Issues concerning Open source ERP in SME'S

Open Source applications are tools that has made it possible for S.M.E.'s to realize their ERP dreams. It refers to the software programs that can be copied and reproduced without even paying the license fees. This has done away with the hassles faced by the companies. However there are some restrictions and the question of proprietary or nonproprietary technology comes to the picture in determining the judicious use.

Some of the issues concerning Open Source ERP for S.M.E'S are as follows:

ERP'S intervention in S.M.E.'S

ERP was enjoying a large segment among big players. The subsequent applications only increased its scope. There was no looking back especially when the industries suffered from dearth of connectivity and communication. ERP has turned out to be the apt solution to meet the fast-moving channels in the corporate sector. However as stressed earlier it was not possible to cater to all the sectors.

The concept of free licensing helped Small and Medium industries to have an edge by establishing ERP. Open source applications have gone a long way in enhancing the scope of ERP in particular and the applications of any software in general.

Proprietary and Non proprietary technologies

The two major types of Open source are classified as Open source with Proprietary technologies and Open source applications with non proprietary technologies. There are many nuances of open source ERP .These technologies determine the extent of usage and scope of open source applications.

Proprietary technology prohibits the copying of the software except for some conditions. Thus proprietary technology poses some restrictions to the users .On the other hand nonproprietary technology is devoid of the restrictions. This neither imposes many precincts like that of the former.

Open source and S.M.E.'S

There is a considerable advantage in using Open source applications in S.M.E.'S. Small and medium industries cannot afford to install large applications. This is not only because of cost but also due to other practical difficulties. There are many more nuances of open source ERP.

In this context it becomes wiser to use open source applications that can serve the dual purpose of reducing (or not even paying) the license fees. Open source applications can help the companies to reduce the technicalities by offering comprehensive solutions on need basis that is the company can decide to make a copy of only those functions required by it. The company need not necessarily take a note or install all the functions of software. On the contrary they can choose only those applications required for their daily routine.

This happens to be a main advantage for an S.M.E. When compared with bigger companies. They have to invariably select all the functions from software irrespective of the fact whether they are useful or not. Their operations are extensive and hence they may only need more than what is available in a particular software. On the other hand the autonomy of choice is available with S.M.E's. Moreover even if bigger companies copy the entire software verbatim the idle functions may cause extra storage process and may even disturb the process. These limitations don't find a place in S.M.E'S.

Conclusion

The explanations above make it clear that Open Source ERP's have come a long way in helping and easing the enterprise operations of S.M.E's. It is not right to say that outsourcing is better or open source applications are better. Both of them have their own advantages and disadvantages and situations always decide the merit of their application.

How can ERP function more effectively in S.M.E.?
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What are the common problems for ERP in SME’S?