Description
introduction to SMEs, different options available to SMEs for ERP implementation, list of different solution providers under each option, evaluation of each option, how Low cost ERP implementation helps SMEs
LOW COST ERPS AND
HOW THEY WOULD HELP SMES
Flow of Presentation
Introduction to SMEs ? Different options available to SMEs for ERP implementation ? List of different solution providers under each option ? Evaluation of each option ? How Low cost ERP implementation helps SMEs
?
SMEs
?
For EU and US:
? SMEs are those businesses which have revenue between $20M - $100M ? It roughly translates to INR 100CR – INR 500CR
?
For India:
? SMEs are those businesses which have investment between INR 25L – INR 10CR
ERP Implementation in SMEs
1.
2.
3.
Use Free/open source ERP software Buy proprietary low cost ERP software designed specifically for SMEs Use ERP SaaS
1. Free/Open Source ERP software
Adaxa Suite Compiere Fedena GNU Enterprise Kuali Foundation OpenPro Opentaps Tryton Adempiere Dolibarr FreedomERP HeliumV LedgerSMB Openbravo Postbooks WebERP BlueErp ERP5 FrontAccounting JFire OFBiz OpenERP SQL-Ledger
2. Proprietary Low-cost ERP
?
?
? ? ? ?
?
?
Microsoft Dynamics AX Zaidsoft SAP Business All-in-one Epicor Vantage Infor ERP Systeline Oracle JD Edwards EnterpriseOne QAD Enterprise applications Syspro
2. Proprietary Low-cost ERP
?
?
? ?
The Sage solutions Baan ERP by Infor ERP solutions Tally.ERP by Tally solutions Compiere professional edition from Consona Corporation
3. ERP SaaS
NetSuite ? Plex Online ? Glovia ? Intacct ? SAP Business ByDesign
?
Current SME sector market share
Sage's market share is at 21% ? Microsoft's 12% ? Oracle's 9% ? Intuit's 6% ? SAP's 3% ? A major part of the small business ERP market, 49%, is served by other providers
?
Open source approach
?
Advantages
? ? ? ? Lower cost Better security features No vendor 'lock in„ Better quality
?
Disadvantages
? Lack of technical and general support ? No guaranteed and timely updates
ERP Software-as-a-Service (SaaS)
• •
What is Saas? Saas for SME
Example- NetSuite, Plex Online, Glovia
Advantages
Lower Total Cost of Ownership (TCO) ? Decreased implementation risk. ? Accelerated software implementations ? Outsourced skills and expertise ? Hosted software delivery ? Subscription pricing model
?
Disadvantages
? ?
Data security becomes an issue Does not allow customization of applications Integrating it with remotely hosted software is costly and/or risky.
?
Low Cost ERP : Compiere
?
Compiere : Open-source ERP software and (CRM) system
?
Compiere solutions provide businesses, government agencies, and nonprofit organizations
?
Easy, flexible, low-cost access to rich functionality for managing all financial, distribution, sales, and service processes
?
Compiere provides : customers ease and affordable customize of solution to fit business requirements with no or minimal programming
?
Pre-built charts and graphs are provided and are easily expanded to meet needs
?
Compiere Enterprise is built to scale - supporting multiple servers, large transaction volumes, hundreds of users and business complexity required by demanding businesses of all sizes
Cost Comparison: Compiere
PerTronix’s Open Source Implementation
? ? ? ? ?
Number of employees: 100 Number of named users: 20
Upfront costs (licenses, customization, training, and implementation): $20,000 or, $1,000 per user Hardware and operating system (Dell and Microsoft): $3,800 On-going support from Compiere partner: $12,000/year or, $600 per user
Proprietary ERP Implementation
? Number of employees: 100
? ? ? ?
Number of named users: 20
Upfront costs (licenses, customization, training, and implementation): $60,000 / $2,00,000 or, $3,000 to $10,000per user Hardware and operating system: Depends upon the workstations, servers, networking ($10,000) On-going support from : 20% of total expenses
Case : Nord Pharma
Introduction
Nord one of the Europe?s largest manufacturer of preventive dietary supplements 500 person company founded in 1991 Pharma Nord products available in 50 countries throughout Europe, Asia and North America
Challenges (Why Need ERP)
Pharma Nord continually expanding its product line and markets served Growth in the regulated sector requires precise inventory management to address business and regulatory complexity Thousands of variants need to be handled Selection of ERP: Compiere or Navision But, navision acquired by Microsoft hence Linux version of the same was discontinued Finally, ERP for Nord Pharma was implemented with Compiere
Case : Nord Pharma
Solution (Compiere Implementation)
Implementation in 2000 but the version lacked support of tracking batch numbers and expiry date which was customized by the Compiere team Now, Compiere used to manage sales order , invoicing, cash collections, purchasing and accounting for its sales subsidiaries Helps to respect certain customers? requirements that the expiry dates not to be too close Advantages cited: Extremely flexible and high degree customization
Results
Pharma Nord going strong with Compiere though the database has grown and added business partners, products and transactions Everything stored at detailed level according to the Pederson (Project Manager) and can combine each product, sizes and countries Even future expansion of Nord in manufacturing sector would use Compiere because of its manufacturing capabilities
Low Cost ERP: Zaidsoft
Web based ERP software ideal for Small to Medium Enterprises and offers almost all the features of big expensive ERP software but at a fraction of the cost ? Provides web based framework for a complete business solution comprising integrated (CRM), (SCM) and (ERP) specially targeted to Small to Medium Enterprise (SME) customers ? J2EE application so it offers all the advantages of Java technology based web application ? ZBS exports all data in reports to the following data formats: Excel, HTML, XML, Text, PDF etc ? ZBS imports data from XML, fixed records ? Standard (multilingual) Emails are generated by the system for notifications like approval requirements or Alerts
?
Low Cost ERP: ERP5
?
Advantage
? Customizable workflows
? Worldwide access – Web based ? Unified business model design ? Built-in Datawarehouse and Reporting Engine ? Built-in Synchronisation Engine
?
Features
? Accounting and finance ? CRM ? Production Management ? Knowledge Management ? Banking ? Defense and Aerospace ? eGovernment ? Health and patient records ? Apparel and clothing
Case: Infoterra
Deals with transmission of radar images of the earth for commercial purposes ? Concerns
?
? Order specific – quality desired, priortise, utilisation of satellite ? Security: Terrorism threat ? Internal workings, integration with other German Aerospace systems ? Inexpensive
Case: Infoterra
?
Requirement
? ? ? ? Order management system Workflow driven Easy to tie and customize Inexpensive
“ The software should not drive us, we should drive the software” - Ralf During, Project Manager
?
ERP5
? Flexibility of Oracle without any release policy ? Risk is reduced if responsibility given to an IT Service provider ( Unilog Avinci) ? Object Oriented database for storage of image information ? Less dependence on one vendor
How Low Cost ERP would help SME?s?
? The biggest advantage of ERP software is the integration of all the business solutions in a single platform, which reduces paper work, unnecessary documentation, repeated entry, etc.
? However, SMEs do not have the financial muscle and skilled resources to invest in the traditional ERP offerings
? With the SME segment growing at a compounded annual growth rate (CAGR) of 15 to 20 per cent, ERP vendors are tailoring products specific to their requirements ? ERP has a modular architecture, which makes it easy for the ERP providers to serve their SME clients on individual basis ? They can configure ERP system according to specific requirements of SME client to significantly reduce development cost of the final ERP product
Advantages
? To gain extra edge in the competitive business environment
business practices that the ERP software provide ? Schedule entire production processes to increase overall efficiency ? Analyse the business performance metrics to help managers take right business decisions ? Keep sharp vigil over inventory levels and tracks their movement and status
? To increase the profitability using the power of modern technologies and best
at any given moment
? Improve general administration, streamline and accelerates all workflow processes
? Looking at these factors, small businesses should not give it a second thought before applying ERP into their business processes
? They can greatly benefit from the configurable ERP solutions as it provides them with an opportunity to improve their core business competency and brings many advantages in their work process
Questions Please!
THANK YOU
doc_551489991.pptx
introduction to SMEs, different options available to SMEs for ERP implementation, list of different solution providers under each option, evaluation of each option, how Low cost ERP implementation helps SMEs
LOW COST ERPS AND
HOW THEY WOULD HELP SMES
Flow of Presentation
Introduction to SMEs ? Different options available to SMEs for ERP implementation ? List of different solution providers under each option ? Evaluation of each option ? How Low cost ERP implementation helps SMEs
?
SMEs
?
For EU and US:
? SMEs are those businesses which have revenue between $20M - $100M ? It roughly translates to INR 100CR – INR 500CR
?
For India:
? SMEs are those businesses which have investment between INR 25L – INR 10CR
ERP Implementation in SMEs
1.
2.
3.
Use Free/open source ERP software Buy proprietary low cost ERP software designed specifically for SMEs Use ERP SaaS
1. Free/Open Source ERP software
Adaxa Suite Compiere Fedena GNU Enterprise Kuali Foundation OpenPro Opentaps Tryton Adempiere Dolibarr FreedomERP HeliumV LedgerSMB Openbravo Postbooks WebERP BlueErp ERP5 FrontAccounting JFire OFBiz OpenERP SQL-Ledger
2. Proprietary Low-cost ERP
?
?
? ? ? ?
?
?
Microsoft Dynamics AX Zaidsoft SAP Business All-in-one Epicor Vantage Infor ERP Systeline Oracle JD Edwards EnterpriseOne QAD Enterprise applications Syspro
2. Proprietary Low-cost ERP
?
?
? ?
The Sage solutions Baan ERP by Infor ERP solutions Tally.ERP by Tally solutions Compiere professional edition from Consona Corporation
3. ERP SaaS
NetSuite ? Plex Online ? Glovia ? Intacct ? SAP Business ByDesign
?
Current SME sector market share
Sage's market share is at 21% ? Microsoft's 12% ? Oracle's 9% ? Intuit's 6% ? SAP's 3% ? A major part of the small business ERP market, 49%, is served by other providers
?
Open source approach
?
Advantages
? ? ? ? Lower cost Better security features No vendor 'lock in„ Better quality
?
Disadvantages
? Lack of technical and general support ? No guaranteed and timely updates
ERP Software-as-a-Service (SaaS)
• •
What is Saas? Saas for SME
Example- NetSuite, Plex Online, Glovia
Advantages
Lower Total Cost of Ownership (TCO) ? Decreased implementation risk. ? Accelerated software implementations ? Outsourced skills and expertise ? Hosted software delivery ? Subscription pricing model
?
Disadvantages
? ?
Data security becomes an issue Does not allow customization of applications Integrating it with remotely hosted software is costly and/or risky.
?
Low Cost ERP : Compiere
?
Compiere : Open-source ERP software and (CRM) system
?
Compiere solutions provide businesses, government agencies, and nonprofit organizations
?
Easy, flexible, low-cost access to rich functionality for managing all financial, distribution, sales, and service processes
?
Compiere provides : customers ease and affordable customize of solution to fit business requirements with no or minimal programming
?
Pre-built charts and graphs are provided and are easily expanded to meet needs
?
Compiere Enterprise is built to scale - supporting multiple servers, large transaction volumes, hundreds of users and business complexity required by demanding businesses of all sizes
Cost Comparison: Compiere
PerTronix’s Open Source Implementation
? ? ? ? ?
Number of employees: 100 Number of named users: 20
Upfront costs (licenses, customization, training, and implementation): $20,000 or, $1,000 per user Hardware and operating system (Dell and Microsoft): $3,800 On-going support from Compiere partner: $12,000/year or, $600 per user
Proprietary ERP Implementation
? Number of employees: 100
? ? ? ?
Number of named users: 20
Upfront costs (licenses, customization, training, and implementation): $60,000 / $2,00,000 or, $3,000 to $10,000per user Hardware and operating system: Depends upon the workstations, servers, networking ($10,000) On-going support from : 20% of total expenses
Case : Nord Pharma
Introduction
Nord one of the Europe?s largest manufacturer of preventive dietary supplements 500 person company founded in 1991 Pharma Nord products available in 50 countries throughout Europe, Asia and North America
Challenges (Why Need ERP)
Pharma Nord continually expanding its product line and markets served Growth in the regulated sector requires precise inventory management to address business and regulatory complexity Thousands of variants need to be handled Selection of ERP: Compiere or Navision But, navision acquired by Microsoft hence Linux version of the same was discontinued Finally, ERP for Nord Pharma was implemented with Compiere
Case : Nord Pharma
Solution (Compiere Implementation)
Implementation in 2000 but the version lacked support of tracking batch numbers and expiry date which was customized by the Compiere team Now, Compiere used to manage sales order , invoicing, cash collections, purchasing and accounting for its sales subsidiaries Helps to respect certain customers? requirements that the expiry dates not to be too close Advantages cited: Extremely flexible and high degree customization
Results
Pharma Nord going strong with Compiere though the database has grown and added business partners, products and transactions Everything stored at detailed level according to the Pederson (Project Manager) and can combine each product, sizes and countries Even future expansion of Nord in manufacturing sector would use Compiere because of its manufacturing capabilities
Low Cost ERP: Zaidsoft
Web based ERP software ideal for Small to Medium Enterprises and offers almost all the features of big expensive ERP software but at a fraction of the cost ? Provides web based framework for a complete business solution comprising integrated (CRM), (SCM) and (ERP) specially targeted to Small to Medium Enterprise (SME) customers ? J2EE application so it offers all the advantages of Java technology based web application ? ZBS exports all data in reports to the following data formats: Excel, HTML, XML, Text, PDF etc ? ZBS imports data from XML, fixed records ? Standard (multilingual) Emails are generated by the system for notifications like approval requirements or Alerts
?
Low Cost ERP: ERP5
?
Advantage
? Customizable workflows
? Worldwide access – Web based ? Unified business model design ? Built-in Datawarehouse and Reporting Engine ? Built-in Synchronisation Engine
?
Features
? Accounting and finance ? CRM ? Production Management ? Knowledge Management ? Banking ? Defense and Aerospace ? eGovernment ? Health and patient records ? Apparel and clothing
Case: Infoterra
Deals with transmission of radar images of the earth for commercial purposes ? Concerns
?
? Order specific – quality desired, priortise, utilisation of satellite ? Security: Terrorism threat ? Internal workings, integration with other German Aerospace systems ? Inexpensive
Case: Infoterra
?
Requirement
? ? ? ? Order management system Workflow driven Easy to tie and customize Inexpensive
“ The software should not drive us, we should drive the software” - Ralf During, Project Manager
?
ERP5
? Flexibility of Oracle without any release policy ? Risk is reduced if responsibility given to an IT Service provider ( Unilog Avinci) ? Object Oriented database for storage of image information ? Less dependence on one vendor
How Low Cost ERP would help SME?s?
? The biggest advantage of ERP software is the integration of all the business solutions in a single platform, which reduces paper work, unnecessary documentation, repeated entry, etc.
? However, SMEs do not have the financial muscle and skilled resources to invest in the traditional ERP offerings
? With the SME segment growing at a compounded annual growth rate (CAGR) of 15 to 20 per cent, ERP vendors are tailoring products specific to their requirements ? ERP has a modular architecture, which makes it easy for the ERP providers to serve their SME clients on individual basis ? They can configure ERP system according to specific requirements of SME client to significantly reduce development cost of the final ERP product
Advantages
? To gain extra edge in the competitive business environment
business practices that the ERP software provide ? Schedule entire production processes to increase overall efficiency ? Analyse the business performance metrics to help managers take right business decisions ? Keep sharp vigil over inventory levels and tracks their movement and status
? To increase the profitability using the power of modern technologies and best
at any given moment
? Improve general administration, streamline and accelerates all workflow processes
? Looking at these factors, small businesses should not give it a second thought before applying ERP into their business processes
? They can greatly benefit from the configurable ERP solutions as it provides them with an opportunity to improve their core business competency and brings many advantages in their work process
Questions Please!
THANK YOU
doc_551489991.pptx