Application of odoo platform in managing enterprises and enhancing businesses
APPLICATION OF ODOO PLATFORM IN MANAGING
ENTERPRISES AND ENHANCING BUSINESSES
SVTH: Trần Việt Hưng
GVHD: ThS Vũ Minh Tuấn
Tó m tắt - Ngày nay, để có thể bắt kịp với các đối thủ và điều hành cô ng việc một cá ch hiệu quả,
việc cá c tập đoàn và công ty bắt đầu ứng dụng cá c cá ch thức và chiến lược mới là vô cùng quan
trọng. Một trong những phương pháp khả thi để đạt được điều đó chính là áp dụng phần mềm quản lý
doanh nghiệp vào trong hệ thống của họ. Để làm rõ hơn về vấn đề này, bài nghiên cứu sau đây sẽ
giới thiệu cá ch thức vận hành của phần mềm quản lý doanh nghiệp khi được triển khai trong một cô ng
ty, cụ thể hơn là một phần mềm đang trở nên phổ biến hơn trong thời gian gần đây – Odoo, một giải
phá p toàn diện được sử dụng bởi nhiều doanh nghiệp trong việc quản lý tài nguyên và tối ưu hóa
năng suất. Khá i niệm và nền tảng của cá c phần mềm này cũng sẽ được đề cập tới, cùng với thực
trạng ứng dụng và nghiên cứu hiện hành ở Việt Nam. Kết quả thu được từ bài nghiên cứu cho thấy
một sự hứa hẹn trong khả năng của cá c phần mềm nói trên, cũng như triển vọng khi được á p dụng
vào việc vận hành của cá c doanh nghiệp.
Abstract - Nowadays, in order to catch up with the competition and effectively keep their tasks
under control, it is crucial that enterprises and companies start adopting new methods and strategies.
A feasible way to do so is by incorporating enterprise resource planning software into their system. As
being said, this research aims to introduce how ERP softwares operate when being deployed into a
enterprise, with an emphasis on a specific type of software that is rising in popularity in recent times –
Odoo, a perfect solution used by many businesses to manage resources and optimize productivity.
The concept and fundamentals of ERP systems are also being discussed, along with the current state
of ERP software deployment and research in Vietnam. The results of the research show promises of
ERP softwares capabilities, as well as potential for enterprises when they adopt it into their operations.
1. Introduction
It is inevitable that developing companies and enterprises will reach a certain point in
time where applications like spreadsheets are simply not good enough to handle complicated
operations anymore. This is why businesses have been adopting new methods in order to
effectively keep their tasks under control, by bringing enterprise resource planning software
into play. As ERP systems eventually being incorporated in companies over time, they would
collect and manage major business information, thus facilitating the workflow and helping
them run smooth operations, even with the expansion of organizations and companies.
Epstein (2021) stated that ERP solutions have been steadily gaining popularity in many
businesses, regardless of size, thanks to its centralized approach to different kind of business
processes. Nevertheless, there are still a lot of companies which have not invested in ERP yet,
mainly due to their unawareness of its capabilities, and also what to expect with ones
223
implementation.
Moreover, in the midst of the COVID-19 pandemic, the need for ERP software
solutions is becoming greater than ever for large-scale organizations and companies.
Regarding the last decade, expectations that big software vendors like SAP, Microsoft or
Oracle would stop providing support for the tradition ERP software solutions have been
gradually incentivized companies to start implementing next-generation ERP. However, the
current status of the pandemic is likely to accelerate the process as digitalization as well as
new methods of working – mainly working from home, are becoming increasingly important
to businesses (Awad et al, 2020). The truth is, utilizing traditional ERP solutions to handle the
upcoming waves of growth in e-commerce and keep up with the flexibility and speed would
be nearly impossible. This calls for a solid strategy from companies to adopt a suitable
enterprise resource planning system, as the decisions they are making today will have a major
impact years into the future regarding operational flexibility.
With that being said, this paper aims to introduce and implement a particular type of
ERP software – Odoo, a perfect solution which is being used by many businesses in recent
time in order to manage resources, lower operating costs and optimize productivity. This
open-source software contains a variety of different modules suitable for businesses and
enterprises integration, in addition to existing ones such as POS, CRM and Sales. Along with
it are the fundamentals of ERP, the current state of ERP software deployment and research in
Vietnam. Finally, the main conclusions would encompass existing limitations and
recommendations for future research.
2. Background Knowledge
2.1. Definition of ERP
Essentially, ERP is defined as an application that automates different kinds of business
processes, and also offers valuable insights and in-depth controls, drawing upon the central
database which accumulates inputs from a variety of departments, such as sales & marketing,
supply chain, finance, accounting and human resources. Then, as the information is assembled
in the central database, leaders will obtain cross-departmental knowledge that allows them to
look into various scenarios, find out major improvements for business processes and produce
significant efficiency gains. All of that leads to costs saving and higher productivity as less
time are being spent to search for needed data. A number of deployment models for ERP have
been developed over the years, which includes cloud, hybrid and on-premises, with cloud
ERP gaining major popularity for companies in recent years. (McCue, 2021).
2.2. Modules of ERP
224
ERP softwares could be completely integrated or adjusted based on specific process
requirements. As said, a standard ERP system includes fundamental business processes and
comprises of these following modules (Epstein, 2021) :
•HRM : This module contains HRMS tools such as timesheet, time tracker, staff
records database, employee profiles, skills matrix.
•Financial management : This module monitors the capital influx and outflow.
•Sales and Marketing : The module manages sales workflows such as sales inquiries,
invoices and orders.
•CRM : This module helps boosting customer service, which translates into an increase
in profit per capita.
•Manufacturing : The module facilitates businesses manufacturing in different areas,
such as daily production managing, product forecasting and planning, materials sourcing.
•SCM ( Supply Chain Management ) : This module deals with important aspects of the
supply chain, like purchase order management.
•Inventory : This module helps with stock targets measurement, replenishments
standardization, together with inventory goals.
•Purchasing : The module monitors materials-procuring processes, including listings of
supplier, quotation analysis, stock updates and order purchases.
2.3. Types of ERP systems
The difference in ERP dynamics and a number of factors that affect it make it harder to
categorize. In order to simplify the types, ERP could be grouped as the following : (Epstein,
2021)
•Generalist ERP : These are not made for a single industry or purpose, but instead, they
are modified for very specific applications.
•Open-Source ERP : These solutions are still accounting for a tiny number in the wide
ERP market, but many solutions like Odoo are lending the ability to develop and aggregate
apps into the ERP to enterprises with tech team.
•Vertical ERP : These solutions are built from the ground up as a custom solution to a
single business or just generalized based on the industry.
3. Odoo
3.1. Definition
Odoo is an open-source enterprise resource planning (ERP) platform that includes
customer relationship management (CRM), e-commerce, accounting, facility management,
financial management, sourcing, and ordering, among other features. These modules are
designed to interact with one another in an integrated and streamlined manner.
Odoo, also known as OpenERP, is a cloud-based or on-premises accounting software
225
that can be used by companies of all sizes. Also, Odoo platform is easily scalable due to its
open source nature. The developers have access to the code and may customize it and allow
modifications to the modules depending on the needs of the enterprise. Other services that
Odoo can integrate with include payment providers and external shipping systems like
Amazon, eBay, UPS, FedEx, and QuickBooks. (BetterBuys, 2021)
3.2. Features
Odoo and its modules can be changed at the code level to satisfy the individual needs of
a customer since it is an open-source solution. Sales, invoicing, point of sale, email
marketing, subscription management, and more are all covered by the extensive tool set. The
ERP's functionality is described by the following modules: (BetterBuys, 2021)
•E-commerce: Inventory and sales can be easily managed with an integrated e-
commerce platform's automated stock changes and reporting.
•CRM: Odoo has a business-oriented user interface and a dashboard that provides a
high-level description of sales activity.
•Inventory: Odoo’s unique double-entry inventory management allows full tracking of
materials and product from the supplier to the customer.
•Production: Odoo can be used to handle all of a company's assembly and
manufacturing processes. For the production department, Odoo initiates quality checks
automatically.
•Accounting: Odoo automates the whole invoicing process for consumers, allowing
them to save time on data entry.
3.3. Advantages :
•Integration of several modules: As previously mentioned, Odoo is comprised of over
35 modules that are critical to the operation of a company.
•Customer Support : Odoo provides customer support through a variety of convenient
and approachable channels.
•Customizable Architecture : Odoo allows end-to-end user customization without
requiring large code rewrites or structural adjustments.
•Comprehensive Nature : Odoo has a wide range of functionalities that assist
businesses in meeting their objectives.
3.4. Odoo ERP Architecture
First and foremost, in order to operate with Odoo ERP, it is essential to comprehend its
architecture. The system is comprised of three key components :
•The PostgreSQL database server, which consists of all databases as well as important
data elements involved in the system of Odoo ERP
•The Odoo application server, which consists of all enterprise logic system, thus
226
ensuring the Odoo system operates optimally
•The Web server, containing an application named Open Object client-web, which
assists people on their connection to Odoo from standard web browsers, and is not
compulsory when connected through a GTK client.
The Odoo ERP system can be entered either through a web browser pointed to Odoo
client-web server or through an application client (GTK) installed on each computer. Both of
these methods of access offer similar facilities, as well as can be utilized on a same server at
the same time. If the Odoo server is far away ( on a different continent ), then it is optimal to
use the web browser, as it is more tolerant towards time delays compared to the GTK client.
Also, the web client can be maintained easier, as it is usually installed on users’ computers
beforehand. (Pinckaers et al, 2011).
Figure 1 : The architecture of OpenERP (Pinckaers et al, 2011).
4.
The reality of Information Technology Applications in Vietnam
In most countries in the world , most businesses are aware of the value and influence of
Enterprise Resource Planning (ERP) application on businesses very early as an inevitable
solution to contribute to long-term development of business. According to statistics of the
Vietnam Chamber of Commerce and Industry VCCI, currently only 1.1% of Vietnamese
enterprises apply ERP solutions. Considered as an important and necessary tool for
integration, but ERP has not been properly understood and appreciated. However, in recent
227
years, domestic market have been embracing ERP systems eventually, seeing it as a vital
solution to develop their businesses in the long run. With the scale of enterprises slowly
expanding, ERP is considered to be a saving grace of every enterprises’ owner in the race of
globalization.
The Industrial Revolution 4.0 has created new opportunities and challenges, requiring
Vietnamese businesses to improve their own competitiveness to actively participate in the
world market. The solution for businesses to improve themselves is nonetheless but
effectively applying information technology in production and business activities. Around
the world, this is widely used in business, but in Vietnam it is just barely in the beginning
stage. The application of information technology in production and business activities is of
great concern to enterprises and this becomes increasingly important when the development
and competition between businesses is rising, when foreign enterprises gradually make an
appearance in the Vietnamese market. Once becoming a noticeable trend, the State agencies
and the Government would promulgate policies relating to the information technology field to
create favorable conditions for enterprises in the process of approaching and building their
own information technology platform. (Loop Consulting, 2021)
However, up to now, a survey by VCCI's Institute of Business Informatics about the
applications of information technology in small and medium enterprises has shown very
underwhelming results when most of them are used with words such as: low, weak, not ready,
etc… regarding the readiness of businesses. There are 1613 small and medium enterprises of
various types of ownership, many industries of production and businesses in 6 provinces and
cities responded to the questionnaires. Survey results show that the willingness to apply
information technology, first of all, to invest more or upgrade equipments of enterprises is
only at an average level. The collective results illustrate that up to 81.87% of enterprises have
not implemented information technology services. Of which, up to 45.39% do not have any
need to use information technology services, 36.43% of enterprises answered generally that
they will use information technology services during the upcoming period. The number of
enterprises which actually use information technology services only accounts for 18.13% of
the total number of surveyed enterprises. In particular, 40.67% of businesses lack the habit of
using information technology services.
The reason for this is explained by the high cost of consulting, small business scale,
little investment, so there is little need for consultance. Vietnamese small and medium
enterprises currently are in need of many things, from finance, technology to human
resources. It is these things that make them less determined to invest in information
technology, although many businesses realize the benefits it brings. According to statistics, up
to 70% of the costs related to information technology in an enterprise are spent on computer
228
maintenance, so the company is left with very little to invest in developing information
technology systems in a professional manner. This explains why the application of
information technology in enterprises is still very underwhelming. (Loop Consulting, 2021)
Besides financial problems, the most important reason, according to experts, is the head
of the business. In Vietnam, small and medium enterprises often come from a small business
model in the traditional way, so very few business leaders have a vision for information
technology investment and apply ERP in order to support their own business operations.
Enterprises are still organized traditionally with many different departments. Each department
can use a different management software, and when it is necessary to transfer data between
departments, users need to do it manually. This in turn leads to low productivity,
asynchronous data, the reliability of information can be lost and difficult to control, leading to
many errors or conflicting information with each other. In addition, most Vietnamese
businesses are currently familiar with manual management in relation with local processes,
mainly according to the mindset of each administrator, and are still unfamiliar with the
standard processes. (Loop Consulting, 2021)
5. Conclusion
This paper has shown the needs for ERP solutions in the light of its concepts, modules
and different types, with an emphasis on Odoo as a premier application in the ERP market. It
is clear that companies and enterprises should make an investment into ERP softwares, in
order to help them operate in a smooth fashion, thus streamlining the workflow without
worries of organizational expansion. Regarding the reality of ERP usage in Vietnam, it is still
in the premature stage with lots of obstacles to come, mainly due to their awareness;
nevertheless, there are a lot of potential for enterprises to thrive in the future when they
realize the opportunities that it brings. The paper still contains certain limitations, as not every
detail of ERP solutions is being mentioned, as well as the limited information of ERP usage in
Vietnam, so further research is required in order to obtain a better understanding of the
software and also to get more insights on how enterprises in Vietnam would adopt this
strategy.
REFERENCES
Awad, N., Pareek, A., Shah, Z., & Schott, K. (2020). An ERP strategy for a
postpandemic world. https://www.bcg.com/publications/2020/post-pandemic-enterprise-
Better
Buys.
(2021).
Odoo
ERP
software
2021
review.
229
Epstein, D. (2021). What is ERP software? Analysis of features, types, benefits, pricing.
Loop Consulting. (2021). Thực trạng sử dụng ERP tại Việt Nam. [The reality of ERP
usage in Vietnam]. https://phanmemketoanerp.com/tin-erp/thuc-trang-su-dung-erp-tai-viet-
McCue, I. (2021). What is ERP (enterprise resource planning)?
Pinckaers, F., Gardiner, G., & Vossel, E.V. (2011). Open ERP, a modern approach to
integrated business management. Release 6.0.0.
230
8 trang
22080
Free
Bạn đang xem tài liệu "Application of odoo platform in managing enterprises and enhancing businesses", để tải tài liệu gốc về máy hãy click vào nút Download ở trên
File đính kèm:
- application_of_odoo_platform_in_managing_enterprises_and_enh.pdf
