Cost Effective Information Technology Solutions for Business and Companies. Presented by Joe Gene Quesada and Martin Lopez

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1 Cost Effective Information Technology Solutions for Business and Companies Presented by Joe Gene Quesada and Martin Lopez 1

2 Outline of Talk Enterprise Resource Planning Case Study An ERP Implementation Demonstration Next Steps to Take

3 What is Enterprise Resource Planning What is ERP as an Information Technology solution? Is ERP --- the cost effective Information Technology Solution? What is Open Source ERP Software? Comparison of Open Source ERP against traditional ERP like SAP Advantages of an Open Source ERP What are the doubts on having an Open Source ERP and how is it being addressed. Should an ERP implementation be expensive or cost effective?

4 ENTERPRISE RESOURCE PLANNING (ERP) DEFINED a method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.

5 ENTERPRISE RESOURCE PLANNING (ERP) DEFINED Other definitions : Seamless integration and information flow One database, one application, a unified interface across the entire enterprise Integrated and real-time planning, production and customer response

6 ENTERPRISE RESOURCE PLANNING (ERP) DEFINED FRONT-OFFICE CUSTOMER RELATIONS MANAGEMENT BACK-OFFICE C U S T O M E R S Sales & Distribution Service Application CENTRAL DATABASE Financial Applications Manufacturing Applications Inventory Management S U P P L I E R S HUMAN RESOURCE MANAGEMENT

7 MULTI COMPANY, MULTI SITE MODEL Corporate Performance Management Financial Shared Services & Compliance Distributed Order Management Quote to Cash Service & Support Plan & Execute Plan & Fulfill Requisition To Pay Design to Obsolescence For Configure to Order; Make to Stock, and Replenishment Order Management A Competitive Advantage for After-Sales Service And Support For Work Order, Repetitive, Lean and JIT Environments For DRP Fulfillment, Intersite Fulfillment, And Lean Fulfillment For Discrete Purchase Orders, Blanket Orders, And Supplier Sourcing For Consumables And Durables Information technology solutions manage the core business processes of the manufacturing enterprise or any enterprise. 8

8 BENEFITS OF ERP Key areas where ERP benefits the company the most Access to information : how and when information can be accessed and who can access it. Best Practice : Established because there is one access point and only one way to access the information and the same reporting tool for all. This allows for effective and efficient business practices.

9 BENEFITS OF ERP FOR A BUSINESS ERP allows for financial information and figures to be accurate and available at any given point in time. ERP brings together and closes the gap that many companies have between its customers. ERP allows for companies to keep less inventory and make it possible to implement Just In Time (JIT).

10 CONSIDERATIONS IN CHOOSING AN ERP SYSTEM Total Cost of Ownership Needs of the Company vs. Software Capabilities Experience and expertise of the consultants Capacity of Software to evolve as business changes Reliability and Scalability Quality and Flexibility of Software architecture Other considerations

11 FACTORS IN SELECTING AN ERP SYSTEM Licenses Liability Intellectual property Support Costs (initial and recurring) Long term viability Quality Reliability

12 What is a Cost Effective I.T. Solution? Should have reasonable cost of investment Must meet the requirements of business Must be customizable Must be scalable

13 What is a Cost Effective I.T. Solution? Answer: Open Source Software

14 OPEN SOURCE DEFINITION For a Software to be called Open Source, it must have the following characteristics: Free redistribution, including selling or using as component without fee. The Source code must be available in readable form. License must not be specific to a product. License must not restrict other software. License must be technology neutral.

15 Why is Open Source Software a Cost Effective I.T. Solution? Software can be downloaded from the internet, legally, and for FREE Does not require per CPU, per user, or per seat licenses Developed with the small and medium size business as models. Customizable to fit the requirements of the Client

16 Examples of Open Source Software Mozilla Firefox Open Office PHP (Programming Language used by Facebook) Android Operating System Linux Operating System PostgreSQL (Database comparable to Oracle) Open Source ERP Software

17 Comparison Open vs. Traditional Traditional ERP software like SAP requires the company to: Pay licenses for each user Pay annual maintenance (18 % of license fee) for support Pay per concurrent user connection to the database Purchase a high configuration hardware equipment Acquire expensive professional services Expensive to customize (need the assistance of vendor) Software cannot be owned by company --- only right to use

18 Comparison Open vs. Traditional Open Source ERP software has the following: No license fee to be paid for each user No annual maintenance for support No limit to number of concurrent database users Moderate Hardware requirements Reasonable cost of Professional Services Easily Customizable

19 Open Source ERP Model

20 Promise of Open Source ERP Delivering highly useful, complex software functionality at a relatively low initial cost coupled with self-sufficiency and low, ongoing support cost.

21 Doubts on using an Open Source ERP Limited functionalities Does not have full support of a vendor Vendor do not have extensive experience and business skills Quality of work is not very good Number of users who use the software is limited

22 Solution: Qualified Local Solution Provider

23 Should an ERP System be expensive OR Cost Effective? Streamlining a business process could be implemented at lower cost Quality could be assured if supported locally by a dedicated vendor Easily maintained by internal IT staff Easily customizable to meet the unique business requirements

24 Case Study: An Open Source ERP Implementation

25 IOSS Client Fresh Fruit Ingredients Inc. and its Affiliate, Fiesta Brands Inc. are pioneers in the production and processing of some of the world s finest coconut products coming from fresh coconuts harvested in the Philippines.

26 IOSS Client Fresh Fruit Ingredients Inc. is a company engaged in coconut products manufacturing, processing, and exportation. It exports these quality products across the globe. It made Php one billion gross sales in 2010

27 Current ERP System Current ERP is MFG/PRO In use for 11 years (purchased in 2000) Only Sales module is working External In-house systems were made to help MFG/PRO

28 New Open Source ERP System In 2009, ADempiere was introduced. It is an Open Source ERP software that offers a solution that combines ERP, SCM, MRP and CRM, support for business processes. IOSS provided the ERP customization, implementation, and support for FFII.

29 FFII and ADempiere Implemented modules Production Management Sales Management Supply Chain Management Customer Relationship Management But FFII needs more than the stock modules Adempiere offers, so we customized the ERP to fit their needs.

30 Types of ERP Implementation

31 Implementation FFII chose the Parallel Implementation.

32 Network Design Main Production Server is at FFII Plant in Misamis Oriental Head Office Connects over the internet to Production Server at the Plant Connection between the Head Office and the Plant is through a Virtual Private Network (Encrypted Tunnel) over the Internet Internet at the Plant provided by Smart Bro

33 Database Information Current Size of Database is 20 GB There are ten to fifteen concurrent users both at the head office and at the Plant There is a high-availability back up server at the Head Office Data is synchronized every two hours

34 Demonstration

35 What Next?

36

37 Who is Integrated Open Source Solutions? We are an Information Technology consulting firm specializing in Open Source software that provides cost efficient and effective solutions. We provide a complete set of I.T. services ranging from Requirements Definition, Development, Implementation, Network and Server Admin services and Maintenance.

38 IOSS Projects Manufacturing Systems Enterprise Resource Planning System Fleet Management System Preventive Maintenance Information System Medical Systems Hospital Management System MIT/Harvard Tele-medicine project (SANA)

39 IOSS Projects Financial Systems Insurance Marketing and Accounting System Insurance Multi-Level Marketing System Overseas Money Remittance System

40 IOSS Projects E-Government Systems Laguna Lake Development Authority (LLDA) Permitting Monitoring Enforcement System Web/SMS based Automated Election Tallying System NGO Systems Hapag-Asa Child Nutrition Monitoring and Evaluation System

41 Open Source Tools / Technologies

42 IOSS Clients

43 Thank you for Listening Questions?

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