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 7
  8. 8. Introduction to Information Systems ClassificationBusiness 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 8
  9. 9. Introduction to Information Systems Classification (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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 9
  10. 10. Introduction to Information Systems Classification (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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 10
  11. 11. Introduction to Information Systems Classification (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 networks set-up and configuration Distribution strategy Information Stock management Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 11
  12. 12. Introduction to Information Systems Classification (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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 12
  13. 13. Introduction to Information Systems Classification (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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 13
  14. 14. Introduction to Information Systems Classification (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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 14
  15. 15. 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? InternetTailor-made software Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 15
  16. 16. Why does my company need an ERP? ImprovementsInformation access → centralized databaseProcess and resource managementInternational 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 accessibleand 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” Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 16
  17. 17. Why does my company need an ERP? Improvements (II)Information management Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 17
  18. 18. Why does my company need an ERP? Improvements (III)Enterprise resource coordinated management Internet Internet Internet Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 18
  19. 19. 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 19
  20. 20. 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 20
  21. 21. Why does my company need an ERP? Improvements (VI) Aalsmer, Noord-Holland: the flower Capital of the world Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 21
  22. 22. Why does my company need an ERP? ProductivityMany studies have shown that the wider use of information and communicationtechnologies (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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 22
  23. 23. Why does my company need an ERP? What does it mean for me as a company?Analysis: client needs + projects dimensionsMethodology: it is more than a tool, since it allows to establish amanagement philosophy in the company → organizational modelTraining: for employees and other companies Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 23
  24. 24. Why does my company need an ERP? DIKW Pyramid Data Data Information DIKW Pyramid+ Intelligence Knowledge Evaluation Data Wisdom Wisdom Challenges Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 24
  25. 25. ERP implementation Chronological processChronological 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 25
  26. 26. ERP implementation Chronological process (II)Why it is recommended to change business practice to suit the ERP software ratherthan 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 26
  27. 27. ERP implementation 1) Take the decision to implement an ERPDo 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 ERPWhen C-level managers realize that profits exceed costs when every single departmentis sharing information through an ERP, they ask a consulting firm to assess them inchoosing and deploying an ERP solutionSome 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? Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 27
  28. 28. ERP implementation 2) ERP selectionPrior 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) Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 28
  29. 29. ERP implementation 2) 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 29
  30. 30. ERP implementation 2) ERP selection (III)Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 30
  31. 31. ERP implementation 2) ERP selection (IV)Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 31
  32. 32. ERP implementation 2) 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 32
  33. 33. ERP implementation 2) ERP selection (VI)Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 33
  34. 34. ERP implementation 2) 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] Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 34
  35. 35. ERP Implementation 3) BPR (Business Process Reengineering)It is a key pre-requirement to any implementation It emphasizes current systems 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. Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 35
  36. 36. ERP Implementation 4) ImplementationAn ERP implementation it is a long process that implies two working groups: Parameterizing group: consulting firm Implementation group: within the organization or a consulting firmClassic 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 strategy How can I know that an ERP will be profitable for my company? Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 36
  37. 37. ERP Implementation 4) Implementation (II)Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 37
  38. 38. ERP Implementation 4) Implementation (III)The Great Mystery of the ERP 10-Year Itch: Why Businesses Cant Seem to Stick withTheir 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 isnt 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 isnt 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) Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 38
  39. 39. ERP Implementation 4) Implementation (IV)It all comes back to misalignment between the business and the software itself Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 39
  40. 40. ERP Implementation 4) Implementation (V)The business is not going to stand still just because you dont want to deal with replacingyour ERP softwareERP vendor isnt going to create a custom application just for you that meets all of yourevolving 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 its 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 its doing now and what the business needs. Its 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 40
  41. 41. ERP Implementation 5) Entering to productionAtlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 41
  42. 42. ERP Implementation 6) Success analysisProfits 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 42
  43. 43. ERP Implementation 6) Success analysis (II)So, if an ERP offers me competitive advantages and a ROI, how can I measurethose returns? i.e. Panorama Consulting Group: ROI calculator Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 43
  44. 44. ERP Implementation 6) 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 44
  45. 45. ERP Implementation 6) 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 45
  46. 46. ERP Implementation 6) 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.) Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 46
  47. 47. ERP Implementation 6) 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 47
  48. 48. ERP Implementation 6) Success analysis (VII)The parameterizing of some ERPs is quite limitedSome ERP are quite expensive (SAP Business One 20.000 € + programmer forabout 3.000 €)Some ERP are seen by the market as very stiff and hardly adaptable solutionsfor the organizational workflow and business process requirements (in OpenERPboth 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 about selecting an Open Source solution for my company? Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 48
  49. 49. What is OpenERP?A set of integrated solutions (all the pieces in the puzzle) forenterprise managementIt automates and organizes business processes What is a business process? Porters value chain Administration Human Resources Research and Development Infrastructure Sales Internal External After-sales Operations and services logistics logistics marketing Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 49
  50. 50. What is OpenERP? (II) Free license, cross-platform and web and desktop clients Modular: functionality is Integral: it makes possible divided into individual to control all the business modules. Parameterization and process of any given configuration of modules based organization coordinating every on the requirements of those functions. functional area. Everything in Modules: purchases, sales, stocks, the same software package accounting, Human Resources, CRM, SRM, etc. Adaptable: “Every company isa unique world”. Configuration and A-GPL License for the server + modules, parameterization of the business GTK client and Koo client. processes and models. It allows OPL License (OpenERP the development of modules Public license) for the web client (it is a MPL With some restrictions in the logos) Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 50
  51. 51. OpenERP Project2002: 1.0 version. Originally developed as an Open Source solution by FabienPinckaers as a specific solution for an auction house2004: first versions of TinyERP. Fabien Pinckaers sets the Belgian company TinySprl2005: OpenERP founded by CEO Fabien Pinckaers. Fabiens vision was thatOpen Source provided a better way to meet customers expectations.2006: 3.0 version. First version of OpenERP implemented in Spain successfully2007: SVN repository opened. Some successful implementations. 35 officialmodules and 120 extras2008: code in launchpad/bazaar. Community participation is opened. TinyERPbecomes OpenERP. First Spanish OpenERP Conference in Zaragoza Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 51
  52. 52. OpenERP Project (II)2009: OpenERP 5.0 is published. 114 official modules and 250 extras. Itsupposes the real launch of the OpenERP project. Implementations aredone world wide. Second Spanish OpenERP Conference hold in VilanovaI La Geltru, Catalunya2010: in July, OpenERP Early-Adopter Preview - 6.0-dev (alpha). Greatcommunity around the globle. It becomes the most reliable Open SourceERP. 500 published modules, 30 languages and presence in 80 countries. 3million investment of venture capital to OpenERP. Third SpanishOpenERP Conference hold in the University of Deusto in Bilbao2011: OpenERP has released its new version 6.0. More user-friendly,accessible, intuitive and ready to boost up a business. Response to theneeds of customers, community and industries and the answer to today’smarket Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 52
  53. 53. OpenERP Project (III)Partners: over 150 partners deploy our software and support our customers inover 37 countriesCommunity: more than 1000 individuals contribute to improving the softwareevery dayInvestors: OpenERP went through a first round of financing with Sofinnova aleading European Venture capital firm and Iliad managers Xavier Niel and OlivierRosenfeldEmployees: over 100 employees. Constantly reinforcing the teamCareers: availabilities on the web site or by email jobs@openerp.com ;-) Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 53
  54. 54. OpenERP CommunityMore than 1000 individuals contribute to improving thesoftware 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 Spain Developer Team Openerp Spanish Localization Project Quality team https://launchpad.net/openerp-spain Committee team Community team Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 54
  55. 55. 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 Many projects and work teams around OpenERP Workteams https://launchpad.net/openobject Member Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 55
  56. 56. OpenERP Community (III)OpenERP community is very youngMost of the teams, communication channels and collaborative toolshave been set up along 2009 and 2010. They are still being defined and adjusting some of the processes for collaborationFrom 2010 February, exists the leader position, dedicated for thecommunity The leader, it is the one that communicates the community with Enterprise needs, defining and documenting processes, etc. More detailed information about OpenERP community http://www.slideshare.net/ejordi/comunidades-software-libre-comunidad-openerp Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 56
  57. 57. OpenERP TechnologyAll-in-one install kit GNU/Linux and Windows PostgreSQL DesktopMultiplatform client: Gtk, Koo GNU/Linux, Windows, Mac (there is no native version XML-RPC http://devteam.taktik.be) NET-RPCPotent clients OpenERP Web, GTK, Koo (Qt) Server NET-RPCMVC scheme Web client Model: PostgreSQL View: XML (calendar, graphics, list, form) eTiny Controller: Python Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 57
  58. 58. 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, OofficeLaunch cycles Small versions (bugfixes): once a month (first days of the month) Big versions (new functionalities): once a year (more or less) Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 58
  59. 59. 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? Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 59
  60. 60. Implementation approachesTraditional 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 60
  61. 61. 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 61
  62. 62. 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 documentationAnalysis Design Development Integration Implementation Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 62
  63. 63. 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 63
  64. 64. 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 Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP? 64
  65. 65. 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? 65
  66. 66. ReferencesWeb sitesBreak 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-40982ERP 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 Cant 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-10Gartner 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-nytimestecEmployment 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?
  67. 67. 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?
  68. 68. Profesor: Ing. Alex Rayón Jerez Bilbao, March 2011 Facultad de Ingeniería, ESIDE Universidad de DeustoDepartamento de Tecnologías Industriales, Facultad de Ingeniería, Universidad de Deusto Avda. de las Universidades, 24, 48007 Bilbao, País Vasco, España Alex Rayón Jerez alex.rayon@deusto.es To contact me, so many other ways :-) http://alexrayon.es/alex-rayon-20/ Atlantis – IBIM Program at the University of Deusto – Why does my company need OpenERP?

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