OpenERP Business Model

8/8/2019 OpenERP Business Model

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Business Model, Part 1/4

A new generation of...

...Open Source business model.


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In only 4 years, we developed the most

popular enterprise managementsoftware ever made.(*)

This document describes the 2009

Open ERP business model. It explainshow we achieved such a success.

It also reflects my vision on how to developOpen Source products efficiently.

Fabien Pinckaers, CEO Tiny

(*) 700 installations per day.


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We think Open ERP can sustain

his incredible growth only if wesuceed to benefit from...


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The Community: to generate activities, providehuge feedbacks, and specific contributions.

The Partners: to create the market, offer value

added services and professional marketing. The Editor: to follow a product vision, offer

guarantees, support partners and communities

to help them grow. The Customers: to finance this eco-system,

provide feedbacks and experiences.


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These 4 actors are very important. If

one is missing or unsatisfied, theproduct can't achieve the growth

and quality we expect !


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As an editor, our goal is to provide the

tools to continuously satisfy, help andsustain: the community, the partners

and the customers.


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We set up incentives and tools to sustain

this business model. They rely on:

Marketing: websites, screencasts, success stories,

Documentation: users' doc, community guide,

Contracts: partner contracts, training contracts,

Platforms: forum, launchpad, irc,

Services: quality certifications, support, SaaS, etc.


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This document does not describe these tools,but how they will sustain the business model.

The next 3 parts describe the business modeland how it will impact:

The Community

The Partners

The Customers


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A business model that...

... fits partners needs.



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Our Goal is...


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To develop a business model that

leads you to the top while supporting

the growth and establishing aprofessional partner-editor

relationship to sustain this growth.


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The way we want to do business

1. Get Leads

(using Units)

2. Resell Editions

(get Units)3. Use Support &

Trainings

(using units)

4. Increase Partner Level(starter > platinium)


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Get Leads...

In 2009, we're goingto improve:

Lead Generation

ProgramMarketing

And invest in:

Direct MarketingWeb Campaigns

=> To focus onqualification of leads.


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... Sell More

Our goal is to provide more customers to efficient

partners. The more you sell, the more we

provide you leads and pre-sales support.

Marketing Pre-Sales Sales

Editor

Partner

$


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Resell Editions...

Editions = 2nd level of

maintenance

(1st level = partner support)

Guarantees on: Migrations Bugfixes

Security issues Lifecycle


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... Limit risks & cut costs

By reselling editions to the customer, you get:

Guarantees from the editor (migration, unlimited bugfixes)

15% commissions 10% as units for services

Increased partner level:

starter -> silver -> gold -> platinum

You can also resell in another way than the editions (your own packageincluding your 1st level of maintenance)


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Avoid Hidden Costs

Maintenance contracts prevent you from all hidden

costs: Take bugfixes and migrations at your charge,

buy units for the support, leads, etc. (instead ofreceiving them)

Who offers what?

Sales

Support to customer

Support to partner

MaintenanceEditor

Partner


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Modules Quality Certification

What's the module quality certification ?

180 functional & technical tests of your module

Benefits : Feedback document: (notes, suggested improvements, notes for

migrations, guidelines, etc.)

Quality certificate for your customer

Press announcement of your contribution

25% of commission (money + services)

Available in OnDemand offers and guaranteed maintenance in nexteditions


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QuotationsInclude Editions & Certifications in your quotations

Analysis

Functional Coverage Modules to re-use

Modules to develop Integration Plan

Developments

Certification of custom modules

Trainings Partner support + maintenance custom modules

Editor 2nd level maintenance for official modules

...because it has to be paid by customers, not by partners.


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Get Support and Trainings...

Use your units (from editions and

certifications) to get, for free:

Support: on your customer projects

1 hour = 100 Units

Trainings: for your teams orcustomers

1 training = 450 Units


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... to reach perfection

Develop yourself and support new employees

Satisfy your customers

Improve your quality of service


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Partner Relationship

Your activities reflect your quality:

Editions Sold => Customers Success Stories

Quality Modules => Good contributions

Trainings => Better Partner Knowledge

The partner level reflect the partner activity: Starter -> Silver -> Gold -> Platinium

Levels are re-evaluated every 3 months !


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Our Goal...The more you do on Open ERP,

the more we work to help you to grow

Starter

Sell More (Leads)

Improve Code (Certif.)

Communicate on Quality

Limit Risks (Maintenance)

Provide SupportBetter Visibility

Platinum

S


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Summary Resell editions and certifications to customers

Get services units

We provide the services you need (support,...)

Partners do not buy direct services,everything is paid by the customer !

Service Paid By

Leads From PointsOpen ERP Edition Sold to Customer

Custom Certifications Sold to Customer

Bugfixes Included in Editions

Migrations Included in Editions

Support From Points

Projects


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Conclusion

This is a scalable model, where:

Provided support, visibility and services grow

according to the partners' activities.

The editor has incentives to help partners in their

sales and customers projects, in the long term.

Partners benefit from customer's specific

requests. Editor benefits and spread the costs of

generic improvements (maintenance).


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Any question aboutpartnerships ?

Contact our partner manager:

Mail: [email protected]

Phone: (+32).81.81.37.00
mailto:[email protected]:[email protected]


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A business model that......fits customers needs.


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Our goal is...


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Provide an environment, an offer of

products and services that tend tosatisfy our customers...


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Provide an environment, an offer of

products and services that tend to

satisfy our customers...

... and those of our partners.


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What are

customers needs ?


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A Strong Product...

Easy to use, with productivity

Covers most needsWith a strong maturity

At low costs


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A Good Service...

A quality supplier

Avoids vendor lock-in

Guarantees for the future

Value added services partners


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Why our business model

brings perfect solutions tothese needs ?


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A Strong Product...Easy to use, with productivity

As an Open Source editor, we focus on simplicity and

accessibility of the software. Simply because users installs

Open ERP directly, without purchasing anything. They onlycall a partner if they like Open ERP.

Having hundreds of feedbacks per day in the community

forum is also very important to reach perfection !


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A Strong Product...Covers most needs.

The Open ERP modular system allows us to never refuse

contributions due to editor policies. Every new feature is

packaged and published as an official or contributed module.

With the others Open Source ERP's, the editor is in

permanent conflict with the community and the partners: The editor has to be very restrictive on the features he

integrates to keep a consistent product and,

The community or partners does not understand why theirspecific contributions are not integrated.

=> Open ERP has 350 modules and 10 new modules per month.


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A Strong Product...A strong maturity

Open ERP have 700 installations/day. The On Demand

offer runs hundreds of customers. It means we are on a

mass market. Without a strong maturity we would not have

launched an On Demand offer:

We are the only ERP having an official On Demand offer !

It's the best proof of maturity we can provide.

On Demand requires: automated migrations, easy

use because customers start without help, full

automatisation, customizations, ...


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A Strong Product...Low costs

The Open Source license guarantees you are free to : Use without paying Not have yearly recurring costs Modify and copy the software

Result: 25% cheaper for the integration project

70% cheaper for recurring costs

G S


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A Good ServiceQuality Value Added Suppliers

Our business model define incentives to continuously

improve the quality of our partners: They resell editions => The editor's guarantee The more they have customers, the more we providethem trainings and support

We have tools to control and help them improving their

services: Modules Quality Certification Starter -> Gold -> Platinum

A G d S i


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A Good ServiceAvoids Vendor Lock-In

With our Open Source license:

The one owning the

code is you ! not

the supplier !

A G d S i


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A Good ServiceGuarantees for the future

Guarantees are provided by the editor to satisfy

customers needs in the long term, through the

editions: Unlimited bug fixes, Fixed Price Migrations, Maintenance,

5 Years lifecycle.


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Want to be a

customer?

H t d?


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How to proceed?1) Discover Open ERP

Install It

Read documentations, check openerp.tv

2) Get in Touch with a Partner:

Contact on OpenERP.com

Partners will recontact you

Or contact a partner Directly

3) Ask for a prototype/analysis

4) Launch the Project

5) Maintenance contract

S l t th Ri ht P t /S l ti


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Select the Right Partner/Solution

Size / Need Out-Of-The-Box Few Adaptations Specific Solution

500 users / Gold or Platinum Platinum

OdOO, Buy Online OdOO + training/partner

OdOO + Partner

Choose the right approach:Integration Project: services, custom adaptations,

specific development, data recovery, methodology On Demand (OdOO): low costs, ready to use, no

customization, few support hours, do it yourself

Choose the right partner: silver or platinum ?

Wh t t t ?


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Why trust our partners?

They are PROFESSIONAL !

They have a contract and a strong relation

with the editor.

The more they make quality, the more they

become gold or platinum.

Our partner contracts include trainings,support, frequent meetings.

The editor provides guarantees.

Wh Editi ?


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Why Editions ?

These editions provide youthe guarantees you need to

run Open ERP in a

professional environment.

Guarantees on:

Migrations

Bugfixes

Security issuesLifecycle

Modules certifications


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Modules certifications

You need a new specific module? With themodules certifications, we can guarantee:

A good integration with the future versions of Open

ERP.A high level of quality in the code developed.

An offer for maintenance

Your module will be reused by others, so it will benefit

from others contributions.

Conclusion


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Conclusion

Our business model does not define any

constraints, but only incentives ! As everything

is free, we know it's the customer that controls

the game...

Our success is financed by customers. That's

why we focus on improving our services andthose of our partners.


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A business model designed...

... for the community.



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It's very important to have a strong

and active community. The more weoffer to the community, the more the

community will make for the

product.


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What does the

communityneed ?

The Community needs


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The Community needs ...

Everything for free (no need for services) Easy access to the software

An Out-of-The-Box software

Never be forced to purchase anything

Tools to sustain collaboration and

communication

And, ... like every one on this planet..., being

listened.

If everyone works this way the


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If everyone works this way, the

community will contribute

efficiently: Help in translations,

Contribute new features, Provide feedback and bug reports, Communicate on the product,

Help each others.


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And this will lead to a very fast

growing curve of the product:

Increased maturity(lots of testers)

More features (tons of contributions)Smarter product (lots of discussions and critics) Huge spread of the product(theycommunicate)


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We want to achieve the best

enterprise management softwarein the world. To achieve this

perfection, we push everything to

the community.


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The Problem:

We need a way to provide incentives to

customers and partners so they tend to

contribute everything they make.

By default, most enterprises do not

contribute to open source projects. Ifincentives are strong enough, they will.


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An Out-Of-The-Box Software


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Our professional editions provide quality services to

customers: unlimited bugfixes, migrations,etc. These

contracts guarantee that the improvements are applied on

the public sources on Launchpad.

All improvements in the software requested by a customer,

are pushed back to the community. So, community canbenefit from a very mature and fast improving software.

To the contrary, all improvements proposed by the

community are reviewed by our quality team so that otherscan benefit from it.



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The GPL license is the best protection the community canhave. It guarantee: You can always get the sources of the software, You do not pay to get the sources,

You are free to distribute, use and modify.

As the CEO of Tiny, Open Source is all my life and my

passion. Trust me, we will never do something that do not

fit the Open Source mind.

Tools to collaborate and communicate


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Tools to collaborate and communicate

As to help the community to grow efficiently, we setup toolsto organize the collaboration: launchpad (code, translations,

bug tracker, answers), forum, irc, planet, etc.

The Open ERP website is dedicated to customers and the

Open Object website is dedicated to the community. Both

websites are based on the same software, but it allows us

to offer different tools and communications.

As an example, the Open ERP planet is managed bymarketing guys for a professional communication. The

Open Object planet is fully open, every contributor can

post.

Being listened


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Being listened

The community provides a very good feedback on the

software and on the communication/organization.

This feedback is very important to achieve a perfect tool,we read it every day. Just have a look at how often

managers at Tiny or partners are discussing on the forum

and/or IRC.


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Conclusion - CommunityOnce a month, we organize IRC

community meetings with the Tinymanagement. Join us at one of these

meeting to discuss on how we can

collaborate more efficiently...

And It Works !


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I started alone 4 years ago, with 1000 EUR.

Today, we are self-financed with:

85 employees,

A partner network in 35 countries,

The most advanced ERP in the world.

With our Open Source vision, we never had todo a fund raising and we continue our

organic growth of 100% per year !


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Need moreinformation ?

Everything is available on

http://openerp.com
http://openerp.com/http://openerp.com/

OpenERP Business Model

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