Enterprise Resource Planning systems share three main characteristics:
- They are multi-functional, spanning a range of business activities
- They are integrated, so that functions communicate with one another and share underlying data
- They are modular, allowing selected elements to be implemented and the progressive adoption of additional modules
The Business Case
The majority of large and medium-to-large organisations have already adopted or have plans to adopt an ERP system. This is not surprising, as most organisations can expect a Return on Investment (ROI) of between 100% and 400% from ERP projects, making them strong candidates compared with most other initiatives. However, ERP systems have frequently proved difficult to implement and invariably require significant investment, even though potential returns are high. It is important to recognise and manage the risks involved by controlling costs and maximising the probability of success.
Proprietary v Open Source
Vendors such as SAP, Oracle, PeopleSoft and Microsoft have tended to dominate the market for ERP systems. However, the costs associated with the implementation of these systems have frequently far exceeded expectations and in many cases have outstripped the return. In a survey conducted by Nucleus Research, only 46% of SAP adopters achieved a positive ROI with an average payback period of 46 months.
Open Source solutions can dramatically reduce the Total Cost of Ownership (TCO) of an ERP system, typically by as much as one third, whilst achieving at least the same benefits.
With zero licence fees and no obligation for expensive, annual support contracts, an Open Source approach significantly reconfigures the cost profile of ERP implementation. To read the interesting facts and benefits further you can download the full article Read More