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THE OPEN SOURCE OPPORTUNITY: Monetizing Open Source Though Partnerships
- 1. THE OPEN SOURCE OPPORTUNITY Monetizing Open Source Though Partnerships August 10, 2010
- 2. The Small Business Challenge • Small businesses have essentially the EXACT same functional needs as large enterprises but the small business has significantly less resources with which to provide that function. Situation • Most small businesses are forced to "piece together“ systems from multiple vendors causing needless hours to be spent rekeying data from one system to the next, critical company information to be stored on individual PC's, or even worse, on pieces of paper, where the data is not available to others in Effect the organization and cannot be accessed in real time. • These disparate systems not only increase support costs & effect customer and employee satisfaction, but they also inhibit productivity due to the time and resources needed to compile simple but accurate management reports Result or simply close the books every month.
- 3. Market Opportunity • Open source software is unique in that it is free to download and use for any purpose, permission is given to freely redistribute copies, and users/developers have unrestricted access to the source code with the freedom to modify and adapt the software for any purpose. • Today, numerous enterprise-class open source applications exist for any business that has the technical abilities to successfully implement, the knowledge to use, the experience to train other users, and the infrastructure and skill set to manage and support the users and application environment. • This creates a tremendous opportunity for business advisors, technology consultants, and computer hardware resellers, to earn significant revenue by providing the professional services needed to fully implement these enterprise applications in small to mid-sized businesses that don’t have the necessary skills internally! Partner with CyOp to provide enterprise-class open source solutions to small businesses!
- 4. CyOp’s Value Proposition CyOp bridges the gap between open source and SaaS by leveraging enterprise-class open source software to build for our customers an application that they will OWN. Because the application is owned by the customer with full access to the source code, there is no vendor lock-in and the application can never be obsolete since there is a large community of open source programmers that can ensure ongoing development and support. Once we build the application, CyOp offers numerous options as to how the application is supported. For clients with adequate IT staff & facilities, CyOp can implement the application as an on-premises solution. For customers that lack adequate facilities or IT staff, CyOp can implement and support the solution from one of its state-of-the-art partner data centers, or from the data center of the customer's choice. Again, because the application is owned by the customer, it can later easily be either internalized or moved to another data center without concerns of having to pay exorbitant fees to move.
- 5. CyOp’s Partner Strategy Small Businesses (typically less than 250 employees) with CUSTOMERS Limited IT Staff & A Recognized Business Challenge CYOP Provides Consulting, Cloud Services or Technology Sales to PARTNER SMBs. Offers FREE Process Assessment Provides Professional Services To Qualify & Define Project CYOP (PDW); Implements, Configures, Customizes, & Supports Open Source Application Deployments S E CYOP / IBM R Library of ready-to-use SMARTSTART V open source SOLUTIONS I OPEN SOURCE applications that deploy C BUSINESS instantly on local or E APPLICATIONS cloud-based servers S Applications can be deployed locally on virtually any open systems FLEXIBLE platform or can be deployed in a cloud through one of our Partner’s DEPLOYMENT hosting facilities or the hosting facility of the customer’s choice
- 6. Enterprise-Class Open Source OpenbravoERP SugarCRM Enterprise Resource Planning Customer Relationship Mgmt Kayako Helpdesk OrangeHRM Service/Support Management Human Resource Management AND MORE…
- 7. More Open Source Business App’s Business Process Management (BPM) Business Intelligence & Reporting Electronic Data Interchange (EDI) Enterprise Content Management (ECM) E-Learning & Course Management
- 8. Enterprise Software Implementation Project Implementation Roadmap 1 2 3 4 5 Project Final Go live & Project Definition Iterative Prototyping Preparation Preparation Adjustments • Staffing & • Initial Configuration Detailed and Customizations Planning • Detailed Requirements • Integrated Definition • Technical Designs Testing • Go Live • Installation of Test • Functional Design • Development of • Data • Adjustments Envmnt. Interfaces, Data- • Data-Migration strategy Migration • Support • Kick-off Migration Programs Meeting • Interfaces Definition and and Non-Standard • End-User • Troubleshooting Design Functionalities Training • Basic Training • Unit Testing Management methodology Project management • Definition of Initial Steps, Planning, Control, Validation and Project Completion • Project Progress Monitoring, Team Coordination, Change Management, • Risk Management and Scope Modifications (Identification, Monitoring, Evaluation, and Mitigation) It is a fact that employing a proven methodology and following it precisely while implementing an enterprise management system, is one of the key success factors to the project. The methodology proposed by CyberOptic Group is comprised of a complete and on time delivery utilizing the tools and best practices learned from previous projects of many different types and for numerous different industries
- 9. Notes About The Roadmap As a CyOp Partner, you DON’T need to understand the roadmap! CyOp handles these issues – YOU just need to recognize that there’s a HUGE difference between a customer installing enterprise software versus actually implementing it in the organization The roadmap is valid irrespective of the enterprise application being implemented and whether the application is open source, proprietary, on- premises, or delivered through a SaaS model. The customer (or someone he pays) will still need to perform most, if not all, of these steps. The roadmap represents the set of services CyOp provides around each business application. Not all of the steps need to be done by CyOp, but they all need to be done by SOMEBODY to have a successful implementation. For a variety of reasons, most businesses, and especially small businesses, are unable to perform these steps without assistance, which is what creates the market opportunity & demand.
- 10. Five Reasons To Partner With CyOp • Broaden your range of services and your customer set, add significant new revenue streams, and have new ways to approach existing and potential customers. Enable your hardware and/or other professional services to be REVENUE competitive in deals that were previously cost-prohibitive. • Maintain Account Control and ensure customer satisfaction. If you don’t provide the customer what he needs, he will get it from someone – possibly a provider that will attempt to erode your other business. By engaging CyOp, your customer’s needs will be effectively met and you can be assured CyOp will not attempt to displace your CONTROL existing business. • There is little to NO competition for many of these applications in smaller businesses since most “competitors” can’t scale down to businesses with less than 100 employees - which is 98% of the market! It’s easy to get to the EXCLUSIVITY decision maker, rarely if ever is there a required bid process or board approval needed. • Even at a fraction of the implementation costs of proprietary systems, there is still large value and profit in CyOp’s services which we share with our Partners. As a CyOp Partner, when you refer an opportunity, you have full control over customer pricing and your profit. CyOp will never quote your client directly without your prior PROFIT knowledge and approval. • Because CyOp specializes in driving revenue back to the customer’s bottom line, once we complete a project, it is very common for the customer to engage us for ongoing development and support, which provides recurring RECURRING revenue for the Partner.
- 11. How To Identify Opportunities You DON’T need to be a software expert to earn money by identifying opportunities to refer to CyOp! TEN Easy Signs To Look For In A Prospect: 1. Running multiple systems and databases that don’t talk to each other or performing tasks off of the enterprise system (i.e. QuickBooks & Excel, etc.) 2. On a legacy proprietary system with discontinued development/support and/or anxious to get out of continuous upgrade cycle to keep current support 3. Lots of time spent re-keying data 4. Excessive time needed to compile simple but accurate management reports or close books at end of month 5. High volume of email or paper forms containing data that should be in some enterprise system 6. Lack of management reporting on statuses of workflows 7. Desire to extend function & life of existing systems to better integrate with other systems and business processes 8. Need to better manage & communicate with customers, vendors & partners 9. Need to facilitate the management & reporting of employees & contractors 10. Business growth being inhibited by existing system or process limitations
- 12. CyOp Engagement Process • Partner registers opportunity by phone, email, or lead form. • CyOp contacts Partner to discuss strategy (if needed) Referral • CyOp engages with prospect to qualify opportunity and present value proposition. • CyOp performs a FREE Business Process Assessment to gain an understanding of customer environment, objectives Qualification & requirements and determine the best set of tools to propose to the customer. • CyOp conducts “Project Definition Workshop (PDW)” which essentially covers the first two phases of the project roadmap and is needed to determine exact costs of the project. The PDW is a billable engagement and the PDW deliverables include a Functional Design, Gap Analysis, Data Migration Plan, and Systems Interface Design. • Based on results of PDW, CyOp will prepare a detailed proposal with DISCOUNTED PARTNER PRICING. Partner determines ultimate price to Customer and CyOp & Partner decide on best way to present proposal to Customer. Project • Revenue received over and above Partner pricing are remitted to Partner as Commissions
- 13. CyOp Success SKIN-CARE PRODUCTS MANUFACTURER COMPANY PROFILE: 5-Person Skin Care Products Manufacturer (StartUp) ISSUES: Unable to continue to run business on QuickBooks & Excel and manage products in multiple warehouses, some of which was perishable with expiration dates. Needed to be able to manage multiple distributors with multiple price levels. SOLUTION: Open Source ERP Implementation COST: $25,000 RESULTS: Company for the first time could view actual and accurate costing and inventory values and was able to locate over $20,000 in valued un-received inventory and identify several products where cost of manufacturing exceeded distributor sales price, prompting a planned price increase. System enabled multiple price lists with multiple price list versions, provide real-time inventory valuations on a per-warehouse basis, and enable them to better manage perishable inventory.
- 14. CyOp Success FOOD PRODUCTS MANUFACTURER COMPANY PROFILE: 400-Person Food Products Manufacturer ISSUES: The company had NO CRM system and all sales reps were working on disparate PC-based systems with most on Outlook, others using personal copies of Act or Goldmine. No information was being retained in company system, no sales forecasting was possible, and information retrieval was nearly impossible. Wanted a system that could be expanded company-wide but had limited available budget. SOLUTION: Open Source CRM Implementation COST: $8,995 RESULTS: Sales Reps migrated to enterprise system where they had access to pre-defined email templates, standard & current company documents, and the tools to better perform their job. What used to be “Sales Rep Data” is now company data and Executives have insight into sales activity and forecasts. The system can be easily expanded company-wide with no licensing costs.
- 15. CyOp Success CONCRETE PRODUCTS MANUFACTURER COMPANY PROFILE: 80-Person Concrete Products Manufacturer ISSUES: Was a division of a larger company that was being divested and had 90-days to move off of parent company’s AS/400 based JD Edwards system. Previous system had been highly customized with large amounts of historical data requiring migration. SOLUTION: Open Source ERP & EDI Implementation COST: $80,000 Initial Project - $150,000+ To Date RESULTS: Was able to migrate customer to new system in “record” time while streamlining processes to eliminate need for approximately $60,000 in data collection devices, reducing shipment times, reducing order times, and providing customers with better levels of service. Customer is so happy with results, they continue to use CyOp for ongoing developments & improvements to the system and, to date, have spent over $150,000 with CyOp.
- 16. How To Get Started JOIN THE CYOP PARTNER PROGRAM & START EARNING MONEY TODAY! To enroll as a CyOp Partner and begin earning substantial revenues By referring CyOp’s open source consulting & development services, please call us today at: (800) 376-9704 Or, complete our Partner Application at: http://www.cyop.net/partner/cyop_partner_application.php
- 17. Contact Us Today! (800) 376-9704 THANK YOU FOR YOUR TIME! We Look Forward To A Long & Mutually Profitable Relationship!