Cost Effective Information Technology Solutions for Business and Companies. Presented by Joe Gene Quesada and Martin Lopez

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Cost Effective

Information Technology

Solutions for Business

and Companies

Presented by

Joe Gene Quesada and Martin Lopez

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Outline of Talk

• Enterprise Resource Planning

• Case Study – An ERP Implementation • Demonstration

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What is Enterprise Resource Planning

What is ERP as an Information Technology solution?

Is ERP --- the cost effective Information Technology Solution?

What is Open Source ERP Software?

Comparison of Open Source ERP against traditional ERP like SAP

Advantages of an Open Source ERP

What are the doubts on having an Open Source ERP and how is it being addressed.

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ENTERPRISE RESOURCE

PLANNING (ERP) DEFINED

“ a method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.

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ENTERPRISE RESOURCE

PLANNING (ERP) DEFINED

Other definitions :

• Seamless integration and information flow

• One database, one application, a unified interface across the entire enterprise

• Integrated and real-time planning, production and customer response

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ENTERPRISE RESOURCE

PLANNING (ERP) DEFINED

CUSTOMER RELATIONS MANAGEMENT HUMAN RESOURCE MANAGEMENT CENTRAL DATABASE Sales & Distribution Service Application C U S T O M E R S S U P P L I E R S Financial Applications Manufacturing Applications Inventory Management FRONT-OFFICE BACK-OFFICE

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8 Design to Obsolescence For Consumables And Durables Requisition To Pay

For Discrete Purchase Orders, Blanket Orders, And Supplier Sourcing Plan & Fulfill For DRP Fulfillment, Intersite Fulfillment, And Lean Fulfillment

Plan & Execute

For Work Order, Repetitive, Lean and JIT Environments Service & Support A Competitive Advantage for After-Sales Service And Support Quote to Cash

For Configure to Order; Make to Stock, and Replenishment Order Management

Distributed Order Management

Financial Shared Services & Compliance Corporate Performance Management

Information technology solutions manage the core business processes of the manufacturing

enterprise or any enterprise.

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BENEFITS OF ERP

Key areas where ERP benefits the company

the most

Access to information : how and when information can be accessed and who can access it.

Best Practice : Established because there is one access point and only one way to access the information and the same reporting tool for all. This allows for

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BENEFITS OF ERP FOR A BUSINESS

ERP allows for financial information and

figures to be accurate and available at any given point in time.

• ERP brings together and closes the gap that

many companies have between its customers.

ERP allows for companies to keep less

inventory and make it possible to implement Just In Time (JIT).

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CONSIDERATIONS IN CHOOSING AN ERP SYSTEM

• Total Cost of Ownership

• Needs of the Company vs. Software Capabilities

• Experience and expertise of the consultants

• Capacity of Software to evolve as business changes

• Reliability and Scalability

• Quality and Flexibility of Software architecture

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FACTORS IN SELECTING AN ERP SYSTEM

• Licenses

• Liability

• Intellectual property

• Support

• Costs (initial and recurring)

• Long term viability

• Quality

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What is a Cost Effective I.T. Solution? • Should have reasonable cost of investment Must meet the requirements of business Must be customizable

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What is a Cost Effective I.T. Solution?

Answer:

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OPEN SOURCE DEFINITION

For a Software to be called Open Source, it must have the following characteristics:

Free redistribution, including selling or using as component without fee.

 The Source code must be available in readable form.

 License must not be specific to a product.

 License must not restrict other software.

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Why is Open Source Software a Cost Effective I.T. Solution?

• Software can be downloaded from the internet, legally, and for FREE

• Does not require per CPU, per user, or per seat licenses

• Developed with the small and medium size business as models.

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Examples of Open Source Software

• Mozilla Firefox

• Open Office

• PHP (Programming Language used by Facebook)

• Android Operating System

• Linux Operating System

• PostgreSQL (Database comparable to Oracle)

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Comparison – Open vs. Traditional

Traditional ERP software like SAP requires the company to:

 Pay licenses for each user

 Pay annual maintenance (18 % of license fee) for support

 Pay per concurrent user connection to the database

 Purchase a high configuration hardware equipment

 Acquire expensive professional services

 Expensive to customize (need the assistance of vendor)

 Software cannot be owned by company --- only right to use

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Comparison – Open vs. Traditional

Open Source ERP software has the following:

 No license fee to be paid for each user

 No annual maintenance for support

 No limit to number of concurrent database users

 Moderate Hardware requirements

 Reasonable cost of Professional Services

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Promise of Open Source ERP

Delivering highly useful, complex software

functionality at a relatively low initial cost coupled with self-sufficiency and low,

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Doubts on using an Open Source ERP

Limited functionalities

Does not have full support of a vendor

Vendor do not have extensive experience and

business skills

Quality of work is not very good

Number of users who use the software

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Solution: Qualified Local Solution

Provider

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Should an ERP System be expensive

OR

Cost Effective?

• Streamlining a business process could be implemented at lower cost

• Quality could be assured if supported locally by a dedicated vendor

• Easily maintained by internal IT staff

• Easily customizable to meet the unique business requirements

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Case Study: An Open Source

ERP Implementation

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Fresh Fruit Ingredients Inc. and its Affiliate,

Fiesta Brands Inc. are pioneers in the

production and processing of some of the

world’s finest coconut products coming from fresh coconuts harvested in the Philippines.

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IOSS Client

Fresh Fruit Ingredients Inc. is a company

engaged in coconut products manufacturing, processing, and exportation. It exports these quality products across the globe.

It made Php one billion gross sales in

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Current ERP System

Current ERP is MFG/PRO

In use for 11 years (purchased in

2000)

Only Sales module is working

External In-house systems were

made to help MFG/PRO

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New Open Source ERP System

• In 2009, ADempiere was introduced. • It is an Open Source ERP software

that offers a solution that combines ERP, SCM, MRP and CRM, support for business processes.

IOSS provided the ERP

customization, implementation, and support for FFII.

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FFII and ADempiere

• Implemented modules

Production Management

Sales Management

Supply Chain Management

Customer Relationship Management

But FFII needs more than the stock modules Adempiere offers, so we customized the ERP to fit their

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Implementation

FFII chose the Parallel Implementation.

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Network Design

• Main Production Server is at FFII Plant in Misamis Oriental

• Head Office Connects over the internet to Production Server at the Plant

• Connection between the Head Office and the Plant is through a Virtual Private Network

(Encrypted Tunnel) over the Internet

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Database Information

• Current Size of Database is 20 GB

• There are ten to fifteen concurrent users both at the head office and at the Plant

• There is a high-availability back up server at the Head Office

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Who is Integrated

Open Source Solutions?

• We are an Information Technology consulting firm

specializing in Open Source software that provides

cost efficient and effective solutions.

• We provide a complete set of I.T. services ranging from

Requirements Definition, Development,

Implementation, Network and Server Admin

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IOSS Projects

Manufacturing Systems

– Enterprise Resource Planning System – Fleet Management System

– Preventive Maintenance Information System

Medical Systems

– Hospital Management System

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IOSS Projects

Financial Systems

– Insurance Marketing and Accounting System – Insurance Multi-Level Marketing System

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IOSS Projects

E-Government Systems

– Laguna Lake Development Authority (LLDA) Permitting Monitoring Enforcement System

– Web/SMS based Automated Election Tallying System

NGO Systems

– Hapag-Asa Child Nutrition Monitoring and Evaluation System

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Thank you for Listening

Questions?

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