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Open Source Enterprise Resource Planning: A Viable Alternative for Small and Medium Sized Businesses

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Open Source Enterprise Resource Planning: A Viable Alternative for Small and Medium Sized Businesses
Open Source Enterprise Resource Planning:
A Viable Alternative for Small and Medium Sized Businesses
Florida Atlantic University

ACG 6475
Dr. Pinsker
November 12, 2013

Table of Contents
Introduction 3
Costing 4
Flexibility 5
Implementation Time 6
Support and Maintenance 6
Security 7
Conclusion 8
References 10

Open Source Enterprise Resource Planning:
A Viable Alternative for Small and Medium Sized Businesses Enterprise Resource Planning (ERP) systems provide many benefits for organizations by integrating all the various departments and functions of an entity into a single software. ERP systems save companies time and money by streamlining the business processes (ERP Group, 2009). Traditionally, Commercial ERP systems were used mainly by large organizations due to the high costs and risks associated with implementation (ERP | OpenERP Implementations, 2011). Small and medium sized businesses typically could not justify the cost of implementing an ERP system. Open Source ERP systems are gaining mainstream acceptance as a viable solution for small and medium firms that cannot afford the high costs associated with Commercial ERP systems (Velo Corporation, n.d.). This paper seeks to identify the relevant advantages of Open Source ERP over Commercial ERP systems for small and medium sized businesses.
Introduction
The ERP market has been dominated for many years by commercial software providers such as SAP, Oracle, and Microsoft (Diana, n.d.). Commercial ERP providers supply both the software and support for the system. ERP has become an essential need for almost every business or organization, but often small and medium sized firms cannot afford to purchase these Commercial ERP systems due to the substantial investment required (Filinovich, 2011). These Commercial ERP systems tend to be difficult to implement, and the associated costs often outweigh the benefits. The high cost


References: Diana, A. (n.d.). Reasons to Consider Open Source for ERP. Retrieved from SocialERP.com: http://www.socialerp.com/opensourceERP.php ERP | OpenERP Implementations. (2011, December 12). Why SME’s & SMB are Selecting Open Source ? Retrieved from ERP | OpenERP Implementations: http://blogs.bistasolutions.com/2011/12/12/why-smes-smb-are-going-open-soruce/ ERP | OpenERP Implementations. (2013, January 21). From Closed to Open Source ERP software. Retrieved from ERP | OpenERP Implementations: http://blogs.bistasolutions.com/2013/01/21/from-closed-to-open-source-erp-software/ ERP Group. (2009, May). ERP Systems Market Primer. Retrieved from CSDP Corp. Web site: http://www.csdpcorp.com/LinkClick.aspx?fileticket=hLBUT6Dt2pY%3D&tabid=261&mid=965 Filinovich, P. (2011, April 24). Open Source ERP for SMEs Now Popular. Retrieved from EzineArticles: http://ezinearticles.com/?Open-Source-ERP-for-SMEs-Now-Popular&id=6208438 Globalteckz. (2013, July 26). Why Open Source ERP software is best for Small Businesses. Retrieved from Globalteckz: http://blogs.globalteckz.com/why-open-source-erp-software-is-best-for-small-businesses/ Johnson, D. (2013, March 8). Open Source ERP vs. Proprietary ERP for delivering SaaS. Retrieved from ERP Software News: http://www.erpsoftware-news.com/2013/03/open-source-erp-vs-proprietary-erp-for-delivering-saas.html Kumar, D., & Srivastava, S. (n.d.). Open Source ERP vs. Commercial ERP. Retrieved from HyTech Professionals LLC Web site: http://www.hytechpro.com/white-papers/open-source-vs-commercial-erp Velo Corporation. (n.d.). Open-Source ERP for SMEs Growing in Popularity. Retrieved from Velo Corporation Web site: http://veloerp.com/2013/03/07/open-source-erp-for-smes-now-popular/
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