Pros and Cons Erp

Topics: Open source, Enterprise resource planning, Free software Pages: 17 (5718 words) Published: March 30, 2013
Akhilesh Nair
Deepesh Chatterjee
Mithun Vishnu
Nikhil Kumar

Commercial and Open Source ERP Software6
Open Source ERP Solution Pros8
Open Source ERP Solution Cons10
Open Source ERP Success Story11
Company Overview11
Issue At Hand11
The Solution11
The Bottom Line12
Top Open Source ERP Applications to Look Out for13
Goodness of Open Source ERP Packages13
Open Source ERP Packages13
Java-Based Open Source Finance Apps13
Latest Developments13
GnuCash: The Ultimate Free Open Source Accounting Software14


Open source ERP is an enterprise resource planning (ERP) software system whose source code is made publicly available. The open source model allows companies to access the ERP system's code and customize it using their own IT department instead of paying extra for vendor customization services and licensing, as is typically the case with closed source programs. Open source ERP can be particularly attractive to small to mid-sized businesses (SMBs) that want to upgrade or customize their ERP systems without paying large licensing and support fees. Open source brings an alternative which addresses many of the key problems of both custom and commercial enterprise software.  It begins by offering the user a freely available code base as a starting point.  The user can try it for free to see if it meets his needs.  There is no risk of upfront licensing fees for software that may not work.  If no modifications are required, open source software can be implemented with the same rapid time-to-market as commercial packages.  If customizations are required, the user has a head start with an existing code base.  Furthermore, he can leverage the expertise of both in-house and open source community developers.  An open source project brings with it the domain knowledge and business requirements of many contributing organizations, significantly reducing the specification risk typical of custom software.  Open source communities also offer user-developers collaborative help in developing and debugging of his software.  The net result is better software in less time. Longer term, open source offers the user the control of custom software and the external resources previously available only with commercial software.  With the source code in hand, the user can decide on future support and upgrades.  There is no one to "discontinue" the software for him.  At the same time, because the software shares the common roots with open source, he can obtain support and upgrades from the open source community or purchase professional-quality support from a range of vendors in the community.  Thus, the risks of becoming "stranded" due to the loss of vendor support or key employees are significantly reduced with open source. Selection of ERP system

Ease/Speed of Implementation
There exist a sentiment that implementation takes too long. It is hard to state whether proprietary or open source ERP systems are faster and easier to implement. On one hand, open source solutions are, in general, believed to be less user-friendly. On the other hand, ERP vendors (or their partners) implement proprietary ERPs, so there is no clear need for them to make ERP systems easy to install. However, it can be stated that if the ERP system is easier to implement then it would be possible for the ERP vendor to sell more licenses, since it can be assumed that there is a lack of implementing consultants. Moreover, ease and speed of implementation does not depend only on the graphical user interface and number of settings one needs to select from but mainly on the amount of required customizations. Further development does not depend only programmer’s speed of writing code but also on requirements collection, their analysis and correct understanding

Unless the company has the capabilities to implement an open source ERP system and...
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