ENTERPRISE RESOURCE PLANNING AND MANAGEMENT

Enterprise Resource Planning Evolution of ERP

• A system that organizations use to manage their business processes and • 1960’S - systems just for inventory control only.
functions. If management is done by using a special kind of software which is • 1970’S – material requirements planning, inventory with material planning and
the ERP software. procurement (mrp1)
• It integrates data from all the departments in an organization into a central - MMAS – material management and accounting system
data base. Thus, streamlining business processes and making the data sharing • 1980’S – manufacturing requirements planning (mrp2)
easier. - Extended mrp to shop floor and distribution management
• It refers to a set of activities that businesses adopt to enable them manage • 1990’S – enterprise resource planning in a central data base
their most important operations effectively. - Covering all activities of an enterprise
• It serves as the key performance indicators which enable a business to meet • 2000’S – enterprise resource planning using internet
its corporate responsibilities. • 2010’S - CLOUD BASED ERP – combination of cloud based and ERP
• This comprise of software applications which are used to manage inventories • 2020’S - ARTIFICIAL INTELLIGENCE ERP
and products, provide services to the customers, track orders, and enhance
effective interactions with the suppliers of a company ERP Software
• adopted by the Human resources department and Finance department in order • It is a suit of application software/accounting software.
to ensure that employees relate with each other as expected and that the • For the sake of no trial, google sheet is applicable nor excel.
resources of the company are used efficiently.
• Acts as a firm operational backbone whereby it enables a business enterprise Components of ERP
to control its manufacturing and distribution functions. Most companies that 1. Finance/ Accounting – gathers and manage financial data and financial
make use of this system have been able to improve their production volumes processes from various functional departments and generate valuable financial
thereby making them fulfill their order requests and minimize their operating reports such as balance sheet, ledger, trial balance and quarterly financial
costs significantly. statements.
• It is a set of integrated business applications or modules which carry out 2. Human Resources - maintains an employee database containing information
common business transactions such us general ledger, accounting or order about employee’s contact information, salary details, attendance, performance
management. evaluation and promotion details. This helps management to make use of the
• An ERP is an attempt to integrate all functions across the company to a single employee’s best talent.
computer system that can serve all those functions specific needs and it also 3. Manufacturing – provides the information needed for manufacturing process
serves as a support business through optimizing, maintaining and tracking to take place. It contains number of manufacturing methods so that the
business functions from product planning, parts purchasing, inventory control, organization can choose the best fits for them.
and product distribution to order tracking. Ex: Bill of materials, scheduling, capacity, work flow management, quality
To sum it up, an ERP is an IT software that integrates business activities across an control, cost management, manufacturing process, manufacturing projects,
enterprise and manufacturing flow.
 4. Supply chain management – referred to as logistics. It improves the flow GOAL: TO SELECT THE MOST SUITABLE SOFTWARE PACKAGE SOLUTION
of materials through an organization by managing planning, scheduling, ADVANTAGES
procurements and fulfillment to maximize customer’s satisfaction and • Reliable Information Access – consistent and accurate
profitability. • Avoid Data and Operation Redundancy – cost reductions
5. Project management – discipline of planning, organizing, motivating and • Delivery and Cycle Time Reduction
controlling resources to achieve a specific goal such as costing, billing, time • Cost Reduction
and expense and activity management. • Easy Adaptability - training
6. Customer relationship management – involves managing all aspects in a • Improved Scalability
customer relationship with an organization to increase customer loyalty and • Improved Maintenance
retention and an organization’s profitability. This includes sales and marketing, • Global Outreach
commissions, service customer contact and call center support. • E-commerce and E-Business

ERP IMPLEMENTATION COMMON ADVANTAGES

1. MAKE (use of internal resources)- Developing a custom-built ERP package, • Business Integration
specific to the requirements of the organization, with the help of the in house • Improved Customer Service and Order Fulfillment
- IT department • Improved Communication to Suppliers and Customers
2. BUY - Going for tailor-made ERP packages available in the market. • Reduce Inventory
• One Common System- Less Duplication, More Efficient
MAJOR THINGS FOR ERP IMPLEMENTATION • Save Enormous Time and Effort in Data Entry
• Flexibility of Software Integration • Improved Business Performance
• Availability of Internal and Technical Knowledge and Resources
• Education and Training DISADVANTAGES
• Need an Outside Consultant • Time-Consuming
• Implementation Strategy and Execution • Expensive
• Conformity of the Modules
ERP PRODUCT SELECTION CRITERIA: 5 - STRATEGIC REQUIREMENTS • Vendor Dependence
LEVEL • Features and Complexity
1. FUNCTIONALITY – functional aspects are all covered and integrated. • Scalability and Global Outreach
2. TECHNOLOGY – latest IT trends are covered • Extended ERP Capability
3. VENDOR – customizing and implementing activities
4. SUPPORT – check the service options available COMMON DISADVANTAGES
5. COSTS – benefit from the software is greater than the cost (how much is the • High Software Cost
return on investment. • Consulting Fees
• Forced Change of Processes
 • Very Complex Software ODOO ERP SYSTEM
• Lack of Trained People • is a Belgian suite of business management software tools that include
• Not Internet Ready customer relationship management, e-commerce, billing, accounting,
SUCCESS STORIES manufacturing, warehouse, project management, and inventory management.
• AUTODESK (computer aided design software maker)- reduced delivery time from • integrates CRM, sales, project management, manufacturing, inventory
2 weeks to less than 24 hours management, accounting, HR management, marketing activities, customer
• IBM storage system divisions- reduced time to reprice (5 days to 5 minutes),
time to ship a replacement part (22 days to 3 days) and time to complete a credit
check (20 minutes to 3 seconds.
• Fujitsu Microelectronics- Reduced the delivery cycle time for filling orders (from
18 days to1.5 days) and time to close financial books (from 8 to 4 days)

WHY ERP FAILS?

• Systems can be very difficult to use
• Software logic and the company strategy may not match
• Inadequate training to the end users because many company cut costs by cutting
user training
• ERP systems can be very expensive to install
ERP IN THE FUTURE
• INTERNET- continue to help organizations integrate data and process across
functional departments support tools and other business applications into a single software solution.
• Availability of web based and wireless ERP systems • Odoo is an open-source enterprise resource planning (ERP) software that
• Adaptation of easy to install ERP systems offers a suite of business applications for all businesses. Odoo ERP covers all
• Linkage to other software systems. Examples, supply chain management, e- core functionalities required to run a company, including CRM, accounting,
commerce, CRM. inventory, manufacturing, project management, and e-commerce.
CONCLUSIONS • On-Demand Open Object
• ERP is a key backbone application for companies in a fast-changing industries. • What is Odoo doing? Making companies a better place, one app at a time. We
• The risks in an ERP implementation are usually outweighed by the benefit. think business software should cover complex needs without being
• Erp is recommended in an organization not only because the advantages complicated. Our mission is to provide software that is intuitive, full-featured,
outnumbered the disadvantages but also by keeping in mind the ways to tightly integrated, effortless to upgrade, all while running smoothly for every
overcome the disadvantages. An organization has to correctly weigh the business, every user.
advantages and disadvantages of ERP before going for them.
 WHY IMPLEMENT ODOO ERP? example, a retail business can enable inventory management and POS but
1. Streamlined Business Processes: Odoo ERP acts as a unified platform, ignore accounting modules initially. Odoo apps can be installed or uninstalled
streamlining and automating diverse business processes. From order processing to easily, allowing the system to grow as per evolving business requirements.
inventory management, the system ensures efficiency and reduces the likelihood of Odoo is customizable using user-friendly studio tools to tailor apps and
errors. workflows to each company's specific needs without coding. The flexible
2. Cost-Effective Solution: The open-source nature of Odoo means no hefty modular architecture ensures companies only use and pay for features that are
licensing fees. For organizations mindful of their budget, Odoo ERP offers a cost- relevant to their operations.
effective alternative without compromising on functionality. 3. User-Friendly Interface - Odoo provides an intuitive graphical interface that
3. Enhanced Productivity: The user-friendly interface makes Odoo ERP accessible is easy to navigate. Employees can quickly learn how to use the software with
to all team members. Quick adaptation leads to increased productivity, and the minimal training. The apps feature streamlined menus and workflows that allow
automation of workflows further enhances efficiency. users to operate the system efficiently. The modern interface utilizes tiles,
4. Scalability for Growth: As businesses evolve, so do their needs. Odoo’s modular graphs, calendars, and kanban boards giving visual cues for rapid
approach allows organizations to start small and scale up as required, ensuring that comprehension. Complex back-office functions become simple front-office
the ERP system is always in sync with the growth trajectory. processes with Odoo's intuitive design. The consistency in interface and
5. Community Support and Regular Updates: The vibrant Odoo community navigation across apps reduces the learning curve for employees.
ensures ongoing support and regular updates. This ensures that the ERP system stays 4. Automates Processes and Workflows - Odoo automates business
current, incorporating the latest features and security enhancements. processes like approvals, notifications, reminders, reconciliations, and more.
6. Real-Time Insights: With Odoo ERP, businesses have access to real-time data This reduces time spent on administrative tasks and eliminates reliance on
and analytics. Informed decision-making becomes a reality, allowing organizations to spreadsheets. Odoo workflows enhance productivity across sales, purchases,
respond promptly to market changes and make strategic moves. inventory, accounting, projects, and other operations. Workflows in Odoo can
be customized to match each company's standard operating procedures
ADVANTAGES OF USING ODOO ERP? closely. Automated processes in Odoo minimize errors, improve compliance,
1. Comprehensive All-in-One Business Platform - Odoo bundles together and optimize cycle times. The increased productivity from process automation
dozens of business applications under one integrated system. Businesses can is a key competitive advantage for small businesses.
fulfill their ERP needs from accounting and billing to inventory and 5. Real-Time Dashboards and Reports - Odoo facilitates informed decision
manufacturing without having to adopt separate software solutions. This making through its powerful reporting capabilities. Managers can use real-time
consolidated approach is highly beneficial for small companies as it is cost- dashboards to monitor all critical business metrics from one screen. Custom
effective and helps optimize business processes across departments reports and graphs provide actionable insights into all aspects of the business.
seamlessly. Having a single, unified platform eliminates the need for complex Odoo enables users to create customized reports using easy drag-and-drop
integrations between disparate applications. Data flows smoothly across Odoo tools. Scheduled reports keep stakeholders automatically updated with latest
modules to provide managers with complete visibility and real-time data. Dashboards and reports in Odoo are interactive allowing users to drill
information. down into specifics from high level views.
2. Modular and Customizable - While Odoo offers an all-in-one solution, its 6. Works Online and Offline - Odoo apps work seamlessly online and offline.
modular nature allows businesses to activate only the apps they need. For Users can continue using the system and add data even without an internet
 connection. Odoo automatically syncs all new entries when connection is SUCCESS STORIES OF IMPLEMENTING ODOO ERP?
restored. This ensures continuity of business operations even when internet La Prairie - Global beauty brand La Prairie wanted to make their customers feel
connectivity is intermittent. The offline mode allows salespersons or warehouse special. In 2023, they implemented Odoo Sales and CRM, and the results were
managers to keep working remotely in areas with poor networks. Odoo mobile beautiful. Targeted recommendations boosted the average order value by 30%, while
apps provide this offline capability for uninterrupted work. faster response times (20% quicker!) made customers feel pampered. And the best
7. Integrated Communication - Smooth communication is enabled across part? A 15% jump in loyalty showed that personalized care truly wins hearts. Odoo
Odoo through features like the Chatter module. Employees can follow helped La Prairie add a touch of magic to their interactions.
documents, projects or teammates to stay updated. They can also have internal Taylor Stitch - Struggling with slow production due to outdated systems, Taylor
discussions and leave comments, avoiding the need for external Stitch, a California clothing brand, found their answer in Odoo Manufacturing.
communication apps. Odoo chatter establishes orderly communication trails Implemented in late 2022, it cut their production time by 25%, meaning quicker
rather than scattered email threads. Integrated communication results in clothes for excited customers. On top of that, 10% more efficient manufacturing and
improved collaboration, transparent decisions and accountability within the 15% lower inventory costs made everyone smile. It's not just about fashion; it's about
company. happy customers and a smooth operation, thanks to Odoo.
8. Accessible from Any Device - The Odoo apps work optimally across mobiles, Habitat for Humanity International - Global non-profit Habitat for Humanity
tablets, laptops, and PCs. Remote employees can even work while on the go needed a way to manage their projects, volunteers, and donations more effectively.
with the native Android and iOS Odoo apps. Odoo's responsive interface adapts In 2022, they found their solution in Odoo. Improved project management helped
smoothly to any device screen size. The web-based architecture of Odoo makes them complete projects 20% faster, giving more families a safe place to call home.
it accessible from anywhere without installation. Employees can use their Automating tasks reduced administrative costs by 15%, freeing up resources for their
preferred devices to be productive from home or in the field. BYOD adoption is important work. And with better communication tools, volunteer engagement
frictionless with Odoo's universal access. increased by 10%, building a stronger community around their mission. Odoo helped
9. Scalable Cloud Hosting - Odoo provides reliable cloud hosting options to run Habitat for Humanity build a brighter future, one efficient step at a time.
the ERP software. Small businesses can avoid investing in on-premise servers
and IT infrastructure. The flexible plans allow easy scalability from just 2 users Data Types
to unlimited users as the company grows. Odoo cloud hosting on AWS or OVH 1. Master Data - Master data is usually part of the technical or business
provides high reliability and uptime. Companies can choose between public or requirements for the module. In other words, such data is often necessary for
private cloud deployment. The hassles of version updates, security patches, the module to work properly. This data will always be installed when installing
backups are eliminated with managed cloud hosting. the module.
10. Active Community Support - As open-source software, Odoo has a 2. Demo Data - In additional to master data, which are requirements for a
vibrant global community that is constantly enhancing the product. Users can module to work properly, we also like having data for demonstration purposes:
tap into the community forums, documentation, videos etc. to find solutions to - Help the sales representatives make their demos quickly.
any issues they face. Active community support accelerates implementation - Have a set of working data for developers to test new features and see how
and usage. Custom developments and integrations shared by the community these new features look with data they might not have added themselves.
reduce the need for in-house coding. Close relationships between users and - Test that the data is loaded correctly, without raising an error.
developers results in rapid evolution of Odoo apps. - Setup most of the features to be used quickly when creating a new database.
 Product approach: Giving the prospect a sample or a free trial to
Demo data is automatically loaded when you start the server if you don’t explicitly review and evaluate your service
say you don’t want it. This can be done in the database manager or with the command 4. Presentation - In the presentation phase, you actively demonstrate how
line. your product or service meets the needs of your potential customer. The word
presentation implies using PowerPoint and giving a salesy spiel, but it doesn’t
Sales process - is a set of repeatable steps that a sales person takes to take a always have to be that way—you should actively listen to your customer’s
prospective buyer from the early stage of awareness to a closed sale. And on average, needs and then act and respond accordingly.
top sellers spend about 6 hours every single week finding and researching their 5. Handling objections - Perhaps the most underrated step of the sales
prospects. process is handling objections. This is where you listen to your prospect’s
THE TEXTBOOK 7 STEPS SALES PROCESS concerns and address them. It’s also where many unsuccessful salespeople
1. Prospecting - The first step in the sales process is prospecting. In this stage, drop out of the process—44% of salespeople abandoning pursuit after one
you find potential customers and determine whether they have a need for your rejection, 22% after two rejections, 14% after three, and 12% after four, even
product or service—and whether they can afford what you offer. Evaluating though 80% of sales require at least five follow-ups to convert. Successfully
whether the customers need your product or service and can afford it is known handling objections and alleviating concerns separates good salespeople from
as qualifying. bad and great from good.
Keep in mind that, in modern sales, it's not enough to find one prospect 6. Closing - In the closing stage, you get the decision from the client to move
at a company: There are an average of 6.8 customer stakeholders involved in forward. Depending on your business, you might try one of these three closing
a typical purchase, so you'll want to practice multi-threading, or connecting techniques.
with multiple decision-makers on the purchasing side. Account maps are an A. Alternative choice close: Assuming the sale and offering the prospect a
effective way of identifying these buyers. choice, where both options close the sale—for example, “Will you be paying
the whole fee up front or in installments?” or “Will that be cash or charge?”
2. Preparation - The next step is preparing for initial contact with a potential B. Extra inducement close: Offering something extra to get the prospect to
customer, researching the market and collecting all relevant information close, such as a free month of service or a discount
regarding your product or service. Develop your sales presentation and tailor it C. Standing room only close: Creating urgency by expressing that time is
to your potential client’s particular needs. Preparation is key to setting you up of the essence—for example, “The price will be going up after this month” or
for success. The better you understand your prospect and their needs, the “We only have six spots left”
better you can address their objections and set yourself apart from the 7. Follow-up - Once you have closed the sale, your job is not done. The
competition. follow-up stage keeps you in contact with customers you have closed, not only
3. Approach - Next, make first contact with your client. This is called the for potential repeat business but for referrals as well. And since retaining
approach. Sometimes this is a face-to-face meeting, sometimes it’s over the current customers is six to seven times less costly than acquiring new ones,
phone. There are three common approach methods. maintaining relationships is key.
Premium approach: Presenting your potential client with a gift at the
beginning of your interaction
Question approach: Asking a question to get the prospect interested
SALES PROCESS TAKEAWAYS: WHAT’S IMPORTANT? system, businesses can manage all aspects of their customer relationships,
Identifying the customer’s problem - You have a product or service you want to including communications, transactions, and support requests.
sell—now what? Anyone with a problem related to your area of expertise can be a 4. Increase Sales Efficiency: Odoo ERP can help businesses increase sales
potential customer. You'll need to dive deep into discovery work to learn each buyer's efficiency by automating many of the manual tasks that sales representatives
specific goals, needs, and pain points. typically perform. For example, with Odoo, sales representatives can easily
Develop a solution for the customer - Once you have uncovered problems for access customer information and order history.
your products to solve, tailor your offerings to fix those issues—and be prepared to 5. Enhance Sales Forecasting: Accurate sales forecasting is crucial to the
explain how your product truly is a solution for the given problems. success of any business. With Odoo ERP, businesses can generate accurate
Be persistent - Following up isn’t just for after the close to get repeat business. As sales forecasts based on real-time data. The Sales module provides businesses
stated before, most customers don’t buy right away. You have to handle objections with insights into their sales performance, including trends and patterns, which
and try, try, try again. can be used to predict future sales. This can help businesses plan their sales
strategy and allocate resources more effectively.
Bottom line: stay connected—set up a calendar for repeated contact with 6. System Nexgen Software House - Trusted Partners Of Odoo that offers full
potential, present, and past customers so you're more likely to reach them Integration & Customization of Odoo ERP to fit the specific needs of a business.
when they're ready to buy. This customization can be done for any module within the Odoo system,
including Sales, Inventory, Accounting, and Manufacturing, among others.
HOW ODOO ERP CAN STREAMLINE YOUR SALES PROCESS
Sales processes can be time-consuming, and without proper automation and
organization, businesses can miss out on opportunities to sell more products and
services. That’s where an Enterprise Resource Planning (ERP) system like Odoo can
come in handy. With its wide range of features and integrations, Odoo ERP can help
you streamline your sales process and increase revenue. In this blog post, we’ll
explore some of the ways Odoo ERP can help you improve your sales process.
1. Streamline Lead Management: Odoo ERP has a built-in CRM module that
enables businesses to capture leads and track them through the sales funnel.
With Odoo CRM, you can easily manage your leads, set up automated email
campaigns, and track the status of your leads.
2. Automate Sales Processes: Odoo ERP can help businesses automate their
sales processes, from creating quotes and sending invoices to managing
customer orders. With the Sales module, you can create professional-looking
quotes and proposals, which can be sent to customers for review and approval.
3. Improve Customer Relationship Management: Customer relationship
management is critical to the success of any business. With the Odoo ERP