There are many benefits to implementing the Enterprise Resource Planning system in an organization. It helps to streamline the flow of data between the different departments in the organization and increase profitability. ERP software covers all business needs and improves efficiency. The main problem is that ERP implementation is expensive and requires large investments. It also carries high risks in the process. Therefore, ERP solutions were mainly used by large organizations that could afford the investment. Now the recent trend is towards open source ERP for SMEs. This is an alternative for small and medium-sized businesses to implement the Enterprise Resource Planning system. Open Source is the perfect solution for SMBs that cannot afford traditional ERP solutions. Open Source ERP offers many advantages over traditional ERP and offers many features. It is easy to implement and takes less time to implement.
The various reasons why open source ERP for SMBs is becoming more and more popular are as follows:
1. Cost: It costs less since it doesn’t require paying the hefty license fees. It can be downloaded from the Internet and does not require large investments. This makes it accessible for small and medium-sized businesses. The software is free to download, install and use.
2. Simple: Open source ERP for SMB is easy to understand and learn. It is very well documented and gives insight into what ERP systems do and how they do it.
3. Implementation Time: It is easy to implement and takes less time to implement than traditional ERP for large organizations.
4. Less dependency: The source code of the software is also available, therefore all modifications and changes can be easily made by any programmer. There is no need to rely on the provider to make the necessary changes. This is possible without having to rely on the provider for every little problem. This also reduces the likelihood of conflicts with the provider.
ERP used to be used by larger companies, and now open source ERP for SMBs is gaining popularity. Due to cost and other benefits, there are significant advantages to using open source enterprise resource planning. This concept helps to reduce the technical effort by providing needs-based solutions. It allows the company to install some of the required features as needed. You can select the applications you need every day. With the traditional approach, you have to install all features, whether required or not. It doesn’t offer the choice of open source for SMBs. The larger organizations need to store the extra process and idle functions, these limitations are not inherent in open source. Thus, it has made operations easier for small and medium-sized businesses. This concept was successful and there were very few failures.
Now it is possible for SMEs to switch to ERP earlier. Some of the open source software available in the market are ERP5, Compiere, Fisterra, etc.