When evaluating a cloud ERP solution, the very first step is to understand your business requirements and which software solutions offer the capabilities to support them. After all, cloud ERP vendors offer a range of solutions and industry-specific capabilities that cater to different businesses' needs and preferences. Ticking off a checklist of features will put you one step closer to identifying the cloud ERP product that best aligns with your business objectives and technical requirements. But the ultimate decision should extend beyond capabilities. It’s just as important to conduct thorough due diligence on potential cloud vendors by assessing criteria such as the vendor's ownership, stability, and ongoing product investments. It is only when you understand the origins and business journey of a cloud ERP vendor that you can get insights into what to expect in the future, giving you confidence that you are partnering with a reliable technology vendor who will support your business as it grows. To explain just how important vendor stability is, I will use Oracle NetSuite as the example cloud ERP to evaluate against the necessary criteria – we are NetSuite partners at Annexa, after all.
NetSuite cloud ERP as a case study in sustainability
Founded in 1998, NetSuite was a pioneer in delivering cloud-based business applications. As the first company dedicated to this model, NetSuite set a benchmark for cloud ERP solutions. Its acquisition by Oracle in 2016 for US$9.3 billion underscores the value and confidence a major technology player saw in NetSuite's future. Post-acquisition, NetSuite has continued to thrive, currently supporting over 38,000 customers worldwide. Oracle's backing has provided substantial resources for ongoing product development, ensuring that NetSuite remains at the forefront of innovation in the cloud ERP space. This partnership also guarantees long-term stability, with Oracle's extensive infrastructure and financial strength underpinning NetSuite's operations.
What to look for in a cloud ERP vendor
Market position and track record
A vendor, like NetSuite, with a long track record demonstrates stability and reliability. They have proven their resilience and adaptability by weathering market fluctuations and technological changes over time. This experience is often reflected in product maturity, support capabilities, and commitment to continuous improvement. Long-standing vendors with a solid market position have a proven track record of reliability and resilience. They are likely to offer mature products that have been refined over years of customer feedback and technological advancements. NetSuite, for example, has taken the experience and learnings gained from tens of thousands of deployments worldwide over two decades and created a set of leading practices. It’s called NetSuite SuiteSuccess, a deployment methodology that integrates these best practices into pre-configured roles, dashboards, and KPIs tailored to various industries. This approach not only accelerates implementation but also ensures that businesses can quickly realise the benefits of the ERP system by following proven pathways to success.
Customer base and community
A large and diverse customer base indicates that the vendor's product can support a wide range of business needs. It also means that the vendor has extensive experience dealing with different industries, which is particularly advantageous if you have a unique business model or highly specific requirements. An active user community further improves your ERP system experience by giving you access to more collective knowledge:
- Peer support: A larger user base gives you access to a vast pool of expertise, insights, user-created solutions, and best practices.
- Continuous improvement: User feedback drives system updates while community suggestions influence future system enhancements.
- Quicker resolution: Faster problem-solving through active and well-managed community forums.
At last count, NetSuite's customers totalled 40,000, a number that continues to climb year on year. NetSuite has leveraged its extensive customer base by anonymising customer data and incorporating it into some compelling new AI innovations. One such tool, NetSuite Benchmark 360, uses AI and machine learning so organisations can analyse financial metrics and compare their performance against similar organisations in their industry and region. Customers can use this information to gain insights into their strengths and receive AI-generated suggestions for improvement. Innovations like this are simply not possible with smaller customer numbers.
Commitment to innovation
Vendors committed to innovation continually invest in R&D to keep their products up-to-date and capable of addressing emerging business challenges. This is essential for the long-term success of any ERP investment. NetSuite, for instance, leverages Oracle's vast R&D resources and the Oracle Cloud Infrastructure to integrate advanced technologies like AI and machine learning into their ERP solutions. Oracle’s robust infrastructure has also enabled NetSuite to introduce Enterprise Performance Management (EPM) solutions. Built on the Oracle Fusion Cloud, its new EPM solution gives NetSuite customers enterprise-like capabilities for planning, budgeting, forecasting, and reporting.
Ongoing investments
A vendor's commitment to ongoing product investment is another key factor to consider. Continuous improvements and updates are essential in keeping the ERP solution relevant and capable of addressing emerging business challenges, especially in a time of intense digital innovation. Vendors who reinvest in their product demonstrate a commitment to their customer base and to staying ahead of technological advancements. NetSuite's integration into Oracle's ecosystem has accelerated its development trajectory. With access to Oracle's vast resources, NetSuite benefits from enhanced R&D capabilities, leading to more robust features, improved scalability, and heightened security measures.
How to be confident in vendor sustainability
- Ownership and financial stability: Assess the vendor's ownership structure and financial health. Strong financial backing, as seen with NetSuite's relationship with Oracle, can provide reassurance of the vendor's longevity and capacity for innovation.
- Track record and market position: Look at the vendor's history and market position. A long-standing presence and a substantial customer base indicate reliability and trustworthiness. For example, vendors like NetSuite have product roadmaps extending years into the future, providing customers with long-term planning confidence.
- Commitment to innovation: Evaluate the vendor's investment in product development. Continuous updates and a clear roadmap for future enhancements reflect a commitment to meeting evolving customer needs. NetSuite, under Oracle's wing, continually invests in emerging technologies such as AI and machine learning, ensuring their customers stay competitive with the latest advancements.
Reducing risk in the vendor assessment journey
Choosing a cloud ERP solution is a strategic decision that goes beyond features and functionality. By assessing a vendor’s track record for experience, stability, and ongoing investments, you can better understand how your investment today will position you for long-term success and maximise your return on investment tomorrow. With a little guidance, the vendor assessment journey will save your organisation plenty of time, cost, and trouble in the long run. At Annexa, we can help you evaluate NetSuite ERP and architect a cloud ERP solution from risk assessment to deployment, ensuring that your chosen solution aligns with your strategic objectives. By partnering with Annexa, you benefit from a NetSuite solution designed to grow with your business, delivering long-term value and adaptable to whatever comes next.