Tuesday, 7 August 2012

what is open source ERP ? advantages and disadvantages of it.


INTRODUCTION:
           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.
For open source ERP software to be a viable option, companies must have an IT staff with considerable ERP development and programming skills.
There are several Open source ERP software packages available like:
1.       ERP5
2.       GNU Enterprise
3.       OpenBravo
4.       OpenERP
5.       Opentaps
6.       WebERP 

ADVANTAGES :
  • Reduced costs(vendor ,licensing fees)
  • Reduced Dependence on Vendor
              Organization can make the necessary modifications and alterations required on its own     without  depending on the vendor. By using Open Source ERP you are not locked to a particular company's product. 
  •  Ease of Use:
              Open Source ERP is easy to use and understand. It handles the functions easily thereby making it easy for the small companies to implement ERP.
DISADVANTAGES:
  • Support :
              
    The reliance on external sources for support of an enterprise system may be extremely expensive if in-house technology department  has not  required skills.
  • Updates :
              
    The software provider provides  updates .These updates may require additional testing on the part of a company to ensure that the update or patch does not cause any issues with the installed solution. If a company has limited resources to perform regression testing then this may require hiring a technology company to perform this.
  •    Maintenance:
                The organization not having a efficient staff to maintain a system as a result increased a maintenace cost.