OpenBravo ERP in Enterprise Company

e-ISSN 2774-5155

p-ISSN 2774-5147

INTRODUCTION

Realized or not, economic globalization in Indonesia is rapidly opening up new horizons, especially for the management of companies in Indonesia that were initially focused only on the domestic environment, now shifting to the international environment. This situation forms the management of companies to make radical changes to the management principles that have been used in the production process of products and services that are expected by the community. In addition, the company's management also realizes the importance of the company replacing the frame of mind that has been owned. One way that companies can survive is the use of information technology using the use of information systems that are synchronous and relevant to the needs of the company where it is expected to increase the effectiveness and efficiency of performance because the available information can be managed and handled optimally to support various operational activities of the company, so it is expected that profitability and value of the company will continue to increase from year to year. One example of an information system that can help companies improve the effectiveness and efficiency of enterprise performance is Enterprise Resource Planning (ERP). According to Utami et al (2016), ERP is defined as an information system that can integrate information available in a company from various aspects, such as funds, people, time, materials, capacity, and others. In addition, according to Purwaningtias & Mukmim (2019), ERP also means how to do things related to planning and managing all things affiliated with the company, where ERP can increase efficiency and increase the company's profit potential. In addition, ERP can integrate various business components in the company from upstream to downstream.

Related to the things that have been mentioned, this time the author will try to review one type of Enterprise Resource Planning, namely OpenBravo ERP from various points of view. In addition to discussing the use of Overbravo ERP, it will also be compared to other types of ERP.

RESEARCH METHODOLOGY

In making this paper, the methodology used are

1. Literature study,

In this literature study, we will learn about sources related to ERP. The sources used can come from books, journals, papers, and articles which have relevance with ERP, OpenBravo, and others

2. Analyze and Comparison.

In this case, the ERP used is OpenBravo. Comparison with other types of ERP will be carried out and will be discussed in more detail related to the advantages and disadvantages of each ERP discussed.

3. Conclusion, after the analyze and comparison are discussed, completely then finally conclusions are made from all the discussions carried out.

RESULTS AND DISCUSSION

Concept and Stages of ERP

Enterprise Resource Planning according to Nofri et al (2015) is defined as a method for the industry is seeking more effective and efficient business processes by sharing information in and between business processes and running a business electronically. Enterprise Resource Planning can also be defined as an information system that integrates and automates business processes related to the operating, production, and distribution aspects of a company. Information system projects have six stages of implementation methodology namely planning, analysis, design, construction, implementation, and post-implementation in other sources, Enterprise Resource Planning (ERP) according to Purmasari et al (2018) is a system for integrating enterprise business processes in computerized processes, and is a system that is integrated with all processes in an enterprise to improve performance and performance. Increase the speed of the process so that it can increase the company's revenue. ERP can manage business processes and overall enterprise resources by integrating business processes in the company and is a concept of planning and managing resources to support various functions in the company so that the work becomes more efficient and can provide the best service for consumers who can provide benefits. Maximum for the company. ERP is also a strategy that is often used by companies to improve the quality of company information systems. Another definition according to Mahardika et al (2014) is a development of Manufacturing Resource Planning II (MRP II) which is also an evolution of the Material Requirement Planning that was developed previously. Modular ERP systems usually handle manufacturing, logistics, distribution, inventory, shipping, invoicing and company accounting processes. This means that this system will later help control business activities such as sales, delivery, production, inventory management, quality management and human resources. The problem that is often faced by companies is how to organize and integrate their existing data, which is needed by the company many different departments, so it can be used in a computer system that can meet the needs of these different departments. Another definition according to Meizana et al (2016), Enterprise Resource Planning (ERP) is an abbreviation of three elements of the words Enterprise (Company/Organization), Resource (Resources), Planning (Planning). These three words reflect a concept that ends in a verb, namely Planning. Thus, it means that ERP emphasizes the planning aspect. Integration in ERP system concepts related to interpretation as follows:

1. Link between various business process flows

2. Communication methods and techniques

3. Alignment and synchronization of business operations

4. Coordination of business operations

Enterprise Resource Planning (ERP) is a concept for planning and managing company resources, namely in the form of integrated program application packages and multi-modules designed to serve and support various functions in the organization company, so that work becomes more efficient and can provide better services for consumers, which in turn can generate added value and provide maximum benefits for all interested parties (stakeholders) in the company.

According to Al Aziz et al (2018) here are the following steps are the stages of ERP system development:

1. Planning Stage:

The first step in implementation is to identify the main objectives and scope of the project.

2. Analysis Stage:

In this phase, pilot ERP systems are developed in various fields for simulation needs and show how to integrate modules with users and identify other requirements.

3. Design Stage:

At this stage, the design begins to be developed. In this phase, the end-user must be given intensive training on ERP packages for users to use the new system.

4. Implementation Stage:

The next step is to carry out the implementation process.

5. Technical Support Stage:

The goal of this phase is to ensure the success of the system in the short term and the long-term system

Benefits, Objectives, and failure factors of ERP implementation.

According to Rahman (2018), The purpose of an ERP system is to coordinate the resources of the organization's business as a whole. Technically, ERP actually functions to integrate various information systems spread across each department (functional unit) in an institution. ERP is software that exists in organizations / companies that have benefits for:

1) Offering an integrated system within the company, so that processes and decision-making can be carried out more effectively and efficiently.

2) Allows for global integration.

3) Eliminates the need for updating and correcting data as occurs on separate systems.

4) Allows management to manage operations and not just monitor and be better able to answer all questions.

5) Assisting in the implementation of supply chain management and integrating it.

6) Facilitate communication relationships internally and externally within and outside the organization.

7) Can reduce the gap between programming by means of effective system maintenance.

8) Can reduce application and technology complexity.

ERP system implementation can also fail, the causes include:

1) Implementation time and costs that exceed the budget.

2) Pre-implementation is not done well.

3) Operational strategy is not in line with business process design and development.

4) HR is not prepared to accept and operate with the new system.

How Does ERP Work In Company ?

There are several alternative ways to implement ERP systems, including (Utami, Susilo, & Riyadi, 2016):

a) Install ERP applications directly and thoroughly. The company replaced the old system with an ERP system. This method certainly contains risks, such as the readiness of the company with a new system. Whether the resources in it are ready to operate an ERP system or not. Often the implementation process will run slowly because the process is not done little by little first.

b) Doing franchise strategy, this method is done using several different ERP systems on each business unit of the company. All of these systems are also affiliated with common modules such as finance modules. Implementation generally focuses on one unit that is used as a pilot project. This reduces the risk of failure when testing the ERP system on the unit to see if it can run properly. If the results are satisfactory, then the ERP system can be implemented to other units gradually according to the pilot project reference

What Is OpenBravo?

Openbravo is a web-based open source application used to view business process information that includes workflows, production processes, inventory, customer information, and order tracking. There are at least 8 modules in OpenBravo (Syahida, Darwiyanto, & Jatmiko, 2018). The modules are:

1. Data Master Management

Data Master Management is the main data warehouse where important information (such as business partners and products) can be created and configured so that they are available in other areas of the Openbravo application.

2. Procurement Management

Procurement Management supports order management, receipt of goods and purchase invoices and analysis of related purchasing data.

3. Warehouse Management

Warehouses and storage areas can be created and managed in this application area, as well as the amount of inventory and inventory valuation.

4. Production Management

Production Management monitors production processes and activities and supports related data analysis production.

5. Material Requirements Planning

MRP provides tools to plan and monitor purchasing and production planning by tracking multiple inputs such as sales forecasts and current inventory levels.

6. Sales Management

Sales Management handles the life cycle of the sales process and also provides tools to analyze sales-related information.

7. Project and Service Management

Project and Service Management discusses service projects and helps analyze project related reports.

8. Financial Management

"Financial Management" area supports daily accounting activities such as accounts payable management and receivables, amortization of assets.

In other version, Openbravo has the following modules: a) Master Data Management, b) Procurrement Management, c) Warehouse Management, d) Sales Management and CRM, e) Production Management, Financial Management and Accounting, f) Buisness Intelligence and Project Management. Project Management, is a functionality that is geared towards companies whose activities are based on the delivery of projects and services, Openbravo allows the management of budgets, phases, tasks, expenses and purchases related to each individual project (Ramirez, Tenorio, Beltran, & Hernandez, 2015).

Another definition of OpenBravo is according to (Llanez et al. 2020; Bajaj & Ojha, 2016), Openbravo is a software solution developed in open source, geared towards enterprise resource planning and intended for MSMEs. The use of open source in its creation implies its free distribution and development, i.e. a constant improvement of the source code eliminating errors and adapting the product according to the business needs of the company. Based on a client/web server architecture programmed in Java, its execution is done on Apache and Tomcat integrating support for databases such as PostgreSQL and Oracle. Also, Openbravo is an ERP is a web-based open source tool that seeks to improve overall business performance, based on a single, integrated data model that covers all application areas of an enterprise management system, including business intelligence (BI) tools and point-of-sale (POS) terminals.

Business flow describes the flow of information, the configuration that must be performed in the use of openbravo applications. Openbravo's business flow includes general setup, production, and financial statements shown in the following figure (Purmasari, Priskila, Sasono, & Sunardi, 2018) :

Figure 1 Business Flow Production Mobile

Figure 3: Business Flow Production Mobile