Software Business Model
Magic Wand, Anyone?
- 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
- 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.
- 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.
- 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.