What is Odoo ERP: deployment method, business integration, cost input, development and future

Types of ERP deployments

How to deploy ERP system? Through years of development, the deployment methods of ERP systems have become more diversified, including public cloud or private cloud deployment, local deployment or hybrid deployment scenarios integrating different environments. Enterprises can choose according to their own conditions and application scenarios. The key benefits of each deployment model are described below to help you choose the most appropriate ERP deployment option.

Enterprises can also customize the core functions of Odoo free open source ERP system or build application extensions according to their own business needs, combined with the consultation and advice of Odoo authoritative experts, and will seamlessly integrate with standard Odoo ERP functions to meet their own business scenarios specific needs.

ERP cloud

In the ERP cloud deployment method, the software is hosted on the cloud and delivered through the Internet in the form of a service, which supports user subscription. Software providers are often responsible for performing regular maintenance, updates, and security-related work. Today, ERP cloud is the most popular deployment method because of lower upfront costs, higher scalability and flexibility, easier integration, and more.

In this traditional software deployment mode of local ERP , everything is managed by the enterprise itself. ERP software is usually installed in a data center selected by the enterprise. The installation and maintenance of software and hardware need to be performed by personnel arranged by the enterprise.

Many businesses are modernizing their on-premises ERP systems and upgrading to a cloud-deployed model. This requires enterprises to carefully plan for ERP upgrades and comprehensively evaluate ERP software and its deployment options.

Hybrid ERP
If an enterprise needs to use both ERP cloud and local ERP to meet business needs, it can choose a hybrid ERP cloud model. In this mode, some ERP applications and data will be deployed in the cloud, and some will be deployed locally. This architecture is also sometimes referred to as a two-tier ERP.

ERP integration

Today's ERP systems are capable of providing a wide range of business functions, but still need to connect and synchronize with other applications and data sources, such as CRM and HCM (learn what is HCM) software, e-commerce platforms, industry-specific solutions and even other ERP systems. Through ERP integration, enterprises can integrate information from different systems, obtain a unified information view, improve business process efficiency, improve customer experience, and promote collaboration between teams and business partners.

Open source intelligent manufacturing Odoo free open source ERP system is open and flexible, and can be easily integrated with various software products through connectors or custom adapters (such as application programming interfaces). Besides that, there are many other ERP integration methods like ESB (Enterprise Service Bus) and iPaaS (Integration Platform as a Service). iPaaS is an open source intelligent manufacturing and self-developed method of integrating and synchronizing multiple data sources, which is welcomed by various types of enterprises. The iPaaS platform can quickly synchronize local ERP or ERP cloud with SaaS applications from the same supplier or a third party. Realizing ERP integration through the iPaaS method does not require companies to spend too many professional and technical personnel thinking about how the ERP system operates to achieve integration operations and reduce operating costs, because the iPaaS platform usually requires almost no coding, is very flexible and completely free and open source, and also has many other functions. , such as automatically generating APIs, integrating machine learning data, integrating IoT networks, providing pre-built content, etc.

Total cost of ERP

How to choose an ERP system? Businesses usually take cost into consideration. Typically, the cost of an ERP depends on the software vendor, the modules the business chooses, and the deployment method. Generally speaking, the private cloud deployment cost of Odoo free open source ERP is much lower than that of traditional ERP products, because Odoo private cloud deployment does not need to purchase hardware, nor does it need to hire internal IT experts with high salaries. The maintenance work will be carried out by Odoo Asia-Pacific Gold Medal Service Organization Open Source Intelligent Manufacturing. Customers usually only need to provide solutions based on actual business needs through Odoo authoritative expert consultation and advice, and pay for implementation services. The products are completely free and open source.

 When calculating the return on investment and total cost of ownership of a new ERP implementation project, businesses must consider initial and ongoing labor costs, both of which are as important as software selection and deployment costs. With cloud and hybrid deployment options, businesses must evaluate new factors such as software maintenance, facilities, computer capacity, downtime, resiliency, security, privacy, and IT staff costs are important considerations. As mentioned earlier, cloud deployment options can significantly reduce capital and operating costs, thereby increasing ROI and reducing total cost of ownership.

The rapid development of ERP

Computerized business applications were born in the 1960s with the mainframe, targeting the accounting and finance fields. Such groundbreaking applications are faster and more accurate than manual processes, but are costly, limited and slow. These applications soon gave rise to dedicated stand-alone solutions such as sales order processing and manufacturing requirements planning (MRP).

In the mid-1980s, competition in manufacturing intensified significantly, and the industry was in dire need of new tools. The new MRP II software integrates accounting and finance, sales, purchasing, inventory, and manufacturing planning and scheduling to provide manufacturers with an integrated system.

In the late 1990s, ERP came out. ERP revolutionized the technology industry by serving a wider range of industries and integrating functions such as MRP II, human resources, project accounting, and end-user reporting.

After entering the 21st century, the speed of Internet development has accelerated, major Internet companies have introduced and popularized open source software technology, and new development tools have emerged, triggering another innovation in ERP suites. The rise of browser-based software has paved the way for the birth of free and open source ERP software deployed in the cloud. Odoo free and open source ERP is a breakthrough innovation in the field of ERP, which further expands the product functions and service innovation and ecology of ERP solutions growing up very fast.

Nowadays, the wave of digital transformation is in full swing, and the Odoo free and open source ERP system led by Open Source Intelligence is increasingly using artificial intelligence (know what is artificial intelligence), machine learning, robotic process automation (RPA), Internet of Things, natural New intelligent technologies such as language processing (NLP) and in-memory databases. With the help of open source intelligence, professional consulting and services comparable to PwC. Combining Odoo's free and open source ERP excellent products and ecology, enterprises can build more efficient processes, make full use of the latest insights obtained from transactional data and unstructured data, and maintain competitiveness in unprecedented times of change.

Future Trends of ERP

The trend of digital transformation is accelerating, and the ERP system is the core of digital transformation. When businesses fully embrace digital technologies, they can revolutionize the way they operate.

According to research by Odoo Research Institute, an effective way to accelerate the digitization of core business is to "remove barriers", that is, remove any unfavorable factors that hinder business development, including outdated processes and systems. Therefore, there is no doubt that enterprises need a more powerful ERP system.

Here are three trends based on current momentum:

Cloud deployment: As more and more businesses discover the advantages of ERP cloud, such as anytime, anywhere access, lower hardware and technical support costs, higher security, and easy integration with other systems Etc., ERP private cloud deployment will be more and more favored by enterprises. According to the 2022 ERP Report (2022 ERP Report) released by Panorama Research, "more than half of enterprises choose private cloud deployment (70%), and only 30% of enterprises choose local deployment." become more and more important.

Vertical integration: The tug-of-war between single-advantage solutions and integrated ERP has officially come to an end. In the future, enterprises will need to combine the advantages of these two solutions, that is, a fully integrated ERP system that supports vertical expansion. This way, businesses can get the specific functionality they need while avoiding information silos and integration issues. In addition, since business processes in an ERP system are tailored to the needs of individual businesses, there is greater flexibility.

Self-control: Employees, customers, and suppliers expect businesses to be able to provide them with the right content and features based on their specific needs or interests to help them be more productive. With the changes in the workforce structure, especially in the manufacturing industry, ERP open source and low-code implementation platforms have begun to receive more and more attention. This type of platform can support users to create the experience they need, and realize the autonomy and control of users, without requiring enterprises to adapt to the software themselves. Users also get custom dashboards that support various devices, AI-driven search, personalized chat tools and workflows.

10 Essential Features of an ERP System

What are the basic characteristics of ERP management system? Any modern ERP system has many functions, but these functions vary according to the industry it serves and the modules provided. However, all enterprise resource management systems should have the following 10 essential characteristics:

1. Common database: store information centrally, create a unified source of truth, and provide consistent, shared data and cross-functional enterprise views.
2. Embedded Analytics: Provides built-in analytics, self-service business intelligence, reporting capabilities and compliance management tools to deliver intelligent insights across all areas of the business.
3. Data visualization: Visually present key information through dashboards, KPIs, and point-and-click analysis functions to help companies make informed decisions quickly.
4. Automation: Automate repetitive tasks and deliver advanced robotic process automation (RPA) powered by artificial intelligence and machine learning.
5. Consistent UI/UX: ensures that all modules have the same look and feel, and provides easy-to-use configuration and personalization tools for all processes, users (including customers and suppliers), business units, locations, product lines, etc. .
6. Integration: Enable seamless integration of business processes and workflows, and easy integration of other software solutions and data sources, including those from third parties.
7. New technologies: Support technologies such as artificial intelligence and machine learning, digital assistants, Internet of Things, RPA, security and privacy protection, and mobility.
8. Technology platform: Provide a fast, stable and proven technology stack for this long-term investment in ERP, including free and open source ERP system source code, low-code implementation platform, iPaaS, data management, etc.
9. Multinational Support: Support multiple languages, currencies, and local business practices and regulations, while providing technical support for cloud services, training, help desk, and implementation.
10. Deployment options: Cloud, on-premises, or hybrid deployments are supported.

Which ERP system is best for me?

ERP is not only suitable for multinational enterprises. Open source intelligent manufacturing · Odoo has designed corresponding ERP solutions for enterprises of all sizes, including small, medium and large enterprises. We also provide industry-specific and enterprise-specific capabilities to meet your unique business needs. However, regardless of the business unit and enterprise size, you need to follow good practices and carefully plan your ERP implementation project.

ERP systems for small businesses

ERP software for small businesses can help growing businesses break free from spreadsheets and efficiently manage every aspect of their business, from sales and customer relations to finance and operations. ERP tools for small businesses are often deployed in private clouds, can be installed quickly, and can scale as the business grows.

ERP system for medium-sized enterprises

Today, ERP software for midsize companies and their subsidiaries has built-in business analysis capabilities, supports rapid deployment, and provides best practices for dozens of different business processes, covering areas such as finance, HR, and supply chain management. With ERP tools for midsize businesses, growing businesses can effectively scale and compete even with limited resources. In addition, for medium-sized enterprises with complex processes or planning to achieve rapid growth, the modular Odoo free and open source ERP has become a popular choice.

ERP system for large enterprises

Large enterprises with businesses all over the world, or with multiple subsidiaries, need to adopt a powerful and advanced ERP system to innovate business models and processes. These ERP systems contain embedded artificial intelligence, machine learning and business analytics tools as well as intelligent automation capabilities. Open source intelligent manufacturing · Odoo system supports enterprises to flexibly choose local deployment, cloud deployment or hybrid deployment mode according to business needs. What's more, these ERP systems can integrate with existing databases and even run on powerful new in-memory databases.

Many enterprises are renovating their on-premises ERP systems and upgrading to private cloud deployment models. This requires enterprises to carefully plan for ERP upgrades and comprehensively evaluate ERP software and its deployment options.

Editor: Open Source Smart Manufacturing (OSCG) - the earliest and largest Odoo gold medal service organization in China