what is netsuite

What is NetSuite and How Does It Work?

NetSuite is a company that has been constantly evolving since its inception. Their path started decades ago when Oracle co-founder Larry Ellison persuaded entrepreneur Evan Goldberg of the potential of web-based software, prompting Goldberg to launch NetLedger, the company that would later become NetSuite, in 1998. 

Today, NetSuite’s cloud Enterprise Resource Planning (ERP) system provides organizations with the various tools they need to manage their company efficiently while fostering growth. If you are looking for a unified ERP solution, NetSuite offers strong capabilities.

This article will walk you through what NetSuite is all about, including its core features, and how it works.

What is NetSuite?

NetSuite is a cloud-based business applications software publisher that enables small and mid-sized businesses to operate their operations from a single platform. 

The ERP system of the company manages key functions such as inventories, finance and accounting, orders, and procurement. The primary data source allows information from all across the system to be updated in real-time and made available to authorized users across business processes.

This provides leaders with a real-time, comprehensive view of the business, allowing them to determine which processes or divisions are performing well and which require improvement. 

NetSuite Core Features

Although NetSuite is the oldest provider of cloud ERP software, competition has increased dramatically since they started. So, what distinguishes NetSuite from other cloud computing solutions? Here are the core standout features:

  1. A Unified Business View: NetSuite enables any company to manage its whole operation from a single platform. Rather than using separate software for each of these services, it integrates HR, finance, production, supply chain, and eCommerce into a single system with a single database. Employees just log in and can examine the status and performance of any part of their operation with a few clicks. 
  1. Native Integrated Modules: To ensure that there is only one source of knowledge, all NetSuite applications input information into and extract it from the central database. Natively integrated modules on the platform eliminate the need for third-party integrations, which may be unreliable or incapable of supporting real-time updates. This unified architecture provides a similar user interface across all modules, allowing people to become more productive and reducing training time. This model also enables users to execute procure-to-pay, order-to-cash, and other multi-step procedures from a single application without having to re-enter or export data. 
  1. True Cloud: NetSuite was designed and developed for the cloud. In contrast, several “cloud” ERP systems are essentially hosted, on-premises software that has been modified for internet access. Most of the issues that affect conventional systems, such as slow upgrades, version lock, and lack of scalability, are present in such solutions. 
  1. Extensive Reporting Capabilities: The large volume of data streaming into the NetSuite platform from departments and business units fuels its deep reporting capabilities. Thanks to the system’s built-in reporting features, users can view reports on everything and anything they wish to measure or comprehend. NetSuite also has role-based dashboards, which provide executives, managers, and employees with the information needed to make informed decisions quickly.
  1. Built-in Flexibility: NetSuite can serve a wide range of sectors not only because it has amazing capabilities, but also because it can adapt to fit the needs of various organizations. SuiteCloud apps and tools can be tailored to match your operations and business structure, whether you’re a global brand with several subsidiaries or a startup currently developing its first product.

How Does It Work?

NetSuite has more than 29,000 customers, making it ten times larger than the next largest competitor in the ERP industry. NetSuite solutions are all offered via the cloud on a subscription basis.

It is a multi-tenant cloud solution, which means that all customers use the same software package and its back-end infrastructure and receive automated updates on a regular basis. Each customer’s data is saved and protected independently. Since everything runs on the same code, this creates economies of scale. 

Users can safely access the platform from any device (e.g., a laptop, smartphone, or tablet) using a browser. This flexibility enables decision-makers to monitor the operation of their organization and be informed of any concerns no matter where they are, as long as they have internet access. Role-based access provides authorized employees with the information they need to thrive in their roles while preventing them from reading data that is irrelevant to their jobs.

Finally, customers can utilize simple drag-and-drop tools to customize their home dashboard with the graphs, KPIs, charts, reminders, and shortcuts that are most important to their roles.

Businesses That Use NetSuite Today

NetSuite is used by small, mid-market, and large enterprises because of its highly flexible and comprehensive range of functions for both B2C and B2B companies in a variety of industries and verticals.

Business can be conducted anywhere, at any time, thanks to the real-time system that is accessible via PCs, smartphones, and tablets. Today, NetSuite’s more than 29,000 users work in a range of industries, including:

  • Advertising and Digital Marketing
  • Apparel, Footwear, and Accessories
  • Campus Stores
  • Consulting
  • Education
  • Energy
  • Financial Services
  • Food and Beverage
  • Health and Beauty
  • IT Services
  • Manufacturing
  • Media and Publishing
  • Nonprofit
  • Professional Services
  • Restaurants and Hospitality
  • Retail
  • Software and Technology
  • Transportation and Logistics
  • Wholesale Distribution

Furthermore, the platform supports over 190 currencies, 27 languages, and automated tax compliance in more than 100 countries.

How Much Does NetSuite Cost? 

NetSuite cost is determined by the size and complexity of the company, as well as the requirements of the company. Companies pay an annual license fee to NetSuite. That license has three major components: optional modules, the core platform, and the number of users. This annual license cost contrasts with the substantial, one-time payment companies are required to make for a perpetual license to utilize on-premises equipment as well as ongoing support and maintenance.

Customers pay just for what they need, when they need it, thanks to NetSuite’s modular pricing model. As a company grows, new modules and users can be quickly added. Furthermore, license rates vary because each module is different and provides unique capabilities.

Wrapping Up

There’s a reason why several business owners rely on NetSuite to handle their most crucial processes and data. Having all critical business information in one place helps for more informed decision-making and the resolution of problems before they become more complicated. If you haven’t already, you should consider using NetSuite for your business.

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