In the world of enterprise resource planning (ERP), the implementation sequence is as crucial as the choice of software itself. From our experience deploying hundreds of Odoo solutions, a very common mistake is starting an ERP project with the CRM (Customer Relationship Management) module. Thanks to this extensive experience implementing with clients across multiple industries, we've realized that, while it may seem logical to follow the sales funnel, this decision often leads to serious data integrity issues and, ultimately, complications that will limit your system’s core focus around tracking critical financial data.
Implementing an ERP system isn't a simple linear process. It's a complex integration of sub-systems where data flows from one module to another. Think of CRM as the first stage of the funnel: it captures leads and opportunities. However, in an interconnected system, this and every subsequent action, (such as a sale or inventory movement,) is linked to accounting.
The problem is that when modules such as Inventory are activated after the CRM, the ERP automatically generates accounting entries for each product movement. If the accounting module hasn't been previously configured, these entries will be created with incomplete or incorrect data, contaminating the system from the start. Correcting these errors is a tedious and costly task, which often demotivates teams and jeopardizes the project's success. This is one of many examples where inadvertent configuration mishaps can lead to major issues in an implementation project.
The right strategy: from the inside out
The best way to implement an ERP is following an "inside-out" logic, building a solid foundation before adding external elements.
- Accounting: The starting point should always be accounting, as it is the financial engine of the company. By deploying and configuring financial accounting features first, the finance team will have the time necessary to learn and adapt to using the platform, defining the chart of accounts, taxes, and other financial rules. This robust foundation ensures that every transaction occurring in other modules, (such as sales or inventory,) is reflected correctly and automatically.
- Operations: Once accounting is configured, the inventory, manufacturing, and/or project modules can implemented with far greater ease of financial data integration. All product movements (purchases, sales, transfers) affect the ledger accounts, making operations a critical area to have tightly integrated financial tracking. With accounting set up, the system will accurately record inventory costs and revenue.
- Purchases/Sales: With inventory and accounting already in place, the purchasing and sales modules integrate seamlessly. From quote to invoice, each step generates accounting and inventory movements that are synchronized with ease.
- CRM: The CRM is implemented last. By now, the sales, inventory, and accounting processes are well-defined. CRM information will flow seamlessly into the subsequent modules of the funnel, and the company will have a complete and accurate view of the customer lifecycle, from the first contact to the closing of the sale and invoicing.
Summary: The Car Analogy
To illustrate this, let's think of implementing an ERP like building a car. The Accounting module is the engine and chassis. It's the internal structure that must be perfect for the vehicle to function as intended. The CRM is the body and paint. It's what you see, but it can't effectively operate without a solid internal structure. Building the car from the outside in, starting with the paint, simply wouldn’t make sense as an order of operations. Likewise, implementing the CRM first is a recipe for data-chaos and future problems.
By following this sequence—that is, starting the implementation with the accounting module and not the CRM—we give the finance and/or accounting team the opportunity to become experts in the platform from Phase 1 of the project. Having this prior knowledge will allow them to lead and guide other teams, as well as detect any errors that may arise in a timely manner. This methodology not only protects data integrity but also builds a solid knowledge base for long-term success. Furthermore, having OSI on board to provide you with the right advice and strategy can be key to achieving the success of your project and supporting your organization's long-term goals.
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