MUFI Rating & Risk – NetSuite CRM

MUFI Rating & Risk – NetSuite CRM

MUFI: Maintainability, Usability, Functionality, Implement ability

Vendor: NetSuite CRM (Select For Vendor Profile)

Introduction

This application is a perfect example of product growth by a vendor that is not mainly focused on product quality or customer value.

Application Detail

NetSuite CRM is a lagging application that requires a substantial amount of custom programming to work correctly. It also has numerous integration problems, downtime, and issues, and has is below average in buyer satisfaction levels in the CRM software category.

NetSuite sells explicitly its integrated connection from NetSuite CRM to NetSuite OneWorld but then does not integrate the two applications well. NetSuite CRM has developed functionality that is broken and can negatively impact a company’s operations. NetSuite CRM is not only extremely lacking as a product, but NetSuite requires the consulting and support for this problematic CRM product to enable customer success.

CRM is moving rapidly expanding its footprint into marketing, but NetSuite CRM is not good at present, and we estimate that it has a low probability of being good at this in the future. Marketing platform companies are not that expensive, so perhaps NetSuite may acquire one.

The management at NetSuite has a responsibility to introduce software in any category that is usable and enables their customers to work efficiently, and Netsuite CRM is not it. NetSuite CRM is very rarely purchased outside of non-NetSuite OneWorld accounts, for obvious reasons. But NetSuite is not yet a large enough company that it can use its OneWorld product as a wedge to influence other purchases from NetSuite on a sufficient scale. If NetSuite CRM and NetSuite eCommerce are indicators, NetSuite needs to stick to its OneWorld product and try to make that better before growing its footprint.

For companies that have already have NetSuite CRM, they need to look at their software selection approach seriously and who is advising them, because it is impossible that we could see how a company could come out of a serious software selection with NetSuite CRM as the winner.

MUFI Scores

All scores out of a possible 10.

Vendor and Application Risk

NetSuite CRM is a low-quality product, which will bring significant implementation challenges. Its functionality is insufficient.

Likelihood of Implementation Success

This accounts for both the application and vendor-specific risk. In our formula, the total implementation risk is application + vendor + buyer risk. The buyer specific risk could increase or decrease this overall likelihood and adjust the values that you see below.

Risk Definition

See this link for more on our categorizations of risk. We also offer a Buyer Specific Risk Estimation as a service for those that want a comprehensive analysis.

Risk Management Approach

Managing the risk of a NetSuite CRM is about lowering expectations. NetSuite CRM is purchased by NetSuite OneWorld buyers primarily. However, there is little in the way of integration between CRM systems and other systems such as ERP systems, so there is little benefit to these NetSuite OneWorld buyers. The approach must be a combination of keeping expectations along with staffing on the heavier side to make up for implement ability and user adoption issues.

Finished With Your Analysis?

To go back to the Software Selection Package page for the CRM software category. Or go to this link to see other analytical products for NetSuite CRM.

MUFI Rating & Risk – NetSuite OneWorld

MUFI Rating & Risk – NetSuite OneWorld

MUFI: Maintainability, Usability, Functionality, Implement ability

Vendor: NetSuite (Select For Vendor Profile)

Introduction

NetSuite OneWorld has over 10,000 customers. NetSuite OneWorld has one of the better user satisfaction levels in the ERP software category.

Application Detail

While often marketed as such and known as such (which is why we have included it in this software category), NetSuite is not an ERP system. Its most accurate designation is a stand-alone financial system, which has very basic inventory management and warehouse management functionality. NetSuite has used the ERP moniker for marketing reasons. NetSuite has recently grown its footprint through acquisition into HR, CRM and eCommerce. But the strength of the application is finance and reporting on finance.

The fact that NetSuite is not a full ERP system can be confusing because NetSuite is one of the major proponents of something called two-tiered ERP. This is where a tier 1 ERP system is used – both at the parent company level as well as a master ERP system (that integrates other ERP systems) and then ERP systems of lower tiers are used for subsidiaries, etc.…

NetSuite has been putting themselves forward as an alternative for the second tier, but they can primarily handle the financial side of the equation, with other companies necessary — such as a Rootstock, to complete the ERP footprint. NetSuite is a SaaS-based solution and is well regarded for its financial functionality. In fact, it is considered the best system for consolidating multiple companies.

Netsuite Browser

NetSuite OneWorld has a browser user interface, with easy an easy to navigate menu bar along the top. Reporting is a strong point of the application.

NetSuite OneWorld can be leveraged for what it is, but it is also a bit difficult to classify. After evaluating NetSuite, we have categorized it as a stand-alone financial application, although it is a bit more than that – but it is nowhere near broad enough in the scope of functionality to be called and ERP system.

NetSuite OneWorld’s strength is its ability to be brought up quickly, and its ease of use. However, in which direction will NetSuite grow? Will it use its newfound market muscle to make more acquisitions? If so will that reduce software quality and delivery as this usually does? NetSuite’s CRM and eCommerce applications are not competitive offerings, so NetSuite’s growth outside of OneWorld has not been encouraging. Typically, we don’t make a big deal about “vision.” We leave that more esoteric analysis to Gartner. However, NetSuite is one of the few vendors whose vision is a concern to us, because we can’t understand NetSuite’s strategy – it seems built on wishful thinking. The following paragraph will explain why.

NetSuite offers its product primarily through SaaS, which is one reason it can be brought up so quickly. However, NetSuite’s pricing has dramatically increased over the past several years, which makes it far more expensive than any of the stand-alone financial systems, even though it is not an ERP system, it is priced as if it is an ERP system which is towards the expensive end of the spectrum. NetSuite is in our view killing its value proposition. NetSuite OneWorld is a basic system; it should not be priced towards the upper end of a software category that it does not even belong in. Considering that one of NetSuite’s main marketing programs is to pitch themselves as a tier 3 ERP solution to complement tier 1 ERP applications like SAP ECC and Oracle JD Edwards Enterprise One, NetSuite’s pricing seems really out of sorts.

NetSuite is considered a go-to application for some types of financial functionalities – in particular, multi entity and multi-currency that is better than any other application. NetSuite strongly markets this functionality as is shown in the following quotation from their website.

NetSuite OneWorld can populate a single charts-of-accounts across subsidiaries, or use separate charts-of-accounts for each company with postings between subsidiaries such as expense allocation managed via inter-company journals. Local taxes are readily handled across subsidiaries with an embedded tax engine that allows for multiple tax schedules for everything from GST, to VAT, to consumption tax or general sales tax. Revenue recognition, local financial reporting and compliance are also built-in components. – NetSuite

For some of these functionalities, there are not good alternatives. However to engage those functionalities is quite expensive. Outside of these specialized functionalities, we do not consider NetSuite a compelling value.

MUFI Scores

All scores out of a possible 10.

Vendor and Application Risk

Software Decisions Risk Defined: (See This Link for Our Categorization of Risk)

NetSuite OneWorld is an application with reasonable implementation risk. OneWorld has a high implement ability and a decent functionality level. Some of the things that OneWorld can do on the financial side can exceed expectations.

Likelihood of Implementation Success

This accounts for both the application and vendor-specific risk. In our formula, the total implementation risk is application + vendor + buyer risk. The buyer specific risk could increase or decrease this overall likelihood and adjust the values that you see below.

Risk Definition

See this link for more on our categorizations of risk. We also offer a Buyer Specific Risk Estimation as a service for those that want a comprehensive analysis.

Risk Management Approach

Problems can arise when OneWorld is implemented as if it is a true ERP system, instead of considering it a best of breed financial system with a few other areas of functionality – therefore the largest challenge we see regarding managing the risks of a OneWorld implementation is the scope of the implementation.

Finished With Your Analysis?

To go back to the Software Selection Package page for the Finance & Accounting software category. Or go to this link to see other analytical products for NetSuite OneWorld.

References

http://www.investopedia.com/terms/c/conglomerate.asp

http://www.netsuite.com/portal/products/oneworld/global-erp.shtml

Enterprise Software TCO Calculator – NetSuite OneWorld

How it Works

Fill out the form below for a your customized TCO calculation, as well as each of the supporting cost components that make up the TCO. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: NetSuite (See for Vendor Rating)
  • Software Category: Financial and Accounting
  • Company Headquarters: 2955 Campus Drive, Suite 100, San Mateo, CA 94403-2511
  • Site: http://www.netsuite.com
  • Contact number: 877.638.7848
  • Delivery Mechanism: SaaS

Finished With Your Analysis?

Once complete, goto this link to see other analytical products for NetSuite OneWorld.

Enterprise Software TCO Calculator – NetSuite CRM

How it Works

Fill out the form below for your customized TCO calculation, as well as each of the supporting cost components that make up the TCO. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: NetSuite (See for Vendor Rating)
  • Software Category: CRM
  • Company Headquarters: 2955 Campus Drive, Suite 100, San Mateo, CA 94403-2511
  • Site: http://www.netsuite.com
  • Contact number: 877.638.7848
  • Delivery Mechanism: SaaS

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for NetSuite CRM.

Software Selection

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Project Planning Package – NetSuite CRM

How it Works

Fill out the form below for your project planning estimate. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: NetSuite (See for Vendor Rating)
  • Software Category: CRM
  • Company Headquarters: 2955 Campus Drive, Suite 100, San Mateo, CA 94403-2511
  • Site: http://www.netsuite.com
  • Contact number: 877.638.7848
  • Delivery Mechanism: SaaS

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for NetSuite CRM.

References

Risk Book

Software RiskRethinking Enterprise Software Risk: Controlling the Main Risk Factors on IT Projects

Better Managing Software Risk

The software implementation is risky business and success is not a certainty. But you can reduce risk with the strategies in this book. Undertaking software selection and implementation without approximating the project’s risk is a poor way to make decisions about either projects or software. But that’s the way many companies do business, even though 50 percent of IT implementations are deemed failures.

Finding What Works and What Doesn’t

In this book, you will review the strategies commonly used by most companies for mitigating software project risk–and learn why these plans don’t work–and then acquire practical and realistic strategies that will help you to maximize success on your software implementation.

Chapters

Chapter 1: Introduction
Chapter 2: Enterprise Software Risk Management
Chapter 3: The Basics of Enterprise Software Risk Management
Chapter 4: Understanding the Enterprise Software Market
Chapter 5: Software Sell-ability versus Implementability
Chapter 6: Selecting the Right IT Consultant
Chapter 7: How to Use the Reports of Analysts Like Gartner
Chapter 8: How to Interpret Vendor-Provided Information to Reduce Project Risk
Chapter 9: Evaluating Implementation Preparedness
Chapter 10: Using TCO for Decision Making
Chapter 11: The Software Decisions’ Risk Component Model

Project Planning Package – NetSuite OneWorld

How it Works

Fill out the form below for your project planning estimate. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: NetSuite (See for Vendor Rating)
  • Software Category: Financial and Accounting
  • Company Headquarters: 2955 Campus Drive, Suite 100, San Mateo, CA 94403-2511
  • Site: http://www.netsuite.com
  • Contact number: 877.638.7848
  • Delivery Mechanism: SaaS

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for NetSuite OneWorld.

References

Risk Book

Software RiskRethinking Enterprise Software Risk: Controlling the Main Risk Factors on IT Projects

Better Managing Software Risk

The software implementation is risky business and success is not a certainty. But you can reduce risk with the strategies in this book. Undertaking software selection and implementation without approximating the project’s risk is a poor way to make decisions about either projects or software. But that’s the way many companies do business, even though 50 percent of IT implementations are deemed failures.

Finding What Works and What Doesn’t

In this book, you will review the strategies commonly used by most companies for mitigating software project risk–and learn why these plans don’t work–and then acquire practical and realistic strategies that will help you to maximize success on your software implementation.

Chapters

Chapter 1: Introduction
Chapter 2: Enterprise Software Risk Management
Chapter 3: The Basics of Enterprise Software Risk Management
Chapter 4: Understanding the Enterprise Software Market
Chapter 5: Software Sell-ability versus Implementability
Chapter 6: Selecting the Right IT Consultant
Chapter 7: How to Use the Reports of Analysts Like Gartner
Chapter 8: How to Interpret Vendor-Provided Information to Reduce Project Risk
Chapter 9: Evaluating Implementation Preparedness
Chapter 10: Using TCO for Decision Making
Chapter 11: The Software Decisions’ Risk Component Model

Honest Vendor Ratings – NetSuite

Introduction

NetSuite has gone through an interesting transition of names. Its founders, Larry Ellison and Evan Goldberg, originally named NetSuite NetLedger. For a while, it was called Oracle Small Business Suite before being renamed to “NetSuite.”

NetSuite is a fast-growing company. In fact, this is one of the negatives for customers in that NetSuite lacks the bandwidth in order to provide the type of service that its competitors provide. It is following other companies that have recently been taking support offshore, and once again the quality difference is obvious to customers.

NetSuite’s growth in terms of its new products has been of poor quality. NetSuite began as a provider of a good value limited application (its stand-alone financial product) and is turning into a poor value provider because of its price increases and its inability to come up with passable products outside of OneWorld.

There are many indicators that NetSuite is calcifying and is a victim of bad management as well as Harvard MBA Syndrome. NetSuite has rapidly increased prices, reduced innovation, and poor quality new products. What is the compelling argument for new customers to purchase from NetSuite?

Our recommendation is for current customers of OneWorld to limit purchase from NetSuite to what is already owned. For those who are adding OneWorld to a software selection exercise, NetSuite is now a risky software vendor to become involved with, and while they make a lot of marketing noise about how bad the major ERP vendors are (all of which we agree with by the way), they are actually beginning to act quite a bit like them. Obviously, companies should disregard the rest of NetSuite’s product suite.

Quality of Information Provided

The quality of information provided by NetSuite is low. NetSuite begins by misclassifying their ERP system. As we note in the ERP section of our Enterprise Software Implementability, Maintainability, Usability, Functionality Ratings which are part of our Software Selection Packages, while often marketed as such, NetSuite is not an ERP system. It is a stand-alone financial system, which has very basic inventory management and warehouse management functionality, which has used the ERP moniker for marketing reasons. That may help NetSuite sell their application for more money, by a common complaint by buyers is that non-financial functionality ends up being a disappointment. On the other hand, more software selections should be able to catch onto this fact.

Consulting and Support

We estimate NetSuite’s consulting as average and their support as a bit below average.

Internal Efficiency

Internal efficiency is low and appears to be decreasing. In fact, considering how expensive NetSuite has become, its lack of improvement in OneWorld and the poor quality of its newer products bring up a number of questions regarding the efficiency of NetSuite’s internal operations.

Innovation

NetSuite was never particularly innovative but offered an easy to use the product that came around at the right time. NetSuite has been more of a marketer than a technology innovator. NetSuite also has a powerful backer in Oracle, and this has helped open doors and push its rather average software into a better-known area that it would have if it did not have Oracle as a backer.

Vendor Scores

Part of the Following Software Categories

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Software Selection Package for Finance & Accounting

Software Selection Package for CRM