Cost Effective
Information Technology
Solutions for Business
and Companies
Presented by
Joe Gene Quesada and Martin Lopez
Outline of Talk
• Enterprise Resource Planning
• Case Study – An ERP Implementation • Demonstration
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.
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.”
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
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
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.
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
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).
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
FACTORS IN SELECTING AN ERP SYSTEM
• Licenses
• Liability
• Intellectual property
• Support
• Costs (initial and recurring)
• Long term viability
• Quality
What is a Cost Effective I.T. Solution? • Should have reasonable cost of investment • Must meet the requirements of business • Must be customizable
What is a Cost Effective I.T. Solution?
Answer:
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.
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.
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)
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
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
Promise of Open Source ERP
• Delivering highly useful, complex software
functionality at a relatively low initial cost coupled with self-sufficiency and low,
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
Solution: Qualified Local Solution
Provider
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
Case Study: An Open Source
ERP Implementation
• 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.
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
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
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.
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
Implementation
FFII chose the Parallel Implementation.
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
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
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
IOSS Projects
• Manufacturing Systems
– Enterprise Resource Planning System – Fleet Management System
– Preventive Maintenance Information System
• Medical Systems
– Hospital Management System
IOSS Projects
• Financial Systems
– Insurance Marketing and Accounting System – Insurance Multi-Level Marketing System
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
