transforming your business management with cloud computing ... · with cloud computing accounting...
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Transforming Your Business ManagementWith Cloud ComputingAccounting & Finance Leadership Forum, Richmond, VAJune 9, 2011
Leon J. Schwartz, Director of Sales, ERP [email protected] 1.877.664.1023 ext.110
David E. Bosher, CFO, SnagAJob Inc.
About ERP Guru
NetSuite Solution Provider since 2005− Service over 280+ NetSuite customers
– 68% active year over year, 32% request occasional service or one-time services
Certified & Authorized for NetSuite Products− NetSuite
– Accounting, Project Accounting, Sales Force Automation (SFA), Customer Service/Support, Web Site/Web Store
− NetSuite Manufacturing
− NetSuite OneWorld
NetSuite Authorized Solution Developer 20 NetSuite Consultants, 3 Analysts, 5 Sales/Marketing/ Admin
The Advent of the Business Cloud
1Technology
affecting financeand IT
# 54Planning or Interested in Cloud
%
GROWTH6X
© NetSuite 2010 4
Automated backups,
uptime, SLA,maintenanceSolution
hosted by vendor
Automatedupgrades
Web and mobile -
access from anywhereModern web
based integration
Elastic, pay as you go –scale up or
down
SaaS SMB Adoption Cycle
CloudFinancials
CloudHCM
CloudCRM
CloudProductivity
Innovators Early Adopters Early Majority
0-2 yearsto peak
2-5 yearsto peak
Fastest Growing FinancialsProvider is Cloud
Market Share: All Software Markets, Worldwide, 2010April 2011
Source: GartnerChart created byNetSuite based onGartner market share note
• NetSuite is growing market share the fastest in the top 10• NetSuite is now the 8th (10th in 2009)
largest FMS vendor by share in North America• NetSuite is the only pure cloud ERP vendor on this list
Typical IT Budget Allocation
91% Maintenance
9% Innovation
9
Current 66% on old
versions
Source: ERP in SME, Aug 2010
On-Premise Holds the Business Back
Greater need for business
visibility
Local sales tax changes
Increasingly distributed business
More selling channels
Shrinking IT resources
Launching new subs and
geos
New businessmodels
Changing financial reporting
Version Locked Business ManagementSoftware is a Liability in a Sea of Change
Business Have Evolved Multiple Systems
Deploy Great Plains
Added Excel for analytics
Added Act, Goldmine, or Salesforce.com
Built a homegrown website
Upgraded Great Plains, or added more seats
Over time: more money, more resources, more integrations
2
1
3
4
5
What Businesses Are Looking for in Their Next ERP
Reduce overall IT maintenance
costs23%
Better support a distributed
organization 17%
Need to Streamline cross
functional business
processes32%
Require more sophisticated functionality
12%
Need a system with better scalability
7%
Improve business visibility
9%
N=809
14
Why Run Your Business in the Cloud?
Stay abreast of latest accounting and regulatory changes
More easily scale a distributed, global organization
Reallocate IT budget from maintenance to innovation
Get automated upgrades and eliminate “wasted” maintenance
Benefits from economies of scale for security and data mgt.
Use a modern, more easier to integrate solution
Typically get more tightly integrated analytics
Cloud computing enables businesses to:
Productivity Benefits Cited as Key Drivers for Cloud ERP:
Speed of deployment
3%
Lower cost of ownership
14%
Access data from anywhere
at anytime38%
Instant access to new functionality
10%
Lower upfront expenditure
4%
Streamlined business
processes31%
N=805
Cloud Enables the Distributed Organisation
Todays organizations are increasingly distributed
Ideal for inherently distributed activities:– Financial Planning– Selling and Order Taking– Distributed finance team
Facilitates off-shoring / shared services
Easily supports temporary and home workers
Real time view into centralized data
#1 Benefit of Cloud ComputingReported by Finance Executives
On Premise ERP vs Cloud ERP TCO
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Dynamics GP and CRM NetSuite
50% Reduction in Overall TCO
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Dynamics GP and CRM
NetSuite
80% Reduction in IT Headcount Costs
50% Reduction inTraining Costs
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Dynamics GP and CRM NetSuite
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Dynamics GP and CRM NetSuite
100% Reduction in Infrastructure Costs
4 Year TCO, 100 Seats
Keys to Cloud ERP Success:ERP that Improves Organizational Efficiency
Trait Business Benefit
Quote to cash integration Reduce cycle time and overhead
Procure to pay integration Eliminate spreadsheets
Web based T&E management Improve employee productivity
Comprehensive audit trail Reduce audit times and improve compliance
Self servicedashboards & reporting
Reduce time spent “hunting”Collaboration and “actionable
One view of the customer Improve team collaboration, reduce redundancy
Trait Business Benefit
Support multi-sub and COAs Manage consolidation times as business grows
Country specific tax and accounting regulations
Eliminate need to add ERP to support local needs
Automated sales tax management Calculate sales taxes across channels and geos
Drill down from corporateto subsidiaries
Ensure straight line visibility from HQ to geos
Multi-language management Ensure you can localize solution to geo needs
Keys to Cloud ERP Success:ERP that Supports Growth
Trait Business Benefit
Comprehensiveweb services integration
Integrate with suppliers, channels, and services
Graphical workflow management Empower line of business to automate business process
Managed customization layer Ensure that customizationswill not “version lock” application
Mobile and anywhere access Support the distributed organization
Industry functionalityand ecosystem
“Future proof” application
Keys to Cloud ERP Success:ERP that Supports Business Flexibility
You Can Now Run Your Entire Business in the Cloud
CEO CFO
Sales Rep/Manager
Support Manager
EcommerceManager
ShippingManager
Customers
Vendors Partners
ECOMMERCE
CRM+
FINANCIALS
PSASINGLE DATASOURCE
AMERICAS APACEMEA
Worldwide HQ
And Scales to the Global Business
ECOMMERCE
PSA
FINANCIALS
CRM+SINGLE DATASOURCE
ECOMMERCE
PSA
FINANCIALS
CRM+SINGLE DATASOURCE
Currency
Quota
Forecast
Orders
Taxation
Partners
Language
Website
LOCAL
15 Languages, 190+ Currencies
Consolidation
Sales
Revenue
Dashboards
CurrencyManagement
Compliance
Control
Many Websites
GLOBAL
Integrated Process = Real Time Visibility
Analytics + Cloud = Easier to Access Analytics from Anywhere
• Browser
• Email / Alerts
• Mobile devices
• Push and pull
• Work / home
SuiteCloud Platform: Powers Complex Customization & Application Extensions
Infrastructure
Application
Developer Tools
On-Premise Style:
Manage It Yourself
HARDWARE
License
Maintain
Patch
Replace
DESKTOP OS
License
Maintain
Patch
Replace
SERVER OS
License
Maintain
Patch
Replace
DATABASE
License
Maintain
Tune
Upgrade
APPLICATION
License
Back-up
Upgrade
Migrate
Fina
ncia
ls
CRM
HARDWARE
License
Maintain
Patch
Replace
DESKTOP OS
License
Maintain
Patch
Replace
SERVER OS
License
Maintain
Patch
Replace
DATABASE
License
Maintain
Tune
Upgrade
APPLICATION
License
Back-up
Upgrade
MigrateEcom
mer
ce
HARDWARE
License
Maintain
Patch
Replace
DESKTOP OS
License
Maintain
Patch
Replace
SERVER OS
License
Maintain
Patch
Replace
DATABASE
License
Maintain
Tune
Upgrade
APPLICATION
License
Back-up
Upgrade
Migrate
Cloud + Suite Drives Results….
CloudStyle
Suit
e (e
x: N
etSu
ite)
HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION
Subscribe
Measured Cloud Suite Benefits
Reduction in financial
close
20%-50% 25%-75%Reduction in
invoicing costs
10%-20%Improvement in
DSO
Quote to cash improvement
50%+ 50%+Reduction in
audit preptime
50%+Less IT costs
thanon-premise
Source: Nucleus Research, SMB Group, and Customer Case Studies
Businesses Run Better with Cloud NetSuite
Improvement area Business Result Company
Accounting efficiency Monthly close reduced by 50%
Reduces accounting costs by 20%
Financial close from weeks to 4 days
IT efficiency Saves approximately $250,000 annually
Rolls out cloud ERP in just 6 months to 10 subsidiaries
EmployeeProductivity
Services revenues lifted by 20 percent
Grew 350% in 6 years without adding staff
Security35%
Ownership of the data12%Ownership of the
application4%
Reliability14%
Maturity vs. On-Premise
8%
Customization18%
No substantial concerns
9%
Concerns About the Cloud
N=805
Cloud Can Be More Available:NetSuite Uptime History
2010
Source: NetSuite Service Level History
Moderate to Heavy Vanilla
79% 21%
74% 26%
75% 25%
76% 24%
Typical ERP Customization
• Database customization
• Custom dashboardsand reports
• Custom forms
• Custom scripts
• Custom workflows
• Custom integrations
Source: Panorama Consulting
Customizable (without version lock)
LATEST VERSION
NetSuite’s Cloud Datacenter
99.5% uptime SLC commitment99.98% 12 months trailing uptimeServe 4BN+ customer requests per month2.2M+ unique logins per quarterSupports 7,000+ customersJust 20 minutes maintenance per week2 automated upgrades per year2 data centers1 code base
EU-US Safe Harbor Compliant
PCI-DSSCompliant
PCI-DSSCompliant
© NetSuite 2011 35
NetSuite’s Redundant Datacenters
Leading commercial construction manufacturer switches from SAP to NetSuite and saves nearly $300K annually
Moved from SAP to NetSuite reducing IT spend from 3% of revenue to 0.1%
Saves $250K+ annually by consolidating more than 12 subs with NetSuite OneWorld
Americas unit of world's largest producer of solar panels chooses NetSuite
$800M Oracle shop chooses NetSuite OneWorld for Asian subsidiary management
Cloud Computing Delivery Saves $M’s
Enterprises Powered by NetSuite and NetSuite OpenAir
CA Technologies RMDM Unit is using NetSuite OneWorld Ecommerce to direct new opportunities to its 13,000+ partners
Lloyds Register is deploying NetSuite OpenAir to 8,000 users in 227 countries– about 40% of their employees
NetSuite OpenAir is being used across 2,000+ employees in 59 countries - reducing administrative overhead by 8%
Siemens PLM is using NetSuite OpenAir across 2,700+ users in 15+ countries - and across 3,000+ client projects and 1,500+ products and skills.
Enterprises Powered by NetSuite
Replaced 92 instances of Microsoft Great Plains with 1 instance of NetSuite OneWorld
Leading provider of GPS solutions selects NetSuite Ecommerce to drive online sales
Leading Australian telco chooses to switchto NetSuite OneWorld from Oracle apps
Running NetSuite OneWorld in 15 locations across 7 countries for global consolidation
Global education company with 3,700+ locations lowers cost by 70% and gets 50-80% faster implementation than Oracle
RMDM Unit using NetSuite OneWorld Ecommerce across its 13,000+ partners
Proven Deliveryfor Your Industry and Size
The #1 Cloud ERP for Software Companies
The #1 Cloud ERP forWholesale Distributors
The #1 Cloud ERP forManufacturers
The #1 Cloud ERP forServices Companies
The #1 Cloud ERP forRetail / Ecommerce
The #1 Cloud ERP forGlobal Businesses
Rich Cloud Ecosystem for Your Industry
Software Companies
Wholesale Distributors
Manufacturers
Services Companies
Retail / Ecommerce
www.suiteapp.com
Why NetSuite?Your Strategic Partner Customer Success Commitment
Security, Availability, Control Unlimited Customization
10,000+ organizations run NetSuite
400+ services professionals
Extensive partner ecosystem
90%+ satisfied/highly satisfied
Public, global business
#1 most deployed cloud ERP
Cash flow positive
$100M+ in cash
$35M+ in R&D
99.97% uptime
128-bit banking level security
Complete access to your data
SuiteCloud customization
SuiteApp.com market place
No version lock