open erp business model
TRANSCRIPT
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Open ERPOpen Source Business Model Explained
- Fabien Pinckaers, CEO Tiny -
Cercle du Lac, 2010
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● Director of 4 companies● Web Development● Tiny SPRL● Tiny At Work (Canada)● Tiny ERP India
● Projects:● Auction-in-europe.com (1997-Today)● Openstuff.net (1998-2005)● OpenERP (2004-Today)
● Author of Management Books
Fabien Pinckaers
CEO OpenERP
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● Editor of Open ERP● Full featured enterprise management software:
accounting, crm, sales mgt., manufacturing, project mgt, stocks, document management system, etc.
● 80 employees, self-financed and profitable
OpenERP
Open ERP, The product
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A strong product:• Full featured ERP (500 modules).
The most advanced on the market for SMEs.
• A well known mark: Open ERP• Happy references (La poste, ENA, …)
A very healthy ecosystem:• A dynamic community (1000/300
contributors)• A strong partner network (22
countries)• A world-wide demand (85 leads per
day) A profitable business:
• Team of 85 employees
Introduction
A disruptive Open Source Management Software
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182
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410
730
1093
15
32
65
0
10
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60
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500
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800
2005 2006 2007 2008
Headcount
Keur
Revenues Net Result Total Headcount
Revenues & Staff
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How did we achieve this ?
Open Source / Free Software
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Open Source Licence (GPL) The freedom to:
• Run the program• Study the source code• Distribute the software• Redistribute
The snowball effect !
Open Source / Free Software
It's all about freedom !
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Fast growth / Low R&D Budget
Tiny, because size matters !
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Open Source + Concentration effect:Strong brand & real market penetration
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Marketing & PR
ReferencesPartners : over 60 in 22 countries
Google Trends: OpenERP/Netsuite✔ Netsuite: 80M€ in sales and
marketing in 2008✔ OpenERP: 200k€ budget Sales &
Marketing in 2008
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But how to make money ?… lots of money
Monetization & Open Source
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SAP's Income Statement
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Proprietary Business Model (*) Open ERP
25% 25%
45% 45%
15%
20%
20%
32% 20%
30% 30%8% 5%
Licences R&D G&A R&D G&A
(*) Based on SAP's annual financial report 2008.
Other Services
Support Maint.
Sales Marketing
Cost Services
Other Services
Support Maint.
Sales Marketing
Cost Services
Let's have a look at competitors that make lots of money...
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Business Model
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SaaS Editions SupportPartner
ServicesSmall Projects (0-50 users) XXX X
Medium Sized (<100 users) XX X
Bigger Projects (>100 users) XXX X
Partners XXX
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A lack of 25% in sales (no licences) but:● Fast growth of the product (low R&D costs)● Low sales & marketing investment● High distribution of the mark & product at
low costs
No licences revenues...… but higher margins !
Summary
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• Open ERP : http://openerp.com• On Demand Offer: http://odoo.com• Fabien Pinckaers
• [email protected]• +32.81.81.37.00
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More Information ?