ERP is an enterprise resource planning. It is named open ERP because its code is available publicly, which means it can be accomplished by the end-users without any help from the forum. This software enables end-users to customize their code as per requirement and for the customization, the end-users are not supposed to pay any fare to the vendors.
Open ERP is a full-featured software that comprises more than 700 components. The developers of this software develop this software so that it will be user-friendly, easy to use, and consistent while it is open free source.
Open ERP is expanding regularly from small to large organizations because it provides all the features like low cost, flexibility to the end-users, quality assurance, and customization.
Benefits of Open ERP
# Vendor Flexibility & Licensing-Freedom:
The open source software approach grants each user or organization that downloads and installs a system full license rights. There is usually no charge for this, and there are no ongoing payments for updates or renewals.
Open source ERP systems are created and maintained by a community, but that community can welcome contributions from organizations and people all around the world. The inward-looking and exclusive approach of "closed shop" proprietary software (which excludes anyone except a company's approved developers from contributing to off-the-shelf product development) does not apply.
Neither do the constraints placed by proprietary software manufacturers' licensing practices, which bind users to (sometimes long-term) contracts with a single manufacturer, on whose goodwill and future viability as a business the software user must rely on.
# You Have Complete Control Over Customization and Modification:
Users and contributors in open source projects also have the freedom to edit and share the underlying source code of their applications at their leisure. As a result, organizations that use open source ERP systems can tailor their platforms to match their individual needs by altering the program code themselves, adding modules received from the project's development community, or outsourcing development work to project members.
# Ownership Costs Are Lower:
The adjectives "free" and "low-cost" are frequently used to describe the open source ERP paradigm, and, indeed, an open source ERP system will typically require less capital than a bespoke or off-the-shelf solution.
Fees for software development, licensing, and maintenance are substantially eliminated, lowering an organization’s total cost of ownership. This is aided by open source operating systems, APIs (Application Programming Interfaces), and databases.
# Resources for Community Development:
In addition to the core software's source code, open source ERP systems provide users with immediate access to the user and developer communities' typically large resources. This can include program modules to expand functionality, code snippets, and routines to improve performance or perform specialized functions, and the ability to share or trade ideas and resources with other members of the community.
# Updates, security, and upkeep:
An open source ERP system places complete control of a platform's update, maintenance, and security management in the hands of the user, who can employ their own in-house IT experience or the project community's resources. This latter aspect is especially important because open source projects are known for the speed with which program flaws and security vulnerabilities are discovered and fixed by members of the development community.
Why do so many big businesses adopt open source ERP?
The large entrepreneurs are using open ERP, the main reason was that it is cheaper and easy to install and customize.
When installing an open source ERP system for a large firm, it's common to construct a new interface shell beyond the core system to suit business objectives and align with the company structure. The present interface for commercial systems is customized, making upgrades tricky, to say the least. Among the reasons why open source ERP is so popular is that you control the system and all its source code, there is no vendor lock-in or dependency, and you can deploy the software in any way you choose. Hire a professional to do it for you or do it yourself.
It also saves your company money in the long term. There are often no license or software maintenance charges when using an open source ERP. Fees for external consultants and programmers are frequently lower. Most open source ERP software solutions are compatible with open source databases and operating systems, allowing you to utilize them without purchasing a license. Commercial ERP systems frequently necessitate the purchase of costly commercial databases and operating systems.
Because many unaffiliated, often enthusiastic developers have looked at it, criticized its code, and provided enhancements, large enterprise IT departments appreciate that an open source ERP is of superior quality. In open source software, developer competition is widespread, and it enhances quality. Because open source is generally built on top of other open source projects and database formats, it does not have to reinvent the wheel as commercial systems do.
When modifications are appropriately implemented (just outside of the reference implementation), open source ERP models are difficult to upgrade than business applications, and upgrades may be done considerably more frequently (every three months to monthly) without disrupting the production system.
Is there any drawbacks? Yes, but only a privileged few.
Sometimes, information for a market-based system is better than literature for a standard supplied system. Nevertheless, if you're going to change the user experience anyhow, this documentation won't help you well when it comes to adapting the solution to your needs. An additional issue is that open source ERP is still a relatively new technology in large enterprises. As a result, convincing an accounting firm or other decision-maker to use open source software could be tough. Finally, auditors may be unfamiliar with a new interface or with the system. Training, on the other hand, can be simply implemented to avoid these issues when introducing a new system.
Conclusion
The choice is simple: go open source ERP if you want to quickly tailor the system to your needs, save a lot of money, and prevent vendor lock-in.
