Latest revision as of 17:04, 28 May 2009

This article is started by Red1. You may discuss about it in Talk:Software Business Model. This page is related to ADempiere Rapid Development.

Magic Wand, Anyone?

Figure 1 - A new contributor can design another add-on layer for the whole ERP to benefit from as a win-win self-positioning

• Many have gone looking for the holy grail of software development tools and often came back empty handed.
• For us here (do not take our word for it) ADempiere is the 'Pretty Good' framework to use for any serious financials related enterprise development.
• It requires serious hands-on learning curve, say 3 months by a passionate team.
• Here we have a sample case of a prospective application 'EIDA' or Economic Intelligence Data Analysis already deployed on top of a national database of agricultural produce.
  • It likes to go backwards into some suitable ERP functionality.
  • It wants to do order processing and document flow.
  • It wants to keep track of product and database expansion
  • It wants to integrate with many things along the highway.
  • It wants it fast, cheap and good.
• The first thing a new application has to do is to trade-off with the ADempiere project.
  • It has to offer something in return
  • It has to exploit the community open source paradigm
  • It has to be useful to the horizontal ERP and other verticals
  • It has to be componentised and portable
  • It has to earn potential income to the contributor due to its branded domain expertise
  • It has to start releasing now.
  • It has already started here.
• Consider this its first specification page.

Integrated Business Formula

Figure 2 - A community engineered product can turnaround faster in the market

• The benefits to the contributor is:
  • Reduced development team. It can contract the best developers already present in the community.
  • Reduced development time. It can rest on a proven and stable application framework that already has inherent working features.
  • Reduced reinvention of the wheel. It can make use of any stated ERP functions.
• The business direction for the contributor is:
  • To facilitate global presence of its vertical. It may offer training and consultation as to the subject expertise behind the application. In this case it is economic intelligence.
  • To position its name and services within the community resources. Its name can appear on the site and application credits page.
  • To work with community representatives worldwide. It need not overstretch but make use of present network as its reseller front.

Dual Mode Strategy

• Going community open source allows the contributing company to enjoy tremendous marketing and branding.
• Less reliance also on bloated marketing budget. Non-core activity elimination can happen.
• Open information spells out its services model clearer to the market. Less demand for presales effort.
• Small-time users will take DIY Mode and not pay for high-worth services fees.
• High level users get the ground swell and engage disruptively upstream with Flagship Mode providers.
• Large vendors threatened and react either matching the FOSS move and thus dilutes itself.
  • Or differentiates further thus pushing up the water level.
• Either way the FOSS player travels light and moves above the water level and awaits market understanding.

Contributor Makeup

Figure 3 - EIDA is a sample idea that can be contributed. If not, someone else will

• The contributing company should not have over-reliance on own local IT and developer resource.
  • Java or ERP resource is expensive and even more expensive to keep. Just have a skeletal 3 man support team per base is sufficient.
  • Rely more on short term and well paid expatriate team already available in the community. Hire our best brains and hands to ensure a quick kickoff and exit strategy.
  • Keep lean and beam. Not mean.
• Go up your own value chain. Be better in what you are good at and nothing else.
  • High worth deals only seek for high worth consultancy and services.
  • Seek a niche and not be everything to everyone. You will soon dry up and no one pays a dime more. There are many more cups better than yours.
• Focus to enjoy more.
  • You won't like a big headache from big office and staff.
  • No one likes you having big headaches all the time.
  • When you are having fun, you won't mind failing. It is already paid for.

Business Horizon

• ERP is getting hot. Most SME to large enterprises have software that need changing between 5 to 10 years. Most software half-life ends in 8 years.
• Open Source is even hotter. If yours is not free, someone else is. In fact, almost everyone else is. Even Microsoft gets it.
• Been number one is hottest. ADempiere is not only number one, but will explode further every season due to unabated growth.
• Pressure of ubiquitous and disruptive integration tolls on limited expert resource. No one can remain closed and even compete.
• Many ERP projects fail. More pressure for quick and easy wins.
• ERPs need to be everything to everyone. Now no single company can do that. But a community can. A borderless timeless one.

See Also

• ADempiere Rapid Development