OpenERP Vision Fabien Pinckaers

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Nom du fichier – à compléter Management Presentation OpenERP's Vision Fabien Pinckaers, Founder & CEO OpenERP's Vision Fabien Pinckaers, Founder & CEO 1

Transcript of OpenERP Vision Fabien Pinckaers

Nom du fichier – à compléter Management Presentation

OpenERP's VisionFabien Pinckaers, Founder & CEO

OpenERP's VisionFabien Pinckaers, Founder & CEO

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In only 6 years, we developed the most installed(*) and advanced(**) management

software for SMEs ever made.

Together, we did...

(*) 1000 installations per day(**) 1000+ modules

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A strong product & references

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1000+ Open Source Apps

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A strong brand

Twice the visibility of the #2 open source, 7x less fund raising :)

500 leads per day !

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How did we succeed...How did we succeed...

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Time

Users

2005 2010 2011

Phase 1 :• Product Dev.• Direct Implem.

Phase 2 :Switch in the business model Phase 3 :

5.000.000 Users

The OpenERP History

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Our vision since 2005...

We believe in a fully open source model...We believe in a fully open source model...

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Ideas that drove OpenERP's business:

Open Source allows the development of better products

What matters more is the product, not the brand or marketing

You can be 100% open source and develop a sustainable business

Prove and fine tune the model before scaling (fund raising)

Proprietary ERP failed on SMEs, it's a blue ocean market

Ideas that drove OpenERP's business:

Open Source allows the development of better products

What matters more is the product, not the brand or marketing

You can be 100% open source and develop a sustainable business

Prove and fine tune the model before scaling (fund raising)

Proprietary ERP failed on SMEs, it's a blue ocean market

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2010: Switch in the model

In 2010, our model proved it worked; we stoppedimplementation services to focus on Publisher activities.

We reorganized OpenERP around only 3 processes !

In 2010, our model proved it worked; we stoppedimplementation services to focus on Publisher activities.

We reorganized OpenERP around only 3 processes !

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Process 1: Partner recruitment

The demand on OpenERP is exploding. Our bottleneck in the growth of OpenERP is the availability of offers.

The demand on OpenERP is exploding. Our bottleneck in the growth of OpenERP is the availability of offers.

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Process 2: Partner development

In 2010, we re-organized all our activities around the partner development and OPW offers for customers.

In 2010, we re-organized all our activities around the partner development and OPW offers for customers.

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Process 3: R&D

All our R&D processes have been reorganised in scrum teams of ~6 people each: 120 developers in total.

All our R&D processes have been reorganised in scrum teams of ~6 people each: 120 developers in total.

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New Release Cycle: Stable Version: every 6 months Long-Term Support: every 18 months

Streamlined R&D Deliverables

New Release Cycle: Stable Version: every 6 months Long-Term Support: every 18 months

Streamlined R&D Deliverables

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OpenERP SA is mature: 185 employees: BE, IN, US 200% growth in 2011 (x3) High margins → strong R&D

investment: 32% R&D, 32% Sales, 25% Services, 11% G&A (competitors: <11% R&D)

OpenERP SA is mature: 185 employees: BE, IN, US 200% growth in 2011 (x3) High margins → strong R&D

investment: 32% R&D, 32% Sales, 25% Services, 11% G&A (competitors: <11% R&D)

And it worked...

Partners are growing: 300 partners in 60 countries 75% of partners do more than 50%

turnover on OpenERP On average, based on latest survey,

partners expect to triple their OpenERP revenues in 2011

Partners are growing: 300 partners in 60 countries 75% of partners do more than 50%

turnover on OpenERP On average, based on latest survey,

partners expect to triple their OpenERP revenues in 2011

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The Customer Could not benefit from new

features (of new versions) Has hidden costs (migrations...)The Partner Had to fix bugs at his charge Had to do his business mainly on

acquisition of new customers OpenERP SA Had no interest in working with Partners and did direct implem.

The Customer Could not benefit from new

features (of new versions) Has hidden costs (migrations...)The Partner Had to fix bugs at his charge Had to do his business mainly on

acquisition of new customers OpenERP SA Had no interest in working with Partners and did direct implem.

And the business is scalable..

Without the OPWWithout the OPW

The OpenERP Publisher Warranty allows partners,Customers and OpenERP SA to work together

in the long term in a win-win relationship.

The OpenERP Publisher Warranty allows partners,Customers and OpenERP SA to work together

in the long term in a win-win relationship.

With the OPWWith the OPW

The Customer Can benefit from new features

with guaranteed migration Has no hidden costsThe Partner Have better margins Can capitalize on existing cust. by proposing valuable featuresOpenERP SA Have strong interest to work with

and for partners

The Customer Can benefit from new features

with guaranteed migration Has no hidden costsThe Partner Have better margins Can capitalize on existing cust. by proposing valuable featuresOpenERP SA Have strong interest to work with

and for partners

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Current SituationCurrent Situation

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Online/Cloud Offers:• OpenERP Online: 39€ user/month• Netsuite: 125€ user/month• Salesforce: 125 € user/month

OpenERP is at least 3x cheaper than allother ERPs. → Market Killer...

Online/Cloud Offers:• OpenERP Online: 39€ user/month• Netsuite: 125€ user/month• Salesforce: 125 € user/month

OpenERP is at least 3x cheaper than allother ERPs. → Market Killer...

A Disruptive Business Model

Sorry competitors :)Sorry competitors :)

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On Site Implementations: No licence costs (-25%) Low-cost maintenance (OPW) Flexible for custom needs

TCO usually 2x cheaper than

Proprietary competitors

On Site Implementations: No licence costs (-25%) Low-cost maintenance (OPW) Flexible for custom needs

TCO usually 2x cheaper than

Proprietary competitors

Open Source competitors, maintenance cost:

Compiere: 550€ user/year Openbravo: 450€ user/year OpenERP: Avg 120 € user/year

→ The only one to guarantee

Migrations, 4x cheaper !

Open Source competitors, maintenance cost:

Compiere: 550€ user/year Openbravo: 450€ user/year OpenERP: Avg 120 € user/year

→ The only one to guarantee

Migrations, 4x cheaper !

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1000+ Standalone & Integrated Applications:• Payroll• Accounting• Point-of-Sale• CRM• Inventory Management• Project Management• Purchases• Manufacturing, …

• Strong Verticals:• Fleet Management,• Medical,• Food Industries,• Training Centers, ...

1000+ Standalone & Integrated Applications:• Payroll• Accounting• Point-of-Sale• CRM• Inventory Management• Project Management• Purchases• Manufacturing, …

• Strong Verticals:• Fleet Management,• Medical,• Food Industries,• Training Centers, ...

An incredible product

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Next StepsNext Steps

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Our priority is not to...• Create a strong brand in a traditional way • Invest heavily in marketing and PR• Develop a lot of new features

Product and users are our best PR agents

• We focus on attracting more users. Our target:• 1.000.000 users: Q1 2012• 5.000.000 users: Q1 2013

• Users will automatically create:• Brand awareness, marketing, finance of new features, etc...

Our priority is not to...• Create a strong brand in a traditional way • Invest heavily in marketing and PR• Develop a lot of new features

Product and users are our best PR agents

• We focus on attracting more users. Our target:• 1.000.000 users: Q1 2012• 5.000.000 users: Q1 2013

• Users will automatically create:• Brand awareness, marketing, finance of new features, etc...

Let's conquer the world...

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Open Source Competitors try to:• Transform every user into paying customer• Sell extra modules on top of the open source core

We don't trust in the “Professional Edition” or the “Open Source Core, Modules for a fee” model.

We don't care if only 30% of users buy services, but we want millions of users.

Open Source Competitors try to:• Transform every user into paying customer• Sell extra modules on top of the open source core

We don't trust in the “Professional Edition” or the “Open Source Core, Modules for a fee” model.

We don't care if only 30% of users buy services, but we want millions of users.

Getting users is the key

Focus on users acquisition...Focus on users acquisition...

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How we will get 5.000.000 userswithin two years ?

High R&D Investments

How we will get 5.000.000 userswithin two years ?

High R&D Investments

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High R&D Investments

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• Increase # of users:– Integration of « viral » tools– Auto-importation from salesforce, quickbooks, SugarCRM, etc.– Integration in Google Apps Marketplace

• Increase conversion rate:– Ease of use– Better Usability– Easy Configuration & deployment

• Develop highly generic features– Touchscreen Point-of-Sale– Payroll Engine

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• Automated emails at some steps:• Validation Invoice, Expenses, PO,

Task to a partner, etc.• → Estimated: 5M mails/month

• “Share” any documents like in Google Docs to partners

• Portal for customers & suppliers• EDI Inter-OpenERP

• Automated emails at some steps:• Validation Invoice, Expenses, PO,

Task to a partner, etc.• → Estimated: 5M mails/month

• “Share” any documents like in Google Docs to partners

• Portal for customers & suppliers• EDI Inter-OpenERP

Example 1: viral tools

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Automated migrations:• Salesforce, quickbooks, SugarCRM, Sage, etc.

→ 1 click to migrate and cut your costs by 3 !

Integration:• Google Apps,• Magento, ...

Automated migrations:• Salesforce, quickbooks, SugarCRM, Sage, etc.

→ 1 click to migrate and cut your costs by 3 !

Integration:• Google Apps,• Magento, ...

Example 2: mass migrations

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How we will get 5.000.000 usersWithin two years ?

Develop the partner network

How we will get 5.000.000 usersWithin two years ?

Develop the partner network

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Develop the partner network

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Schema partner process

We plan to increase a lot the OpenERP offer: Get more partners Have partners who grow

• Lead generation & forward,• Continuous trainings,• Business development with account managers.

Scale more: Certified Training Partner Program Train the trainers

We plan to increase a lot the OpenERP offer: Get more partners Have partners who grow

• Lead generation & forward,• Continuous trainings,• Business development with account managers.

Scale more: Certified Training Partner Program Train the trainers

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How we will get 5.000.000 usersWithin two years ?

Develop the Online offer

How we will get 5.000.000 usersWithin two years ?

Develop the Online offer

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Segmentation of the market

Small Companies Medium / Big Companies

√ out-of-the-box solution

√ low costs

√ fast

- no custom developments

- official modules only

Ideal for <15 users

√ have specific needs

√ need custom developments

√ on site services

- pay per day of service

Ideal for >15, <15000 users

The OpenERP Online offer allows to reach the mass of small businesses that do not want to buy consulting days. Reduce time to implement for companies of 3 users.

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SummarySummary

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If we succeeded it's mainly due the strong relationship we have with partners and

the community.

They are the reason whyOpenERP is smarter than the others.

...thank you !

Conclusion