Webinar Video: Demo - How NetSuite Streamlines the Order to Cash Process Webinar
This video is from the Proformative "Demo: How NetSuite Streamlines the
Most people in finance and accounting have heard about NetSuite, the leading Cloud-based financial management system. But until you see it in action, it's hard to put the functionality in perspective and understand how your company could benefit from it.
Order-To-Cash Process Webinar
Thank you for joining the order-to-cash process webinar with us. To kick it off, before we talk a little bit about NetSuite, I wanted to kind of give you a little background of the marketplace and that really kind of explains what NetSuite's story and reason for existing is all about. If you look at the marketplace in particular, most companies are using on-premise software to run most of their business, in particular accounting.
Most companies are using systems like Microsoft Great Plains, QuickBooks, Sage, and other systems out there like SAP and Oracle, and such. What's happened in the marketplace and a lot of this momentum you hear about the Cloud, the reason that's happening is because of - you can see some of the data out there talking to this - but the cost of maintaining an on-premise system oftentimes costs over five times the cost of the actual license itself with the servers, the hardware, software backups, upgrades, and all the maintenance that goes with it.
Companies have gotten frustrated with that time waste that comes with that. Similarly and for the same reasons around this maintenance, a lot of companies are staying on their old version of software. They're not taking advantage of new versions and upgraded technology, and features because of the pain that comes with upgrading a software across all your different offices and your computers, and the such. Therefore, they're using older technology that oftentimes, particularly in the accounting field, isn't keeping up with regulatory changes and important aspects of your business that can help with improved processes and efficiencies.
For that same reason, the IT department oftentimes aren't able to spend their time on innovation. Data from Gartner shows that only 9% of an IT team's time and money is spent on innovation these days because they're really focused on maintaining the current architectures they have in place. Which oftentimes is really because of a fragmented system. One is because on-premise systems. Another piece of it is, oftentimes companies, they'll have QuickBooks or Great Plains for accounting, perhaps, Excel tied throughout the whole processes in the middle, oftentimes Excel for inventory and fulfillment, but sometimes other systems managing on that side of the place.
Another system for CRM, maybe another system for marketing, another system for the web, perhaps, or custom coding for the web, and all these systems are being tied together. Additional time on top of maintaining your on-premise software is being spent integrating or trying to tie reports together from these various systems.
Those four real drivers kind of led to when NetSuite got started, and so the goal of NetSuite really is to create a web-based integrated business system that powers companies, but at the fraction of the cost and complexity that traditional on-premise software typically costs the companies. In particular, this is relevant to SMBs and mid-sized companies, fast-growing businesses who have some of the same requirements that a large business has, but they don't have endless budget and resources like a large enterprise may. They need a different system to enable them to move faster.
A little background on NetSuite, the company was found in 1998. It was founded by Larry Ellison who you may know from Oracle, as well as another key engineering executive from Oracle. It's public trade on the New York Stock Exchange. We now operate in ten countries, with 1,300 employees around the world. We're approaching $300 million in total revenue for the year of 2012.
The company NetSuite is the world's most deployed Cloud
Customers large and small use it. Companies like Jawbone, Splunk, and GoPro, fast-growing companies, as well as large companies like CA, Johnson & Johnson, Land 'o Lakes, Proctor & Gamble, so large and small companies are utilizing the system in different ways. As I've mentioned, along with our growth, a lot of industry recognition.
This talks to some of the statistics around that Gartner has noted us as the fastest growing top ten financial management system the last three years running. It's also interesting to note that it's the only system in Gartner's top ten financial management that's 100% Cloud. All the other systems in that top ten are on-premise primarily. We've had industry recognition from companies like Gartner basically calling us the leader on the SaaS, ERP markets.
The way NetSuite has been designed is all-around improvement in business processes. Fran (inaudible 00:05:35) will talk to this and show this in more detail. At a high level, this system hasn't been designed as just your siloed system, a simple
Oftentimes it's not only the (inaudible 00:05:57) accounting books that this relates to. It relates to your reporting ability, inventory management, fulfillment management, billing,
The system has been designed at, and so oftentimes the system is looked at as more of a financial suite, and that it breaks down walls. They're typically there between various
One of the strengths of NetSuite is that the system has been built on top of a global business management system. That includes multi-currency, multi-country and multi-language, multi-taxation, multi-regulatory capabilities built into the system. If you're a company that's considering or currently working on a global basis, the system is particularly strong in that basis.
The fact that it's Cloud-based is particularly useful when you're opening up new offices or you have different offices around the world and around the country. In fact, a lot of the large customers that we talked about on the previous slide, the way they're using NetSuite is in these international offices they have to help them expand globally and operate more quickly and efficiently.
This is a little bit of data in terms of why many companies are moving from on-premise to Cloud. Essentially, Herwitz & Associates, a respected analysis in the industry, has shown through analysis that a Cloud business suite gets you 50% reduction in total cost of ownership over a four-year basis. The reason is that the cost really isn't in licenses alone.
Editor's Note; Proformative offers a wide variety of the many other recorded webinars, including but not limited to Corporate Finance Strategy Webinar, Coporate Financial Forecasting Webinar, Host Analytics Demo Webinar, Corporate Finance Productivity Technology Webinar and Recurring Revenue Webinar.
The cost is in maintenance, upgrades, IT resource time, patches, infrastructure and requirements, and that's where you get huge cost savings with the Cloud. Essentially what that means is your IT resource and your team can start focusing on integration and growth rather than simply maintaining the way the company runs today.
A little bit more on the Cloud outside of the total cost of ownership, total cost of ownership is one benefit of the Cloud for sure, and the reduction in maintenance. There are, of course, other benefits. When we talk to our customers, a lot of them talk about the anytime, anywhere access to the system.
With the Cloud, every piece of data in your system is real-time. It's pulling from the system as you speak, so as soon as you load a
Tied to that is mobility, with distributed workforces, multi-location offices, outsourcing to different countries and different regions of America and other types of changes that are happening in the business world. Mobility is particularly important and the Cloud is basically made for that. You can use any type of web device, any type of browser,
essentially access the system from anywhere. Because it's web-based, this happens to be much easier to use from a self-service perspective for not only employees but customers and vendors. It's expandable beyond your borders.
Related to this, there are a number of studies that we've run to identify the benefits that NetSuite provides both with a fully integrated multi-process system as well as a Cloud-based architecture. The results are pretty profound in terms of oftentimes the businesses on average are able to reduce their