Open source ERP for SMEs

For the last decade or so, the biggest category of the IT investment has unarguably been Enterprise Resource Planning (ERP). Most of the bigger corporations in the developed countries have implemented ERP systems with an aim to achieving competitive edge in their respective business areas. Now that the top end of the ERP market has been saturated, the main interest has moved to non-commercial sectors such as universities and small and medium-sized enterprises (SMEs). These organisations have not been able to benefit directly from the ERP revolution because an ERP implementation requires huge resources and entailshigh risks. Over the same period, the concept of Open Source Software (OSS) has been enthusiastically adopted by the software engineering community. OSS has excelled in many systems software domains, for example, operating systems with Linux and web servers with Apache. Having observed these successes, the software industry has been showing interest in application domains such as enterprise information systems, more specifically ERP systems, as the next OSS candidates. In this paper, we outline the challenges as well as opportunities of OSS ERP development.