What are ERPs?

ERPs are information systems that manage the data for a company’s main business processes,from customer orders to accountability. Their functions include data capture, processing, and customized distribution to any end user. Usually, ERPs are expensive, which has restricted small and medium-sized enterprises’ access to them. The availability of open source software ERPs has changed this situation. Moreand more companies are studying the possibility of adopting OSS ERPs. Many articles have focused on how OSS ERPs are gaining users.
Enterprise resource planning is the central element of any information systems architecture. So, selecting and implementing an ERP system is a key factor in company performance-one that can offer a significant competive advantage.

OmkarSoft specilizes in open-source ERP.

Why OSS ERPs?

Both OSS ERPs and proprietary ERPs involve complex system implementations that usually require modifications to a firm’s business processes as well as some adaptation of the ERP’s functionality.

This mutual matching project usually involves consulting firms. However, the benefits of applying OSS are greater for ERPs than for other kinds of applications, for three main reasons:

  • Increased adaptability. ERPs aren’t plug-and-play. They always need an implementation project to match the business processes and local regulations. Having full access to the ERP source code can facilitate this unavoidable customization.
  • Decreased reliance on a single supplier. Businesses that acquire a proprietary ERP are highly dependent on the product builders and distributors-that is, the source code’s owners. If one, or even both, of these agents disappears, upgrading and maintaining the ERP can pose significant problems.
  • Reduced costs. Proprietary ERP licenses are expensive. A rule of thumb puts them at between one-sixth and one-third of the implementation project costs. OSS ERPs avoid this cost. Furthermore, they usually don’t need expensive hardware to run.

There are other reasons to choose OSS ERPs. For example, you don’t need to manage licenses. However, we must note that OSS skeptics argue that few reliable consulting firms have experience implementing OSS ERPs. In contrast, proprietary ERPs have a mature distribution network and a long history of successes and failures for implementers to draw on.

Challenges faced by open-source ERP system

  • Open source products may lack the feature set of a comparable commercial software product, or the level of vertical integration that other commercial software products may tout.
  • Open source software [packages] may be difficult to run and support as they may lack the popular support of system integrators and professionals that traditionally cater to commercial vendor software products and services.

OmkarSoft can help you mitigate the issuses faced by open-source software.