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Why OpenERP can add value

12-24-2011 08:11 AM CET | IT, New Media & Software

Press release from: Pinakin Consulting Ltd

Transforming Organisational Performance

Transforming Organisational Performance

So what is OpenERP?

OpenERP is a comprehensive suite of business applications designed to automate processes and integrate software infrastructure into one easy to manage solution.

It is also worthwhile trying to dissect the name OpenERP to gain more insight:

Open stands for Open Source

Open Source technologies are growing in popularity at a phenomenal rate. With OpenERP the open source aspect allows free customisation of the software & the absence of license fees.

ERP stands for Enterprise Resource Planning

There are clear advantages with using ERP. From cutting edge technological advances that allow the elimination of redundant data entry, the automation of processes & the cost saving of having all the required business applications provided from one vendor.

OpenERP challenges the ERP market itself, as it is more than just the 'economies of scale' approach; employed by traditional ERPs. This is because the Open Source aspect allows flexibility, removes license fees, allows its customers to benefit from the past developments of other companies, grows with organisations; all without a tie-in or obligation for them to continue using the service; however many organisations still continue to use OpenERP such as Veolia, Whirlpool, France 24/7 International News & more.

What prompts organisations to implement OpenERP? Primarily, it is a bold mission into transforming organisational performance.

In order to understand OpenERP, it is vital to understand a model without OpenERP: There are so many software products to use (CRM, HR, Accounting, Invoicing etc); then data must be re entered and transferred into the other software – not to mention the excessive licence fees that are paid to sustain such an infrastructure. Then when the organisation needs to grow, more licenses are purchased, it then costs more to employ extra staff to manage the extra workload; thus threatening organisational growth itself.

OpenERP proposes a system whereby the software infrastructure is integrated. This has clear benefits such as eliminating redundant data entry, managing one solution – not several, speeding up communication, transforming decision making; through real time reports & fine tuning (in many cases completely overhauling) operational expenditure; through the absence license fees.

A common misunderstand of the OpenERP value proposition before identifying the benefits can sometimes be summed up in the saying “If it is not broke, why fix it?” OpenERP does not suggest that a non ERP system is a 'broken system', but rather an extremely inefficient system.

All of the tools such as CRM, Accounting, HR (and more) are provided within OpenERP. Users can add each module as and when required. Each module still retains its individual name and logo, so is easily identifiable for example the navigation from CRM to accounting in just one click.

As a direct result of OpenERP's flexibility; it is best used in an organisation which already has highly customised processes. This is because many of the other ERP vendors may struggle with employing the high speed flexibility to customise and meet client requirements as OpenERP is able to do. On the other hand the absence of license fees enables OpenERP to be a close competitor to other ERP providers due to the cost saving element, as summed up by Didier Georgieff, Ena:

"With a proprietary software, we would have had to pay 400,000 EUR to 600,000 EUR of licenses," said Didier Georgieff, chief information officer of the ENA (Ecole Nationale d'Administration), who uses OpenERP to manage courses and training developed by the prestigious French school(1)

(1) Source http://www.openerp.com/products/new-references

-Pinakin Consulting was formed to help companies transform their organisation into a High-Performance Business by looking at the bigger picture to integrate Technology with People, Processes & Projects.

-Andy Omerovic
Pinakin Consulting Ltd
Albany Chambers
26 Bridge Road East
Welwyn Garden City
Hertfordshire AL7 1HL
United Kingdom

Tel : +44 (0)203 397 4254
Fax: +44 (0)207 657 4818
Web: www.pinakin.co
Email: andy@pinakin.co

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