SUPPORTING THE SWITCH: Why IT Executives are Choosing a True Cloud ERP Solution To Drive Business Growth - FutureCIO
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SUPPORTING
THE SWITCH:
Why IT Executives are Choosing a True Cloud
ERP Solution To Drive Business Growth
www.netsuite.co.uk
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Read Time: 12 minutes
SUPPORTING
THE SWITCH:
Why IT Executives are Choosing a True Cloud ERP
Solution To Drive Business Growth
Overview These discussions underscored how cloud-
To discover how cloud-based ERP systems based ERP systems enable businesses to
support and accelerate growing organisations, respond to market dynamics through rapid
NetSuite engaged senior IT executives in scalability, access for distributed workforces
discussions on their technology evaluations. and real-time visibility into the organisation
These executives shared insights on why they from anywhere. They provide a full view of
switched from on-premise to cloud-based the customer, which equips employees at all
systems, how the implementation process levels with real-time information to support
occurred, benefits they have experienced and intelligent decision making. Since cloud
lessons learned. infrastructures flex with growth, the IT team
is freed from the complex integrations and
Throughout these interviews, participants
upgrades that can prevent businesses from
commented on a prevailing theme: the
outrunning the competition.
marketplace is changing faster than ever
before, and competitive pressures continue
to mount. To keep pace in this dynamic
environment and to lay the foundation for
growth, firms are realising that their historical
processes and on-premise systems are not
adequate. They need to modernise their IT
infrastructure to provide the visibility and
scalability necessary for growth.
© Oracle | Terms of Use and Privacy Page 2
TABLE OF CONTENTS
1 2
Overview Why Organisations True Cloud vs.
Are Moving to Fake Cloud
Cloud Financials
Page 2 Page 4 Page 6
3 4
Benefits of Conclusion &
Switching to Case Studies
NetSuite
Page 7 Page 10Chapter 1
WHY ORGANISATIONS ARE
MOVING TO CLOUD FINANCIALS
Businesses in all industries are under businesses of all sizes, the cloud represents
pressure to modernise a tremendous opportunity, which is now a
In every industry, organisations face necessity. Industry research and analysts
significant pressures. Competitors are suggest that the cloud has become the de
introducing new products, customers are facto standard for doing business:
demanding improved service and greater
• A recent Mint Jutras Survey showcases that
speed, and companies are launching
SaaS is the predominant deployment choice.
new offerings and expanding to new
geographies. Achieving ambitious growth • Gartner says the cloud is the number one
and expansion goals requires operating technology affecting IT today.
differently. It requires breaking silos, having
“one version of the truth” with real-time • Cloud computing will firmly establish
visibility to make fast, informed decisions. itself as the foundation of tomorrow’s
Companies need speed, visibility and enterprise application platforms—it’s the
scalability as never before. This requires best way to create the compelling software
a modern IT infrastructure that supports experiences that modern customers
the need to operate differently. For most demand says Forrester.
organisations, the on-premise systems of • By 2020, anything other than a cloud-only
the past don’t meet the business needs of strategy for new IT initiatives will require
the present and future. Modern multi-tenant justification at more than 30% of large-
SaaS systems enable companies to have a enterprise organisations.
unified data model that dramatically improves
decision-making. • By 2021, more than half of global enterprises
already using cloud today will adopt an all-in
The cloud has become the de facto cloud strategy.
standard for modern businesses
In today’s tough economic environment,
business leaders must deliver outcomes
more quickly, with fewer resources. For
© Oracle | Terms of Use and Privacy Page 4Companies with a cloud-first strategy have availability, speed, agility and TCO, enabling
learned that the cloud’s real value comes faster development processes and providing
with being able to delegate the Service higher reliability and lower risk. Companies
Level Agreement (SLA) of an entire solution, that take an ad hoc approach miss out on
from infrastructure to application, instead many of cloud’s benefits and experience a
of components. It is also widely recognised variety of pitfalls.
that integrated suites reduce complexity,
In the current state of the market, not all
increase reliability and cost less—now with
cloud providers can step up to the challenge
cloud, the suite includes hardware, security
of providing an integrated offering, and that
and operations. Most agree that the cloud
forces companies to manage more than they
paradigm has cost and convenience benefits:
want to.
© Oracle | Terms of Use and Privacy Page 5Chapter 2
TRUE CLOUD VS. FAKE CLOUD
How to tell a true cloud solution from a Costly, unstable integrations
fake one and why it matters and customisations
Not all hosted software offerings marketed Integrating a hosted solution with your other
as “cloud” are true cloud solutions. applications causes considerable hassle
Recognising a lucrative chance to create an and expense and can be unstable because
additional revenue stream, many on-premise the on-premise product was not initially built
vendors are trying to pull the cloud over your for hosting and therefore not intended to
eyes by “cloud-washing” their applications. be integrated while being hosted. You also
will likely have to pay extra to customise the
So how can you tell a true cloud solution
solution to meet your specific needs.
from a fake one? And, more importantly, why
should you care? Fake cloud solutions are Too much downtime and inadequate
more expensive, inefficient and not nearly security and support
as scalable. Given their limited headcount and resources,
most VARs and service providers simply
Delayed and painful product upgrades
cannot achieve the same levels of security,
When your on-premise solution is hosted
privacy and uptime as true cloud providers
by others, you have to suffer through the
can. A simple way to determine this is to
same potentially arduous (and expensive)
ask them about their uptime performance,
upgrades every time the software vendor
contractual uptime guarantees, and security
releases a new version. You are also at that
and privacy certifications such as PCI-DSS
hosting vendor’s mercy regarding when
security compliance, SOC 1, and EU-US
they choose to roll out the newest solution.
Privacy Shield framework, NIST 800-30 and
Because the vendor will need to upgrade
ISO 27000 standards.
each customer one by one, including
transporting past customisations over to the Need to overbuy/overprovision capacity
new software, it could take months or even If you’re uncertain of how much capacity
years to get updated and by then, the next you’ll need, you’ll probably have to over-buy
version of the product may be around the the number of software licenses to ensure
corner, which is no different from being with you’re not caught short; or, worse yet, you
an on-premise vendor after all. under-provision and can’t live up to your
SLAs with your customers because you
“failed” to plan ahead.
© Oracle | Terms of Use and Privacy Page 6Chapter 3
BENEFITS OF SWITCHING
TO NETSUITE
“NetSuite is a great platlform that’s helping us accelerate our
transformation from a mail-order company to multi-channel retail
operations. NetSuite enables us to literally guide the business in real-
time. We’re more proactive and can see inventory fluctuate throughout
the day. NetSuite has improved our understanding of our customers
and gives everyone in the company, all the way up to our CEO, real-
time visibility into sales operations. ” – Hanover Direct
Traditional ERP systems are part of a • Reconcile different versions of data.
fragmented, complex IT infrastructure that
• Integrate front- and back-office processes.
delivers disruption rather than efficiency.
• Have a clear audit trail and understand the
Traditional ERP systems are just one part
business in real-time.
of an organisation’s business system.
Companies usually deploy other systems Although business processes are automated
to automate support, sales, warehousing, with the best of intentions, separate
ecommerce, professional services and other applications for each silo in the organisation
functions. With different processes running create disruption. Multiple point solutions create
on many different systems, it is difficult or a “legacy applications hairball” that is burdened
impossible to: with manual tasks and bottlenecks. Over time,
this infrastructure translates into more money,
• Obtain a clear picture of bookings, billings more resources and more integrations.
and backlogs.
After investing in technology, organisations
• Decrease spreadsheet-based accounting. should be able to run the business more
• Scale up to support growth. efficiently and gain the insights needed to
make decisions. With on-premise systems, the
• Provide visibility to everyone in result is just the opposite.
the organisation.
© Oracle | Terms of Use and Privacy Page 7"NetSuite is a perfect balance of broad functionality and ease of use. It
is by far the easiest ERP system I’ve used." – Ecoark Holdings Inc.
Cloud platforms like NetSuite simplify • Integration of front- and back-office
business processes and IT processes results in reconciliation of data
There are many compelling reasons why across the organisation.
companies move from older on-premise
• Better real-time financial and operational
applications to modern cloud-based
visibility, including multi-subsidiary
solutions, such as NetSuite. These include:
management. Consolidating multi-
• Reduced IT infrastructure investment and subsidiary and multinational financials
lower total cost of ownership. Compared with other ERP solutions can be time-
to on-premise systems, cloud-based consuming and expensive. Organisations
ERP costs are much lower. Organisations must either conduct the exercise across
simply access cloud systems via an a multitude of spreadsheets or invest in
internet connection. With true cloud separate accounts for every subsidiary
solutions, the cloud provider hosts and and international division and in additional
maintains the IT infrastructure, ensures external reporting tools.
that the system is always up and running,
A modern cloud-based management system
maintains system security, and rolls out
product enhancements seamlessly without like NetSuite helps a company unify their
breaking customer customisations. Cloud business processes, departments and
ERP systems also offer a predictable pay- divisions. Every application uses the same
as-you-go subscription model that makes data repository, so all users have access to
cash flow planning much easier. the same information. Additional NetSuite
benefits include:
• Increased business agility. Cloud solutions
take maintenance and upgrade concerns • A true cloud solution. Many software
off the table. Companies can focus on vendors run old, on-premise software in
their core competencies and on running a data centre and call it cloud-based. In
the business. contrast, NetSuite was built from the ground
up as a multi-tenant, true cloud solution.
• Reduced spreadsheet-based accounting.
When organisations have multiple on- • Self-service and mobility. The workforce
premise systems, separate islands of data today is much different from 10 years
result. To bridge the gaps, employees often ago. NetSuite provides real-time access
use “spreadsheet-based accounting.” An to information anywhere and anytime,
integrated, cloud-based suite eliminates the including access to data and dashboards in
need for this type of workaround. a self-service way from mobile devices.
© Oracle | Terms of Use and Privacy Page 8• Global deployment. NetSuite enables • Easy, predictable upgrades and lower cost
global organisations to manage multiple of ownership. With NetSuite, organisations
subsidiaries, business units and legal are no longer version locked. Since
entities. It seamlessly handles different NetSuite hosts its own applications,
currencies, taxation rules and reporting upgrades are managed seamlessly without
requirements from a single platform. breaking customers’ customisations and
third-party integrations. Organisations no
longer have to worry about maintenance of
their IT infrastructure.
© Oracle | Terms of Use and Privacy Page 9Chapter 4
CONCLUSION & CASE STUDIES
Building and maintaining a successful SuiteSuccess is engineered to solve unique
company in today’s business environment industry challenges that historically have
requires modern tools and technology. No limited a company’s ability to grow, scale
longer can organisations meet the growing and adapt to change. Most traditional ERP
demands of consumers and competition by vendors have tried to solve the industry
relying on legacy on-premise systems or solution problem with templates, rapid
“fake cloud” solutions offered by traditional implementation methodologies and
vendors that are expensive, inefficient and custom code.
not scalable.
NetSuite, however, took a holistic approach
With a true cloud solution, businesses are to the problem and productised domain
transformed through increased agility, knowledge, leading practices, KPIs and an
better integration of front and back agile approach to product adoption. This
office processes, improved visibility and allows for faster time to value, increased
consolidation, and lower total cost of business efficiency, flexibility and ultimately,
ownership. Unlike other ERP users, greater success for our customers.
NetSuite clients get a true cloud solution
that provides an integrated suite for our
growing global customer base of more than
18,000 customers.
In addition to the inherent benefits of a cloud
solution, NetSuite’s SuiteSuccess model
helps our customers deploy the platform
faster and leverage leading business
process practices to both create and realise
value within their organisation much sooner
than traditional approaches.
© Oracle | Terms of Use and Privacy Page 10Customer Success
Transavia
Transavia emerged from humble unified financial system of record and
beginnings as a charter service launched consolidated financial reporting across the
in the Netherlands in 1965. Its maiden flight entire enterprise, while also offering multi-
traveled from Amsterdam to Naples and book accounting capabilities.
back, carrying the Dutch Ballet Orchestra
• The agility, scalability and flexibility needed
and the Dutch Dance Theatre. The company to help enter new markets, expand
took off when it was acquired as a joint operations and grow revenue.
venture of KLM and Air France and began
providing low-cost airfare to countries across • A powerful development platform that offers
Europe filling an emerging demand. robust integration capabilities to tie NetSuite
OneWorld’s financial system to Transavia’s
Challenges: reservation system and Airpas, an airline-
• As Transavia expanded its footprint, it soon specific cost management solution.
realised that an aging AS 400 system based
in its office in the Netherlands and an Infor Customer Successes:
system in France would not be able to scale • NetSuite’s cloud infrastructure aligns with
with its ambitious plans for growth. Transavia’s goals of reducing costs and
increasing efficiency by removing the
• Transavia needed a system from its need to support and maintain on-premise
mission-critical business processes software while presenting a greater
across Europe including financials, opportunity to make use of shared services
financial consolidation, multi-subsidiary such as outsourced accounting.
management, procure-to-pay, reporting,
and support for multi-language, multi- • NetSuite’s multi-currency and multi-
currency and multi-country tax compliance. language capabilities and ability to manage
multiple subsidiaries on a single instance
Solution: proved to be the right solution for Transavia.
• A single cloud solution with a broad range
of capabilities needed to run complex and • With NetSuite, the 21,000 invoices that
mission-critical business processes across were once hand copied into the system are
its head offices in Holland and France and now automated, while learnings from the
its subsidiaries, as the airline expands into implementation have enabled Transavia to
new markets in Europe. introduce more structure and efficiencies
while spending more time on analysis.
• Real-time global financial consolidation
with real-time visibility across all of
Transavia’s operations with one single
© Oracle | Terms of Use and Privacy Page 11“As a subsidiary of the Air France/KLM
Group, serving more than 100 destinations
in Europe and North Africa, Transavia has
ambitious plans for growth throughout Europe,
becoming one of the leading low cost airlines
in Europe. Having NetSuite OneWorld as our
financial and procurement backbone enables
us to easily scale up with that planned growth,
where our previous cumbersome manual
and Excel-based processes that were time
intensive and prone to errors will become
history. NetSuite OneWorld offers a modern,
global-ready system that helps us to achieve
the goals of Transavia Netherlands and
Transavia France, by fully aligning and further
simplifying our business processes.”
TransaviaCustomer Success
CMP Corporation
“NetSuite has given us dramatically better data access and
reporting and has been instrumental in our lean manufacturing
initiative, helping us reduce cost and waste while achieving
double-digit growth.” – Adam Harper, Director of Administration, CMP Corporation
Running the world’s largest independent Solution:
manufacturer of aftermarket compressor • CMP Corp turned to cloud and NetSuite’s
parts for refrigeration and HVAC units from Manufacturing Edition, SuiteCommerce
Oklahoma City exposed CMP Corp. to Advanced and Inventory solutions.
pricing competition from abroad. When two
Customer Successes:
brothers took over the family business, they
• With lean manufacturing supported
decided to focus on quality and eliminate
by NetSuite, CMP Corp. has slashed
waste through lean manufacturing and
crankshaft production lead time from 85
automation. That meant overhauling the
to ten days while reducing costs 25%, and
business systems to increase efficiencies
netted a 26% increase in revenue while
and take out manual processes.
growing the business across 95 countries.
Challenges:
• NetSuite’s flexibility and breadth allows
• CMP Corp’s on-premise Infor Visual
CMP Corp. to continue to grow like it
Manufacturing application was costly and
did in creating a unique “Compressor
outdated, and lacked the flexibility and
Configurator”, enabling customers to
reporting features they needed.
complete entire orders online with
• Had the challenge of maintaining automated order processing while enabling
ten servers and getting leaner while CMP Corp. to broaden business reach and
strengthening disaster tolerance for speed cash flow.
incidents like a 2003 tornado that
decimated its facility.
© Oracle | Terms of Use and Privacy Page 13www.netsuite.co.uk info@netsuite.com +44-0-1628-774400
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