CHAPTER 1: INTRODUCTION TO ERP

Introduction Types of ERP Systems

ERP seamlessly integrates core functions 1. On-Premise ERP - Installed and managed
like finance, inventory, HR, and customer service, on the company's own hardware.
creating a single source of truth. No more data
silos or information chaos. With ERP, everyone ✅ Pros: Greater control and security,
plays in tune, leading to: customizable.

 Boosted efficiency – Automate tasks, ❌ Cons: High upfront costs, expensive

streamline processes, and eliminate maintenance.
redundant work. 2. Cloud ERP - Hosted in the cloud and
 Crystal-clear visibility – Gain real-time accessed via the internet.
insights across your entire operation,
making informed decisions with ease. ✅ Pros: Affordable, easy to set up, no
 Enhanced collaboration – Break down hardware investment.
departmental walls and foster seamless
communication. ❌ Cons: Less control over data security,
 Happier customers – Deliver exceptional limited customization.
service with a unified view of customer
3. Hybrid ERP - A combination of on-
needs.
premise and cloud ERP.
 Profitable growth – Reduce costs, optimize
operations, and unlock new opportunities. ✅ Pros: Balances control, security, and
flexibility.
An Enterprise Resource Planning (ERP) system
is a fully integrated business management ❌ Cons: More complex to manage,
system covering functional areas such as requiring IT expertise.
logistics, production, finance, accounting, and
human resources. It organizes and integrates 4. Industry-Specific ERP - Tailored for
operation processes and information flows to industries like manufacturing, healthcare,
optimize resources such as manpower, materials, or retail.
money, and machines.
✅ Pros: Pre-configured features for industry
ERP offers: One database, One application, One needs.
user interface,
❌ Cons: May be costly and less flexible.
For the entire enterprise, replacing
5. Open-Source ERP - Free and
previously disparate systems in manufacturing,
customizable software with open-source
distribution, finance, and sales.
code.
✅ Pros: Affordable, high customization.
Benefits of ERP
❌ Cons: Requires strong IT expertise for
ERP systems provide numerous benefits, maintenance.
including:
 Improved efficiency and productivity
ERP System Architecture
 Reduced costs
 Increased profitability ERP systems can follow different architectures,
 Enhanced decision-making each with advantages and challenges:
 Improved customer service
 Better compliance 1. Monolithic Architecture - Single
 Increased agility and scalability codebase containing all functionalities.

ERP helps businesses streamline processes, ✅ Pros: Simple to deploy, good for small
reduce errors, and improve communication across businesses.
departments, leading to cost savings and better
❌ Cons: Limited scalability, costly
decision-making. ERP can provide with the real-
modifications.
time data and insights you need to make better
decisions about your business. This can help you 2. Multi-Tier Architecture - Divides ERP
improve customer service, compliance, and into layers: Presentation (UI), Application
agility in a competitive market. (business logic), Data (database)
✅ Pros: Better performance, easier
maintenance.
What is ERP?
❌ Cons: More complex to set up.
ERP stands for Enterprise Resource
Planning – a software system that integrates and 3. Cloud-Based Architecture - ERP is
manages core business processes. It acts as the hosted in the cloud, accessible via a web
central nervous system of a business, providing a browser.
unified view of operations across departments
such as finance, accounting, sales, and inventory ✅ Pros: Easy deployment, lower costs,
management. flexible scalability.

Key advantages: ❌ Cons: Potential security risks, reliance on

internet.
✅ Single source of truth for all business
data 4. Service-Oriented Architecture (SOA) -
ERP functions are modular and loosely
✅ Better collaboration across teams connected.
✅ Increased operational efficiency
 ✅ Pros: High flexibility, easy integration  Advantages: Improved customer
with other systems. engagement, enhanced sales productivity,
personalized marketing.
❌ Cons: Complex implementation,
requiring strong IT expertise. 🔹 Manufacturing Management
5. Microservices Architecture -  Components: Production Planning, Shop
Characteristics: ERP functions are broken Floor Control, Quality Management.
into small, independent services.  Benefits: Increased efficiency, reduced
lead times, better quality control.
✅ Pros: Highly scalable, easy updates,
agile development. 🔹 Integration and Data Analytics
❌ Cons: More complex management,  Importance: ERP modules must be
orchestration challenges. integrated for seamless business
operations.
 Data Analytics: Supports decision-making
with real-time insights.

CHAPTER 2: ERP CORE FUNCTIONALITIES Key ERP Functionalities in Detail

Core ERP Functionalities 1. Financial Management

ERP systems integrate essential business 💰 Manages accounts payable, accounts

processes. Some of the core functionalities receivable, general ledger, and financial
include: reporting.

✅ Finance & Accounting – Manage accounts 📊 Provides a holistic view of the company’s
payable, receivable, general ledger, and financial financial health.
reporting. 📈 Enables better budgeting, forecasting, and cash
✅ Manufacturing – Plan production, track flow management.
inventory, manage bills of materials, and optimize
shop floor operations.
2. Inventory Management
✅ Supply Chain Management (SCM) – Source
materials, manage suppliers, track inventory 📦 Tracks inventory levels, locations, and
levels, and optimize logistics. movements.
✅ Customer Relationship Management (CRM) – 📉 Optimizes inventory to reduce costs and avoid
Manage sales, marketing, customer service, and stockouts.
support.
✅ Improves order fulfillment accuracy and
✅ Human Resources (HR) – Handle payroll, efficiency.
benefits, training, and employee performance.
3. Supply Chain Management (SCM)
All ERP systems aim to integrate and
streamline business processes to improve 🚚 Manages procurement, supplier relationships,
efficiency and visibility. and logistics.
🔄 Streamlines goods and material flow across the
supply chain.
General Model of ERP
💰 Reduces costs and improves delivery times.
🔹 Financial Management
4. Customer Relationship Management
 Features: General Ledger, Accounts (CRM)
Payable, Accounts Receivable, Budgeting,
Financial Reporting. 🛒 Handles sales, marketing, customer service,
 Benefits: Streamlined financial processes, and support.
real-time reporting, improved decision- 📊 Provides a 360-degree view of customers.
making.
🎯 Enables targeted marketing and sales
🔹 Supply Chain Management (SCM) campaigns.
 Components: Procurement, Inventory 😊 Improves customer satisfaction and loyalty.
Management, Order Management,
Logistics. 5. Human Resource Management (HRM)
 Advantages: Enhanced visibility,
inventory optimization, efficient order 👨‍💼 Manages payroll, benefits, training, and
fulfillment. employee performance.

🔹 Human Resource Management (HRM) 📋 Automates HR tasks, improving data accuracy

and compliance.
 Modules: Employee Information
Management, Payroll, Benefits 🎯 Streamlines talent acquisition and
Administration, Time and Attendance. management.
 Benefits: Centralized employee data,
automated payroll, compliance
management. Additional ERP Functionalities
🔹 Customer Relationship Management (CRM) 🔹 Manufacturing – Manages production
planning, scheduling, and shop floor operations.
 Features: Sales Force Automation,
Marketing Automation, Customer Service.
🔹 Project Management – Oversees projects, 📌 Accounting & Finance
tasks, resources, and budgets.
📌 Human Resource Management
🔹 Business Intelligence (BI) – Provides data (HRM)
analysis and reporting capabilities.
📌 Manufacturing (MRP)
📌 E-commerce & Website Builder
ERP systems help businesses gain a competitive
edge by:
 Improving efficiency and productivity KEY ASPECTS OF ODOO ERP
 Reducing costs  Modular Architecture – Businesses
 Increasing profitability select only the modules they need.
 Enhancing decision-making  User-Friendly Interface – Intuitive and
 Improving customer service modern UI for efficient task handling.
 Ensuring compliance  Customization & Scalability – Tailor
 Increasing agility and scalability workflows, forms, and reports.
 Integration with Third-Party Apps –
Connects with payment gateways, e-
commerce platforms, and shipping
services.
 Cloud & On-Premise Deployment –
Choose between Odoo’s cloud servers or a
private infrastructure.

ODOO COMMUNITY VS. ENTERPRISE EDITION

📌 Community Edition (Free) – Basic modules,
fully open-source.
📌 Enterprise Edition (Paid) – Advanced
features, premium support, and multi-company
management.

BENEFITS OF USING ODOO ERP

ODOO IN ERP  More affordable than SAP, Oracle, and
Microsoft Dynamics
Odoo is a comprehensive Enterprise
 Scalable for businesses of all sizes
Resource Planning (ERP) solution that integrates
 Open-source, ensuring high
various business processes into a single platform.
customizability
It is an open-source, modular, and highly
 All-in-one solution for managing business
customizable system that helps businesses
processes
streamline their operations.

IMPLEMENTATION OF ODOO ERP

Why Businesses Choose Odoo ERP?
Steps to Implement Odoo:
 Cost-effective alternative to SAP, Oracle,
and Microsoft Dynamics. 1. Define business needs
 Highly adaptable for industries like 2. Select relevant modules
manufacturing, healthcare, finance, and 3. Customize workflows
retail. 4. Train employees
 Open-source framework allows 5. Deploy and monitor performance
continuous improvements and
customization.
 All-in-One Management System,
eliminating the need for multiple CASE STUDY / USE CASE EXAMPLE
standalone applications. 📌 Example of Odoo ERP implementation in a
dental clinic or finance company.

FEATURES OF ODOO ERP 📌 How Odoo improved efficiency and workflow

automation.
 Modular structure (Sales, CRM, HR,
Accounting, etc.)
 User-friendly interface with customization
options
 Cloud and on-premise deployment
flexibility
 Integration with third-party applications

CORE MODULES OF ODOO

📌 Sales & CRM
📌 Inventory & Warehouse
Management