ERP

Module 1 Open Source ERP By Wipawii Jaraswarapan Business Consultant, ecosoft™ [email protected]

ADempiere|ERP 1

Module Objectives  Describe an ERP system  Discuss benefit of using Open Source ERP versus Commercial ERP  Knowing ADempiere

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What is ERP?

Enterprise Resource Planning, integrated system that help business manage internal and external resources. Built on a centralized database and normally utilizing a common computing platform,

ERP systems consolidate all business operations into a uniform and enterprise-wide system environment

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Evolution of ERP Timeline System 1960s Inventory Management & Control

1970s

1980s

1990s

Description The activities include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.

Material Requirement Planning (MRP)

MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation. Manufacturing Manufacturing Requirements Planning or MRP utilizes software Requirements applications for coordinating manufacturing processes, from Planning (MRP II) product planning, parts purchasing, inventory control to product distribution. Enterprise Resource ERP systems often integrates business activities across Planning (ERP) functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources. 4

Evolution of ERP

Inventory, MRP, Production, Project, Accounting, CRM, HRM, etc.

Before 1980s

ERP 1990s

2000s

ERP Cloud FOSS ERP Future

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Typical ERP Coverage / Enterprise Application

การเงิน

การผลิต

การจัดส่ ง Logistic

ลูกค้ าสั มพันธ์

ทรัพยากรบุคคล 6

Accounting Software – Sales Cycle Sales

Store/Shipment

Accounting

SO

1

Internal DO Invoice/DO

3

2 Stock card

Internal DO

Internal DO

4 Invoice/DO

7 Dr Cost of Good Sold Cr Inventory Dr AC Receivable Cr Sale

Customers

Billing

5

Receipt

Billing

6 Receipt

Accounting Software

SO

Finance

8

Dr Bank Cr AC Receivable

7

ERP Software – Sales Cycle Sales

Store/Shipment

SO

ERP

Dr Cost Cr Inventory

Finance ERP

Dr AR Cr Sale

1 Stock card

DO

Invoice

Accounting

ERP Internal DO Invoice/DO Billing

ERP

Receipt

Customers

Billing

ERP

Dr Bank Cr AR

Receipt 8

The Most Expensive Software

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Why adopt Open Source ERP?

1. SAP / Oracle too Expensive 2. Open Source ERP is now Mature 3. Freedom you gain from License, Lock-in, Customize, etc.

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Cost Advantage of Open Source ERP

Cost

Open Source (Baht)

Commercial (Baht)

Software

Free

10,000,000.-

MA (15%)

Free

1,500,000.-

License: 20 Users

Free

4,000,000.-

DBMS: Oracle

Free

2,000,000.-

Implement (1 Year)

2,000,000.-

2,000,000.-

500,000.-

500,000.-

Server Total Cost

2,500,000.-

20,000,000 11

Why ADempeire?

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Enterprise Grade ERP System

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Complete Client & Web Interface, Dashboard

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Integration to Jasper Report

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100% Open Source Technology Stack

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Open and Extensible Architecture

 Mind-Blowing Rapid Development for fast moving Businesses 17

The Community and Global Support

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ADempiere Thai Community

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Free lunch or Freedom?

 Many take as Free Lunch - Download

 Ended as consumers and not producers  Alvin Toffler introduced „Prosuming‟  Prosuming = consuming + producing  Producers of original content wins  Consumers will always be at the bottom

 Thailand can value-add to increase its premium

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ERP Implementation The Conference Board Survey: www.it-crtex.com/Stat_Failure Interviewed executive 117 companies that use ERP

 34% were very “satisfied”  58% were “somewhat satisfied”  40% of the ERP project failed!

“ERP is 80% Implementation and 20% Software” 21

Top Reasons to be ERP Consultant

1. ERP is the core of business 2. Job market is always HOT! 3. Income grow with experiences! 4. Opportunities to learn about latest technology! 5. Opportunities to learn about Business!

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Test Your Knowledge 1. What is ERP stand for? 2. True/False: Accounting Software = ERP Software?

3. What is the most important Key Word in Open Source Community? 4. What is the best ERP? A) B) C)

SAP Oracle ADempiere

Discussion Topic



Write your own CV and submit before next week

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