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Abstract - Todays business environment has become solution. (Giovani JC, d.S., Snider, B. &Balakrishnan, J.
extremely competitive, the ever changing economic tide, other 2013).
various factors such as globalization, customers' high
expectations may lead to uncertainty and unpredictability for Some of the benefit findings in ERP implementations
business organizations. Business are forced to be more are, (Velcu, O. 2007)"improved service time in
competitive, flexible, and scalable to drive growth and accounting tasks" as an internal efficiency benefit, "faster
opportunity through the tight competition among other response to business change" as customer benefits, and
businesses. Tools enablingorganisations to become more financial benefits in terms of other improved efficiencies.
competitive is enterprise resource planning (ERP). The benefit
Companies that have a business-led motivation perceive
resulted from ERP implementation will narrow the choice for
companies, from whether they need an ERP into how much "economies of scale" as an internal efficiency benefit, and
will they spent on that particular solution, especialy for Small financial benefits in terms of "lower headcount costs" and
and Medium Enterprise. ERP systems are basically devided "lower selling, general and administrative costs."(Yang,
into two types, The Propetiary ERP and the Open Source ERP. C. & Su, Y. 2009) Operational, tactical, and strategic
The focus of this research is to investigate the flexibility in benefits of ERP for the firm performance of Supply Chain
ADempiere, the Open Source ERP whith hypothesis of Management in the internal and external business
wetherADempiere has the flexibility to accomodate the SME processes, customer service, and cost
needs sample and wetherADempiere can be modified without management,(Spathis, C. &Ananiadis, J. 2005)increased
having a programing skill. flexibility in information provision, through effective
KeywordsEnterprise Resource Planning, ERP, Flexible, monitoring and exploitation of assets and revenue-
Flexibility, Small and medium enterprise, business expenditure flow, and improved decision making.
applications, information technology The benefit resulted from ERP implementation will
narrow the choice for companies, from whether they need
an ERP into how much will they spent on that particular
INTRODUCTION solution,especialy for Small and Medium Enterprise. ERP
systems are basically devided into two types, The
Todaysbusiness environment has become extremely Propretiary ERP and the Open Source ERP. The
competitive, the ever changing economic tide, other Proprietary ERP systems, for example SAP and Oracle
various factors such as globalization, customers' high have long led the industry ERP and controls about 39% of
expectations may lead to uncertainty and unpredictability the ERP software market.
for business organizations. Business are forced to be more
competitive, flexible, and scalable to drive growth and
opportunity through the tight competition among other
businesses. They need to act quickly and adapt to
unexpected changes in order to achieve and maintain
sustainable competitive advantages. One of the best way
to do so is lying on technology adoption to strengthen the
business process to be more efficient and makes decision
making a lot easier, even for small and medium size
business. The capacity to adapt new technologies is a
strategic advantage that acts as an enabler for companies.
There are a wide variety of tools and systems that have
been developed to enable organisations to become more
competitive, one of these tools is enterprise resource
planning (ERP). When successfully implemented ERP
will bring about competitive advantages (Maguire, S.,
Ojiako, U. & Said, A. 2010). (Zeng, Y., Chiang, R.H.L. &
Yen, D.C. 2003) andimproving company's business Source: Panorama Consulting (2016)
performance(Abdelmoniem, E.M. 2016).ERP becoming
The Propretiary ERP are known to have a pricing
one of the most important IT initiatif and it is in its nature
structure of a license, annual maintenance and
to bring in benefit to companies who implemented it
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implementation fee. In conterary, almost all of Open acomodateCar Rental SMEs needs. The following
Source ERP comes with free license fee, and they are hypotheses were identified:
providing source code and license for user to use and
modify it. Some of the leading Free Open Source ERP are 1. ADempiere has the flexibility to accomodate the SME
ADempiere, Adaxa, ERP5 and ERPNext. And there are needs
also an Open Sorce ERP with combined GPL and 2. ADempiere can be modified without having a
commercial license, Compiere, Scipio ERP and Odoo programing skill
(Kowanda, Firdaus and Pasaribu, 2015).
Open Source is a software or program where the
source code is available for other developers to use, Methodology
modified and given enhancements. And the product
associated revenue streams is shifted toward the auxiliary This section describes the methodology used to
products such as support, training, documentation, and evaluate ADempiere as the free Open Source ERP system
others (Kowanda et.al).In this researh we will be focusing chosen. This study is a mix of theoretical and practical
on ADempiere free open source working on a specific hands-on research. The theoretical research focuses on
case on car rental SME/Start-ups doing a comprehensive review of relevant academic work
By definition, TheSmall and Medium Enterprise term in order to build a model that will be used as a basis for
according toEU definition is: companies that employ less evaluation criteria usedin the FreeOpen Source ERP
than 250 persons and which have an annual turnover not systems in the specific case in a Car rental SME.
exceeding 50 million euro and / or number of annual The model for evaluating Open Source ERP system is
balance sheet not exceeding 43 million. Indonesias built based on the dimension and caractheristicthat have
defition of SME, according to UU No. 20/2008 on SMEs been identified through literature and previous study. The
are; productive business unit with assets up to a maximum model serves as the guiding principle. The evaluation is
turnover of Rp. 10 billion and Rp 50 billion per year. The done by way of qualitative and self - performed after the
next question is the free open source is flexible enough to download and install using any available guides.
accomodate SME needs?
Today's rapidly changing business environment means
survival of the fittest. Only the most fit are the ones that LITERATURE STUDY
are most flexible (Newcomer, B. 2004). Flexibility is the ERP Systems
keyword that people, companies are looking for besides
cost savings and efficiency. Competition had become a
major factor forcing them to adjust and finding new way By Definition, Enterprise Resource Planning (ERP) is
of doing things cheaper and faster to stay in the business. an enterprise level system that integrates all the business
processes of an organization into a single database. ERP
Information System (IS) flexibility has been regarded System enables all the departments of an organization to
as an important indicator of information technology share and manipulate the data. ERP system has a
success, encompassing all stages of IS implementation centralized structure consisting of one single central
and usage(Chen, R., Sun, C., Helms, M.M. &Jih, W, database which can be accessed by all the departments
2009).IT flexibility have direct impacts oncompetitive (Batada, I. & Rahman, A. 2011), Systems integrating
advantage (Tian, J., Wang, K., Chen, Y. & Johansson, B. product that manages most of the operations in a
2010),and flexibility in information systems has been company(Alshawi, 2004), essential tool enabling
recognized as an important subset of flexibility in organisations to effectively process their business and
business (Fitzgerald, G. & Siddiqui, F.A. 2002). Flexible manage their resources as a result of the unification of
software might assist organizations in adapting systems to business units (Alhirz, H., &Sajeev, A. S. M. (2015), A
meet business requirement (Gallagher, K.P. & Worrell, packaged business software system that lets an
J.L. 2008). organisation automate and integrate the majority of its
A flexible ERP system brings processes adaptation business processes, share common data and practices
that support diversification strategy and ensure rapid across the enterprise and produce and access information
response to changing business needs. Flexible ERP aims in a real-time environment. The ultimate goal of an ERP
at delivering an open source ERP that's affordable and system is that information must only be entered once
scalable enough to meet the unique needs of businesses. (Marnewick, C. &Labuhagne, L. 2005).
Companies need a truly adaptable and sustainable IT In terms ofERP business model there is a selection to
mechanism, since they compete with a combination of choose from, both open source and proprietary (Klaiss, D.
both efficient scale and business agility, and since they 2008). Proprietary ERP, lead by SAP, Oracle, and
need to consistently capture market opportunities and Microsoft,usualy had an expensive licenses. A rule of
execute business strategy with effectiveness(Dataquest thumb puts them at between one-sixth and one-third of
2013). the implementation project costs. And usually need
expensive hardware to run(Johansson, B. &Sudzina, F.
Research Objective
2008). On the other hand open source software is
The aim of this study was to evaluate the flexibility proving to be a credible alternative to proprietary
ofaADempiereFree Open Source ERP system to
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developed internally. Manufacturing Management: Product Life Cycle Management, Pool Resource Management,
Manufacturing_Workflows, Forecast Management, Planning Management,CRP, MRP, DRP, Discrete
Manufacturing,Maintenance Management, Quality Management, Costing Management
Material Management: Inventory Control, Warehouse Management, Replenishment, Stock Movement, Stock
b) Quality: Valyi (2008) argues that the Open Source Count, Price List, Bill of Materials
Finance: General Ledger , Accounts Receivable, Accounts Payable, Financial Reporting, Cash Management
challenges. Project Management, Manufacturing, Customer Relationship Management (CRM), POS, ecommerce
Maintenance Management
System Admin, Application Dictionary, Partner Relations, Quote To Invoice, Requisition to Invoice, Returns,
Open Items, Material Management, Project Management, Performance Analysis, Assets, Manufacturing
c) Ability to adapt to the business environment: for the Features by ADempiere Menu (User Interface)
OLAP & Reporting
Management*, Human resource and Payroll*
Business Intelligence, Financial Reporting, Extending Reports, Exporting Reports, JasperReports
proprietary ERP vendors, clients are directed to Other Features Platform independent, Extendable, Pluggable, Touchable, Callable and Self-Installable
System Admin, Application Dictionary, Partner Relations, Quote To Invoice, Requisition to Invoice, Returns,
Open Items, Material Management, Project Management, Performance Analysis, Assets, Manufacturing
adapting business processes with the opinion that the Features by ADempiere Menu (User Interface) Management*, Human resource and Payroll*
The roles of an IT organization can be conceptualizedas field to register business partner detail, delivery detail and
(a) the operation of existing systems to meet so on.
businessrequirements, (b) the development of systems ADempiere Sales Order Window
(either newor redesign/maintenance of existing) and
deployment ofnew technologies, and (c) the management
of financialand human resources.
1. Idetifies table used in Asset Module and This Prefabricated framework that can be quickly and
Sales Order easily customized for specific solutions. It increases
flexibility by providing the ability to adapt rapidly to
2. Add new coloum at Sales Order table change while reducing costs and time to market.
3. Add new field/dropdown menu ar Sales (Hewlett-Packard, 1997).
Order Window CONCLUSIONS, IMPLICATIONS, AND
For starter, we need to log in as system administrator RECOMMENDATIONS
so we can access the tools. Having succesfuly modified (configure) ADempiere
For Table Identification, we just need to acses menu as an ERP, without using any software development skill
on favorite menu and we can zoom in details over details is quite interesting enough to see the horizon beyond that.
withouth having knowledge of the database structure. We The possibilities to develop further when goes in to the
can identify the primary key by looking at a check sign depth of the source code could be limitless.
on Table and Coloum menu to determind the Table ID Open Source is a software or program where the
that we are going to use to combine in the Sales Order source code is available for other developers to use,
screen. modified and given enhancements. And the product
To add Asset table into Sales Order line window, we associated revenue streams is shifted toward the auxiliary
can repeat the step as we identify Asset table, which is go products such as support, training, documentation, and
to menu, zoom on window, chose the Tab, Chose the others (Kowanda et.al). This result is interestingly prove
window we want to integrate the table with, in this case that open source software, in this case ADempiere
Sales Order Line, we zoom in table, and we choose couldbe a crediblealternative to proprietary ERPsoftware.
Coloum in the following menu. Align with research by Benlian, A. (2011), superior in
meeting ease of customization (i.e., extensibility and
The process of integration is as simple as pressing add adaptability).ADempiere software development
new record on the menu and we just type in the DB framework also confirm Valyi (2008), which argues the
Coloum name that we acquired previously, A_Asset_ID, Open Source ERP is distinguished by superior quality to
the name, description and the standard settings are already technical challenges. The result also answer Al-Mashari,
being added into Sales Order Line Window. To confirm M. (2003), quoting Stedman, (1999) one of the major
the addition we need to press sycronizecoloum to add the challenges in ERP adoption is flexibility assurance,
created coloum on the window. The last step is create having source code available and embedded software
field button on previous Sales Order window that we open development framework there is a high possibilities to
previously, we can even modifies the position of the have a flexibility assurance.
coloum by modifiying the Field sequence.
Model in evaluating ERP flexibility are using3
Modified ADempiere Sales Order LineWindow flexible parameter principle byNewcomer, B. (2004):
First, the parameterization is flexible, meaning that it is
user-definable rather than fixed. Second, new parameters
can be easily defined and linked to applications or
business workflow without the need to perform program
modifications. Third, parameters can be set at different
organizational levels, down to the lowest level possible.
Evaluating ADempiere in this research using ERP
flexibility evaluation model by Newcomer, B. (2004),
ADempiere have flexible parameterization, new
parameters can be easily defined and linked to
applications or business workflow without the need to
With this result the answer for this research hypothesis perform program modifications. As for the third criteria
are 1. ADempiere has the flexibility to accomodate the as it is not part of the research, is already embedded in the
SME needs and 2. ADempiere can be modified without standard matrix authorization menu of ADempiere.
having a programing skill. Using the given software
development framework, the flexibility of the ADempiere
is very good. This result is aligned with research by Gao, Implications and Suggestions
Y. & Feng, X.Z. (2012), ADempiere development frame Open Source ERP in this research represent by
work, providing the developer a full play in the software ADempiere have a good flexibility in terms of
development. Using a framework mode in software parameterizations and modification of window in the
development, "flexibility" of software development case.
embedded in the process implementing the method. The
application of this software development framework The possibilities to develop further more than using
offers the possibility of fast, flexible, and "tailored" embedded software development
business information systems. It is the effective and framework/configuration and touching the source code
efficient creation of application systems within a full- could be limitless.
fledged strategy (Jain, R. &Chandrasekaran, A. 2009).
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This study concludes that ADempire could flexibly Jen-Her Wu & Yu-Min, W. 2006, "Measuring ERP success: the ultimate
modified to required business needs using embedded users' view", International Journal of Operations & Production
Management, vol. 26, no. 8, pp. 882-903.
tools. Based on the case ADempiere would be able to suit
Johansson, B. &Sudzina, F. 2008, "ERP systems and open source: an
flexibly for SMEs needs. initial review and some implications for SMEs", Journal of
For further research, there is a lot of horizon to look Enterprise Information Management, vol. 21, no. 6, pp. 649-658.
into, it would still make sense to repeat this similar study Klaiss, D. 2008, "Open source ERP", Industrial Distribution, vol. 97, no.
5, pp. 20.
for different cases and probably in different company
scale/business. Another suggestion is to make a Kowanda, D, Firdaus, M &Pasaribu, R. 2015, Opportunity of Free
Open Source ERP System as a Competitive Advantage for Small
comparative study between the leading Open Source ERP and Medium Enterprise, Proceedingof 1st Unnes International
and Propretiary ERP. Conference on Research Innovation & Commercialization for the
Better Life 2015
Kumar, R.L. &Stylianou, A.C. 2014, "A process model for analyzing
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