NUST SEECS OpenERP Presentation

1

OPENERP VERSION 6 TRAINING
USING HUMAN RESOURCE
MANAGEMENT MODULE
Dr. M Masoom Alam Dr. Amir Hayat
Associate Professor Assistant Professor
IMSciences SEECS
Mohsin Yasin
System Analyst
IMSciences

Outline
2

 Why Enterprise Resource Planning Systems – Part I
 Introduction to Open Source technologies – Part II
 OpenERP Introduction – Part III
 OpenERP VS Other Open Source ERPs – Part IV
 OpenERP evaluation with SAP as a reference – Part V
 Conclusion

Outline
3

 OpenERP Evaluation with SAP as a reference – Part V
 Conclusion

Enterprise Resource Planning Systems
4

 Enterprise resource planning (ERP) systems automate and
integrate various with an integrated software application.
 activities
= Finance/Accounting, Sales&Service, Customer
Relationship Management, etc.
 The concept was born in Early 1960s
 In 1972 “Systems Applications Products in data
processing”
 In 1976 Company name changed to “SAP GmBH”
 SAP R/1 in 1973
 SAP R/2 in 1979
 SAP R/3 in 1992
Source: http://en.wikipedia.org/wiki/Enterprise_resource_planning

An Enterprise Landscape (without ERP)
5

Sales Human resources Engineering
Design

Inventory Production
Planning

Finance Controlling
Quality Maintenance
legal Source: http://gyansangam.iiita.ac.in/content/cluster_2_1/ERP.ppt

Categories Of Information Systems
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• Operational - level systems:
Support operational managers
keep track of the elementary
activities and transactions.

• Management-level systems:
Serve the monitoring, controlling,
decision-making, and administrative
activities

• Strategic-level systems:
Help senior management tackle and
address strategic issues.

Figure Source: http://gyansangam.iiita.ac.in/content/cluster_2_1/ERP.ppt

Four Major Types of Information
Systems
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• Transaction Processing Systems
(TPS):
Business level systems that serves the
Operational level.
• Management Information Systems
(MIS):
Provides feedback on daily
operations.
• Decision-Support Systems (DSS):
Provides managers with information
and support for effective decision
making
• Executive Support Systems (ESS):
Designed for the CEO of the
company


Enterprise without an ERP
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Executive
• Department are still located Support
System
on different Islands
• A variety of software
Decision
platforms and solutions Support
System
• Difficult to maintain and
Enterprise
upgrade
Management
• No Seamless flow of Information
System
Information
• … Transaction
Processing
System

What is a Business Process
9

• According to Wikipedia:

“A business process or business method is a
collection of related, structured activities in
different functional areas of an organization
that produce a specific service or product
(serve a particular goal) for a particular
customer or customers.”

Order Fulfillment Business Process
10
(Cross Functional)

Sales
Generate Submit
Order Order

Accounting
Check Approve Generate
Credit credit Invoice

Manufacturing Assemble Ship
and Product Product
Production

Enterprise Systems
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• Enterprise Systems, are
software solutions that
focuses the Enterprise
needs by taking a process
view of the overall
Enterprise to meet the
goals by tightly
integrating all functional
areas and under a
common platform.
• SAP, Oracle Applications,
PeopleSoft, JD Edwards,
NetSuite etc., are the
world leading ERP
Packages.

Advantages of an ERP System
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• Seamless flow of information among all functions of
an enterprise in a real time.
• One integrated system replaces many different
software .
• Reliable information access through a common
DBMS
• Improves the Business Processes: Eliminates data
and operational redundancies (no duplication of work
or data entries etc.)

Outline
13

 Conclusion

Introduction
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 In 1983 Richard Stallman started GNU project to launch a
complete Operation System free from constraints.
 In 1989, first version of GNU public license was published.
 The Linux kernel, started by Linus Torvalds, was released as
freely modifiable source code in 1991
 Recently, viable open source ERP alternatives have begun to
appear
 OpenERP is one of these new kind of ERP systems

Open Source Products at a Glance…
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 Programming Languages: LISP, C, C++,Perl, Python,Java, PHP,Ruby, ...

 Computer Operating systems: Linux, freeBSD, …

 Database Management System: PostgreSQL, MySQL, SQLite, …

 Web Servers/Services infrastructure: Apache, Bind, Postfix, …

 Content Management System: JOOMLA, Drupal, Wordpress, Alfresco, …

 Application Server Infrastructure (Middleware): JBoss, Spring, Rails,
OpenObject, …

 Mobile Operating Systems: Android, Memo

 All Credit Goes to World Wide Web!

Open source powers the web
16

Figure Source: http://ostatic.com/blog/apache-holds-steady-market-share-still-dominating-microsoft-iis

Software Development Process for
Open Source
17

 Across the globe community of developers working together to
improve the software
 Distributed Versioning System (SVN, CVS, Bazar)
 Not only from different countries but also from companies
 “Many eyes make all bugs shallow”
 That’s Why viruses does not create problems for Linux or Ubuntu
 Is only suitable for top talent
 More visibility & Freedom
 More efficient process, avoid duplication of efforts
 “Disadvantage”
 New business models are needed to support developers
 GTA01 – also called OpenMOKO, open source Mobile software
and hardware – no future

Evolution of Open Source Software
Stack
18

 Evolution of open source:
 System software
Linux is ever green
 Database systems
Major improvements in last 10 years: Full ERP
Business systems
(eg: MySQL) Software
 Content management Content
Management
Major developments in last 5 years: System
(eg: Joomla, Wordpress, Database
Systems
Alfresco)
 Business software System
Software
E-commerce (Magento),
CRM (SugarCRM),
Procurement (Coupa), ...
 Full ERP systems
Next stage of open source (eg:
OpenERP, Tryton)

Some Criticism on Open Source
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 Open Source Business: Model or Tactic?
• An article by Kristin Shoemaker
 http://ostatic.com/blog/open-source-business-model-or-tactic

• Now a days there are 114 open source vendors,
including Red Hat,Alfresco, IBM and Oracle, MySQL DB
(Owned by Oracle).
• Conclusion: In a perfect world, it would be wonderful to see
"proprietary add-ons" disappear, and be offered openly
 Another Article:
 http://blogs.the451group.com/opensource/2008/10/13/open-
source-is-not-a-business-model/

Outline
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 Conclusion

What is OpenERP?
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 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, Desktop Client (called GTK client), python based
application server, and uses XML for changing visual screens.
 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

OpenERP License
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 Alferro GNU Public License (AGPL) License V3 for
the server plus modules, GTK client.
 Covers the “Application Service Provider (ASP)
loophole” present in GPL License
 OPL License for the web client
 Itis Mozilla Public License (MPL) with some restrictions
on the logos

OpenERP Project at a Glance…
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 2002: 1.0 version. Fabien Pinckaers launches a
specific solution for an auction house
 2004: first versions called TinyERP. Company
name Tiny Sprl
 2005: Company name changed to OpenERP.
 2006: 3.0 version. First success story in Spain
successfully 2007, SVN repository opened. 35
official modules and 120 extras.
 2008: code in launchpad/bazaar. Community
participation is opened.

2002 V 1.0 for auction 2004 Called 2005 Company 2006 First 2008 Code in 2009 Version 2010 Version 2011 version
house TinyERP name changed Success Story in Launchpad 5.0 114 6.0 Early View 6.1 More user
to OpenERP Spain modules friendly

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 2009: OpenERP 5.0 is published. 114 official modules and
250 extras.
 2010: in July, OpenERP Early-Adopter Preview - 6.0-dev
(alpha). Great community around the globe. It becomes the
most reliable Open Source ERP. 500 published modules, 30
languages and presence in 80 countries.
 2011: OpenERP has released its new version 6.0. More
user-friendly, accessible, intuitive and ready to boost up a
business. Response to the needs of customers, community
and industries and the answer to today’s market

OpenERP Software Architecture
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User computer: OpenObject Web Browser
Desktop / Laptop / (IE, Firefox, Safari, ...)
Phone / PDA / Terminal
Desktop Client

Network: Web service
LAN / Internet XML-RPC

Server hardware OpenObject OpenObject
Web Client Mobile Client

OpenObject
Application Server

SQL Database OpenERP Modules
(Postgres, MySQL, (Acct, Stock, Purch,
Source: http://almacom.co.th SQL Server, Oracle...) Sales, MRP, ...)

OpenERP modules Diversity
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Source: http://apenobject.com

OpenERP Documentation
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 Books
 “Streamline your
Manufacturing Processes with
OpenERP”
 Open Source Accounting with
OpenERP
 OpenERP evaluation with SAP
as reference
 http://doc.openerp.com/
 http://openobject.com/
 Launchpad project
hosting
 Forums, IRC logs
 http://forum.openerp.com/

Outline
35

 Conclusion

Open source ERP Business Model
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 License costs are zero
 Great for customers, what about developers? (the community)
 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

Source: http://almacom.co.th

Open Source Marketing Power
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 Sales and marketing budget:
 Netsuite: 80MEUR, OpenERP: 200kEUR (x400!)


Genealogy of Open Source ERPs
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2000 2006 Compiere
Adempiere
OpenBravo
2001 2004 Ofbiz
Neogia, opentaps

2002 TinyERP 2008 OpenERP
Tryton
2002 ERP5

2002 Dolibarr


Open source ERP Trends
39

Source: Google Insight

Case study: ERP in Europe
40

 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/


Outline
42

(Source: OpenERP evaluation with SAP as a reference Book by Yves Delsart and Christelle Van)

 Conclusion

Comparison Factors
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 Market Position
 Strength of the Channel, offline and online available
material
 Features and Business Coverage
 Do you have the features, I need?
 Technical Quality
 How does the solution supports the development of
specific requirements

Comparison Factors Cont’d..
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 Customization and Flexibility
 Abilityof software to easily adapt to different users and
system requirements
 Productivity and Ease of Use
 Latest
Client requirement, i.e., user-centric approach
 How much easy to use

 Total Cost of Ownership
 Client cannot risk unwise investments especially in SMEs

Market Position
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 Visibility: hits number on the Google
Relevant SAP OpenERP OpenERP VS
Feature SAP
Hits on Google 233Million 1,49M 0.6%

Books on 8800 13 0.15%
Amazon.com
Followers on 13516 2793 20%
Twitter
Official Events 70 39 55%

Google Trend for the Keyword “SAP”
46

Google Trend for the Keyword
“OpenERP” – shows Fast Growth
47

“OpenERP”+”TinyERP”
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“OpenERP”+”TinyERP”+”SAP”
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 SAP has 268 times more searches than OpenERP

Red Hat Partners with OpenERP
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Service Offer
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 OpenERP software vendor:
 Medium sized company with around 200 Employees
 Offices located in Belgium, United States and India
(Ahmadabad)
 Around 500 Partners in 78 Countries
 OpenERP strategy is to invest minimum on marketing
 Leverage the communities
 Educate through events

SAP VS OpenERP
52

SAP OpenERP
Promote the Company (SAP vs SAP R3) Promote the Product: OpenERP

Buyer and Sponsor: CFO and COO Buyer and Sponsor: IT Guys

We can do every thing! We can do what you want

Publish Studies, Comparisons, awards Leverage Communication through users

Good, Strong Success Stories Thousands of References

Remain the Leader Be the most widely used

Mature Software Agile Software

Brand Growth mainly supported by the Brand growth only supported by the
marketing department communities

Features and Business Application
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Coverage (Missing Features)
 Advanced Treasury Management (Cash flow statement etc.)
 Budgetary management for the Public Sector i.e., fund
management
 Improvement of the financial reporting
 Native integration with the Jasper reporting soft
 Quality control management
 Supplier ranking
 Payroll engine and country specific pre-configuration
payroll pre-configurations
 Compliance with Web services (Security) Standards

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Coverage (Advanced Features)
 High Capability of Integration with Other tools
 Asterisk (keeping track of voice ip calls)
 OS Commerce, Magento

 Even Integration with SAP:

Danone surprises the market deploying an open source ERP –
OpenERP
"Extraordinary project in the industry world, Danone deploys a very fast,
integrated managing tool in the merging countries. Surprise: it's an open source
software package and the integration deadlines are astonishing! Although
Danone is a significant SAP client, the industry giant decided to use an open
source integrated ERP solution for the emerging countries where it operates. The
OpenERP integration was done in collaboration with Octo Technology”

Coverage (Advanced Features)
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 Fully Integrated Geo Engine

OpeERP development Accelerators
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Year # of Modules
 Open source Jan 2005 40
Application Jan 2006 50

 Gathers some 2500 Jan 2007 112

developers in addition Jan 2008 195
Jan 2009 350
to 200 employed
Jan 2010 750
developers Jan 2011 1250
 Agile Architecture Jan 2012 1950

A change in SAP will Jan 2013 2683
Expected no
Jan 2014 3583
take three times more of modules
Jan 2015 4606
time
Jan 2016 5751

OpenERP and SAP way of handling
Client Needs
57

140

120

Client 100
Need
80

60 Features Coverage

40

20

0
SAP OpenERP

Total Cost of Ownership (TCO)
58

Implementation Cost
59
120

100

80

Project Management
60
Change Management
Customization
40

20

0
OpenERP SAP

Installation Cost
60 35

30

25

20
License
15 Hardware

10

5

0
OpenERP SAP

Maintenance Cost
61
70

60

50

40
Support
Maintenance (5 years)
30
Upgrade
20

10

0
OpenERP SAP

Technical Quality
62

 Efficiency
 Programming language efficiency
 Python VS. ABAP
 Architecture efficiency
 MVC, ORM, Workflow engine, Module System, Integrated
Tested system, Several reports engines
 Database efficiency
 Object Relational Mapping on top of Postgresql

Object Relational Mapping Example
63
class cms_city(osv.osv):
"""(NULL)"""
_name = 'cms.city'
_columns = {
'name':
fields.char('City', size=100, required=True),
}
cms_city()
Object
level

Relational
level
CREATE TABLE CMS_CITY(
id INT PRIMARY KEY,
name VARCHAR(64) NOT NULL,
)

Technical quality Cont’d..
64

 Accessibility
 Web client, GTK client, mobile client
 Database flexibility
 No of databases are supported by SAP
 Debugger
 Unlike SAP, no native debugger, but thanks to Open
source: Eclipse, Pydev, KOMODO IDE
 Modularity
 Unlike OpenERP, in SAP a module represents a whole
functional area such as FI/CO covers all the financial
applications.

Conclusion – I
65

 OpenERP product life cycle maturity
 Product is launched some 8 years ago and now its stable
 OpenERP market maturity
 Transition
phase: “Early Majority Adopters” wait until an
emerging product has been fully tried and tested
 Open source VS close source
 Close source is known and recognized by the guarantees it
offers
 But Open source has made remarkable progress in:
 Web Servers/Services – Apache
 Database – Postgresql
 Browsers – Chrome, Firefox
 BackOffice – FTP, SQUID, DHCP, …

Conclusion – II
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 OpenERP must extends its functional landscape
 European and local public Institutions are
constrained by the law to consider the open source
solutions before trying proprietary ones.
 What if, proprietary ERP providers go Open source
way, like Oracle Virtual Box etc.,….

Backup Slides
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 Success Stories:
 http://www.openerp.asia/OpenERP-Success-Stories-
Manufacturing
 http://www.openerp.asia/OpenERP-Success-Stories

 Comparison:
 http://www.openerp.asia/ERP-softwares-comparison

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