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Jean-Paul Smets-Solanes
Rogério Atem de Carvalho
ERP5:
A Next-Generation,
Open-Source
ERP Architecture
W
hen someone says enterprise share innovation on management techniques and
resource planning (ERP), most IT their implementation through software.
professionals think of the expen- In 2001, two companies initiated the ERP5 proj-
sive, complex, and difficult-to- ect: Nexedi, a Zope service provider in France
implement commercial products that were the (Zope is a well-known open-source application
rage a few years ago. Although many large cor- server), and Coramy, a European apparel manu-
porations did reap tremendous cost savings from facturer.They aimed to develop a set of ERP soft-
the implementation of such systems, an average ware components for small and medium-sized
implementation cost counted in the millions of companies. In addition to source code, the proj-
dollars; this has prevented ERP systems from ect also produced education material and a clearly
spreading to small and medium-sized businesses. defined theoretical model. To fit the needs of
After ERP deployment, its “blackbox” nature smaller companies, they also designed ERP5 for
prevents from understanding and eventually distribution across distant sites with slow and
improving the business processes it implements, unreliable Internet connections.
leaving some important business decisions to the
software publisher rather than to the corporate ERP5 MAIN COMPONENTS
manager, preventing scientific researchers from Like other ERP systems, ERP5 uses compo-
getting involved in the management innovation. nents as the basis for the system. All functions
This situation provides much of the motivation derive from or depend on only five basic concepts.
for our architecture, ERP5, which offers several
advantages for business.All ERP5 tools are open • Planning. ERP5 offers common ERP functions
source, so are free and have openly available like production planning and control, materials
source code that a business can change to suit its management, finances, accounting, billing, budg-
processes. ERP5 incorporates, from scratch, eting,human resources,and the compatible trans-
advanced concepts such as object-oriented data- actions.
bases, a content management system, • Customer Relationship Management. ERP5 tracks
Inside synchronization, variations, workflows, customer relations (like meetings,sales prospects,
and a method to model and imple- and phone calls) and provides a reporting engine
Resources ment business processes. ERP5 is also to classify customers into categories (by country,
a Web site where researchers can size, and market segment, for example).
2 IT Pro July ❘ August 2003 Published by the IEEE Computer Society 1520-9202/03/$17.00 © 2003 IEEE
Figure 1. ERP5 core classes.
Amount
+quantity: Quantity
Transportation
+location +variant: Variant
MetaNode
+findInputNode()
+findOutputNode()
Prototype
Item
+gid:
+quantity:
+content Tracking
Container
TrackSheet
+ship()
+receive()
• Content Management System. ERP5 can act as a content of variation, meta-planning, and information synchro-
management system for an intranet. The system can nization.
store, index, and classify all documents. The ERP5 con- To support these features, on the technological side,
tent management system can retrieve a document based ERP5 offers a new mapping technology for object or rela-
on the combination of a category (production incidents, tional DBMS (database management system) integration,
for example) and a keyword (such as “overheat”), which a new active-messaging technology for interaction mod-
helps to capitalize on knowledge within the company. eling, and a new synchronization technology for electronic
This way, ERP5 can deal with both structured and non- data interchange.
structured information.
• E-business. ERP5 implements B2C and B2B systems. Variation
Thanks to workflow modeling, a sales process can manage ERP5 can represent possible variations for a given
all the interactions between the online shop and customer, resource, such as color, size, and speed.Variations are very
including e-mail exchanges. Using this component, it is useful in industries such as computers, to specify memory
possible to automate typical transactions, such as when a size, disk size, or processor speed; apparel, to specify color
customer returns a purchase. and size; and cars, to specify color, engine, or options.
• Groupware. ERP5 integrates with groupware products, Variations define complex resources that result from suc-
including those for e-mail, agendas, directories, shared cessive transformations. ERP5 represents each transfor-
workspaces, IP telephony, IP conferencing, and instant mation as a collection of transformations, some of which
messaging. apply to all variations. Others apply only to certain varia-
tions.
ERP5-SPECIFIC FEATURES Variations use only a single resource descriptor and a
ERP5 is multilingual and deals with many types of cur- collection of options to define many configurations of a
rency; it works across several companies and users. It also given product. This strategy avoids the creation of a com-
incorporates the unified model of business flows in Figure plex taxonomy, a huge number of database records, and
1, which maps all corporate information into five basic the tracking of a product number for each variation of the
concepts (thus the name ERP5). It also uses the concepts same product. Although used extensively in the apparel
industry, the concept of variations is not well-known or C) or general (the company expects to sell 10,000 of prod-
used in other industries. uct X to small retailers). In this example, product X is a
Most commercial ERP software does not support vari- meta-resource and small retailers are a meta-organiza-
ations, but we believe variations should be at the heart of tion—a metanode in ERP5 terminology. ERP5’s meta fea-
any modern ERP system. Variations will be essential to ture helps manage a group of companies that belong to a
creating product lines according to a customer’s needs common holding; it can also manage factoring partner-
without creating thousands of product identifiers. This ships—partnerships where one company asks a few other
mass-customization concept manages customer needs companies to cooperate and together build a product.
without losing the benefits of standardization.
Information synchronization
Meta planning We designed ERP5 to function on multiple sites with
We base ERP5 on a model that can associate anything to low-quality Internet connectivity, so each site must be able
a category. Examples include a category of resources (such to run by itself in the case of a network failure. ERP5
as service, raw material, skill, or money) or a category of implements distribution by using synchronization and an
organizations (such as a group of companies, a group of extension of the SyncML protocol. For example, suppose
people, or a retail chain). ERP5 can manipulate these cat- a stock A and a stock B located on two production sites
egories just as it manipulates resources and organizations. AA and BB exchange some resource through a business
This means that users can plan resources at any given level, rule. If this rule requires site BB to know the stock values
whether for a group of companies or for a retail chain. of A, ERP5 will create a local representation of stock A
Resource planning can be detailed (the company expects on site BB and synchronize data between this local repre-
to sell 10,000 items of model number 223311 to customer sentation and the real values of stock A. Site BB will then
E
<<movement>> Generates <<movement>> RP5 is now in production at the first
A future European site, and development contin-
An invoice
payment
ues.The ERP5 Consortium—a group of
independent organizations—organizes the
ERP5 project. Consortium members are
ery). All generated movements then go into a causality users, developers, and IT companies that base commercial
that relates to the transformation. services and research efforts on ERP5. This consortium is
A delivery of goods should generate an invoice move- in charge of coordinating research and development con-
ment, depending on the commercial conditions for the par- tributions, promoting the use of ERP5, and providing edu-
ticular customer and the delivered goods. cation and certification frameworks. Consortium members
Each invoice movement should generate a future-pay- come from France, the Netherlands, and Brazil.
ment movement, depending on the commercial conditions, In the research arena, ERP5 members are developing
as Figure 5 illustrates. advanced components for decision support, based on opti-
Another example is the cost evaluation of a delivery. mization, soft computing, and the data mining of object
Each delivery between nodes should generate a movement repositories. The first component, known as Strategic
to represent the cost of paying people to move objects Sourcing, implements e-procurement. It uses fuzzy sets
across the workshop. and integer programming to evaluate contract risk and to
Another example is the salary rule. Each month a com- minimize the total cost of ownership for purchased items,
pany should create a movement for each of its employees. while considering multiple concurrent sources.
That is, the movement should move an amount of a ERP5 will also help increase the adoption of open source
resource (cash) from the company’s funds to the employee. and free software technologies in small and medium-size
This movement represents the payment of the employee’s enterprises. and will improve a market of interoperable
monthly salary. From this movement, a set of rules should services and solutions based on the ERP5 platform. We
generate movements to represent the payment of bonuses, believe this will lead to increased innovation and trans-
insurance, and taxes. parency in the global ERP market by setting new indus-
From the previous examples, we can synthesize two try standards. Research on management and organization
generic concepts: Movements relate to each other by sciences will find a reference platform in ERP5.
causalities; causalities relate to a rule. ERP5 will create a new channel for e-commerce appli-
There seems to be an origin to causality: One movement cations, which often require tight integration with ERP
generates other movements. In other words, causality does software. Today, vendors of proprietary ERP systems are
not seem to be symmetric. This situation differs slightly blocking the entry of new vendors into the market for e-
from the more general symmetrical model first introduced commerce application software. If open source initiatives
for causalities. like ERP5 succeed, they will prevent these companies from
Causality trees are much easier to implement than having monopolistic control of future e-commerce appli-
causality graphs. It also seems that trees, instead of graphs, cations. ■
can represent most causalities. For these reasons, we chose
to implement causalities with trees in ERP5. Production
planning in most companies usually combines pull Jean-Paul Smets-Solanes is the CEO of Nexedi SARL and
approaches, where orders are the cause of build-order the main developer of the ERP5 project. He is also heads
movements. This sort of triggering represents just-in-time, the EuroLinux Alliance for a Free Information Infrastruc-
zero-stock management. In a push approach, inbound ship- ture and is vice-president of the French Speaking Linux and
ments cause build-order movements, an approach more Free Software Association. Contact him at jp@nexedi.com.
appropriate for the food industry, for example.
Rogério Atem de Carvalho is a teacher and researcher at
Profiles the Federal Center for Technology Education of Campos-
The whole simulation process sometimes must use pre- CEFET Campos, Brazil. Contact him at r.carvalho@
defined values to create new movements. Such values computer.org.