Why open source ERP is NOT an alternative

Even in the recent past, open source was still considered forward-looking, because free alternative to closed systems like SAP Business One. And for some companies, an open-source solution is not a bad approach. For the rest, however, other things count in the software sector: reliability, costs and the basis for development. Can open source ERP software deliver this?

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Not all open source is the same

In today's software landscape, it is easy to lose track of everything. Almost for every single process there is also a special open source solution that makes everything even better, more efficient and easier. However, these solutions only help if they are also used in the right place. For this, the Software-However, companies in need of a system also need to know where it makes sense to use it. But that is not so easy. Because every open source solution has a different focus, which is then supplemented by the additional functions. These must first harmonise from a technical point of view and also be capable of sustainable optimisation. This means that the software should be structured in its basis in such a way that further development is possible.

Too complex, too much adaptation

This lack of possibilities in the area of further development is also the reason why there is little interest in open source ERP. A good ERP system is characterised by its ability to grow with the company. However, ERP software is so complex that a solution should be designed with this in mind. In terms of functionality, only a small part of open-source systems is often covered, which makes the Need for adaptation on the other hand. In addition, it is necessary for every company to be able to rely on the functionality of their ERP system in order to avoid economic damage. The years of work that go into an ERP solution is therefore probably more in line with the complexity of the value creation processes.

Open source ERP ... too expensive

Adaptations of ERP systems are cost-intensive. This is no different with open source ERP solutions. Since - as already mentioned - ERP software is somewhat complex, the company's internal IT department often lacks the corresponding knowledge. Know-how and make the necessary adjustments. But external means expensive. And experts for open sourceERP are not exactly a dime a dozen. The responsibility for the system shifts to one or a few people in the company. A monopoly that is not healthy for companies when it comes to failures. This is one of the reasons why companies often prefer to opt for a standardised Industry solution. Often open source ERP seems attractive to many companies because of the lack of licence fees. However, the customisation costs will far exceed these.

Even though a large number of developers are working on open-source solutions, it is still only possible in part to create a uniform basis for all Industry sectors and companies. Standardised software often does not cover all functions, but it does cover the essential ones. And without them a ERP system makes very little sense. Especially for small and medium-sized enterprises, open source ERP is not a good alternative.

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