NetSuite is a popular ERP platform used by nearly 40,000 companies worldwide, according to Enlyft. Its featurerich functionality covering manufacturing, supply chain, HR, finance, and other business aspects is a key reason for adoption. As a cloud-native platform, Netsuite also integrates smoothly with corporate applications and third-party solutions, such as Google Workspace and Salesforce, which contributes to its popularity. However, to reap all the benefits NetSuite offers, its adopters need significant investment, as the solution is rather expensive compared to many other ERP on the market. Fortunately, there are ways for companies to optimize NetSuite implementation costs, thereby making its adoption more affordable. In this article, NetSuite consultants from Itransition overview NetSuite cost factors and provide some recommendations for reducing implementation costs. What are the cost factors for NetSuite implementation? The key factors that shape the total NetSuite ERP implementation cost are: Core and extra platform functionality Functionality is one the primary factors determining the cost of NetSuite implementation. A company can gain access to core ERP and CRM functionality by purchasing any NetSuite edition, as these modules are provided by default. NetSuite ERP module includes inventory, warehouse, and financial management capabilities, while NetSuite CRM module comes with marketing automation, order management, and sales forecasting. If a company needs functionality beyond the default NetSuite offering, such as industry-specific features, it will have to purchase additional NetSuite modules, incuring extra costs. These modules are usually grouped in bundles — Manufacturing Edition, Nonprofit Edition, and Healthcare Edition are some examples. Software configuration and customization Alternatively, if a company requires functionality that is not available out-the-box, it can configure the platform by using no-code SuiteFlow tools to create and set up custom NetSuite workflows. However, to fully customize NetSuite to its needs, a company may have to hire developers who’ll use the SuiteScript platform and build custom workflows from scratch via JavaScript, which also incurs additional costs. Number of users As mentioned above, NetSuite offers several editions, each coming at a different price. Companies should choose one depending on their business sizes and number of user licenses they require: • NetSuite Starter/Limited Edition — includes 10 user licenses, so it’s better suited for small businesses (10 to 50 employees). • NetSuite Mid-Market Edition — provides user licenses for 11-1000 employees. • NetSuite Enterprise Edition — includes 1000+ NetSuite user licenses. • NetSuite Premium Edition — provides unlimited licenses, so it better suits large companies and enterprises. File storage and transaction limit Besides the preferred NetSuite edition, the adoption cost also depends on the choice of one or another NetSuite Service Tier, which determines available file storage and monthly transaction limit. NetSuite offers four Service Tiers: • Standard — 100 GB file storage, 200,000 monthly transaction limit • Premium — 1,000 GB file storage, 2,000,000 monthly transaction limit • Enterprise — 2,000 GB file storage, 10,000,000 monthly transaction limit • Ultimate — 4,000 GB file storage, 50,000,000 monthly transaction limit Integration scope and integration approaches The number of NetSuite integrations with other business systems also influences the total implementation cost, with the more integrations required, the higher implementation costs. Along with the number of integrations, selected integration approaches also impact the final NetSuite implementation cost. For example, a company can connect NetSuite to other corporate software using builtin connectors, which require no coding skills and therefore can be executed by specialists without extensive technical expertise. Integrations with legacy systems usually require developing custom connectors from scratch, which is more complex and expensive. User training While NetSuite provides free training materials and user guides, both in the form of articles and video tutorials, training employees still requires some financial investment. For example, if employees need specific expertise to use NetSuite efficiently, a company may need to purchase paid courses, such as those provided by Udemi that can cost up to $100 per employee. Alternatively, a company can opt for user support services from a licensed NetSuite partner. While this type of training can be quite expensive, it helps provide employees with indepth knowledge of NetSuite quickly. For example, licensed partners can execute role-based training to educate employees depending on their user roles – system administrators and regular or advanced users. Project team composition The company will need an IT team to implement the NetSuite platform, and team composition is another important cost factor. The skillset of the project team depends on the scope and scale of the project, for instance, whether extensive NetSuite customizations are required or if comprehensive data migration is performed. 3 recommendations to cut NetSuite implementation costs 1. Prioritize only necessary NetSuite functionality Since the cost of NetSuite adoption directly depends on the functional scope of the solution, the company needs to prioritize ERP capabilities based on operational and strategic business needs. This can help understand which features are most important and should be implemented in the first place. Once a company’s needs are identified, decision-makers should carefully explore the NetSuite functionality. Each NetSuite module has its own set of features, so it’s critical to understand what each offers. Decision-makers can explore the NetSuite functionality and even t use the platform’s trial version to better understand its capabilities. Many licensed partners also offer NetSuite trial accounts for a small fee or free of charge. These typically provided access to core and optional NetSuite capabilities included in OneWorld, Advanced Inventory, Fixed Assets Management, and other modules. Business analysis and research of the NetSuite functionality How To Cut The Cost Of NetSuite Implementation
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