Open Source ERP software are category of those Enterprise resource planning software which can be used by organization for free of cost the software code is available to modified by anyone for their business purposes. Open source erp also called as free erp software where the license costs are not involved for any number of users in the organization. ERP which is also called as Business management software consist of integrated apps which can be used to collect various information for the organizational business activities.
In this blog post we will cover an inforgraphics on why big companies started using Open source ERP software in their business. Open source ERP is also called as enterprise resource planning (ERP) software system where the source code is made publicly available to developers who can work on the code by providing new areas and capability to the sofware as a whole. Further Open source model also allow organization to access the ERP system code, use it on their own server or machine and understand the capabilities of the software. This model has been used in Small and Big companies today specially in Developed nations such as USA, Russia, Europe and UK.
WHY BIG COMPANIES PREFER USING OPEN SOURCE
Published in Blogs | Why Big Companies prefer using Open Source ERP software
What is open source ERP software?
Open source ERP system is an Enterprise resource planning tool where the source code of the complete product is available. This source code is open to public which can be downloaded from the internet and changes such as customization, development can be done by organization based on their business processes and flows. Unlike other proprietary software where you can’t change anything from ERP functional point of view and have to use the proprietary ERP software as it is crafted by the vendor.
As an Example:
Your company is into manufacturing of biscuits or bakery products and you are looking for ERP software to streamline your business processes you check with different ERP vendors who claim to have ERP software implemented for confectionery company with various modules and processes. It is sure that your company will have own manufacturing processes or sales or purchase processes where you need customization to meet your needs.
In this case either you need to adjust your internal processes to ensure it is as per the Proprietary ERP software or you need to do customization in the existing proprietary ERP. The first option of changing processes can break your competitive advantage and the second may be costly as proprietary software customization can take too much time and money.
How Open source ERP helps your Business ?
In the above example we have just took one example of customization in processes. There are many ways Open source software helps you to make proper decision while selecting ERP software for your business Some of the benefits of Open source ERP is as follows :
ERP software in the market is likely to be less costly if you are selecting any licensed or proprietary software which cost between 50,000 USD to 1,00,000 USD for a small and medium enterprise and it can go over in millions if your company is huge. The maximum cost factors are licensing, customization, and development cost. Open source software compare to proprietary can be cost effective as licensing cost are not applied and a company can create end number of users. Further you have complete freedom on have your Own ERP developed since the source code is on your own server.
As mentioned customization is one of the key area for any business and it can make or break the motivation for implementing ERP software. When your company implement Open source ERP software customization can be handled easily by external vendor or you can hire your own resource for customization and maintenance of Open source ERP software. Open source ERP consist of various free modules that can be used for various verticals and even if require customization you don’t need to develop the custom code from scratch.
Business evolves from time to time and this is one of the biggest challenge you face when implementing an ERP software “The future scalability”. Example if you have purchase an ERP software which can cater to 50 user of your company and in few years your company grow from 50 to 150 then scalability of ERP software can be hectic with proprietary software. With Open source ERP you can upgrade the software as an when require as the community grows they bring up more and more features from performance, design, modules, functionality, technical coding perspective.
To understand the functionality and every feature of ERP software you need to set up different meetings with the vendor for ERP demo which can take time and lower the interest of the company to implement ERP software. whereas, with open source you can download and install the software freely to understand the functions available and how much customization is needed this build up confidence in implementing ERP solution quickly.
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