Open Source Erp A Better Alternative To Conventional Erp Solutions
An ERP system integrates the entire value chain in an organization by providing automation for all functions of an organization
. Presently, many organizations are turning to ERP solutions India to replace obsolete methods and enhance business performance. ERP systems make it easy and fast for organizations to adapt to changing market conditions.
In the present rapidly changing global market environment, one question troubles most of the managers is how to cut cost on IT operations. Pressure from top management further increases complexity of appropriate software procurement.
When it comes to ERP solutions India, there are two effective ways of cutting cost, one is using software as a service (SAAS) model which requires less upfront investment and other is opting for open source ERP solutions, which do not require any licensing.
SAAS based ERP Solutions
SAAS is a software distribution model in which a software vendor hosts software applications and made it available to customers over internet. In such software distribution model, users generally sign up for a monthly or yearly subscription. It typically includes technical support while some plans may also include automatic upgrades and changes to the software. The major benefit of utilizing such module is that it allows you to evaluate the software while using it.
The SAAS model has been around for many years but is now gradually losing popularity. A lot of complexity involved in bringing an entire SAAP based full ERP software solution is refraining companies from adopting it. One other major risk involved here is placing entire critical system into the hands of service provider or one point failure.
Open Source ERP Solutions
In the recent years, open source model has successfully transferred into the ERP arena. Open source ERP is typically an enterprise resource planning in which source code is made available to organization. Organization can customize such source code while utilizing its own IT department instead of paying extra for vendor customization services and licensing. Modern browser based open-source ERP Solutions India offer many benefits over conventional proprietary software systems;
Advantages of open source ERP Products
No upfront license cost
Low cost of modifying open Source ERP system and adapting it to business processes
No dependency on single vendor tie-up
Ease in extracting and utilizing data from other browser-native applications
Fast return on investment
Fast to implement as it takes lesser time to implement than the traditional ERP
Easy to customize and extend without changing the code
Coverage of all business areas
Operation in distributed locations and networks
Professional support available globally
Deciding on open source ERP implementation
More and more companies are opting for open source ERP solutions to improve their productivity, not just because of cost advantage but due to its proven capabilities. However, for making open source a viable option for ERP, it is essential that organization should have necessary IT staff with ERP development skills and capabilities.
Open source is particularly an attractive alternative to small and midsized businesses wishing to upgrade and customize their ERP systems without bearing huge fees for support and licensing. Compiere, Open For Business and Openbravo are among most sought for open-source ERP solutions.
If you want to have successful open source ERP implementation into your organization, it is important to be prudent and careful while partnering with an open source ERP vendor. Success of an ERP models significantly depends on strengths of company's ERP partner network. Most of the leading open source vendors offer their services globally through a strong partners' network. It is recommended to research and visit different project's website to find the suitable ERP partner in your country.
Open source technology once supposed to be only for nerds, has now emerged as mainstream platform with significant market share. If chosen wisely, open source ERP solutions can truly enable your organization to grow exponentially.
by: Nadeem
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