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Value Creation using Open Source Software


M.L. Luesak Chakrabandhu

Deputy Vice President
Business Development
Information Technology Center
S&P Syndicate Public Company Limited



Contact
+66 (0) 2 1851313 Ext. 164
luesak@snpfood.com
Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
                                                                   1
S&P Services and Products




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
                                                                   2
S&P Services and Products




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Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
                                                                   3
Knowing you
I am here today because ...

1) OSS, many of them are free, why don't I try ?
       Don't quit.
2) My proprietary system is so costly and I want
it replaced.
       Don't rush. You may need some parts of it.
3) OSS is a huge cost saving. I should consider
OSS seriously for my IT strategy.
       Don't forget your BUSINESS STRATEGY
Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
                                                                   4
Open Source and Cost Saving

Cost Saving View                 Value Creation View
Free new software                More user access
Proprietary replacement          Speed up processes
Low upgrade cost                 Business flexibility
High security                    Bigger project
Stability                        Lower project risks (testing)




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
                                                                   5
S&P Value Creation Mapping

        Quick win                 Strategic win
        MySQL for POS             Zero training paradigm
        MySQL datamart            Enterprise-wide integration
        OpenOffice.org            Decrease fixed costs
Value




        E-Doc repository          Agile business
        Low hanging fruits        Money pit
        Desktop applications      Unnecessary migration
        More Linux servers        Complicate OSS
        CMS (Joomla/Mambo)        Obsolete OSS


                      Resources/Time
Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
                                                                   6
S&P in Action
    After working on objectives -> requirements , ...
... unfortunately the next move is not to kick-off projects
   0 Resources       Current skills, licenses (MA too), In-house
                     development, data

   1 Users           What they ... have (in-use) -> love + should

   2 IT Team         Start simple but ASAP and non-stop

   3 IT Platform     Must not have too many technologies

   4 Projects        Quick Wins as part of future strategic win
                     Bites on Expandable Low Hanging Fruits

  Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
S&P Key Decisions
Linux will be the only major desktop OS
-> FOSS to replace proprietary (e.g. office, utilities, multimedia)
-> No new VB or Unix application development
-> Web-based = favorite (PHP, Java) -> ERP upgrade, LAMP
-> Mozilla FireFox is the selected browser
-> Stop Windows purchase/upgrade (internal license transfer)

Number of technologies have to be limited
-> MySQL (preferred) and Oracle (kept)
-> Platform independent programming (LAMP, WAMP and Java)
-> Inform vendors and system integrators




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
Financial Work on OpenOffice.org
                                                  1 Users


                                           ● Plenty of formula
                                           ● No conversion problem

                                           ● Same training




                                           Minimum saving:
                                           120 USD x 500 = 60K
                                           (>2M THB)




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
Mozilla Firefox Add-ons
                                                  1 Users



                                           ● Ease of use
                                           ● Relax stuffs




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
CMS (Joomla)
                                                  2 IT Team


                                           ● No new skill needed
                                           ● Little setup effort

                                           ● Short time to value

                                           ● Extensions




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
Linux – scary no more
                                                  2 IT Team



                                           ● Easy installation (Ubuntu)
                                           ● Graphic interface

                                           ● No network problem




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
AppServ – no rocket science
                                                  2 IT Team



                                          ● Easiest WAMP starter
                                          ● Not just for PC testing




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
“Whether you believe you can do
   a thing or not, you are right.”

                                           Henry Ford




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
PHP “the language of choice”

                                                     m           3 IT Platform
                                                s te
                                              sy
                                       S CM
                                   e                       Faster development
                                at
                                                         ●


                           p lic                         ● Biggest developer group

                        m
                    k co                                 ● Light weight -> pervasive


                l oo                                     ● Any system



        m ple                                            ● Most widely used in OSS

      Si
                                                         Average Annual Saving:
PHP: more value to unleash
                                                         1M THB
● Command line                                           (at least 50% lower total
● PHP desktop application                                development cost)
● A lot of code generators

● Extensions in www.php.net




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
Lotus Domino on 64-bit Linux
                                                  3 IT Platform


                                          ● Stable
                                          ● Minimal virus problem




                                           Saving:
                                           10K (>300K THB)
                                           Annual saving:
                                           15 USD x 500 = 7.5K
                                           (>250K THB)




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
MySQL Data Marts and POS
                                                  3 IT Platform

                                          ● Huge saving on license
                                          ● More than “good enough”

                                          ● Linux and Windows

                                          ● Low maintenance costs

                                          ● Many apps & developers




                                           Minimum saving:
                                           200 USD x 500 = 100K
                                           (>3.3M THB)
                                           Annual saving:
                                           15 USD x 500 = 7.5K
                                           (>250K THB)

Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
E-Commerce on LAMP
                                                  4 Projects



                                           ● Low development costs
                              om
                                           ● Hassle free


                           .c
                     fo od
               .s np
           w ww




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
ERP Upgrade to web-based system
                                                  4 Projects

                                           ● Centralized + Virtualized
                                           ● Minimize service

                                           ● Enable future migration




                                           License saving:
                                           4,000 USD
                                           (>130K THB)
                                           Annual TCO saving:
                                           12,000 USD
                                           (>400K THB)



Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
SCM Application on LAMP
                                                  4 Projects

                                           ● ERP integration
                                           ● Highest flexibility

                                           ● Handle huge transaction

                                           ● Near real-time

        CSF:
        “Cannot be easier”
        “In user's language”                Annual created value:
        “No more no less”                   90,000 USD
        “Fool Proof”                        (>3M THB)
        “1 click is costly”



Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
E-Journal on WAMP
                                                  4 Projects

                                           ● Proprietary software
                                           ● No “advance” feature




                                            Investment saving:
                                            32,800 USD
                                            (about 1.1M THB)

                                            Annual paper saving:
                                            86,000 USD
                                            (about 8,000 THB /day
                                            >2.9M THB / year)


Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
Virtualization and Open Source

                                          VMware Host:
                                          Windows / Linux

                                          VMware Guest:
                                          Windows / Ubutu / Redhat

                                          Applications:
                                          Installation
                                          Virtual Appliances




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
Invest in people development




                    Integrating OSS and other softwares
          Bringing in new technologies
Application development

Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
Synopsis
Business view
● Business objective first

● Don't “research”, “live in the community”

● OSS is a true “enabler”

● “Open Source World has it” mindset

● Free OSS not for zero investment

● Cost saving grows with “user trust on OSS”




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
Synopsis
Technical view
● Keep replacing “paid” desktop applications
● Don't add more “proprietary” platform/infrastructure

● OSS and Closed Source can co-exist/integrate

● There still be good closed source investments

● Dilemma on user interface ? Choose web

● One main “In-House” programming language

● Internal testing but buying service is not evil

● Upgrade




    Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
List of related keywords
 OSS IT Tools                      LAMP
 Winbinder                         Ubuntu
 Eclipse                           Debian
 phpMyBackup                       CentOS
 Wine                              Redhat
                                   Linux Foundation
 IT Tools                          Apache HTTP Server
 MySQL PHP Generator               MySQL
 VMware                            PHP
 Xen                               Zend
 Virtual Appliances                AppServ
 rBuilder                          phpMyAdmin
 RealVNC
 Crossover


Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
List of related keywords
 Desktop OSS                      Other OSS
 Mozilla Firefox                  Apache Tomcat
 Mozilla Thunderbird              Joomla
 OpenOffice.org                   Mambo
 Chantra                          SugarCRM
 Lexitron
 7-zip
 GIMP                             Essential
 Virtual Magnifying Glass         SourceForge
 FileZilla                        Nectec
 Putty                            Sipa




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
“Change before you have to.”


                                           Jack Welch




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
M.L. Luesak Chakrabandhu
ม.ล. ลอศกด จกรพนธ

Deputy Vice President
Business Development
Information Technology Center
S&P Syndicate Public Company Limited
Contact
+66 (0) 2 1851313 Ext. 164
luesak@snpfood.com




Value Creation using Open Source Software - M.L. Luesak Chakrabandhu

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Value Creation using Open Source Software

  • 1. Value Creation using Open Source Software M.L. Luesak Chakrabandhu Deputy Vice President Business Development Information Technology Center S&P Syndicate Public Company Limited Contact +66 (0) 2 1851313 Ext. 164 luesak@snpfood.com Value Creation using Open Source Software - M.L. Luesak Chakrabandhu 1
  • 2. S&P Services and Products Value Creation using Open Source Software - M.L. Luesak Chakrabandhu 2
  • 3. S&P Services and Products m d .co o .sn p fo 1344 w ww Value Creation using Open Source Software - M.L. Luesak Chakrabandhu 3
  • 4. Knowing you I am here today because ... 1) OSS, many of them are free, why don't I try ? Don't quit. 2) My proprietary system is so costly and I want it replaced. Don't rush. You may need some parts of it. 3) OSS is a huge cost saving. I should consider OSS seriously for my IT strategy. Don't forget your BUSINESS STRATEGY Value Creation using Open Source Software - M.L. Luesak Chakrabandhu 4
  • 5. Open Source and Cost Saving Cost Saving View Value Creation View Free new software More user access Proprietary replacement Speed up processes Low upgrade cost Business flexibility High security Bigger project Stability Lower project risks (testing) Value Creation using Open Source Software - M.L. Luesak Chakrabandhu 5
  • 6. S&P Value Creation Mapping Quick win Strategic win MySQL for POS Zero training paradigm MySQL datamart Enterprise-wide integration OpenOffice.org Decrease fixed costs Value E-Doc repository Agile business Low hanging fruits Money pit Desktop applications Unnecessary migration More Linux servers Complicate OSS CMS (Joomla/Mambo) Obsolete OSS Resources/Time Value Creation using Open Source Software - M.L. Luesak Chakrabandhu 6
  • 7. S&P in Action After working on objectives -> requirements , ... ... unfortunately the next move is not to kick-off projects 0 Resources Current skills, licenses (MA too), In-house development, data 1 Users What they ... have (in-use) -> love + should 2 IT Team Start simple but ASAP and non-stop 3 IT Platform Must not have too many technologies 4 Projects Quick Wins as part of future strategic win Bites on Expandable Low Hanging Fruits Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 8. S&P Key Decisions Linux will be the only major desktop OS -> FOSS to replace proprietary (e.g. office, utilities, multimedia) -> No new VB or Unix application development -> Web-based = favorite (PHP, Java) -> ERP upgrade, LAMP -> Mozilla FireFox is the selected browser -> Stop Windows purchase/upgrade (internal license transfer) Number of technologies have to be limited -> MySQL (preferred) and Oracle (kept) -> Platform independent programming (LAMP, WAMP and Java) -> Inform vendors and system integrators Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 9. Financial Work on OpenOffice.org 1 Users ● Plenty of formula ● No conversion problem ● Same training Minimum saving: 120 USD x 500 = 60K (>2M THB) Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 10. Mozilla Firefox Add-ons 1 Users ● Ease of use ● Relax stuffs Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 11. CMS (Joomla) 2 IT Team ● No new skill needed ● Little setup effort ● Short time to value ● Extensions Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 12. Linux – scary no more 2 IT Team ● Easy installation (Ubuntu) ● Graphic interface ● No network problem Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 13. AppServ – no rocket science 2 IT Team ● Easiest WAMP starter ● Not just for PC testing Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 14. “Whether you believe you can do a thing or not, you are right.” Henry Ford Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 15. PHP “the language of choice” m 3 IT Platform s te sy S CM e Faster development at ● p lic ● Biggest developer group m k co ● Light weight -> pervasive l oo ● Any system m ple ● Most widely used in OSS Si Average Annual Saving: PHP: more value to unleash 1M THB ● Command line (at least 50% lower total ● PHP desktop application development cost) ● A lot of code generators ● Extensions in www.php.net Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 16. Lotus Domino on 64-bit Linux 3 IT Platform ● Stable ● Minimal virus problem Saving: 10K (>300K THB) Annual saving: 15 USD x 500 = 7.5K (>250K THB) Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 17. MySQL Data Marts and POS 3 IT Platform ● Huge saving on license ● More than “good enough” ● Linux and Windows ● Low maintenance costs ● Many apps & developers Minimum saving: 200 USD x 500 = 100K (>3.3M THB) Annual saving: 15 USD x 500 = 7.5K (>250K THB) Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 18. E-Commerce on LAMP 4 Projects ● Low development costs om ● Hassle free .c fo od .s np w ww Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 19. ERP Upgrade to web-based system 4 Projects ● Centralized + Virtualized ● Minimize service ● Enable future migration License saving: 4,000 USD (>130K THB) Annual TCO saving: 12,000 USD (>400K THB) Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 20. SCM Application on LAMP 4 Projects ● ERP integration ● Highest flexibility ● Handle huge transaction ● Near real-time CSF: “Cannot be easier” “In user's language” Annual created value: “No more no less” 90,000 USD “Fool Proof” (>3M THB) “1 click is costly” Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 21. E-Journal on WAMP 4 Projects ● Proprietary software ● No “advance” feature Investment saving: 32,800 USD (about 1.1M THB) Annual paper saving: 86,000 USD (about 8,000 THB /day >2.9M THB / year) Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 22. Virtualization and Open Source VMware Host: Windows / Linux VMware Guest: Windows / Ubutu / Redhat Applications: Installation Virtual Appliances Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 23. Invest in people development Integrating OSS and other softwares Bringing in new technologies Application development Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 24. Synopsis Business view ● Business objective first ● Don't “research”, “live in the community” ● OSS is a true “enabler” ● “Open Source World has it” mindset ● Free OSS not for zero investment ● Cost saving grows with “user trust on OSS” Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 25. Synopsis Technical view ● Keep replacing “paid” desktop applications ● Don't add more “proprietary” platform/infrastructure ● OSS and Closed Source can co-exist/integrate ● There still be good closed source investments ● Dilemma on user interface ? Choose web ● One main “In-House” programming language ● Internal testing but buying service is not evil ● Upgrade Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 26. List of related keywords OSS IT Tools LAMP Winbinder Ubuntu Eclipse Debian phpMyBackup CentOS Wine Redhat Linux Foundation IT Tools Apache HTTP Server MySQL PHP Generator MySQL VMware PHP Xen Zend Virtual Appliances AppServ rBuilder phpMyAdmin RealVNC Crossover Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 27. List of related keywords Desktop OSS Other OSS Mozilla Firefox Apache Tomcat Mozilla Thunderbird Joomla OpenOffice.org Mambo Chantra SugarCRM Lexitron 7-zip GIMP Essential Virtual Magnifying Glass SourceForge FileZilla Nectec Putty Sipa Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 28. “Change before you have to.” Jack Welch Value Creation using Open Source Software - M.L. Luesak Chakrabandhu
  • 29. M.L. Luesak Chakrabandhu ม.ล. ลอศกด จกรพนธ Deputy Vice President Business Development Information Technology Center S&P Syndicate Public Company Limited Contact +66 (0) 2 1851313 Ext. 164 luesak@snpfood.com Value Creation using Open Source Software - M.L. Luesak Chakrabandhu