Slide 1: Business Model, Part 1/4
A new generation of... ...Open Source business model.
Slide 2: In only 4 years, we developed the most popular enterprise management (*) software ever made. This document describes the 2009 Open ERP business model. It explains how we achieved such a success.
It also reflects my vision on how to develop (*) 700 installations per day. Open Source products efficiently. Fabien Pinckaers, CEO Tiny
Slide 3: We think Open ERP can sustain his incredible growth only if we suceed to benefit from...
Slide 4: ●
The Community: to generate activities, provide huge 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 ecosystem, provide feedbacks and experiences.
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Slide 5: These 4 actors are very important. If one is missing or unsatisfied, the product can't achieve the growth and quality we expect !
Slide 6: As an editor, our goal is to provide the tools to continuously satisfy, help and sustain: the community, the partners and the customers.
Slide 7: 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.
Slide 8: This document does not describe these tools, but how they will sustain the business model. The next 3 parts describe the business model and how it will impact: The Community The Partners The Customers
Slide 9: Business Model, Part 2/4
A business model that... ... fits partners needs.
Slide 10: Our Goal is...
Slide 11: To develop a business model that leads you to the top while supporting the growth and establishing a professional partnereditor relationship to sustain this growth.
Slide 12: 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)
Slide 13: Get Leads...
In 2009, we're going to improve: Lead Generation Program Marketing And invest in: Direct Marketing Web Campaigns => To focus on qualification of leads.
Slide 14: ... Sell More
Our goal is to provide more customers to efficient partners. The more you sell, the more we provide you leads and presales support. Editor
Marketing PreSales Sales
$
Partner
Slide 15: Resell Editions...
Editions = 2nd level of maintenance (1st level = partner support)
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Guarantees on:
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Migrations Bugfixes Security issues Lifecycle
Slide 16: ... Limit risks & cut costs
By reselling editions to the customer, you get: ● Guarantees from the editor (migration, unlimited bug fixes) ● 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 package including your 1st level of maintenance)
Slide 17: 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 of receiving them) Who offers what? ● Sales ● Support to customer ● Support to partner ● Maintenance
Partner Editor
Slide 18: Modules Quality Certification
What's the module quality certification ?
180 functional & technical tests of your module Benefits :
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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 next editions
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Slide 19: Quotations
Include Editions & Certifications in your quotations
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Analysis ● Functional Coverage ● Modules to reuse ● 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.
Slide 20: 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 or customers
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1 training = 450 Units
Slide 21: ... to reach perfection
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Develop yourself and support new employees Satisfy your customers Improve your quality of service
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Slide 22: Partner Relationship
Your activities reflect your quality:
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Editions Sold => Customers Success Stories Quality Modules => Good contributions Trainings => Better Partner Knowledge
The partner level reflect the partner activity:
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Starter > Silver > Gold > Platinium
Levels are reevaluated every 3 months !
Slide 23: 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 Support Better Visibility
Platinum
Slide 24: Summary
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Resell editions and certifications to customers Get services units We provide the services you need (support,...)
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Partners do not buy direct services, everything is paid by the customer !
Service Leads Open ERP Edition Custom Certifications Bugfixes Migrations Support Paid By From Points Sold to Customer Sold to Customer Included in Editions Included in Editions From Points
Projects
Slide 25: 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).
Slide 26: Any question about partnerships ?
Contact our partner manager: Mail: partners@openerp.com Phone: (+32).81.81.37.00
Slide 27: Business Model, Part 3/4
A business model that... ...fits customers needs.
Slide 28: Our goal is...
Slide 29: Provide an environment, an offer of products and services that tend to satisfy our customers...
Slide 30: Provide an environment, an offer of products and services that tend to satisfy our customers... ... and those of our partners.
Slide 31: What are customers needs ?
Slide 32: A Strong Product...
Easy to use, with productivity Covers most needs With a strong maturity At low costs
Slide 33: A Good Service...
A quality supplier Avoids vendor lockin Guarantees for the future Value added services partners
Slide 34: Why our business model brings perfect solutions to these needs ?
Slide 35: 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 only call a partner if they like Open ERP. Having hundreds of feedbacks per day in the community forum is also very important to reach perfection !
Slide 36: 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 their specific contributions are not integrated.
=> Open ERP has 350 modules and 10 new modules per month.
Slide 37: 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: On Demand requires: automated migrations, easy use because customers start without help, full automatisation, customizations, ... We are the only ERP having an official On Demand offer ! It's the best proof of maturity we can provide.
Slide 38: 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
Slide 39: A Good Service
Quality 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 provide them trainings and support We have tools to control and help them improving their services: ● Modules Quality Certification ● Starter > Gold > Platinum
Slide 40: A Good Service
Avoids Vendor LockIn With our Open Source license:
The one owning the code is you ! not the supplier !
Slide 41: A Good Service
Guarantees 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.
Slide 42: Want to be a customer?
Slide 43: 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
Slide 44: Select the Right Partner/Solution
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 ?
Size / Need <15 users 15 – 100 users 100 – 500 users >500 users
OutOfTheBox Few Adaptations Specific Solution
OdOO, Buy Online OdOO + Partner Integration with partner /
OdOO + training/partner Integration with partner Gold or Platinum Gold or Platinum
/ Integration with partner Gold or Platinum Platinum
Slide 45: 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.
Slide 46: Why Editions ?
These editions provide you the guarantees you need to run Open ERP in a professional environment. Guarantees on:
Migrations Bugfixes Security issues Lifecycle
Slide 47: Modules certifications
You need a new specific module? With the modules 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.
Slide 48: 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 and those of our partners.
Slide 49: Business Model, Part 4/4
A business model designed... ... for the community.
Slide 50: It's very important to have a strong and active community. The more we offer to the community, the more the community will make for the product.
Slide 51: What does the community need ?
Slide 52: The Community needs ...
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Everything for free (no need for services) Easy access to the software An OutofTheBox software Never be forced to purchase anything Tools to sustain collaboration and communication
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And, ... like every one on this planet..., being listened.
Slide 53: 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.
Slide 54: 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 (they
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communicate)
Slide 55: We want to achieve the best enterprise management software in the world. To achieve this perfection, we push everything to the community.
Slide 56: 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. If incentives are strong enough, they will.
Slide 57: Release every module as Open Source
Our license (GPL v3) forces every modification of the software to be open source. As to motivate enterprises to distribute their code, we provide maintenance on open source modules. To motivate partners to contribute, we offer services to partners (support, training) for each quality certified module released. The more a partner contributes, the more it becomes “Gold” and get visibility on our website > get customers.
Slide 58: Easy access to the software
All our english documentation is free. To encourage authors to write translations or new chapters, we have contracts with editors to sell paper books and pay author rights to contributors. To help people or enterprises to start with Open ERP, partners provide services offers (trainings, support). We provide the training material to partners. We focus on the simplification of the software: simplified views, tooltips, configuration wizards, autoinstallers, ...
Slide 59: An OutOfTheBox Software
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 can benefit 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 others can benefit from it.
Slide 60: Never be forced to purchase anything
The GPL license is the best protection the community can have. 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.
Slide 61: Tools to collaborate and communicate
As to help the community to grow efficiently, we setup tools to 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 by marketing guys for a professional communication. The Open Object planet is fully open, every contributor can post.
Slide 62: 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.
Slide 63: Conclusion Community
Once a month, we organize IRC community meetings with the Tiny management. Join us at one of these meeting to discuss on how we can collaborate more efficiently...
Slide 64: And It Works !
I started alone 4 years ago, with 1000 EUR. Today, we are selffinanced with:
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85 employees, A partner network in 35 countries, The most advanced ERP in the world.
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With our Open Source vision, we never had to do a fund raising and we continue our organic growth of 100% per year !
Slide 65: Need more information ?
Everything is available on http://openerp.com
As I have seen its really nice ERP Bussiness Idea......
I have seen much progress here...
In short.... Going with speed and Well directed way...