Open-source ERP solutions are a category of Enterprise Resource Planning systems that organizations can utilize at no cost. The program code is available for modification by anyone to suit their business purposes.
Moreover, also referred to as free ERP tools, these solutions eliminate licensing costs for any number of users within the organization. Furthermore, ERP, also known as Business Management tools, encompasses integrated apps used to gather various information for organizational business activities.
In this blog post, we will present an infographic exploring why prominent companies are embracing the Open Source ERP solution in their operations. This system, also known as an Enterprise Resource Planning (ERP) system, offers publicly available source code that developers can use to enhance the software’s capabilities.
The Open Source model empowers organizations to access the ERP system’s code, use it on their servers, and comprehend the software’s capabilities. This model is widely employed by both small and large companies, particularly in developed nations like the USA, Russia, Europe, and the UK.
Published in Blogs | Why Big Companies prefer using Open Source ERP solution
What is open source ERP solution?
The open-source ERP system is an Enterprise Resource Planning tool that provides access to the complete product’s source code. In contrast, the public can freely download this source code from the internet and make changes, such as customization and development, to align with their organization’s business processes and flows. This differs from other proprietary business tools, where you cannot make any modifications to the ERP’s functional aspects and must use the vendor’s pre-crafted proprietary ERP solution as it is.
As an Example:
Your company is into manufacturing biscuits or bakery products and you are looking for an ERP solution to streamline your business processes you check with different ERP vendors who claim to have ERP implemented for confectionery companies with various modules and processes. It is certain that your company will have its own manufacturing processes or sales or purchase processes where you need customization to meet your needs.
In this case, you have two options to consider. Firstly, you can adjust your internal processes to align with the Proprietary ERP. However, it’s worth noting that this approach may risk disrupting your competitive advantage. Secondly, you can opt for customization within the existing proprietary ERP. Nevertheless, it’s important to be aware that this path can be costly, both in terms of time and money.
How Open source ERP help your Business?
In the above example, we have just taken one example of customization in processes. There are many ways Open source solutions can help you make a proper decision while selecting an ERP system for your business. Furthermore, some of the benefits of Open source ERP include:
- Less Costly :
ERP in the market is likely to be less costly if you are selecting any licensed or proprietary tools 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 solution compare to proprietary can be cost-effective as licensing costs are not applied and a company can create end number of users. Furthermore, you have complete freedom to have your own ERP developed, given that the source code resides on your own server.
- Easy to Scale up
Business evolves from time to time, and this is one of the biggest challenges you face when implementing an ERP suite: “The future scalability.” For instance, if you have purchased an ERP suite that can cater to 50 users in your company, and in a few years, your company grows from 50 to 150, the scalability of ERP can become hectic with license-based solutions. Consequently, it’s crucial to consider the scalability factor when choosing an ERP system.
However, with open-source ERP, you can upgrade the tool as and when required. Furthermore, as the community grows, they bring up more and more features, enhancing not only the performance, design, modules, and functionality but also the technical coding perspective. Consequently, open-source ERP systems offer a dynamic and adaptable solution for evolving business needs.
- Functional Understanding
To understand the functionality and every feature of ERP, you need to arrange different meetings with the ERP vendor for a demo. This process can consume time and diminish the company’s interest in implementing ERP systems. Conversely, using open source, you can freely download and install the solution to comprehend the available functions and assess the required customization. Consequently, this helps build confidence in implementing the ERP solution swiftly.
The era of business transformation is here, and Open Source ERP solutions lead the charge. Their affordability, flexibility, and scalability captivate companies large and small. By embracing open-source software, businesses craft ERP systems to their exact needs, navigating the digital landscape with agility.
Open Source ERP solutions aren’t just tools; they’re catalysts for growth and innovation. Companies worldwide choose them to adapt, evolve, and thrive in the dynamic modern business arena.
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