Openerp - Economic Model

A modern approach to integrate business management

Who is Tiny sprl 

Editor of the Open Source management software Open ERP

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85 employees

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Self financed

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100 % growth per year

Economic model 

Global cost of proprietary integration −

Analysis : 0 to 10 %

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Licence : 20 to 30 %

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Integration : 50 to 70 % 

Specific adaptations

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Data recovering

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Configuration, settings

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Trainings

Proprietary costs

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

Global cost of an Open Source ERP integration −

No licence revenue

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Only service

Deficit of around 25 % (Licence)

Open Source costs

How to compensate this deficit on integration ? 

Mass distribution

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Low cost structure

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High level technical growth

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Open Source = Mass distribution

Mass distribution

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Open ERP is available on Linux distribution : Debian, Fedora

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Large number of articles

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Training center/Schools (France National Education) 

Can't afford licence costs

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Easier to sell to customers than to new contacts

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Open ERP = 700 downloads/day −

Support

−

Leads

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Low cost structure −

Marketing & commercial

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No distributor, no intermediary

Research & Development part −

Proprietary editors : 10 to 18 %

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Open Source editors : 50 to 80 % !!!

Reduced costs

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Open Source = High level technical growth −

Community of contributors 

Testers, documents redactors, translators, ...

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Developpers with business skills

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Re-use of libraries and open source components

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GPL licence 

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High level growth

Every contributor or partner development is an added value for the product

History of Open ERP modules −

October 2006 : 40 modules

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January 2007 : 112 modules

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April 2007 : 185 modules

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May 2007 : 200+ modules

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January 2009 : 350+ modules

Summary Better Margins 

A deficit of 25 % on a customer integration

But : 

A mass distribution −

700 downloads/day !

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A low cost structure

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High level technical growth of the product

Costs per customer integration

Open ERP Margins : 40% Proprietary Editor Margins: 20% -> Margins Twice Higher

Better Margins

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In few times −

25 languages

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700 downloads/days

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1000+ developers on launchpad

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Worldwide partner network

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Full ERP

It's working !

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horizontal : production, marketing, CRM, accounting & finance, stock, ...

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vertical : associations, bookshop, agronomic, production, quality, auctions, ...

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Service purchase no licence −

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Total control of budget and independance

Test and assess before to buy −

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Added value in each investment

Choice between time or money −

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Customer advantages ?

Help in the decision

Future costs reduced −

New modules

Services

Services 

Partner contract −

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Portal access, leads, visibility, ...

Maintenance −

Bugfix guarantee

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Migration guarantee

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Life cycle guarantee 

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Guanrantee that we maintain your current version of Open ERP during all duration of the contract

Certification module −

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Qualitative validation of your module 

Technical

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Functional

Possibility to subscribe to a maintenance contract for this module

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1st level Support −

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By phone, email, IRC

SaaS : On demand offer −

Hardware (servers)

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Maintenance

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Hosting and support

Training −

Functional

−

Technical

Success stories

France National Education (ENA) 

Open ERP selected after a market research by the Bull company

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Full integration project with specific developments

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Project duration : 3 years

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Users : 1500

Focus on ENA project 

Introduction of the ENA specific menu

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Web interface style completely reviewed

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Gantt view specially developped for ENA project 

This feature is now integrated in the official version of Open ERP

Chamber of commerce and industry - CCI (Belgium) 

Open ERP selected among proprietary editors such as SAP & Navision −

Thanks to Open ERP modularity and it's easy configuration/personalization without any specific developments 

Workflow editor

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View editor

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Object editor

Focus on CCI project 

Full integration project with 13 specific modules −

Members management

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Subsidies

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Event & training management

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...

management

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Project duration : 1 year

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Users : 70

Institut Formation Bancaire Luxembourg (IFBL) (Financial & banking training center) 

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Open ERP selected after 2 integrations Failure Full integration project with specific modules for planning and training management

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Duration of the project : 1 year

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Users : 40 + 1000 bank employees (customers)

Open ERP 

http://www.openerp.com

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http://ondemand.openerp.com

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http://www.openobject.com