OpenERP Vision Fabien Pinckaers

OpenERP's Vision
Fabien Pinckaers, Founder & CEO
Fabien Pinckaers, Founder & CEO

Nom du fichier – à compléter Management Presentation 1

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

Nom du fichier – à compléter Management Presentation

A strong product & references


1000+ Open Source Apps


A strong brand

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

500 leads per day !


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


The OpenERP History

Users
Phase 1 : Phase 2 :
• Product Dev. Switch in the
• Direct Implem. business
model Phase 3 :
5.000.000 Users

2005 2010 2011 Time


Our vision since 2005...

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

Ideas that drove OpenERP's business:
Ideas that drove OpenERP's business:


 Open Source allows the development of better products
Open Source allows the development of better products

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

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

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

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


2010: Switch in the model

In 2010, our model proved it worked; we stopped
In 2010, our model proved it worked; we stopped
implementation services to focus on Publisher activities.
implementation services to focus on Publisher activities.
We reorganized OpenERP around only 3 processes !
We reorganized OpenERP around only 3 processes !


Process 1: Partner recruitment

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


Process 2: Partner development

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


Process 3: R&D

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

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

Streamlined R&D Deliverables
Streamlined R&D Deliverables


And it worked...

OpenERP SA is mature:
OpenERP SA is mature:

 185 employees: BE, IN, US
185 employees: BE, IN, US

 200% growth in 2011 (x3)
200% growth in 2011 (x3)

 High margins → strong R&D
High margins → strong R&D
investment: 32% R&D, 32%
investment: 32% R&D, 32%
Sales, 25% Services, 11% G&A
Sales, 25% Services, 11% G&A
(competitors: <11% R&D)
(competitors: <11% R&D)

Partners are growing:
Partners are growing:

 300 partners in 60 countries
300 partners in 60 countries

 75% of partners do more than 50%
75% of partners do more than 50%
turnover on OpenERP
turnover on OpenERP

 On average, based on latest survey,
On average, based on latest survey,
partners expect to triple their
partners expect to triple their
OpenERP revenues in 2011
OpenERP revenues in 2011


And the business is scalable..

The OpenERP Publisher Warranty allows partners,
The OpenERP Publisher Warranty allows partners,
Customers and OpenERP SA to work together
Customers and OpenERP SA to work together
in the long term in a win-win relationship.
in the long term in a win-win relationship.

Without the OPW
Without the OPW With the OPW
With the OPW

The Customer
The Customer The Customer
The Customer

 Could not benefit from new
Could not benefit from new  Can benefit from new features
Can benefit from new features
features (of new versions)
features (of new versions) with guaranteed migration
with guaranteed migration

 Has hidden costs (migrations...)
Has hidden costs (migrations...)  Has no hidden costs
Has no hidden costs
The Partner
The Partner The Partner
The Partner

 Had to fix bugs at his charge
Had to fix bugs at his charge  Have better margins
Have better margins

 Had to do his business mainly on
Had to do his business mainly on  Can capitalize on existing cust.
Can capitalize on existing cust.
acquisition of new customers
acquisition of new customers by proposing valuable features
by proposing valuable features
OpenERP SA
OpenERP SA OpenERP SA
OpenERP SA
Had no interest in working with
Had no interest in working with Have strong interest to work with
Have strong interest to work with
Partners and did direct implem.
Partners and did direct implem. and for partners
and for partners


Current Situation
Current Situation


A Disruptive Business Model

Sorry competitors :)
Sorry competitors :)

Online/Cloud Offers:
Online/Cloud Offers: On Site Implementations:
On Site Implementations:
•• OpenERP Online: 39€ user/month
OpenERP Online: 39€ user/month  No licence costs (-25%)
No licence costs (-25%)
•• Netsuite: 125€ user/month
Netsuite: 125€ user/month  Low-cost maintenance (OPW)
Low-cost maintenance (OPW)
•• Salesforce: 125 € user/month
Salesforce: 125 € user/month  Flexible for custom needs
Flexible for custom needs

OpenERP is at least 3x cheaper than all
OpenERP is at least 3x cheaper than all TCO usually 2x cheaper than
TCO usually 2x cheaper than
other ERPs.
other ERPs. Proprietary competitors
Proprietary competitors
→ Market Killer...
→ Market Killer...

Open Source competitors,
Open Source competitors,
maintenance cost:
maintenance cost:
 Compiere: 550€ user/year
Compiere: 550€ user/year
 Openbravo: 450€ user/year
Openbravo: 450€ user/year
 OpenERP: Avg 120 € user/year
OpenERP: Avg 120 € user/year
→ The only one to guarantee
→ The only one to guarantee
Migrations, 4x cheaper !
Migrations, 4x cheaper !


An incredible product

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

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


Next Steps
Next Steps


Let's conquer the world...

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

Product and users are our best PR agents
Product and users are our best PR agents

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

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


Getting users is the key

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

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

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

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


How we will get 5.000.000 users
within two years ?
within two years ?
High R&D Investments



• 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


Example 1: viral tools

•• Automated emails at some steps:
Automated emails at some steps:
•• Validation Invoice, Expenses, PO,
Validation Invoice, Expenses, PO,
Task to a partner, etc.
Task to a partner, etc.
•• → Estimated: 5M mails/month
→ Estimated: 5M mails/month
•• “Share” any documents like in
“Share” any documents like in
Google Docs to partners
Google Docs to partners
•• Portal for customers & suppliers
Portal for customers & suppliers
•• EDI Inter-OpenERP
EDI Inter-OpenERP


Example 2: mass migrations

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

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

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


Within two years ?
Within two years ?
Develop the partner network



We plan to increase a lot the OpenERP offer:
We plan to increase a lot the OpenERP offer:
 Get more partners
 Get more partners
 Have partners who grow
 Have partners who grow
•• Lead generation & forward,
Lead generation & forward,
•• Continuous trainings,
Continuous trainings,
•• Business development with account managers.
Business development with account managers.

Schema partner process
Scale more:
Scale more:
 Certified Training Partner Program
 Certified Training Partner Program
 Train the trainers
 Train the trainers


Within two years ?
Within two years ?
Develop the Online offer
Develop the Online offer


Segmentation of the market

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.

Small Companies Medium / Big Companies

√ out-of-the-box solution √ have specific needs
√ low costs √ need custom developments
√ fast √ on site services

- no custom developments - pay per day of service

- official modules only
Ideal for >15, <15000 users
Ideal for <15 users

Summary


Conclusion

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

They are the reason why
OpenERP is smarter than the others.

...thank you !


OpenERP Vision Fabien Pinckaers

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