An Analytical Survey of Free/Open Source ERP Systems and their Potential Marketplace in Brazil

An Analytical Survey of Free/Open Source ERP Systems and their Potential Marketplace in Brazil

Marcelo Monsores (Federal University of the Rio de Janeiro State (UNIRIO), Brazil) and Asterio Tanaka (Federal University of the Rio de Janeiro State (UNIRIO), Brazil)
DOI: 10.4018/978-1-61350-486-4.ch002
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Abstract

With the growing complexity and dynamics of modern organizations, ERP systems contribute to the management of business processes and allow strategic decisions to be taken more quickly and more safely, through a systemic, integrated view of the corporation. Free/Open Source software has consolidated as an increasingly viable alternative for this kind of systems, through the flexibility provided by its business and development model and the consequent possibility of total cost reduction. The objective of this chapter is to present a comparative survey of the main free/open source ERP systems currently available in the marketplace, their features focused in Brazilian companies and a general overview on its potential market.
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Background

There are different criteria in the market that can be used to rank organizations by its size, according to the context in which the analysis is done. Mercosul, NAFTA and The European Union, for example, adopt their own official classifications, different from each other. Some commonly used criteria are: (Longenecker et al., 1997):

  • Number of employees

  • Sales amount

  • Financial status

  • Assets value

  • Workforce insurance

  • Warehouse volumes

The increasingly strained competition and the consequent increase in market requirements have brought to small and medium enterprises needs of organization and control in levels previously required only by large companies. On the other side, the trend of higher costs withdraws small and medium enterprises from the major P-ERP systems. Since they have less favorable credit terms than large companies and therefore are more sensitive to economic cycles, this inhibits their efforts with technological improvements (la Rovere, 2001).

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