Assets

Liabilities

One-system solution. A big problem with many systems is the integration of CRM (the front office) with ERP (the back office). With NetSuite it’s one system.

Web-based. Most accounting and ERP systems use what is called client/server technology that is optimized for local area networks. You can get remote access by using additional software such as Citrix and Terminal services, but there are additional costs. NetSuite is one of the first totally Web-based systems. The general thinking is that Web-based systems won’t be as fast or as slick as client/server systems but with NetSuite, there is no compromise on speed or user interface.

You need high-speed access to the internet.

Costs. When looking at costs, you need to evaluate the total cost of ownership. With NetSuite, you will save on the traditional costs required to support systems related to the computer/communication infrastructure including database licence, database administration costs, servers and operating systems.

You should also consider the net present value of all costs over several years. By year five, the business case may not be as compelling as it was in year one and two.

Security. As discussed, NetSuite must provide state-of-the-art security for all its customers. But there is another level of security that is normally ignored in most systems. If you are accessing your system over the Internet, you may be exposing information through the communication link. NetSuite provides the same level of encryption as bank transactions. NetSuite also provides role-based security with the usual restrictions by program and activity.

Business intelligence. Dashboards are what you see when you sign on to the system with all the most important information placed wherever you want on the screen. The dashboard includes KPIs, which are calculated in real time – they are updated instantly as the underlying data changes. NetSuite provides 30-plus KPIs out of the box, but you could create more. You can also drill down from the KPI to see the related transactions and source documents.

The system does not include online analytical processing (OLAP), which allows for slicing and dicing of information across multiple dimensions, but you can integrate these tools via an ODBC access option offered as an add-on.

CRM. NetSuite offers a powerful CRM system that can stand alone and compete with many of the leading CRM systems on the market. CRM includes contact management, sales force automation, marketing automation, Outlook integration and customer service (case management and escalation, online customer center, knowledge management and time tracking).

Marketing. You can use NetSuite’s e-mail server to send out thousands of e-mails without causing any performance hit on your computers. You could have the e-mail point to your Website, where users can enter contact information that will automatically update your database. You can send e-mail within NetSuite, but you would receive it with your normal e-mail client such as Outlook. The response chain is logged within NetSuite, providing a handy reference. And if you respond from Outlook, that response will also be automatically logged in NetSuite.

Order Processing. Order processing is included in accounting or ERP systems, but not usually in CRM. Sales representatives will want to create quotes, which should contain the same business rules when placing an order. It makes no sense to recreate the business rules in CRM. You’re better off with one integrated system that provides both CRM and ERP as found in NetSuite.

 Order processing lacks some of the features found in higher-end systems, such as date- sensitive pricing (for promotions), available to promise and a configurator. Available to promise shows you inventory availability by day, week or month so you know when inventory is really available. A configurator simplifies the process of creating and tracking made-to-order products that have many features and options.

Warehouse management. The system does include pick, pack and ship functionality. It is also integrated with UPS, which includes the ability to upload the tracking number so customers could check shipping status online.

 NetSuite offers a basic warehouse management system without any sophisticated picking options or the use of handheld devices that identify what and where to pick. The system is only integrated with UPS at this time.

Audit Trail. The system will generate an audit trail on just about all changes to the database. You will know who made the change and when. This feature is normally associated with high-end systems.

If you want more sophisticated manufacturing such as tracking labour on the shop floor, you will need N'ware.

Oracle Database. Not surprisingly, the Oracle database is used by NetSuite. This database is normally used by large companies with heavy-duty requirements. You get Oracle without the need to hire a database administrator, and according to NetSuite, you will have “pretty much unlimited space” to store your information, with just a few exceptions.

There are additional costs that can kick in for adding a lot of items or graphics on your eCommerce site or for adding lots of attachments to your document repository.

Report writer. NetSuite has built its own report writer, which includes some customization capabilities, drill down and who gets the report. The report writer will also export to Excel and the formatting and formulas remain intact.

NetSuite’s proprietary report writer is not as powerful as some of the better-known report writers, but you could always build your own reports using whatever report writer you choose.

Work flow. There are some predefined alerts and approval processes.

NetSuite does not include a work flow engine allowing you to define approval processes (such as approving a purchase order) or alerts (such as when shipments are late) where you want them.

Financials. NetSuite has the basics including a four-segment account number that includes the natural account, department, class and location. You can also allocate revenue and expenses to projects. You have limited control over the financial statements, but you could push it to Excel to finish off the job.

NetSuite was not designed for complex multicompany organizations looking for intercompany transactions, consolidations or hierarchical financial statements. Although the system lets you allocate revenue and expenses, you are unable to report on project profitability.

Manufacturing. NetSuite does have some limited manufacturing functionality, including bill of materials and an assembly process.

The system was not designed for companies that require MRP, shop floor control or scheduling. NetSuite is seeking partners in this area.

Purchasing. The system does include a basic purchasing system.

You can’t first create requisitions that are consolidated into one purchase order.

Inline editing. As you scroll lists of information (such as customer lists), you don’t need to drill down to fix any errors – you can do it right away as long as you have access rights.

It may be so easy to make changes that errors are accidentally made.