cio cloud erp presentation - netsuite curiousrubik
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www.curiousrubik.com
Office:+1 646 459 2754
Cloud ERP Deployment Strategies from the Enterprise
© NetSuite Inc. 2013
Last Slide First
Is becoming a key piece of the Enterprise
Offers benefits which on-premise cannot touch
Is the emerging technology of strategic investment
3
Cloud ERP …
│ 4
2013World’s most deployed cloud ERP system
2008/09• First global
cloud ERP• First vertical
cloud platform
2007IPO on NYSETicker: N
2000First cloud Business suite
NetSuite History
1998Founded by Larry Ellison and Evan Goldberg
16,000+ organizations
100+ countries
#1CloudERP
Source: Gartner
5
System to Run an Entire Business
#1 Cloud ERP Suite
Always Included Website Capability
© NetSuite Inc. 2012
CRM
PSA
ERP
EcommerceSINGLE
DATASOURCE
© NetSuite Inc. 2013 7
ERP is Difficult
take longer than expected61%
average project size
74% exceed budget
48% realize benefits
$5.5M
© NetSuite Inc. 2013 8
Why Cloud ERP?
DEPLOYS IN MONTHS NOT YEARS
YOU RUN YOUR BUSINESS, WE RUN OUR SOFTWARE
DRAMATICALLY LOWER IT COST
FLEXIBILITY ENABLES BUSINESS AGILITY ANDINNOVATION
Scalable Application
© NetSuite Inc. 2013 10
Access to full-time, on-call Operations
Database administration
System administration
Network administration
Security
Virtualization
Compliance
Disaster Recovery
Backup
World Class Operations
Multi-tenant, single release
Automatedupgrades
Web and mobile –
access from anywhereControl over
speed of deployment
Subscriptionfee structure
Cloud Computing
Differentiators
© NetSuite Inc. 2013 11
12
“Upgrade” is another Implementation
Approximately half of ERP customers are currently on releases that are two versions behind the current release, which may be four years old or more.
Trends 2011: ERP Customers Demand BetterFlexibility, Cost Transparency, And Mobility
© NetSuite Inc. 2013
© NetSuite Inc. 2013 13
Automated Upgrades
EveryoneRunning Same
Release
Removes costs for entire ecosystem
Features can evolve over time
Elimination of the Upgrade Project
© NetSuite Inc. 2013 14
A Way Forward for Today’s Enterprises:Two-Tier ERP
60
50
40
30
20
10
0
2009 2012
The Rise of Two-Tier Adopting a two-tier ERP strategy can dramatically reduce regional business unit implementation times, provide greater agility and improve operational costs.
Understand the Deployment Options for a Two-Tier ERP Suite Strategy,May 2013
© NetSuite Inc. 2013 15
Unattainable “Vision”
Real-time visibility!
Single Version of the Truth!
Mas
ter
Dat
a M
anag
emen
t
© NetSuite Inc. 2013 16
Reality 10 Years Later –
6.0
HomeGrown
HomeGrown
HomeGrownGP GP
4.7
R11
GP
10.7
NAV
HomeGrown
NAV2007
4.7
NAV2009
NAV2008
6.0
6.0
R3
4.7
4.5
GPAX GP
4.5
6.0
HomeGrown
R3
Australia
EMEA APAC
Worldwide HQ
Mexico USA Brazil France Germany Japan ChinaUK
NetSuite OneWorld Deploys Within Subsidiaries
AMERICAS
RE
GIO
NG
LO
BA
LC
OU
NT
RY
RE
GIO
NG
LO
BA
L
Worldwide HQ
CO
UN
TR
YNetSuite Two-Tier Solution
Australia
EMEA APAC
France Germany Japan ChinaUK
France UK Germany Japan Australia China
AMERICAS
Mexico USA BrazilMexico Brazil
USA
© NetSuite Inc. 2013 19
Fortune 100 Runs NetSuite (and 16K Others)
#7
#37
#22 #42
#77
#100
#27 #44
#21
#32
#34
#97
#51#10
#12
#70
#95
#57
#55
#82
#64
© NetSuite Inc. 2013 20
Drivers For Two-Tier ERP Platform
• Standardize subsidiary level, increase agility, visibility
STANDARDIZE SUBS
• Quickly integrate new companies or business units, efficiently manage joint ventures and divestitures
M&A, DIVESTITURES
• New billing models (ex: recurring revenue, subscription)
NEW BUSINESS MODELS
• New sales and distribution channels (ex: Ecommerce)
NEW CHANNELS
• Accelerate expansion in new markets, new productsNEW MARKETS
© NetSuite Inc. 2013 21
Drivers For Two-Tier ERP Platform
STANDARDIZE SUBS
M&A, DIVESTITURES
NEW BUSINESS MODELS
NEW CHANNELS
NEW MARKETS
149#FORTUNE 500
$19.1REVENUE
BIL
LIO
N
188
LOCATIONS WORLDWIDE
26KEMPLOYEES
$24.6CUMULATIVE R&D
BIL
LIO
N
© NetSuite 2013 22
Standardize Subs, Increase Agility
In 18 months, Qualcomm has deployed 10 subsidiaries on
NetSuite
© NetSuite Inc. 2013 23
M&A, Divestiture: RedBuilt
OverviewSpin-off from corporate parent Weyerhaeuser
Faced with termination of SAP access, required rapid replacement of enterprise ERP
SAP deemed inflexible for the custom demands of commercial clients like RedBuilt
BenefitsTransitioned from SAP to NetSuite in just 86 days
Avoided $275K in annual salary costs for SAP and database administrator
NetSuite Year 1 costs were 50% less than what RedBuilt would have spent with SAP
© NetSuite Inc. 2013 24
New Business Models
Transitioning to new recurring billing model
Needed Ecommerce platform to launch new product lines
Ecommerce sites for two product lines
Shipping
NetSuite Store
Webstore – design by CAPowered by
SuiteCommerce
Revenue
1956FOUNDED IN
$4.04REVENUE
BIL
LIO
N 75# COUNTRIESSELLING INTO
581# STORES
8WEST ELM | WS PB | AND MORE
BRANDS
New Channels
© NetSuite Inc. 2013 25
© NetSuite Inc. 2013 28
Shaw’s Expands Operations to China
Berkshire Hathaway company, $4B
First Shaw-owned manufacturing facility outside of the United States
Dedicated to serving Asia Pacific
210,000 square feet
Focus is commercial products
Began production in July 2013
Deployed 11 subsidiaries to support Asia Pacific operations in 9 month project
© NetSuite Inc. 2013 29
Cloud Computing Rationale at
Support future expansion around the world
Highly configurable and repeatable
Support foreign currencies, regulations and languages
Minimize initial investment and system automation
Ability to administer/manage from the United States
– Light IT footprint – did not want to replicate all of the systems and overhead in the US
Proven platform for China
– Ease of use and implementation with internationalization capabilities
30
— Ysmael Baysa, CFO
I don’t want to put a DBA in Vietnam.
© NetSuite Inc. 2013
© NetSuite Inc. 2013 31
Fortune 100 Runs NetSuite (and 16K Others)
#7
#37
#22 #42
#77
#100
#27 #44
#21
#32
#34
#97
#51#10
#12
#70
#95
#57
#55
#82
#64
© NetSuite Inc. 2013 32
In Conclusion: Cloud in the Enterprise
Try it for the speed and cost savings
You’ll stay for the scalability, ease of administration, automated upgrades
Two-tier ERP enables strategic investment
© NetSuite Inc. 2013 Confidential 34
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