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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 …
2013
World’s most
deployed cloud
ERP system
2008/09
• First global
cloud ERP
• First vertical
cloud platform
2007
IPO on
NYSE
Ticker: N
2000
First cloud
Business
suite
NetSuite History
│ 4
1998
Founded by
Larry Ellison and
Evan Goldberg
16,000+ organizations
100+ countries
#1Cloud
ERP
Source: Gartner
System to Run an Entire Business
5
#1 Cloud ERP Suite
Always Included Website Capability
© NetSuite Inc. 2012
CRM
PSA
ERP
Ecommerce
SINGLE
DATA
SOURCE
© NetSuite Inc. 2013 7
ERP is Difficult
take longer
than expected61%
average
project size
74% exceed
budget
48% realize
benefits
$5.5M
Why Cloud ERP?
DEPLOYS IN
MONTHS
NOT YEARS
© NetSuite Inc. 2013 8
YOU RUN YOUR BUSINESS,
WE RUN OUR SOFTWARE
DRAMATICALLY
LOWER IT COST
FLEXIBILITY ENABLES
BUSINESS AGILITY AND
INNOVATION
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
Automated
upgrades
Web and
mobile –
access from
anywhereControl over
speed of
deployment
Subscription
fee structure
© 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 Better
Flexibility, Cost Transparency, And Mobility
© NetSuite Inc. 2013
© NetSuite Inc. 2013 13
Automated Upgrades
Removes costs for entire ecosystem
Features can evolve over time
Elimination of the Upgrade Project
A Way Forward for Today’s Enterprises:
Two-Tier ERP
© NetSuite Inc. 2013 14
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
Unattainable “Vision”
© NetSuite Inc. 2013 15
Real-time visibility!Single Version of the Truth!
MasterDataManagement
Reality 10 Years Later –
© NetSuite Inc. 2013 16
6.0
Home
Grown
Home
Grown
Home
GrownGP GP
4.7
R11
GP
10.7
NAV
Home
Grown
NAV
2007
4.7
NAV
2009
NAV
2008
6.0
6.0
R3
4.7
4.5
GPAX GP
4.5
6.0
Home
Grown
R3
Australia
EMEA APAC
Worldwide HQ
Mexico USA Brazil France Germany Japan ChinaUK
NetSuite OneWorld Deploys Within Subsidiaries
AMERICAS
REGIONGLOBALCOUNTRY
REGIONGLOBAL
Worldwide HQ
COUNTRY
NetSuite Two-Tier Solution
Australia
EMEA APAC
France Germany Japan ChinaUK
France UK Germany Japan Australia China
AMERICAS
Mexico USA Brazil
Mexico Brazil
USA
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 19
Drivers For Two-Tier ERP Platform
© NetSuite Inc. 2013 20
• 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
Drivers For Two-Tier ERP Platform
© NetSuite Inc. 2013 21
STANDARDIZE
SUBS
M&A,
DIVESTITURES
NEW BUSINESS
MODELS
NEW CHANNELS
NEW MARKETS
149#
FORTUNE 500
$19.1
REVENUE
BILLION
188
LOCATIONS
WORLDWIDE
26K
EMPLOYEES
$24.6
CUMULATIVE R&D
BILLION
© NetSuite 2013 22
Standardize Subs, Increase Agility
In 18 months, Qualcomm has
deployed 10 subsidiaries on
NetSuite
M&A, Divestiture: RedBuilt
© NetSuite Inc. 2013 23
Overview
Spin-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
Benefits
Transitioned 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
New Business Models
© NetSuite Inc. 2013 24
Transitioning to new recurring billing model
Needed Ecommerce platform to launch new product lines
Ecommerce sites for two product lines
1956
FOUNDED IN
$4.04
REVENUE
BILLION
75
# COUNTRIES
SELLING
INTO
581
# STORES
8
WEST ELM | WS
PB | AND MORE
BRANDS
New Channels
© NetSuite Inc. 2013 25
Shaw’s Expands Operations to China
© NetSuite Inc. 2013 28
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
Cloud Computing Rationale at
© NetSuite Inc. 2013 29
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
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 31
© 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
www.curiousrubik.com
@curiousrubik

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CIO Cloud ERP Presentation - NetSuite CuriousRubik

  • 2. Cloud ERP Deployment Strategies from the Enterprise
  • 3. © 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. 2013 World’s most deployed cloud ERP system 2008/09 • First global cloud ERP • First vertical cloud platform 2007 IPO on NYSE Ticker: N 2000 First cloud Business suite NetSuite History │ 4 1998 Founded by Larry Ellison and Evan Goldberg 16,000+ organizations 100+ countries #1Cloud ERP Source: Gartner
  • 5. System to Run an Entire Business 5 #1 Cloud ERP Suite
  • 6. Always Included Website Capability © NetSuite Inc. 2012 CRM PSA ERP Ecommerce SINGLE DATA SOURCE
  • 7. © NetSuite Inc. 2013 7 ERP is Difficult take longer than expected61% average project size 74% exceed budget 48% realize benefits $5.5M
  • 8. Why Cloud ERP? DEPLOYS IN MONTHS NOT YEARS © NetSuite Inc. 2013 8 YOU RUN YOUR BUSINESS, WE RUN OUR SOFTWARE DRAMATICALLY LOWER IT COST FLEXIBILITY ENABLES BUSINESS AGILITY AND INNOVATION
  • 10. © NetSuite Inc. 2013 10 Access to full-time, on-call Operations Database administration System administration Network administration Security Virtualization Compliance Disaster Recovery Backup
  • 11. World Class Operations Multi-tenant, single release Automated upgrades Web and mobile – access from anywhereControl over speed of deployment Subscription fee structure © NetSuite Inc. 2013 11
  • 12. 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 Better Flexibility, Cost Transparency, And Mobility © NetSuite Inc. 2013
  • 13. © NetSuite Inc. 2013 13 Automated Upgrades Removes costs for entire ecosystem Features can evolve over time Elimination of the Upgrade Project
  • 14. A Way Forward for Today’s Enterprises: Two-Tier ERP © NetSuite Inc. 2013 14 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
  • 15. Unattainable “Vision” © NetSuite Inc. 2013 15 Real-time visibility!Single Version of the Truth! MasterDataManagement
  • 16. Reality 10 Years Later – © NetSuite Inc. 2013 16 6.0 Home Grown Home Grown Home GrownGP GP 4.7 R11 GP 10.7 NAV Home Grown NAV 2007 4.7 NAV 2009 NAV 2008 6.0 6.0 R3 4.7 4.5 GPAX GP 4.5 6.0 Home Grown R3
  • 17. Australia EMEA APAC Worldwide HQ Mexico USA Brazil France Germany Japan ChinaUK NetSuite OneWorld Deploys Within Subsidiaries AMERICAS REGIONGLOBALCOUNTRY
  • 18. REGIONGLOBAL Worldwide HQ COUNTRY NetSuite Two-Tier Solution Australia EMEA APAC France Germany Japan ChinaUK France UK Germany Japan Australia China AMERICAS Mexico USA Brazil Mexico Brazil USA
  • 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 19
  • 20. Drivers For Two-Tier ERP Platform © NetSuite Inc. 2013 20 • 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
  • 21. Drivers For Two-Tier ERP Platform © NetSuite Inc. 2013 21 STANDARDIZE SUBS M&A, DIVESTITURES NEW BUSINESS MODELS NEW CHANNELS NEW MARKETS
  • 22. 149# FORTUNE 500 $19.1 REVENUE BILLION 188 LOCATIONS WORLDWIDE 26K EMPLOYEES $24.6 CUMULATIVE R&D BILLION © NetSuite 2013 22 Standardize Subs, Increase Agility In 18 months, Qualcomm has deployed 10 subsidiaries on NetSuite
  • 23. M&A, Divestiture: RedBuilt © NetSuite Inc. 2013 23 Overview Spin-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 Benefits Transitioned 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
  • 24. New Business Models © NetSuite Inc. 2013 24 Transitioning to new recurring billing model Needed Ecommerce platform to launch new product lines Ecommerce sites for two product lines
  • 25. 1956 FOUNDED IN $4.04 REVENUE BILLION 75 # COUNTRIES SELLING INTO 581 # STORES 8 WEST ELM | WS PB | AND MORE BRANDS New Channels © NetSuite Inc. 2013 25
  • 26.
  • 27.
  • 28. Shaw’s Expands Operations to China © NetSuite Inc. 2013 28 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
  • 29. Cloud Computing Rationale at © NetSuite Inc. 2013 29 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. 30 — Ysmael Baysa, CFO I don’t want to put a DBA in Vietnam. © 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 31
  • 32. © 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
  • 33.
  • 34. © NetSuite Inc. 2013 Confidential 34 www.curiousrubik.com @curiousrubik