Luis’s Corner of (non) Wisdom

I have been searching the last few weeks for a “simple” ERP (in quotes because no ERP is simple) that I could use to start a new business line in Intelectix aimed at small businesses.

Although at first I was considering some inexpensive commercial ERPs, I took the decision to only look into open source ERPs, the reason being that if the total cost included licenses and consulting, if I could lower it (to only consulting) more small businesses would be able to afford it.

So I started looking into open source options. Although there are several, I found two that I felt were relatively mature with a big enough installed base. I want something that is stable and has been proven somewhere else. If I am going to sell it, it’s Intelectix name that’s in play. So the choice needs to be done carefully.

My main two options are Openbravo and OpenERP. At first I liked Openbravo, but it doesn’t seem as customizable. OpenERP seems more complex, but at the same time its modularity allows using only parts of it (say, the CRM module), and apparently there are many more modules for it on the web.

Today I called a friend of mine who recently implemented SAP in his company (a big company). I told him that I would like to have a beer with him so he could share some of the experiences with implementing an ERP. When I told him what I was planning to do, he told me he had a couple of companies that could benefit for a low-cost ERP solution.

I still have to do some more studying to see if OpenERP is really it, but so far it seems like so. Has anyone had any experiences with it? Could anyone suggest any other open source ERP that I might be overlooking?

As a custom software development company, we have mainly focused in medium and medium-large enterprises, because small businesses, in Mexico at least, don’t have the budget to have a software solution developed specifically for them.

In the past I have had requests by some friends who own small businesses to develop an application that would manage most parts of their business (sales, accounting, finances, production and inventory, etc.) and wanting to pay under $5,000 USD for it. I would tell them that the best solution for them would be to find some shrink-wrapped solution.

Recently one of my big client asked for something similar for a small subsidiary of them. Basically, what they are asking for is an ERP. This client is in the process of implementing SAP, but since this is a separate, independent business, it won’t get SAP.

So, instead of developing something that covered all of that, I started looking for an ERP that I could implement for them. For some time already, I have had the idea of finding a nice, little, inexpensive ERP that could be suitable for small businesses, so that Intelectix could sell and implement it in companies in Mexico. This opportunity only made me work on it.

In the last week or so I have spent a lot of time searching the web for a suitable ERP. What I would like most are these features:

• Aimed at small business. I do not need something very complex, but I would like all the basic functionality (CRM, sales, invoicing, accounting, inventory, production, warehouses, asset management, etc).
• Desktop application for Windows (instead of web based), because it’s easier to use and faster response
• Relatively inexpensive. A small business cannot afford to pay $20K USD just for five user licenses, plus implementation and training costs
• Extensible through plugins, and preferably .NET-based, so we can use our development expertise to enhance and tailor it to our specific clients’ needs

One of my first findings was Interprise Suite, but after a little digging in the web, I found some comments by customers of them saying that the product promised a lot but it was not yet ready for prime time, and also that the company behind lacked reliability.

I also found along those lines Darwin Productions’s Evolution ERP, which also seemed nice but once I installed the demo, was a bit slow and the screens very convulted. I still need to give it a better try, but it doesn’t seem straightforward to use.

I haven’t reviewed open source alternatives yet, but a quick look at OpenERP.com seems promising.

One thing that is very important is that the software is rock solid. I will be selling it to my clients and if it does not work well, it is my company that will get all the complaints.

So, can anyone suggest a nice ERP for small businesses?