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Open Source ERP Applications: a Reality Check for Their Possible Adoption and Use in Teaching Business Process Integration

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Open Source ERP Applications: a Reality Check for Their Possible Adoption and Use in Teaching Business Process Integration Huynh and Pinto Sat, Nov 7, 2:00 - 2:25, Ballroom B Open Source ERP Applications: A Reality Check for Their Possible Adoption and Use in Teaching Business Process Integration Minh Huynh Southeastern Louisiana University [email protected] Ivan Pinto Southeastern Louisiana University [email protected] Abstract For years, there has been a need for teaching students about business process integration. The use of ERP systems has been proposed as a mechanism to meet this need. Yet, in the midst of the economic crisis, it is difficult to find funding for the acquisition and implementation of an ERP system for teaching purpose. While it is recognized that the use of ERP systems might provide a variety of benefits in a business school curriculum, how could business schools overcome the limited resources in order to bring in and integrate ERP systems into their business core classes? This paper explores the potentials of open source software with a focus on open source ERP applications. It describes the development of the open source movement, the emergence of open source ERP software, and the selection and evaluation of two specific ERP applications. Although one of the major incentives for adopting open source software is the absence of license fees, this paper, however, cautions that there are other costs to be considered in the adoption of an open source ERP software and in its implementation process. Keywords: ERP, Openbravo, xTuple, enterprise system, business process integration, open source, open source ERP applications 1. INTRODUCTION disciplinary silos and achieving a higher level of integration. (Johnson, et al., 2004) Over two decades ago, business educators recognized the need for a curriculum change One of the promising ideas is the proposed that would allow graduates to gain an use of ERP systems as a mechanism for integrated understanding of business business curriculum integration. It is processes. (Porter and McKibbin, 1988) observed that the implementation and use of Accustomed to the traditional view of seeing ERP software force firms to become procurement, manufacturing, and integrated enterprises. This, in turn, distribution as distinctive functions, students demands that these firms have strong often have trouble in understanding how all understanding of key business processes. different processes from various functions (Hammer, 1999) For years, companies have are interconnected into an integrated recognized the importance of enterprise- enterprise system. In response to this need, wide information systems, because a number of curriculum redesign ideas were enterprise systems are the main enabler for proposed, all aimed at removing the companies to integrate information across operations on a company-wide basis. As Proc ISECON 2009, v26 (Washington DC): §3512 (refereed) c 2009 EDSIG, page 1 Huynh and Pinto Sat, Nov 7, 2:00 - 2:25, Ballroom B expected, enterprise systems are deployed growth. The next two sections respectively by businesses for the purpose of improving describe an emergence of open source ERP efficiency, data sharing, and decision- solutions and explore two specific open making process. The effectiveness of ERP source ERP solutions currently available in systems as an integrating mechanism in the market. In the fifth section is the business suggests that the use of ERP sharing of the authors’ experience in the trial software in teaching core business courses implementation of two specific open source might help students to achieve a strong ERP applications. The paper is concluded understanding of key business processes with the author’s final thoughts along with and the practice of the cross-functional practical implications for those interested in integration. In an educational context, it is adopting and using open source ERP for use observed that students often struggle to in teaching. understand how all different components and processes of an integrated system fit 2. OPEN SOURCE SOFTWARE together. In this respect, the use of ERP DEVELOPMENT AND GROWTH software might provide a missing link that could be used as an integrating mechanism Open-source software as defined by in business college curricula. (Johnson, et Wikipedia refers to computer software al., 2004) available with its source code and under an open source license. Such a license permits In the midst of the global economic crisis, anyone to study, change, and improve the like any other organization, business schools software, and to distribute the unmodified or around the country are facing greater modified software. The idea of open source demands from various needs and yet the software can be traced back to the early resources to meet those needs are development of computers during the early increasingly dwindling. The funding for 1950s. At this time, because the focus was academic enhancement projects is drying up more on making hardware saleable, quickly. While it is recognized that the use computer manufacturers such as IBM would of ERP systems might provide a variety of give away their software in both source and benefits in a business school curriculum, objective code form virtually for free. how could business schools overcome the (Campbell-Kelly, 2008) The idea was to limited resources in order to bring in and allow these hardware buyers to use the integrate ERP systems into their business software code to develop their own core classes? More specifically, the applications. To develop software challenges to those who want to use ERP as applications, these hardware buyers needed a mechanism for business curriculum either a team of in-house programmers or integration are (1) what ERP applications to outside companies with specialization in choose from, (2) how to get them up and programming. The development of software running, and (3) what to do to integrate applications was capital intensive, because their use in core business classes under a writing software code required tremendous severe budget constraint. amount of investment in terms of time, skill resource, and money. (Campbell-Kelly, Could open source ERP software provide a 2008) Soon, software-product companies solution to these challenges? Exploring the were formed and they quickly realized that viable answer to this question is one of the they could not just give away their software. motivations for this paper. Our main goal is Because software was relatively easy to to help inform those who want to learn duplication, these software-product about open source software in general and companies began to formulate ways to those who are interested in open source ERP safeguard their intellectual asset and to solutions in particular with useful facts from protect against software duplication. our research and personal experiences from Consequently, the license terms to restrict our hands-on trial with two specific ERP certain usage and duplicate were introduced applications. and later on the copyright laws was implemented. This paper is organized into six sections. The introduction is followed by an overview By the mid-1980s, source code disclosure of open source software development and had almost completely ceased. The success Proc ISECON 2009, v26 (Washington DC): §3512 (refereed) c 2009 EDSIG, page 2 Huynh and Pinto Sat, Nov 7, 2:00 - 2:25, Ballroom B of the personal computer revolution and the coined by Christine Peterson of the Foresight Microsoft Operating System led to a Institute and the Open Source Initiative misleading perception that proprietary organization (OSI) was established in 1998. source software should be the norm. Although the term “Open Source” does not (Conlon and Hulick, 2006). Not until the express explicitly the user’s freedom to do mid-1990s did the movement of free whatever they wish with the software, it software emerge again. The ideal of open does promote a platform on which users can source software are deeply rooted in the participate, contribute, adopt, and use the Hacker ethic. Back in 1961, MIT’s AI Lab software at the same time corporations can and Bell Labs were among the first software also buy into this concept. (Almarzoug, et sharing community in which programmers al., 2005) explored various projects, worked together to fulfill the project goals, and were bonded Perhaps the strongest attraction of open- together by their intense creative and source software is its absence of license intellectual interests (Johnson, 2001). They fees. In the midst of the severe economic promoted the development and use of free downturn, funding for information software. The case in point was the technology is drying up. Open-source development and distribution of the UNIX software offers an attractive alternative. operating system, which recently celebrated (Roberts, 2009) As more open-source its 40 th year anniversary. Another important software are developed by communities of catalyst for the growth of open source users around the world and are adopted and movement is the development of ARPAnet. used by increasing number of businesses, This network provided an environment universities, as well as home users, its where people at different universities, importance is hard to ignore. The impact of research labs, and governmental agencies open-source software as described by could exchange idea and collaborate. The Freidman (2005) is one of the 10 results were the rise of networked groups contributing factors led to the Globalization and eventually the growth of distributed 3.0, in which the world has been shrunk software development. (Raymond, 1999) It from a small to a tiny size at an was from these networked groups that later unprecedented pace. gave rise to the synthesis of “community”, a very important component in the structure 3. AN EMERGENCE OF OPEN SOURCE and development of the open source ERP SOLUTIONS movement. In recent years, open source software has With the reduced costs and increased been increasingly recognized and eagerly performance of PCs together with the embraced by businesses and organizations widespread availability of the Web, the open who are interested in an alternative to source movement began to take shape.
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