NetSuite aims for the next billion dollar revenue

SAN JOSE, California — The biggest announcement in this year’s SuiteWorld is probably the statement of NetSuite Chief Executive Zach Nelson saying that after 18 years, the company he leads is set to become a Billion-dollar company in 2016.

With a vision to deliver enterprise-grade services via the cloud, Nelson attributes most of company’s success to the efforts of its employees worldwide, together with the companies, subsidiaries, and organizations that use its products as expressed in his keynote to delegates on the first day.

“Every type of company in the world is using Netsuite…and we’re very excited about that,” said Nelson. “The cloud has completely won. And my argument is, that is has won in every industry and will continue to win in every industry.”

Early this year, Netsuite was ranked as the No. 1 Cloud ERP vendor by research firm Gartner, and with a market share growing 45% in 2015, compared to its closest competitors having only single digit growth, except for Microsoft with 10.6 percent. Still, far from what the San Mateo-based ERP company achieved.

“Clearly (NetSuite) is the most widely used business system in the cloud in the world today.” said Nelson as he continue his keynote. “We will hit a billion dollar revenue this year.”

New products

At this year’s SuiteWorld, which happened at the San Jose Convention Center, one of the major announcements was SuiteBilling, a new product that recognizes the complex processes from order to billing to revenue recognition all within one system since it’s built natively into NetSuite’s core ERP system.

Another announcement was the release of a host of new product enhancements to NetSuite OneWorld, a cloud-based ERP system designed for enterprises to meet complex industry, regulatory and tax requirements at global scale. With OneWorld 16, the new release “further helps global companies increase operational efficiency, streamline financial reporting, deepen local and global compliance, localize business processes and deliver peace of mind for CFOs, controllers and finance users”.

“The robust functionality and flexibility of NetSuite OneWorld makes it the last ERP system you’ll ever need,” said Zach Nelson, NetSuite chief executive. “Whether they’re a fast-growing start-up or a multinational enterprise, NetSuite continues to meet customer demands with features that enable them to confidently expand into new markets, launch new products or services and adapt to customer and market demands with a unified and agile cloud-based platform.”

Further, Netsuite added new capabilities on the company’s Order Management application, which they said is one of the most widely used cloud-based, order management solutions in the world. With Intelligent Order Management, Netsuite provided intelligent omnichannel order allocation so merchants can automate how to best fulfill orders based on their inventory availability and the configurable business rules they establish inside the ERP system.

‘Most widely used business system’

When Nelson proclaimed that “every type of company in the world is using Netsuite…(and it’s the) most widely used business system in the cloud today”, the company co-founder’s pronouncement holds water.

Companies such as Boston Globe Media Partners, the parent company of Boston Globe; Specialty Bakery, a leading supplier of frozen bakery goods; Sanitary Care Products Asia (Sanicare), a manufacturer of home and facial paper products in the Philippines; that URBAN626, manufacturer of the URB-E compact electric vehicle; Lingerie Company of Australia, a leading luxury lingerie wholesaler and retailer who represents Simone Pérèle and Implicite brands; specialist professional recruitment company PageGroup; finance company SoFi, and Blue Yonder, a leading predictive applications company based in Germany, to name a few, are all NetSuite customers. A variety of companies catering to different markets, globally.

 And there seems to be no stopping in terms of diversity.

Only recently, the Japanese subsidiary, NetSuite Co., Ltd., added HobbyLink Japan Inc. to the company’s growing roster. HobbyLink is a distributor of Japanese toys and hobby products to consumers and retail businesses across the globe. The popular online source for anything anime has selected NetSuite OneWorld to support its global expansion plans.

Since its establishment in 1995, HobbyLink Japan, supplies some of the world’s finest hobby kits, figures and toys, to the delight of anime fans all over the world. The online e-commerce website includes a comprehensive selection of Gundam, Sci-Fi, anime and military models, books and supplies from a 4,000-square-meter facility in Tochigi.

For 20 years the toy distributor enjoyed business growth but experienced challenges with its existing on-premise accounting system and numerous spreadsheets that created extensive manual work and were prone to error. The company said that the old system required heavy customization and could only offer basic reporting capabilities. It added that employees had to hand code most of the customer queries and responses, which eventually hampered the company’s ability to manage growth.

“With NetSuite OneWorld, we expect to have clear insights into the business and business performance and I believe that there will be significant productivity improvements as the system will allow us to get near-instant access to business critical information,” said HobbyLink Chief Executive Scott Hards. We believe with NetSuite, we will be able to effectively manage our inventory to keep our stock levels and types at a point where we can execute well on demand and our customer service department can give the most up-to-date information to our customers. HobbyLink’s aim is to continue to supply the world’s finest hobby products and toys to its customers and provide an exceptional customer experience. “

HobbyLink Japan has a catalogue of 125,000 SKUs and actual inventory of 60,000 items that can be ordered online and shipped to customers and collectors around the world with large markets in the US, Australia, the UK, Canada, Spain, Italy, Brazil, Germany, Malaysia and the Philippines. Currently, 30 percent of its sales go through hobby shops and the other 70 percent through the ecommerce site.

“HobbyLink joins the growing number of businesses that see the value of bringing their mission-critical data together in NetSuite,” said Tomoyuki Nakanishi, vice president and general manager Japan for NetSuite. “With the flexibility, agility and scalability of NetSuite’s cloud ERP, these businesses can continue to grow and profit.”

source: interaksyon.com

SAP launches biggest software product overhaul in two decades

FRANKFURT — SAP has launched the most high-stakes overhaul of its core software line in more than two decades, aiming to convince multinational corporate customers that its software can now run their most critical business applications much faster.

Europe’s biggest software company said on Tuesday its widely used suite of corporate planning applications and newer cloud-based Internet software would work together using a single, modern user interface. Forrester Research estimates that could lead to exponential improvements in SAP data-crunching times.

The unified database platform, called S4 HANA, promises to cut the time it takes to compile business accounts and forecasts to minutes, instead of hours and days, by analysing vast amounts of data in local memory. This provides instant-access retrieval instead of the slower call-and-response method of pulling data from hard disks, CDs and tapes.

Established software makers such as SAP are battling to boost Internet software sales and fend off pure cloud-based rivals Salesforce.com, Workday and Amazon.com’s Web unit.

According to some analysts, SAP has staked out a big, early lead in the market for real-time business planning software by signing up a chunk of its biggest customers to S4 HANA.

For most companies, accounting for sales performance, inventory levels and other key financial measures still requires an elaborate scheduling effort known as the quarterly closing process to synchronise relevant data, a snapshot in time that is often days or weeks old by the time it is ready.

SAP’s newer approach, in development for four years and used in parts already by thousands of customers, is to combine its super-fast “in-memory” database with business analysis functions. This lets company planners drill down into actual financial transactions and draw on a range of both internal and external data instead of relying on statistical assumptions.

“It’s about managing a business in detail rather than in the aggregate,” Forrester analyst George Lawrie said. “That means looking through the windshield rather than the rear-view mirror.”

At a product launch in New York, followed afterward by a capital markets day for financial analysts and investors, SAP executives will face questions over moves to deliver more of its software as cloud-based Internet services instead of packaged software running on customers’ in-house computers.

Most analysts accept the industry shift to cloud software delivery. But they want SAP to disclose more financial metrics that can allow investors to track how the cloud business is performing relative to its classic packaged software business.

SAP has acknowledged the move to the cloud will force it to backtrack on long-promised profit margin gains that have been a big investor draw, in favour of potentially faster revenue growth.

All major database vendors including Oracle, IBM, Microsoft, Pivotal and Teradata now offer “in-memory” versions and dozens of rivals supply predictive analytics software in the cloud.

With the introduction of S4 HANA, SAP is looking to eventually bring all of its customers under one roof, a process that will entail further software development by SAP and complex decisions by customers about when it makes financial sense to convert organisational information from existing data formats.

source: interaksyon.com