What is it?
The ROI (return-on-investment) Analysis examines the company processes, day-to-day operations, and the pain points that they experience. It is used to calculate the return that the company can expect from investing in the Odoo software.
We look at the impacts (R) that Odoo will have on the company and the pain points they will resolve. We then weigh these impacts against the costs (I).
On large projects the ROI Analysis is sold before the client commits to the whole project and budget. Depending on the size of the project it can take anywhere from 5 to 80 days to complete. On small projects (<4 months) the ROI analysis is not a distinct phase, but performed during the Kick-off phase of the implementation.
Motive for ROI
The primary motive for an Odoo ROI analysis is to evaluate the potential return on investment from implementing Odoo. By understanding the costs and benefits associated with the project, businesses can make informed decisions about whether to proceed with the implementation.
An ROI analysis is crucial to justify the investment and secure budget approval, identify key benefits and quantify expected improvements, optimize the implementation process and prioritize critical features, and mitigate risks and uncertainties associated with the project.
By conducting a thorough ROI analysis, organizations can make informed decisions about their Odoo implementation, maximize the return on investment, and drive significant business value.
Phase One: Meet the management
The Odoo ROI analysis process begins with an executive meeting. This interaction serves multiple purposes.
Firstly, it allows for a comprehensive understanding of the company's current state. By engaging in open dialogue with management, the analyst gains valuable insights into the organization's structure. Mind mapping is used to capture a snapshot of the company. This visual representation helps to identify potential areas for improvement and prioritize the most impactful opportunities for Odoo implementation.
Secondly, the meeting facilitates the alignment of expectations, the definition of the project scope, and the introduction of the Odoo implementation methodology. By collaboratively discussing the desired outcomes and the required functionalities, the analyst and company management can establish a shared vision for the Odoo implementation. This shared understanding ensures that the project is aligned with the organization's strategic goals and delivers the expected benefits.
Thirdly, the meeting is an ideal opportunity to designate a single point of contact (SPoC). A dedicated SPoC streamlines communication, accelerates decision-making, and fosters collaboration among various departments involved in the project.
In conclusion, the initial executive meeting is a strategic investment of time that lays the foundation for a successful Odoo ROI analysis. By effectively utilizing this opportunity to gain insights, align expectations, and establish a strong foundation, the project can be positioned for success and deliver significant value to the organization.
Phase Two: As Is - "Show me how you work"
During this phase, we delve deep into the company's current operations by spending time with key users. Our aim is to gain a comprehensive understanding of the processes, workflows, and data flows. We want to know how the company works.
This involves:
- Documenting existing processes: Using techniques like process mapping or flowcharting to visualize the current state of operations.
- Identifying pain points: Pinpointing inefficiencies, bottlenecks, and areas where manual intervention is required.
- Analyzing data flows: Understanding how data moves within the organization and identifying any data quality issues or inconsistencies.
- Interviewing key stakeholders: Gathering insights from employees at various levels to gain a first-hand perspective on challenges and opportunities.
By thoroughly understanding the current state, the analyst can identify areas where Odoo can be implemented to streamline processes, improve efficiency, and enhance decision-making. This knowledge is essential for developing a robust implementation plan and accurately assessing the potential return on investment.
Phase Three: To Be - Provide solutions
In this phase, the focus shifts to exploring how Odoo can address the pain points and inefficiencies identified in the "As Is" phase. The analyst will identify relevant Odoo modules to automate processes, improve data management, and enhance overall efficiency.
To validate the proposed Odoo solution, the analyst will demonstrate to the SPoC (as well as to key users) how the same workflows would be carried out using Odoo. This hands-on approach ensures that the solution meets the client's specific needs and expectations. This is also an opportunity to identify potential additional gaps or requirements.
Phase Four: Off-site Analysis
Once the "To Be" phase is complete, the proposed Odoo solution is finalized and documented.
Before finalization, an independent Odoo expert is consulted to provide an objective perspective. This expert will review the "As Is" analysis, the "To Be" preliminary solution, any gaps discovered during its demonstration, and other relevant material. By doing so, the analyst mitigates the risk of overlooking critical factors. The review ensures that the Odoo implementation is well-planned, efficient, and delivers the expected benefits.
Following the expert consultation and finalization of the solution, the team will create a comprehensive project documentation. This will detail the "As Is" and "To Be" states, the identified pain points, proposed solutions, expected benefits, and the implementation plan.
Odoo's ROI tool is leveraged to generate detailed financial projections, including calculations of the potential return on investment. These tools can help visualize data, create compelling presentations, and strengthen the overall ROI analysis.
Phase Five: Presentation
In this final phase, the results of the Odoo ROI analysis are presented to key stakeholders. A comprehensive presentation is prepared, covering the following key areas:
- Odoo Overview: A brief recap to Odoo, highlighting its key features and benefits.
- Pain Points and Proposed Solutions: A discussion of the specific challenges identified in the "As-Is" analysis and how Odoo can address them.
- Odoo Demonstration: A live demonstration showcasing how Odoo can be configured to meet the organization's specific needs. This demonstration will be based on the findings of the "To-Be" analysis.
- ROI Analysis: A detailed presentation of the financial analysis, highlighting the expected return on investment and the potential cost savings. This analysis will leverage the data gathered during the "As-Is" and "To-Be" phases.
- Implementation Plan: A detailed project plan, outlining the specific tasks, responsibilities, and timelines for the Odoo implementation.
- Budget and Pricing: A breakdown of the costs associated with the Odoo implementation, including licensing fees, customization, and support.
