What are the drawbacks/benefits of using NetSuite as an ERP system?

Netsuite can be considered as the solution that is based on cloud computing and electronic commerce. This is a software that can offer the collaboration of partners and also the support that is made available at multilevel for the mid-sized companies.

In the case of various other solutions that make use of numerous records and database for supporting each process while the Netsuite can make it possible for increasing business efficiency by offering various processes that include shipping, accounting, billing functionality and sales by making use of the similar base records. There are various different functionalities that are offered by the netsuite and it includes the sales force automation, sales team tracking, revenue recognition and fulfilment and shipping.

The functionalities include the financial reporting, budgeting and eCommerce management.

Advantages and Disadvantages of NetSuite:Cost of NetSuite:

The cost of Netsuite can vary depending on the scope and needs that is available on the enterprise level. The subscriptions that are for a month usually start with $40. This is a solution that is affordable for the businesses of varying sizes. The bigger companies can choose the solution which is of high cost as per their need. There is possibility for the individuals to get the Net suite depending on the size and requirement of the company.

Pros of NetSuite: 

There are many small businesses who try to make use of the Netsuite in the manner that they require. They can make the software outgrow like that of quickbooks. The Netsuite offers access to the real time figures that are associated with finance and this can reduce the paperwork as it make use of the same source of data for all these things to be done. This solution provides you with sales ordering and the streamlining of the process to be done just through a click. The errors and data entry costs can be reduced in a much significant manner s there is a possibility for sharing and correlating the information that is available with the business.

There is a possibility for saving money and time, there is possibility for you to offer the strong tools for management and accounting done on web based. This is a solution that can provide you with the possibility for protecting the data of the company through damage pr any kind of theft. There is possibility for the data to be secured from things like natural disaster and also reduces the time for recovery of the data.

The strategy and planning can be considered as a project that is available at enterprise level. There are multiple modules which are available in the Netsuite for tying data with various departments with quantifiable numbers.

Cons of Netsuite: 

Nesuite is the software that has made it much easier for helping the various things that are associated with the small businesses. This is the one that only favours the company which can stay alone in dealing with their accounts available in day to day. Netsuite do not provide with solution that is much broad as well as flexible as the Netsuite manufacturers offer you. 

Ref :

http://netsuite.walkme.com/advantages-and-disadvantages-of-netsuite/

The cost of Netsuite can vary depending on the scope and needs that is available on the enterprise level. The subscriptions that are for a month usually start with $40. This is a solution that is affordable for the businesses of varying sizes. The bigger companies can choose the solution which is of high cost as per their need. There is possibility for the individuals to get the Net suite depending on the size and requirement of the company.

1. Flexibility: NetSuite provides the flexibility that cannot be found in traditional on-premises software applications. Within NetSuite, any user with the correct application security can add fields to specific record types. The additional components allow NetSuite to match a company’s business process rather than fit the business into the software application. This also helps to avoid costly customizations.The ability to extend NetSuite and model additional business processes in the application allow organizations to manage their business from a single system. A single application prevents costly integrations between disparate systems.
2. Scalability:NetSuite is a scalable solution that can assist growing companies. It allows for the easy addition of both users and modules without any installation. For example, if you want to start using incentive management to track a sales teams or person’s commission, you only need to purchase the application and upload the install codes from NetSuite. That means no consultants and no IT unless additional configuration or enhancements are needed.Another scalable approach that NetSuite offers is the ability to add users during a cyclical business cycle. With traditional on-premises software a company must purchase the highest user license count it might incur at any period. NetSuite allows you to scale up your user count for busy periods and scale down when not needed.
3. Workflow automation:Many service industries rely on workflow and business process automation to manage their organization. Service industries that standardize approaches and execution methodology receive higher customer satisfaction scores and enjoy higher retention rates. Standardization of process and automation of events assists in ensuring that each customer engagement is managed and executed in a consistent manner.Consistency is an essential requirement in successfully managing a service organization.  Workflow automation can also help a company be proactive in customer management by identifying problems early and suggesting corrective action.
4. Single application: NetSuite is a single application designed to manage an entire business from the initiation of a lead to the cash collection and repurchase of additional services. Many in the industry refer to this as an integrated solution. However, NetSuite is not an integrated solution. NetSuite is a unified application designed to provide one source of truth for managing customers, employees, financials, projects, service execution and all other operational aspects of a company. NetSuite is built on the same platform, same code base and uses a single database. The deployment of a single system across an organization can also improve financial reporting and close times leading to an increase in proactive decision making across the business.
5. Collaboration: This is a core focus for high-functioning service organizations. NetSuite provides a platform for collaborating around projects, financials or one’s core responsibility.  Knowledge and the sharing of that information can provide a strategic competitive advantage for service organizations. Collaboration also is important in the context of customer relationship.  Constant communication with clients can improve service delivery by ensuring that expectations are met.  Through the deployment of NetSuite’s customer center you can ensure that clients have access to relevant information and are continually satisfied.

To my understanding Netsuit is SaaS based solution i.e. a cloud solution which u can avail though subscription model. If you compare it with SAP from different aspect you may note what pro and cons can be.

1. SInce it is cloud based the location of data is one major aspect that one would like to look at.

2. Secondly i dont see any major difference in costing once you compare the TOC ( total cost of ownership ) from along time perspective say 5 years +

3. The extensive availability of functionalities is definitely a plus with SAP.

4. But Netsuit scores when it comes to limited functionality requirement where budget is major challenge to start .

It totally depends upon your need and capability to use and ERP.

thanks

Senthil