The obsession behind Odoo’s success
Odoo’s journey from a small open-source software company to a multi-billion-dollar organization is built on one fundamental principle: obsession. To succeed, you have to be obsessed with solving real problems, and Odoo’s founder, Fabien Pinckaers, embodies this obsession. His passion for software and management has driven Odoo to become a powerhouse in enterprise software, proving that great products always win in the long run.
Building a product people want
Unlike many startups that burn through funding without product-market fit, Odoo focused on creating software that people actually wanted to use. They started as an open-source company, gaining a loyal community. Over time, they adopted a dual licensing model, offering both open-source and Enterprise editions. This shift caused some community backlash, but their commitment to delivering high-quality, all-in-one business applications at an affordable price allowed them to scale rapidly.
One of the most significant changes came around 2010, when Odoo pivoted from a service-based business to a software-centric model. They had initially bootstrapped to about 100 employees through service revenue, but recognized that to have a bigger impact, they needed to build a company that could scale beyond services and focus on continual product development.
Growth strategies that work
1. A pricing strategy that fuels growth
Odoo’s pricing model played a critical role in its success. They charge lower prices in smaller markets and higher prices in larger markets, balancing accessibility with revenue optimization. This flexibility allows them to penetrate emerging markets while maximizing revenue where competition is higher.
2. Word-of-mouth as a growth engine
Odoo’s primary user acquisition strategy is word-of-mouth—something that only works if the product itself is compelling enough to turn customers into fans. True to their product-first philosophy, they focus on building features and refinements that users love rather than relying solely on heavy marketing.
3. Speed in development, not just revenue
While many startups chase rapid revenue growth, Odoo prioritizes fast, high-quality development. Their philosophy is that a strong product naturally drives revenue over time. Though financial challenges are common for startups, Odoo has shown that focusing on real business needs and building a robust product can sustain long-term success.
A radical approach to hiring and management
1. Less emphasis on titles, practical assessments
Odoo tends to de-emphasize traditional titles, believing that what you do matters more than what’s on your business card. They also rely heavily on practical assessments, and sometimes tests for aptitude. Recruitment is streamlined to be completed in days rather than weeks, focusing on job-specific performance over lengthy resumes.
2. Promoting from within
Where possible, Odoo prefers to promote from within for leadership roles such as team leads and managers. This ensures that leaders understand the company culture and product deeply, maintaining cohesion as the company scales. Some external hires occur for specialized roles—like finance—but the overall bias is toward internal growth.
3. Minimal bureaucracy
Though Odoo does have financial oversight, their teams generally do not operate under rigid budgets or KPIs. This doesn’t mean metrics are ignored entirely; rather, the emphasis is on product quality and user satisfaction. The CFO oversees the financials, enabling teams to remain agile and focused on iterative improvement.
Avoiding the pitfalls of growth
Many companies fail as they grow due to defocusing. As organizations expand and add layers of management, decisions can become bogged down. Odoo actively counters this with a streamlined, product-focused approach. They’ve also made a conscious decision to remain private, with no plans for an IPO. By maintaining control over long-term strategy, Odoo is free to aim high—some say they want to outdo industry giants like SAP—without the pressure of quarterly earnings reports.
The future of Odoo
Odoo’s vision remains straightforward: provide an all-in-one suite of business applications that becomes as standard as Microsoft Office—only more affordable and user-friendly. By emphasizing product excellence, minimal bureaucracy, and homegrown leadership, Odoo has demonstrated that scaling a software company can be done on its own terms.
In challenging industry norms, Odoo has carved out a unique path—one fueled by passion, efficiency, and a relentless focus on what really matters: building something great. Their journey continues, and if the past is any guide, they’re just getting started.
Prepared by Javohir Akramov
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