Why SMEs Choose Open Source ERP Software?

Open source ERP software is gaining popularity among SMEs for its customizable nature, cost advantages, and collaborative community support. This innovative approach allows SMEs to optimize processes without breaking the bank, empowering them to take control of their data, streamline workflows, and achieve sustainable growth. Open source ERP is not just a software choice; it's a strategic decision that aligns with SMEs' evolving needs and ambitions.

SME stands for Small and Medium-sized Enterprises. SMEs are:

• Sizes - SMEs are typically defined as businesses with less than 250 employees. Small enterprises usually have less than 50 employees, while medium-sized ones have up to 250.
• Ownership - SMEs tend to be independently operated. They are not subsidiaries or units of larger corporations.
• Industries- SMEs can be found in all sectors of the economy, including manufacturing, services, retail, technology, and so forth. 

In summary, SMEs are small or medium-sized businesses that play a key economic role but face unique scalability and competitiveness challenges owing to their size and resources. They comprise the majority of private sector enterprises globally.

What is ERP?

Enterprise Resource Planning is referred to as ERP. It is a comprehensive, integrated software program made to manage and streamline several business operations inside an organization.

• Proprietary ERP: Traditional ERP systems like SAP, Oracle, Microsoft Dynamics are  closed source. The source code is not publicly available and there are licensing costs.
• Open Source ERP: is a class of business management software where the public has access to the program's source code. Open source ERP solutions are available to all users without restriction and can be altered, adapted, and shared. This transparency and flexibility empower organizations to adapt the software to meet their specific needs.

Top Reasons Why SMEs Choose Open-Source ERP Software

• No license fee:

Open source ERP is usually free, eliminating the burden of licensing fees. SMEs can access and use software at no cost upfront, making it an attractive option for those with limited financial resources.

• Cost Effective: 

The reason why SMEs are using Open source ERP software as compared to other paid software is because of its low cost. Small businesses cannot afford the licensing costs of paid software and Odoo ERP software is available for free online.

• Customization: 

With an open source ERP, small businesses can consider it as a scalable tool. The availability of source code enables SMEs to modify and customize the ERP for their specific business needs and processes.

• One-stop Solution: 

Even smaller organizations use multiple applications including CRM, sales, purchasing and other software to manage departments. Specific applications carry specific vendors & software management. So it is better to use ERP software in a different way by using a specific software. Thus, Open source ERP is a go-to solution for organizations. 

• Transparency:

Open source ERP can be compared to having a transparent window into your company's software. Because you have access to the source code, which is like the magic that happens behind the scenes, you can see and comprehend how everything functions. Because of this transparency, you are able to select the service that best suits your needs without being taken by surprise. It's like having the keys to your own business kingdom!

• Future Proof:

Open source ERP software has a large developer community who backup the software in their own review. Because of Open source ERP, you can take help from other developers and continue to work on the same ERP system with any commercial ERP provider.

• Quick Implementation: 

Open source ERP solutions are designed to be simple to adopt, which might allow enterprises to roll out the system more quickly. Less complexity in the deployment process means that firms can become operationally ready more quickly.

• Vendor independence:

Small to medium-sized enterprises (SMEs) can avoid lengthy vendor negotiations and expensive advisory services for change, and offer greater flexibility. The absence of external reliance allows SMEs to change their strategy more quickly and it’s possible to meet changing needs.

• Scalability:

Open source ERP offers scalable solutions that enable businesses to start with required features and easily add additional modules or capabilities as they grow. This supports the incremental and gradual expansion of small and medium enterprises (SMEs) to match the evolving needs of their businesses. Their own operations are scaled.

• Better Quality:

Competition between developers is prevalent in the open source software community and this is the main reason for high levels of development. Employees from large organizations agree that open source ERP solutions offer higher quality, because many independent and passionate developers found the solution and contributed to the development.

Final Remarks