Open-source ERP software is basically an alternative option designed for enterprises at a low cost. This type of software could be used specifically by Small and Medium-sized Enterprises or SMEs. Open-source ERP has been known as a flexible and modular software, which allows enterprises to pay only for the customizations and the features that the really need to support their business activities. An open-source ERP system could also be defined as a type of ERP system with openly accessible source code. Many of enterprises are able to access the open-source code free of cost, and then make some customizations or modifications to the software by themselves, instead of depending on the vendor. Almost all of ERP solutions are formed as closed source in which the customers are unable to get access on its source code (Rakićević, Omerbegović-Bijelović, & Lečić-Cvetković, 2016).

Benefits of Open-source ERP system

            There are many benefits provided by open-source ERP system, some of them are mentioned below (L.Olson, Johansson, & Carvalho, 2018):

·         Lower cost

It is an undeniable fact that the software of ERP is not a cheap one, and definitely, this has prevented the small enterprises to invest in this technology. Thus, software of open-source ERP could be a perfect alternative since the users would not have to pay or any license to get access to the source code. This simply means that the enterprises are able to install and also customize the software as for their requirements for free. Almost all of ERP solutions contain a wide range of modules and features that will be counted within their cost. Conversely, open-source ERP systems provide only for the fundamental functionality.

·         Further control through customizations

If the enterprises aim to include any type of customization into their ERP system, then they will frequently need to work along with their internal IT experts, the vendor, and some enterprises even have to get a consultant from outside. This will be a time-consuming task to do and there might even some miscommunications appear during the processes. By using an open-source ERP system, the enterprises will able to create any type of customizations they desired internally, without having to ask support from a vendor. In addition to this, the enterprises will also have their access to some modules and industry-specific features by the user communities. This will surely reduce the time consume and also the customizations’ complexity. Thus, the enterprises will have full control in deciding the customizations that they need.

·         High-quality coding

The low cost typically meant for the low-quality. However, this applies differently to the low-cost software of an open-source ERP system. In fact, this open-source ERP system is able to deliver high-quality coding due to the system were built on prior open-source ventures that have been observed and reviewed by lots of autonomous developers.

Challenges of Open-source ERP system

There will always be positive and negative sides of everything, and this also applies to this open-source ERP system. Here are some challenges that included in the open-source ERP system (L.Olson, Johansson, & Carvalho, 2018).

·         Undervalue the cost

It is true that this open-source ERP system has an openly accessible source code that can be used by the enterprise for no cost at all. But, to be noted, the free cost only comprises the fundamental functionality. Thus, it is a big possibility that the vendors will ask to pay a fee for any highly developed features, proprietary modules, cloud deployments, along with some training and backup. Furthermore, the enterprises will also have to pay some implementation fees which comprise internal IT employees, database hardware, as well as the security and backup software. Plus, if the enterprise will use some external consultants, then it would definitely increase the expenditures.

·         Demands educated IT staff

The enterprises that aim to implement this open-source ERP system definitely need to acquire expert IT staff who have a strong grip on significant programming, along with ERP knowledge to design and implement the desired customizations internally. Thus, lots of enterprises, especially the ones who included in SMEs might unable to use this open-source ERP system due to most of them might acquire any expert IT staff.

·         Excessive customization

The implementation processes is a lengthy and complicated one, and therefore, the enterprises will only waste significant money and time if this system is poorly planned. Due to open-source ERP systems deliver various potential customizations, the enterprises will have to set up clear strategies for the type of customization that they really required.

References of The turnaround in the development team of the Open-source ERP

L.Olson, D., Johansson, B., & Carvalho, R. A. (2018). Open source ERP business model framework. Robotics and Computer-Integrated Manufacturing, 30-36.

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Nagy, D., Yassin, A. M., & Bhattacherjee, A. (2010). Organizational Adoption of Open Source Software: Barriers and Remedies. Communications of the ACM, 53(3), 148-151.

Rakićević, Z., Omerbegović-Bijelović, J., & Lečić-Cvetković, D. (2016). Open source enterprise resource planning: Solution for production planning in SMEs. Proceedings of the 15th International Symposium SymOrg.

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