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OpenERP:The rise of open source business

management software

David Janssens, Almacom (Thailand) Ltd.david.j@almacom.co.th

September 2011

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Outline1. History of open source

2. Open source ERP business model

3. Case study: ERP in Europe

4. OpenERP: a leading ERP system

5. Almacom: Thai OpenERP partner

6. OpenERP software architecture

7. OpenERP modules overview

8. Demos

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Introduction Open source movement started many years ago...

Arrival of the Web greatly boosted this movement

Open source has been making steady progress in the field of business software in recent years

Recently, viable open source ERP alternatives have begun to appear

Companies using new business models have been created to seize this opportunity

OpenERP is one of these new kind of ERP systems

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Languages: Lisp,C,C++,Perl,Python,Java,PHP,Ruby, ...

Operating systems: Linux, BSD, Solaris, …

Databases: PostgreSQL, MySQL, SQLite, …

Web infrastructure: Apache, Bind, Postfix, …

CMS: Joomla, Drupal, Wordpress, Plone, Alfresco, …

Middleware: JBoss, Spring, Rails, OpenObject, …

Infrastructure: powers Google, Facebook, Salesforce, ...

The Web changed everything!

1. History of open source

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Open source powers the webMarket share of Apache web server

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Collaborative software development Advantages of open development process:

Create huge community of developers working together to improve the software

From different countries and companies

“Many eyes make all bugs shallow”

More likely to attract top talent

More visibility

More efficient process, avoid duplication of efforts

“Disadvantage” New business models are needed to support developers

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Moving up the software stack Evolution of open source:

System software

Open source is omni-present (eg: Linux) Database systems

Major improvements in last 10 years: (eg: MySQL) Content management

Major developments in last 5 years: (eg: Joomla, Wordpress, Alfresco) Business software

E-commerce (Magento), CRM (SugarCRM), Procurement (Coupa), ... Full ERP systems

Next stage of open source (eg: OpenERP, xxx-piere)

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Open source ERP customer advantages Zero license costs

Ultimate flexiblity No “black-box” package

No vendor lock-in Using standard data formats and protocols

Less risk Future of system not tied to one company

Extensibility “Be the master of your ERP fate”

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Reasons for adopting open source?

What are the top 3 factors that make open source software attractive?

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Benefits seen after adoption After your organization adopted open source software, what was the primary

benefit of its use?

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2. Open source ERP Business Model License costs are zero Great for customers, what about developers? 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 = services

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Open source marketing power

Sales and marketing budget: Netsuite: 80MEUR, OpenERP: 200kEUR (x400!)

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3. Case study: ERP in Europe 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/

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Open source ERP comparison

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Open source ERP trendsSource: Google Insight

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Genealogy of open source ERPs

Compiere

Adempiere

OpenBravo

TinyERP OpenERP

Tryton

Ofbiz

Neogia, opentaps

ERP5

2000 2006

2002 2008

2001

2002

2004

2002 Dolibarr

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4. OpenERP: 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, python, XML 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

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OpenERP: global network of companies

1 Editor Based in Belgium, with branch in India

Manages development of core features of OpenERP

Provides second-level support contracts

300+ partners In many different countries

Provide local services to customers

1000+ contributors

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5. Almacom: Thai OpenERP Partner

Established in Bangkok in mid-2008

Mission: To provide professional services to OpenERP users

Technical expertise in OpenERP internals

Official “Golden Partner” of OpenERP

Under BOI Privilege

Excellent contacts with publisher of OpenERP

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Almacom contributions to OpenERP Domain name: tinyerp.com → openerp.com

New web interface of OpenERP (v5.0.2+) Removed Turbogears dependency

Switched template system from Kid to Mako

Switched web framework from Cherrypy v2 → v3

Result: 30x speedup, easier maintenance

Many modules, translations Purchasing, accounting, reporting, adaptations for Thailand, …

Support for Thai customers

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OpenERP Implementations in Thailand

• Atlas Copco

• Pan Asia

• Naraya

• Shining Gold

• Gtgold

• Northern Technology

• Honda Rama 3

• Pakchong Diary Coop

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OpenERP Implementations in Thailand

Advance Life Insurance

M-Wave marketing

Helukabel

Armed Forces Research Institute of Medical Sciences

New party

ALIBI

WP Creatatoin

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OpenERP in Thai SME Market Current popular software for Thai SMEs:

Express, Winspeed, Formula/Forma, ... Localization: excellent Feature set: good Technical foundation: average Speed of development: slower Flexiblity: lower On-demand offer: no

OpenERP Localization: average (improving...) Feature set: extensive Technical foundation: very good Speed of development: faster Flexibility: higher On-demand offer: yes

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6. OpenERP Software Architecture

OpenObjectDesktop Client

Web Browser(IE, Firefox, Safari, ...)

Network:LAN / Internet

User computer:Desktop / Laptop /Phone / PDA / Terminal

Server hardware

Web serviceXML-RPC

OpenObjectApplication Server

SQL Database(Postgres, MySQL,

SQL Server, Oracle...)

OpenERP Modules(Acct, Stock, Purch,

Sales, MRP, ...)

OpenObjectWeb Client

OpenObjectMobile Client

HTML/CSS/JS

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OpenERP Server

Object Relational Mapping

Integrated workflow engine

Data loading and migration system

Model-view-controller

Flexible module system

Integrated BI tools

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OpenERP Desktop Interface

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OpenERP Web Interface

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OpenERP Mobile Interface

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Personalized dashboards

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Easy to use search interface

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Integrated calendar views

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Integrated Gantt views

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Integrated BPM views

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PDF Forms and Reports

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Integrated Business Intelligence

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Multi-language support

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Integrated view editor

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Integrated workflow editor

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Integrated object editor

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Integrated translation editor

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Getting OpenERP source code Launchpad project hosting

Similar to sourceforge Bazaar version control system

Successor to CVS, SVN Bug reports Blueprints Translations Q&A OpenERP in top-10 active projects Current version 5.0 Different branches: stables, trunk, etc.

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7. OpenERP modules overview

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OpenERP modules overview

Flexible module system is strength of OpenERP

More than 500 modules available

20 new modules per month

Module overview: Accounting, stock, purchase, sales, manufacturing, project

mgt, CRM, HR, POS, document mgt, e-commerce, BI, ...

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Accounting modules Double-entry accounting system Multi-company, multi-currency Chart of accounts, general ledger, invoicing,

payment/receipt vouchers, bank statement, cheque processing

Withholding tax support Analytic accounting Asset management, different costing methods, IFRS compliant Budget management Integrated to sales, purchase, stock, mrp, hr Legal reports

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Stock mgt modules

Multi-warehouse

Double entry system

Barcode support

Stock move tracking

Shipping management

Quality control

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Purchasing modules Integrates best practices: MTS/MTO, JIT,

MPS, Kanban Automatic procurement propositions Integrated with acct, stock, project Powerful pricelist system Purchase requisitions, purchase orders

Department / section level Advanced approval control

Configuration using flexible rules Line by line approval

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Sales modules Easy to use quotation system

Powerful pricelists

Follow-up and control of sales orders, deliveries, invoicing

Integrated with POS, automatic accouting entries

Integrated with contracts, projects, master production schedule

Integrated with different e-commerce platforms

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CRM/SRM modules Automatic incoming and outgoing mail processing

Integrated with enterprise calendars

Integrated with sales, purchases, after-sales services

Sales leads, sales opportunities

Customer segmentation

Phone calls

Claim processing

Helpdesk / support

Job requests

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Direct marketing Development, execution and monitoring

of campaigns across multiple channels

Manager offers, campaign steps, workflows

Create bulk documents

Configurable workflows

Complete statistics and dashboards

Fast orders encoding

Integrated with analytic accounting, automatic procurements, sales, CRM

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HR modules Expense management

Integrated with financial and analytic accounting

Holidays management

Integrated to company calendar, payroll

Timesheets

Sign-in/sign out

Skills management

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Manufacturing modules Multi-level BoM and routings

JIT

Different costs methods

Phantom BoMs

Configurable products

workcenter operations

Integrates sales forecasts

Automatic purchase propositions: MTS/MTO, master production schedule, minimum stock rules

Scheduler computes best proposed planning

Production manager can use gantt views to organise resources or orders

Integrated with stock, accounting, HR

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Project mgt modules

Financial project mgt Based on analytic accounting Keep track of costs, budgets Automatic invoicing, profitability reports

Operational mgt Task allocations Short and long term plannings Delegations Retro-planning computations GTD, SCRUM Dynamic Gantt views to organize projects and tasks

Timesheets

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POS Modules

Easy and complete touchscreen interface for end-users

Support for direct invoicing

Support for reimbursements and product exchanges

12 types of supported barcodes

Integrated with stock, accounting, sales

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Document mgt modules

Automatic indexation of documents

Virtual files and folders to automate any kind of document generation

Shared calendars

Integrated wiki engine

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E-commerce modules

Integration with OSCommerce, EZPublish, Magento, Joomla

Portal access for customers to manage their accounts and orders

Integrated with CRM, sales

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Business intelligence modules OLAP database Multi-dimensional analysis using MDX

queries Cube designer

Works on any DB, supports introspection

Cube browser Consolidate, drill up, drill down, slice, filter

data User-friendly: drag&drop, easy to use,

preconfigured Analysis in real time

Respect OpenERP access rights

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OpenERP Documentation “Open ERP for Retail and Industrial Management”

Authors: Fabien Pinckaers: CEO of Tiny Geoff Gardiner: CEO of Seath Solutions Ltd.

Senior Industrial Research Fellow at Cambridge University’s Institute for Manufacturing

Hard-copy from Amazon, free PDF from openerp.com

http://doc.openerp.com/ Forums, IRC logs

http://forum.openerp.com/ http://openerp-thai.com/

Training sessions (user, technical) Source code!

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Conclusion Learn more about OpenERP:

http://openerp.com/ http://openobject.com/ http://openerp-thai.com/

Implement OpenERP in your company: Get professional services, http://almacom.co.th/

Try On-demand OpenERP: http://almacom.co.th/ondemand

Join us! Become a partner, reseller or contributor...

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8. Demos Desktop interface Web interface Dashboards Workflows and BPM Calendar views Gantt views Workflow editor View editor PDF reports Thai translation Mobile interface Business intelligence CRM, Sales, Manufacturing, Purchasing, Accounting