Cost Effective Information Technology Solutions for Business

and Companies

Presented byJoe Gene Quesada and

Martin Lopez

1

Outline of Talk

• Enterprise Resource Planning

• Case Study – An ERP Implementation

• Demonstration

• Next Steps to Take

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.

• Should an ERP implementation be expensive or cost effective?

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) DEFINEDCUSTOMERRELATIONS

MANAGEMENT

HUMANRESOURCE

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.

MULTI COMPANY, MULTI SITE MODEL

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

effective and efficient business practices.

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• Other considerations

FACTORS IN SELECTING AN ERP SYSTEM

• Licenses

• Liability

• Intellectual property

• Support

• Costs (initial and recurring)

• Long term viability

• Quality

• Reliability

What is a Cost Effective I.T. Solution?

• Should have reasonable cost of investment

• Must meet the requirements of business

• Must be customizable

• Must be scalable

What is a Cost Effective I.T. Solution?

Answer:

Open Source Software

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.

License must be technology neutral.

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.

• Customizable to fit the requirements of the Client

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)

• Open Source ERP Software

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

Easily Customizable

Open Source ERP Model

Promise of Open Source ERP

• Delivering highly useful, complex software functionality at a relatively low initial costcoupled with self-sufficiency and low, ongoing support cost.

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

is limited

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

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 2010

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 needs.

Types of ERP Implementation

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

• Internet at the Plant provided by Smart Bro

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

• Data is synchronized every two hours

Demonstration

What Next?

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

services and Maintenance.

IOSS Projects

• Manufacturing Systems

– Enterprise Resource Planning System

– Fleet Management System

– Preventive Maintenance Information System

• Medical Systems

– Hospital Management System

– MIT/Harvard Tele-medicine project (SANA)

IOSS Projects

• Financial Systems

– Insurance Marketing and Accounting System

– Insurance Multi-Level Marketing System

– Overseas Money Remittance 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

Open Source Tools / Technologies

IOSS Clients

Thank you for Listening

Questions?

http://ioss.com.ph