The document analyzes the NetSuite enterprise resource planning (ERP) software. It describes NetSuite's product modules, history as a company founded in 1998, growing market share, and case studies of customers like Groupon who implemented NetSuite. The analysis covers NetSuite's strengths as a 100% cloud-based system with fast deployment and lower costs, and weaknesses in security and limited functionality for very large enterprises. It concludes by positioning NetSuite as a lower-cost alternative to traditional on-premise ERP systems.
6. Company History
Founded in 1998
HQ in California
1,000+ Employees
Offices in US,
Canada, Europe,
and Asia
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
7. Management Team
CEO, CTO, & EVP
of Sales
Previous Oracle
Employees
CFO
Previous SAP
Employee
Billy Beane, Board Member
Oakland Athletics General Manager (Moneyball)
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
8. Market
Share
Considered
Tier 3
Market share in North America up by 31%
Now 8th largest vendor in North America
Data provided by Gartner, April 2010 – 2011
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
9. Needed:
Flexible and scalable ERP to support rapid growth
Result:
Implemented NetSuite within 6 weeks in 5
international markets
Replaced 100s of spreadsheets with one ERP
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
10. "Groupon knew traditional pre-web ERP software
would slow them down. They needed an application
as fast and flexible as their business model, and that
requirement led them to NetSuite"
Zack Nelson, CEO
"Modern companies realize that standardizing on pre-
web client/server applications is no way to be
successful. Groupon's decision to turn to NetSuite
OneWorld for its needs is another affirmation that
NetSuite is where business is going,"
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
12. Problems:
Operational inefficiencies hindered ability to profit
from rapid web traffic growth
No consolidated financial information across 8
blogs and web properties
Solution:
Implemented NetSuite within 60 days
Real-time dashboards of advertising revenues,
employee information, and AR/AP
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
13. Strengths and Weaknesses
100% Cloud Based
+ Fast to deploy
+ Designed for easy remote access
+ Lower IT Costs
- Data security questionable
- Availability of data dependent on
internet connection
Limited functionality for large scale enterprises
- Support for up to 2,000 users
- No manufacturing module
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
14. Strengths and Weaknesses
Total Cost of Ownership
+ 50% lower TCO than on-premise solution
+ No upfront capital investment
Integration…
…with many 3rd-party CRM and e-commerce systems
…with NetSuite’s own CRM and e-commerce systems
…with Tier I ERP systems
TCO data from Hurwitz & Associates whitepaper (based on 100 users):
“Compelling Case for Cloud Computing in SMB”
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
15. Tier I Integration
Integrate with SAP or Oracle ERP
Run subsidiaries on NetSuite while keeping parent
company on SAP or Oracle
Data integration between systems
Faster implementation than a second Tier I ERP
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
16. Conclusion
100% web-based for remote access
Fast to implement
Lower TCO and upfront for small-medium
businesses
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS
17. Conclusion
“To provide web-based integrated
business systems with the power of
traditional applications used by the world's
largest companies, but at a fraction of
the cost and complexity.”
PRODUCT – HISTORY – MARKET – CUSTOMERS - ANALYSIS