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Odoo ERP functional
This document discusses the history and evolution of organizational systems, from early calculation systems used in the 1950s-1980s to address single business functions, to later functional systems of the 1970s-1990s that began integrating some departmental systems. It then describes the development of enterprise resource planning (ERP) systems starting in the 1990s to integrate all business functions and processes across an entire organization onto a single computer system. Key benefits of ERP include integrated data sharing and real-time information across the enterprise. The document also notes some challenges of ERP implementation like whether to modify business processes or software.
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Odoo ERP functional
- 1. By: Mosab MohamdZakaria
- 2. History of organizationalsystems Calculation systems . Functional systems . Integrated systems .
- 3. Calculation systems 1950-80 Single purpose Eliminate tedious human work Examples: Payroll, General ledger, Inventory Technology used: Mainframes, magnetic tapes, batch processing
- 4. A System/370 Model145 (1970’s)
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- 7. A very nice-lookingmagtape-drive
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- 9. Functional systems 1975-20 Use computers to improve operations Applications: Human resources, order entry, manufacturing resource planning Technologies: Mainframes, PC’s, LAN’s
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- 11. Functional systems Typicallycontained within a department Islands of automation Applications independently developed and deployed Driving force: availability of mini-computers
- 12. Functional system applications Human resources System Accounting and finance systems Sales and marketing System Operations management System Manufacturing Systems
- 13. Problems with functionbased application Sharing of data between systems Data duplication Data inconsistency Applications that don’t talk to one another Limited or lack of integrated information Isolated decisions lead to overall inefficiencies Increased expenses
- 15. ERP An ERPsystem is an attempt to integrate all functions across a company to a single computer system that can serve all those functions’ specific needs. “Integration” is the key word for ERP implementation. Enterprise Resource Planning (ERP) is not software. One more time: ERP is not software ERP system is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management
- 16. ERP An ERPsystem is a packaged business software system that allows a company to “automate and integrate the majority of its business processes; share common data and practices across the enterprise; and produce an access information in a real-time environment” – Deloitte Consulting An ERP system provides an enterprise database where all business transactions are entered, processed, monitored, and reported
- 17. Why ERP? 3 MajorReasons: To integrate financial data. To standardize manufacturing processes. To standardize HR information.
- 18. Types of Organizationalinformation Systems Administrative systems Scheduling / Transaction systems Value oriented systems Reporting and controlling systems Analysis and information systems Planning and decision support systems
- 27. Before ERP: Customers Customer Demographic Files Sales Dept. Vendor Orders Parts Accounting Accounting Files Purchasing Purchasing Files Orderis placed with Vendor Invoices accounting Inventory Files Warehouse Checks for Parts Calls back “Not in stock” “We ordered the parts” “We Need parts #XX” “We ordered the parts” Sends report Sends report Sends report Ships parts
- 28. 28 After ERP: Database Customers SalesDept. Purchasing Warehouse Accounting Vendor Inventory Data If no parts, order is placed through DB Orders Parts Order is submitted to Purchasing. Purchasing record order in DB Order is placed with Vendor And invoices accounting Financial Data exchange; Books invoice against PO Books inventory against PO Ships parts
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- 32. □Operational processes □ Dailyactivities (prospecting, contact management, telemarketing, direct mail) □ Contact management (tracks customer preferences, sales history, history of sales calls, closely connected with CRM) □Management control processes □ Sales management □ E.g. How should territories be shaped? □ E.g. How can we allocate salesperson time to call on the highest potential accounts? □ Sales forecasting □ Advertising and promotion □ Product pricing ERP: Sales and Marketing
- 33. ERP: Production andMaterials Management
- 34. ERP: Production andMaterials Management □ Operational processes □ Purchasing □ Receiving □ Quality Control (QC) □ Inventory management/control □ Management control processes □ Material requirements planning □ Just-in-time (JIT) manufacturing □ Capacity planning □ Production scheduling □ Product design
- 35. ERP: Human Resources □Operationalprocesses □ Creating and maintaining employee information □ Position information □ Job application screening □ Placement process □ Government reporting □ Payroll administration □ Performance management □Management control processes □ Design job specifications □ Recruit and retain highly qualified individuals □ Design compensation packages □ Employee training □ Improve productivity □ Maintain loyalty and moral
- 36. ERP: Accounting andFinance □Operational processes □ General ledger □ Fixed asset □ Sales order □ Account receivable □ Accounts payable □ Inventory control □ Purchase order □ Payroll □Management control processes □ Cash Management □ Capital budgeting
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- 38. Re-engineering Fundamental rethinkingand radical redesign of business processes Goal is to achieve major improvements in performance Efficient redesign of value chain: Primary activities - Inbound logistics, operations, outbound logistics, marketing and sales, service Secondary activities - Organizational activities, human resources, technology, purchasing
- 39. Business Process Re-engineering(BPR) • Technology used to mechanize work • Create new business rules • Remove outdated rules • Improve responsiveness • Reduce costs
- 40. Business Process Re-engineering(BPR) • Decentralize decision making –Become responsive to customer’s needs –Flatten organization • Facilitated by information technology • Redesign of jobs –New levels of judgment –New types of leaders
- 41. • The mainchallenge in implementing ERP is whether: - Change organization's business process to fit the software. Or - Modify the software to fit the organization’s business process ERP Implementation
- 42. Traditional Systems DevelopmentLife Cycle •Detailed analysis of system using tools and techniques to determine problem areas –Process models –Data models •Phases –Problem definition –Feasibility study –Systems analysis –Systems design –Detailed design –Implementation –Maintenance
- 43. New Approaches •Prototyping –Models shownto end-users for feedback, guidance –Not necessarily faster •End-user development –End-users create information systems using spreadsheets and databases –Not effective for large-scale development •Software packages –Economies of scale in development, enhancement, maintenance
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- 47. – Human Resources –Quality Management – Controlling – CRM – Financial Accounting – Materials Management Sales module may be integrated with:
- 51. Production Systems • Objectives –Createproduction plan –Acquire raw materials –Schedule equipment, facilities, human resources –Design products –Produce appropriate quantities and expected quality level
- 54. Human Resources Problems •Maintaining accurate employee information • Job analysis and design • Applicant selection • Compensation • Benefit administration • Training • Governmental reporting
- 55. Factors Influencing ISProject Success • Number of modifications • Effective communications • Authority for project implementation • Business management • Ability to generate additional funds to cover implementation
- 56. Factors Causing InformationSystems Project Failures • Poor technical methods • Communication failures • Poor leadership • Initial evaluation of project
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- 60. BusinessProcess (Re-) Engineering □Definition: □“the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed” (Hammer and Champy, 2003) □Motivations for re-engineering □ Customer sophistication □ Deregulation □ Increasing competition on global level
- 61. □ Adjustment ofan information system to customers needs □ Standard software solutions does not fit at all □ Enterprises are too different □ Individual adjustments are necessary □ Support of unique business processes are possible □ May results in a competitive advantage □ Very expensive ERP Customizing
- 62. Re-engineering vs. Customizing □Selectcommercial ERP and re-engineer business processes to fit the software □ Take advantages of generic business processes (best- practices) □ May disrupt the organization □ Does not support unique business processes □Select commercial ERP and customize ERP software to fit the business processes □ Unique business processes are possible □ Expensive & difficult customization □ Upgrade to newer versions difficult
- 63. Risks □Technology risks □ Howconsistent is the current corporate infrastructure with the new technology? □ Inconsistencies such as different databases, operating systems and network management structures increase the risk □Organizational risks □ Business process redesign to fit the package decrease the risk of excessive time and cost investments □ Customization increase project cost and risk □People factors □ If the current skill mix of the IT staff does not include knowledge of application specific ERP packages the organization will incur costs in re- skilling the workforce □Project size □ ERP can be the largest single investment □ The sheer size of these projects (measured in time, staff commitment, budget, scope) poses considerable risk
- 64. Hidden Costs ofERP Training Integration and testing Data conversion Data analysis Consultants Replacing best and brightest staff after implementation Implementation teams can never stop Waiting for ROI Post-ERP depression
- 66. ODOO In 2005,Fabien Pinckaers, the founder and current CEO of Odoo, started to develop his first software product, TinyERP . three years later The name was changed to OpenERP focus on building a strong partner network and maintenance offers
- 67. ODOO in 2013it won a Deloitte award for being that fastest growing company in Belgium, with 1549% growth over a five-year period In May 2014, the company was renamed Odoo, a name that has no restrictions and can allow the company to grow in whichever direction in 2015, Odoo was named one of the fastest growing companies in Europe
- 68. Source code model: Odoo have released software as Open Source but starting with the V9.0 release, the company has transitioned to an open core model which provides subscription-based proprietary Enterprise software and cloud-hosted Software as a service Odoo has been used as a component of university courses
- 69. Software & architecture Odoo uses Python scripting and PostgreSQL database. The software is accessed via a web browser in a one page app developed in JavaScript.
- 71. □Mary Sumner, EnterpriseResource Planning, 2005 Pearson Eduction Rs :
- 72. Thanks for yourattention.