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How Odoo is Challenging Traditional ERP Software Providers

Enterprise Resource Planning (ERP) software has been a mainstay in the business world for decades. It is used to manage various business processes, including financial management, supply chain management, and customer relationship management. However, the traditional ERP software market has been dominated by a few big players for years. In recent years, a new challenger has emerged in the form of Odoo. In this article, we will explore how Odoo is challenging traditional ERP software providers.

The Rise of Odoo

Odoo was founded in 2005 as Tiny ERP. It was later renamed to OpenERP and finally to Odoo. The company is based in Belgium and has offices in the United States, India, and Hong Kong. Odoo has grown rapidly over the years and has become a major player in the ERP software market.

One of the reasons for Odoo’s rapid growth is its open-source nature. Odoo’s source code is freely available, which allows developers to customize and extend the software to meet their specific business needs. This has led to a large community of developers who contribute to the software and create modules that can be easily added to Odoo.

Another reason for Odoo’s success is its modular approach. Instead of providing a monolithic ERP system, Odoo provides a collection of modules that can be used to build a customized ERP system. This approach allows businesses to start with a basic set of modules and add more as their needs grow.

The Advantages of Odoo

Odoo, initially perceived as a newcomer and outsider in the ERP industry, has unexpectedly turned into a major player on the market, earning a reputation as a disruptor and a “black sheep”. Despite this, it is an open-source ERP system that is highly flexible, affordable, and easy to use. With its modular structure, it can be customized to meet the unique needs of any business. This a-la-carte approach is a great way for small to medium-sized businesses to build their ERP system in a phased approach, starting with a main priority and adding applications over time as the business grows or has more resources.

One of the key factors contributing to Odoo’s significant impact on the market is its pricing transparency. Unlike other ERP systems, Odoo is very open about its pricing throughout the selection process, making it a more straightforward and less stressful experience. Moreover, Odoo provides the Community version which is completely free and provides access to a vast library of free modules, making it an affordable option for businesses on a tight budget. Furthermore, businesses can upload their own custom modules for specific tasks, from odoo apps shop.  This approach encourages collaboration and innovation, making Odoo a dynamic and ever-evolving platform. 

Implementation of ERP systems can be costly and challenging, but Odoo’s technical simplicity and intuitive interface make it relatively easy and not too risky for businesses, especially small to medium-sized ones with a stringent budget. However, to ensure proper integration, businesses need to have an internal subject matter expert or access to a specialized consultant or system integrator. Solvve Business Analytics can assist you in determining if the Odoo Community version is a suitable option for your business, as well as provide an estimation of the necessary resources for its implementation.

Odoo has been profitable for years and has raised over $215 million in capital. As of 2022, Odoo had a team of 1700 employees and  forecasted billings of €160M. Odoo has built a strong global ecosystem with 3,850 partners and 90,000 community members working with the software. And According to a article from June 2022, Odoo has achieved a “unicorn-sized” valuation after securing €180M investment from Summit Partners While it may not be the most talked-about ERP system, it’s one worth considering for businesses looking for an affordable and flexible system with appropriate support resources.

Odoo Competitors

Today main competitors in the ERP market are SAP, Oracle, Microsoft Dynamics 365, Infor, Sage, Epicor, Netsuite, and Acumatica. These companies offer similar ERP solutions with varying levels of complexity, customization, and pricing. It’s worth noting that Odoo’s open-source model and modular-based system sets it apart from some of the traditional ERP solutions.

Here some main benefıts that makes Odoo different from other ERP-CRM systems:

  • Odoo is highly customizable and can be tailored to meet the specific needs of any business. 
  • It is also very user-friendly and easy to use, which makes it a popular choice for small and medium-sized businesses. 
  • One of the biggest benefits of Odoo is that it is very affordable compared to other ERP and CRM systems on the market. 
  • Odoo offers a wide range of modules that can be used to manage different aspects of a business, including sales, inventory management, accounting, HR, and more. 
  • Finally, Odoo is highly scalable and can be used by businesses of all sizes.

The Challenges of Implementing Odoo

While Odoo offers several advantages over traditional ERP software providers, there are also some challenges that businesses may face when implementing Odoo. One of the challenges is customization. While Odoo’s modular approach allows businesses to customize the software to meet their needs, this can also be a double-edged sword. Businesses may need to hire developers to customize the software, which can be expensive.

Another challenge is integration. While Odoo provides modules for various business processes, businesses may still need to integrate Odoo with other software systems they use. This can be challenging and may require significant development work.

Finally, there is the challenge of support. While Odoo has a large community of developers who contribute to the software, businesses may still need to pay for support and consulting services. This can be expensive, especially for small businesses.

While implementing Odoo may pose challenges for businesses, such as customization, integration, and support, choosing the right partner can make all the difference. If you select reliable developers and consultants, such as those who created the solution, you can avoid these challenges altogether. A reputable company will have experts who can easily address any difficult questions, and you’ll receive a free, convenient IRP and support that’s always available. 

Customer Success Stories

Despite the challenges of implementing Odoo, there are many businesses that have successfully implemented the software. One example is the Swiss company, CREALOGIX. CREALOGIX used Odoo to replace their existing ERP system and saw significant improvements in efficiency and productivity. They were able to reduce their inventory by 30% and improve their order fulfillment rate to over 95%.

3Sach Food implemented Odoo, which provided comprehensive coverage of their main business processes, including procurement, inventory management, point of sales, sales, invoicing, manufacturing, accounting, HR, and marketing functionalities. This allowed for streamlined operations, optimized inventory, easy sales tracking, efficient billing, seamless production, accurate financial management, and enhanced human resources and marketing operations. Odoo greatly benefited 3Sach Food by improving their business processes.

Another example is the Italian company, Ecobeton. Ecobeton used Odoo to manage their financial and accounting processes. The software allowed them to automate many of their accounting tasks, which saved them time and reduced errors. They were also able to generate financial reports more quickly and accurately.

Our article “Top 8 Successful Companies Using Odoo” discusses more real-world success stories of businesses that have implemented Odoo ERP and experienced significant improvements in their operations and profitability.

The Future of Odoo

Odoo is constantly evolving and improving. The company releases new versions of the software every year, with new features and improvements. Some of the upcoming features in Odoo include improved project management, advanced inventory management, and enhanced reporting capabilities.

In addition to new features, Odoo is also positioning itself for the future. The company is investing heavily in artificial intelligence and machine learning. This will allow the software to provide more advanced analytics and insights, which will help businesses make better decisions.


In conclusion, Odoo is challenging traditional ERP software providers in a number of ways. Its open-source nature, modular approach, and ease of use make it an attractive option for businesses of all sizes. While there are some challenges to implementing Odoo, many businesses have successfully implemented the software and seen significant improvements in efficiency and productivity. As Odoo continues to evolve and improve, it is likely to become an even stronger challenger to traditional ERP software providers. If you are interested in implementing Odoo for your business needs, contact us today for a consultation. Our team of experts can help you determine whether Odoo is the right choice for your business and provide support and consulting services to ensure a successful implementation.