Today, there are thousands of specialized SaaS tools for nearly every business process. This raises a legitimate question for many entrepreneurs: Are traditional ERP systems still necessary when you can build your software stack from individual specialized tools? We asked Patrick, managing director of Rowi GmbH and an expert in the implementation of Odoo in the Austrian industry and business landscape. His answer surprised us.
Let me ask you a provocative question: Are ERP systems still necessary?
What an ERP system actually is and why the definition alone is not very helpful
The textbook definition usually sounds like this: An ERP system is an integrated central system that maps a company's business processes. Sounds correct, but it doesn't help much in practice. It becomes much clearer with a concrete example. Imagine the last tradesperson who was at your home, for example, an electrician who installed new outlets in the kitchen. In the end, he probably pulled out his tablet, recorded his working hours, documented the materials used, and presented everything to you for signature. Maybe you could even pay directly with a card.
For you, the job was done. However, the story continues in the background. The installed outlet was the last one in his vehicle, so he needs a restock. A colleague with the same equipment in the vehicle is informed, as is the warehouse manager, who notices the low stock and reorders from the supplier. The purchasing department approves the supplier invoice, the accounting department records it correctly, and the payroll department knows the recorded working hours of the employees. All these departments access the same data basis and work with the same system. That is the real strength of an ERP system.
Why ERP systems still have their place despite thousands of SaaS tools
Yes, of course, ERP systems are still necessary today. However, what may no longer be needed are ERP systems as they were traditionally known. Huge monoliths that can only be changed with great difficulty and high costs. Or systems that believe nothing else exists alongside them and cannot integrate with any other software.
What is still very much needed is the fundamental promise of an ERP system. First, that everyday business runs smoothly. Second, that a single source of truth exists. When a report is generated from inventory management, accounting, and order processing, the numbers must match and create a coherent overall picture. This is precisely what is achieved with an integrated system that can also be expanded modularly. There is still a real need for this type of solution, regardless of how many specialized tools emerge on the market.
How Odoo as an ERP system compares to classic monoliths
Odoo consciously positions itself as a counterproposal to the classic monolith. Instead of a rigid overall package, Odoo relies on individual modules that can be activated as needed. This means that a company can start with a manageable area, such as sales or inventory management, and gradually expand the system as demand grows.
This flexibility is also evident in inventory management. An inventory management system based on Odoo connects stock levels, orders, and order processing in real-time. If a spare part in stock runs low, the system automatically recognizes this and informs the responsible purchasing department.
Open Source often has the reputation of being more for hobby projects.
Some still associate open source software primarily with hobby projects. Patrick meets this prejudice calmly: If open source were only suitable for hobby projects, then Android, Linux, or Kubernetes would also have to fall into this category. Odoo started as a small open source project but is now commercially developed by a large team and has become highly professionalized.
Odoo ERP in the live example: How leads flow directly into the CRM via AI
In the video, Patrick shows a concrete live demo that illustrates how practical Odoo CRM actually works. An incoming lead is automatically captured by artificial intelligence and directly entered into the CRM, without any manual data entry. From there, a quote can be created in just a few steps and sent to the customer as a PDF.
You can watch the complete live demo in the video on YouTube, where Patrick shows every step directly on the screen.
If the customer likes the quote, they can accept it online and even sign it digitally. Once the quote is accepted, it automatically reaches a new status in Odoo and becomes a sales order. From here, the delivery can be triggered and the invoice issued, all within the same system and without media breaks. This seamless process from lead capture to invoicing shows why Odoo CRM saves so much time and reduces sources of error in practice.
What companies can learn from real Odoo experiences during implementation
According to Patrick, three typical mistakes emerge from numerous Odoo experiences in practice . The first mistake is trying to replicate the old system one-to-one in Odoo instead of rethinking processes.The second mistake is simply installing all available modules and only then considering what one likes, without first clarifying which pain points need to be addressed.
The third mistake is starting without an experienced Odoo implementation partner, which often leads to many empty kilometers in practice.
Especially regarding Odoo ERP costs, it pays to plan realistically. Implementing an ERP system doesn't necessarily have to take years. Patrick recommends his clients start with an MVP, a minimally viable product. This way, a first value can be quickly demonstrated, early successes are realized faster, and there is more time for further expansion afterward.
Odoo has become highly professionalized and can be used by companies of all sizes.
Patrick Schmöllerl, Managing Director Rowi GmbH
According to Patrick, those interested in an Odoo implementation should start with three concrete steps. The first step is to take the time to define their pain points, i.e., those areas in the company that should actually be improved by Odoo, and to address them in an order that brings noticeable business impact.
The second step is to find a person within the company who represents the project internally and externally, often referred to as a champion or product owner. This person should be well-connected, have a clear overview of existing processes, and bring enough time for the project, which often poses the greatest challenge in practice.
The third step, which Patrick wholeheartedly recommends, is to collaborate with an experienced Odoo partner in Austria. A good implementation partner knows the typical pitfalls, assists with module selection, and accompanies the implementation from the first idea to ongoing operations.
Frequently Asked Questions
What is an ERP system simply explained?
An ERP system is a central software solution that connects various business areas such as inventory, accounting, sales, and personnel, allowing all departments to work with the same data.
Does every company need ERP systems?
Not every company needs a complete ERP system right away. However, as soon as multiple departments need to collaborate and keep data consistent, ERP systems pay off significantly.
Is Odoo ERP suitable for small businesses?
Yes, Odoo ERP can be built modularly and is suitable for both small businesses and larger companies, as individual areas can be started independently.
How long does an Odoo implementation take?
With an MVP approach, an Odoo implementation can be significantly accelerated, as one starts with a clearly defined core area and then gradually expands the system.
What are the approximate costs of Odoo ERP?
The costs of Odoo ERP depend heavily on the scope of the chosen modules and the complexity of the processes, but can be well controlled with an MVP start.
If your interest in Odoo has been piqued, we have reserved 10 free workshop slots together with Patrick. In these, you can discuss your specific use case and find out if Odoo fits your company.
Secure your free workshop slot now Secure your free workshop slot now.
Ready for the next step?
