Official NetSuite Blog - Cloud NetSuite

Time to Get Your Multi-Channel Strategy Right

With the rise of online shopping, pressure on traditional retailers to compete with cheaper prices and greater variety available online provides both risk and opportunity. This continues to be heightened by the strong Australian dollar, which increases consumers’ purchasing power on overseas sites.

An estimated $6 billion of sales from Australia in 2011 were purchases on overseas websites, which equates to around 40 percent of overall online sales, according to Frost & Sullivan. It is becoming increasingly obvious that if many traditional retailers don’t start consolidating their physical store presence and migrating some sales to the online channel, they are both ignoring a very large opportunity and adding additional pressure to stores.

Surprisingly, Frost & Sullivan’s research also found that only around 50 percent of Australian retailers in 2011 offered online sales capabilities, with the proportion of sales via the Internet still fairly low. Many other retailers use their websites only for marketing and customer support. This just goes to show that many retailers are still missing out on market opportunities from the booming online retail sector in Australia.

The slow adoption of online retailing by large department stores and retail chains in Australia is a key reason for the lag in local ecommerce activity overall. This is showing signs of changing, however, as many are being forced to walk a new path. Leading Australian retailer David Jones, for example, is one of the most high profile recent cases, launching a new and improved web storefront last fall after a succession of poor earnings reports.

Despite a shift in focus, however, it became clear during the failed “Click Frenzy” online sales event in Australia late last year just how unprepared retailers are to cope with online channels, despite the hunger for it from Australian consumers. The heavily marketed Click Frenzy sale involving over 200 Australian retailers failed to perform at launch time because the site couldn’t handle two million hopeful shoppers looking for a bargain. Also unprepared were a number of major participating retailers, including David Jones and Myer, whose websites crashed under the high traffic volumes as well.

The lesson learned is that the sheer number of consumers wanting to find a bargain online should be a wake-up call to Australian retailers to take notice and get the right multi-channel strategy in place now—otherwise they will continue to lose out to overseas online sites. The major challenge for retailers is the increasing range of digital channels that customers use to access the Internet. This fragmentation creates a number of hurdles, particularly when it comes to implementing a common customer experience across all channels.

Ecommerce is not a standalone system—customers want stock availability, discount tiers, payment options and specifications, and retailers need to offer these in real time from the back end, along with invoicing, margins, analytics, etc.

Retailers need a single system with a built-in webstore that adapts to any consumer- facing device in real time, links online systems to central business systems, from ERP and CRM to POS, and addresses Internet latency and reliability issues across all channels. For many retailers though, the complexity and cost of running a single transactional system optimised across all digital channels and integrated into internal business systems is overwhelming.

This is where cloud computing really opens doors, by unifying separate retail channels to provide a single view of the customer, sales and revenue. Cloud computing changes the game by offering the opportunity for a lower cost and much lower risk rollout of the ecommerce software needed to support multi-channel retailing, which is particularly attractive for smaller businesses with limited resources. 

The cloud can give you real-time visibility into your entire retail operation, accessibility from anywhere at any time, as well as a single view of a customer across all channels. You can also ensure that your order, inventory and financial information are always up to date. Its infinitely scalable nature can give you the confidence that your site will stay open no matter how many customers cross its digital threshold.

For further information about NetSuite for Retail visit - http://www.netsuite.com.au/portal/au/industries/retail/main.shtml

-Mark Troselj, Managing Director of Asia Pacific for NetSuite

10 Tips for Getting the Most Out of SuiteWorld 2013

With a new location, a new slate of sessions and a wealth of new NetSuite partners and customers, SuiteWorld 2013 promises to be the best one yet.

The NetSuite conference is moving from San Francisco to the San Jose Convention Center this year to accommodate the roughly 5,000 attendees expected to be at the show May 13-16. And a show with that kind of turnout with more than 180 breakout sessions requires a little preparation. Here are 10 ways SuiteWorld attendees can ensure they get the most out of the conference.

1. Research.  SuiteWorld offers a wealth of information for getting the most out of your NetSuite deployment with sessions that cover every facet of the suite. Factor in some free time, but be sure to spend the time up front figuring out your business needs and the schedule that makes the most sense for you. Then you’ll be better positioned to come home with actionable information.
2. Go Early. SuiteWorld’s preconference in-depth training workshops offer a deep dive into all areas of the solution for intermediate to advanced NetSuite users, spanning reporting, OneWorld, workflows and more.
3. Take Note of the Keynotes. NetSuite leadership (CEO Zach Nelson, CTO and founder Evan Goldberg, and COO Jim McGeever) will open each day with a keynote session providing entertaining, informative insight into NetSuite’s progress, product roadmap and vision for the future of the cloud.
4. Learn at Lunch. SuiteWorld has three ways to make your lunch more than just a break from the show to scarf down some food.  Tuesday offers a chance to sit down with show sponsors to get answers to your questions about the cloud, integration or simply network. Wednesday offers the chance to meet with the user group community and share best practices across multiple roles. Wednesday also presents the chance to have lunch with SuiteWorld bloggers and NetSuite product experts. Just sit down at the table with the topic you’re interested in.
5. Brainstorm. If the excitement of the show and the energy of progressive companies executing on their vision has you inspired, wander over to the SUITEideas area to whiteboard your ideas and get insight from NetSuite product experts on how to execute on your own vision.
6. Network. There’s perhaps no better way to learn and grow at SuiteWorld than by talking and sharing with fellow customers and partners. In the session rooms, the hallways, the coffee area, it’s a chance not only to learn how to get the most out of your NetSuite implementation, but potentially find the right partner or business opportunity. Better yet, chill out in the SuiteLife lounge where you can rest, recharge and network in comfort.
7. Meet the SuiteGuru. Sit down with our technical experts and get your specific questions about CRM, Ecommerce, ERP, OneWorld, OpenAir, the SuiteCloud platform or Web design answered in 30-minute meetings. But be sure to schedule them, pre-registration is required and seating is limited.
8. Tour the Floor. Wander the show floor, pick up some schwag and find the solution your business needs to accomplish its vision. It’s all on display. When you’re done, wander over to the SuiteStore to pick up your official SuiteWorld gift from customers such as Incipio (iPhone 4 or 5 case), Nakajima (Hello Kitty swag), Philz Coffee (lb of coffee), Liberty Water Bottle (official SW water bottle) or School of Rock (t-shirt). 
9. Get Out. You’ve traveled to San Jose, now take some time to get outside. Take a walk, go out to eat at one of the area’s signature restaurants, soak up Silicon Valley.
10. Get Down.  After all the contacts are made, the questions answered and your mission accomplished, be sure to grab a cold drink and have a suite time at Wednesday night’s SuiteCelebration Gala.

We look forward to seeing you. Be sure to follow @NetSuite and #NSW13 on Twitter to keep up to date on the show. If you’re looking for more inspiration, check out the scene
from last year:

 

For more information on SuiteWorld 2013, please visit: http://www.netsuite.com/portal/press/events/nsw2013/main.shtml

NetSuite SuiteAcademy Now in Australia

One of the most talked about technology trends in 2012, cloud computing has seen its popularity grow exponentially as more and more companies choose cloud computing over on-premise systems. Schools like UTS already offer courses for on-premise software like SAP and Oracle. Now they’re recognizing the importance of teaching NetSuite and cloud computing -- both for the country’s future workforce and the job prospects of their students.

Cloud computing has become so ubiquitous that it’s now a major source of employment throughout the world. This is the main reason why NetSuite continues to preach the power of the cloud to colleges and universities worldwide. Through the SuiteAcademy Program, NetSuite offers these institutions a great way to strengthen business curriculum by giving students hands-on instruction on NetSuite's cloud-based ERP/financials suite.

Now it’s made its way to Australia.

In use at more than 90 member institutions, SuiteAcademy provides no-cost NetSuite licensing for instructional use that meets student demands for educational value and real-world experience. SuiteAcademy helps make students more marketable to employers—and makes universities more attractive to students.

Since officially launching SuiteAcademy in 2011, the program has grown 83 percent, with more than 100 tertiary institutions around the world now teaching NetSuite. The NetSuite cloud business solution is predominantly introduced in the third and fourth year of degree, and MBA programs, meaning that the next generation of managers, entrepreneurs, and business professionals can come to the job market with a stronger understanding of business operations and a clear understanding of the power of cloud computing.

The most recent addition to NetSuite’s growing portfolio of Academic beneficiaries is the University of Technology, Sydney (UTS), which is also the first Australian university to join the NetSuite SuiteAcademy program. The UTS Business School plans to incorporate NetSuite cloud ERP, including supply chain and accounting functionality, into the postgraduate degree curricula in 2013 for students pursuing MBA and Master of Business in Operations and Supply Chain Management degrees.

During the next four months, NetSuite will work closely with the UTS Business School to prepare curricula for next year’s MBA intake. This will focus on providing students with practical, hands-on experience with NetSuite’s modules, as well as a better understanding of how it supports process flows and revenue cycles throughout an entire organisation. Schools like UTS already offer courses for on-premise software like SAP and Oracle. Now they’re recognizing the importance of teaching NetSuite and cloud computing -- both for the country’s future workforce and the job prospects of their students.For further information about NetSuite Suite Academy program please visit - http://www.netsuite.com.au/portal/services/suiteacademy/main.shtml

- Mark Troselj, Managing Director of Asia Pacific for NetSuite

eCommerce Down Under: The Convenience Gap in Australia

Editor’s Note: Andy Lloyd, the general manager of NetSuite Commerce Products, recently completed a global tour, meeting with NetSuite customers, learning about their markets, their challenges and how they’re solving them. Andy will post insights from his travels from the different regions and markets.

While Australia’s economy has drawn envy in recent years from other corners of the globe, consumers and businesses down under are becoming increasingly concerned about the cooling economic conditions in Asia.  

That makes eCommerce a potentially vital channel for forward-thinking retailers in Australia. In contrast with the UK, where businesses in all sectors are generally ahead of the curve in eCommerce adoption, established Australian retailers have been skeptical of eCommerce and its value to consumers.

Historically, eCommerce has been viewed as a channel Australians use only if they’re seeking low prices, versus a specialized shopping experience or specialized product or service selections. Even today, the “convenience” light bulb hasn’t switched on for many Australian retailers. Being able to shop from anywhere for products located anywhere is a relatively new concept.

Shoppers in the US are as cost-sensitive as any people on the planet, but they rarely think of “low prices” as the primary consideration when they make purchases online. They are more likely to think “convenience” first. Consumers can purchase just about anything they need online. In fact, some items, which may not necessarily be a pressing that a consumer may take their time seeking out, are ideal candidates for an online purchase.

Take, for instance, a knife sharpener. There’s nothing urgent about the knife sharpener – the knives will still work – but eventually it will be needed and eCommerce provides an opportunity to do now, what I’m likely to delay and may even forget later. The competitive prices online are attractive, but it’s really about the convenience of the 90-second purchase that wins me over to this channel. The need doesn’t linger; I don’t have to remember it; the purchase is made and the need is fulfilled.

Despite the skepticism, a small but growing number of savvy Australian and foreign retailers are moving into this market gap and doing very well. While this online shopping activity is small, it’s accelerating rapidly, according to the National Australia Bank.

One company filling this “convenience gap” is Avago.com.au, the homewares venture of Kitchenware Direct. The firm is working to establish itself as a leading eCommerce brand on the strength of a unique, high-value shopping experience versus positioning itself as a low-cost leader. The company is providing a well curated assortment of products that will appeal to people who want to shop online. In fact, the company plans to expand to 15 ,000 product SKUs within the next 12 months and Avago.com.au manages all customer transactions and interactions in NetSuite, regardless of touchpoint, whether it’s the website, smartphone, social media site or telesales.

Avago.com.au and other online retailers like it are well positioned to fill in the convenience gap when customers start to make the leap.

-Andy Lloyd - GM of Commerce Products

The Gateway to Asia, the New Economic Powerhouse, is Through the Cloud

With the spotlight heavily on Asia following the launch of the Australian Government’s “Australia in the Asian Century” whitepaper, Australians are being encouraged to seize the opportunities of the Asian century, as the region transforms into the economic powerhouse of the world.

In recent years, Asia has become the key hub in the global supply chain as many multinational corporations move manufacturing operations to lower cost locations, such as China.

The manufacturing, distribution and logistics market is growing at a significant rate in the region as a result. Research firm Frost and Sullivan estimates that the transportation and logistics market in Asia Pacific will grow at a compound annual growth rate of over seven percent from 2011-2016, to reach over $4 trillion by 2016.

Expansion increasingly by necessity

Many Australian manufacturers, wholesalers and distributors have been expanding into Asia for years, driven by desire for growth and global success. This has enabled them to source the best materials for the best price from any global market, and to reach new markets, distributors and customers wherever they are.

For others, however, increasing global pressures are forcing them to expand beyond Australia’s borders not by choice, but for survival. This is largely driven by factors beyond their control, particularly the strong Australian dollar, Australia’s industrial relations and regulatory framework, higher direct costs, a relatively small domestic market, weak private sector spending, the impact of cheap imports and goods into Australia and fierce manufacturing competition, particularly from Asia.

Over the past two years, many high profile cases of iconic Australian brands, such as Bonds, King Gee, Hard Yakka, Mortein, Dettol and Streets, have offshored various manufacturing and distribution operations to Asia in order to survive. Despite being strong local brands with the latest state of the art manufacturing technology and efficient processes in place, these businesses have needed to embrace Asia to stay relative and competitive.

Significant job cuts show how increasingly vulnerable we are to international economic conditions. The manufacturing sector employed 16 percent of Australia's workforce 30 years ago; today it is half that, with 4,400 jobs lost in the past year alone.

Global expansion is never easy

While many foresee their business future in Asia, just as many hesitate on the doorstep of this economic powerhouse, wondering how to break into a diverse market where languages, currencies, regulations, and cultural morays are not only so different from Australia, but also significantly different within the region.

How do you best set up a functional business quickly and affordably in Asia with the lowest level of risk possible? What’s the easiest way to move a business or open a subsidiary there, while maintaining control from an Australian headquarters? How can you minimize the cost of IT systems choking growth plans, while still managing multi-currency, multi-language, multiple reporting requirements and financial consolidation of all subsidiaries?

These are complex business questions that require case-by-case market analysis. Regardless of the differences, the key is to not allow a great business decision to become derailed by a costly and time consuming IT decision.

Cloud speeds up new market entry

Cloud computing is playing a crucial role in helping Australian companies expand into Asia more easily and cost effectively, by giving them the agility and flexibility to set up new businesses operations. It provides the ability to operate in global markets in real-time and establish a core platform for manufacturing, distribution, customers and supply chain. In addition, the speed of implementing cloud solutions gives businesses rapid entry into foreign markets that legacy on-premise software would not offer.

Now you can establish a comprehensive core platform for business management, particularly for key back-office operations and financial business processes, without the huge costs and manpower required to install, operate and maintain hardware and software systems.

By understanding the benefits of cloud computing, your business stands to gain a real competitive advantage as Asia continues its economic transformation.

By Mark Troselj, managing director of Asia Pacific for NetSuite

Australian Online Retailer Manages Multiple Websites Using SuiteCommerce

Australia's largest pure-play kitchenware retailer, Kitchenware Direct, bumped up its roster of websites to 11 when it recently launched its first homewares venture, Avago.com.au. And of course, it is worth noting that all 11 websites are managed through NetSuite SuiteCommerce.

Prior to NetSuite, Kitchenware Direct ran its business using a variety of systems, but due to its fast-paced growth, the company needed an integrated system to meet demands both externally and internally.

With no dedicated IT staff and with responsibilities spanning ecommerce, telesales, financials, inventory management, order management, distribution, CRM and other core processes, running multiple websites would have been impossible for the Perth-based retailer. But after streamlining its business operations on NetSuite, Kitchenware Direct has grown 900 percent in the past four years to an annual turnover of almost $20 million.

After four years on NetSuite SuiteCommerce, Kitchenware Direct continues to grow and adapt to the changing retail landscape. Apart from its newest venture with Avago, it is also now armed with a mobile site that means customers can enjoy a more streamlined single shopping and browsing experience be it via an iPhone or an Android phone.

As Kitchenware Direct founder Peter Macaulay puts it: “The main thing with NetSuite is it’s such a simple system and the fact that it’s cloud-based really means that we can concentrate in running our business rather than running an IT department.”

Watch this video to learn more:

 

-Andy Lloyd - GM of Commerce Products

Wholesaler’s ERP Customization Pays Off with Stock Management Software

Fresh Produce Group, an Australian wholesaler, has seen approximately $1 million in cost savings a year since installing NetSuite.

The company runs NetSuite across the business, from financials to inventory management, through the sales process and even tracks stock issues with Netsuite’s case management functionality.

Aside from the significant savings, Fresh Produce Group was able to build a couple of modules for its specific business, thanks to NetSuite’s easy ERP customization.

For example, Fresh Produce Group built a stock management module to track inventory, integrating with radio frequency handheld devices from Motorola.

“We know where every single pallet in the warehouse is at any given time,” said Malcolm Price, IT Manager for Fresh Produce Group.

Watch the video for more!

-Barney Beal, Content Director/Editor at NetSuite

NetSuite Employees Give Back For the Holidays

Last week, in the first installment of our SuiteImpact Holiday blog, we told you about the incredible spirit of giving back in our Manila office, and their long-term commitment to the Philippine Christian Foundation. Today, I wanted to share a few more stories of the unique ways that our spirited NetSuite employees have decided to give back this year.

In NetSuite’s Brno, Czech Republic office, employees were able to get some of their Christmas shopping done while supporting an amazing local organization. The office hosted a fair for the V Ruzovem Sadu organization, a therapeutic workshop for people with disabilities. V Ruzovem Sadu provides them with the opportunity to work as craftsmen and earn money by selling their wares.

The team from Brno had the opportunity to listen to a presentation about how the workshop runs, and then invited the crafts people to set-up a holiday fair with the toys and decorations they had created. Employees relished the opportunity to meet these talented individuals and purchase the items they’d created – in fact, the staff broke a record for the organization, purchasing over CZK 36,000 in goods!

The purchase also helps with the overhead of the organization, providing salaries for the assistants and running the workshop programs. Of the 120 employees in Brno, nearly all of them participated in the event!

NetSuite also has two Australia offices, one in Melbourne and one in Sydney, whose employees overwhelmingly voted to support the Barnardos Children’s charity as their SuiteImpact Team holiday event for the second year in a row. This charity is very dear to the hearts of many Australians, and for over 120 years, they have been at the forefront of child welfare services, striving to find permanent solutions for the needy children across Australia.

Employees selected gifts for the children at Barnardos and brought them into the office to put under the tree until the drop-off. The lion’s share of gifts went to the older/adolescent children who are often forgotten during the holidays. The drive was incredibly successful, with nearly all of our employees getting into the holiday spirit. After the drop-off, the office received a note from the charity thanking them for the gifts and sharing that this year they were in especially desperate need, and the donation went a long way. Hearing this need, the employees decided to get competitive between the teams in the office, and aimed to double the number of gifts already raised. From the picture below, you can see that the competition was a success -- our hats are off to NetSuite Australia for having not one, but TWO charity drives for Barnardos this year.

The team at NetSuite’s newest office, in New York City, is just getting back to business after Hurricane Sandy’s devastation impacted many of their towns. Realizing how much help is still needed by those impacted by the storms, the team decided to make their holiday activity about giving back to those still needing help. Five of our team members traveled down to Manasquan, NJ, which was particularly hard hit by Sandy to help out with sand removal and clean-up of a home.  As we can see from the photos, it’s overwhelming to see the power of the storm, and the wreckage it left behind. Joe, Chris, Pratap, Chris and Jeff brought their work gloves, shovels, brute strength and humor to the job, and were able to make a difference for one family this holiday season.

Looking at the photos from all three of these SuiteImpact Team events reminds us how many different ways there are to give back during the holiday season. Whether it’s by supporting an organization like V Ruzovem Sadu, buying gifts for children in need, or helping those impacted by natural disasters, there a thousands of ways to help those less fortunate than we are, and the holiday season is a great time to reach out to your local community and see how you can help.

If you’re looking for a volunteer opportunity near you, reach out to your local community or check online, where there are dozens of great resources online, including our partners at Volunteermatch.

We’ll be sharing additional stories from some of our other NetSuite offices later this week, so stay tuned.

Don’t forget, you can always keep in touch with us on twitter @NetSuiteOrg!

-Erin Dieterich, Global Employee Engagement Manager, NetSuite.org

Bet Your Future in the Cloud

The global marketplace is transforming the way Australian manufacturers and distributors need to operate as their future survival is being determined by global influences that cannot be ignored. The hard truth is that we operate in a truly global marketplace and if Australian businesses don’t make necessary changes to their business models to join this marketplace, they risk disappearing all together.

Factors out of the control of these businesses have provided the greatest threats, particularly the strong Australian dollar, government policies, union power, higher direct costs, a relatively small domestic market, the impact of cheap imports and goods into Australia and the fact that Asia competes so fiercely for manufacturing opportunities.

Australian manufacturers, wholesalers and distributors that want to survive essentially have two choices. They can seriously think that they have something very unique that will enable them to survive in the Australian market for a long time, or they can say that their business needs to look beyond their traditional borders. If businesses continue to do nothing different and solely source and distribute within Australia, they will most certainly be faced with eventually going out of business.

How can a globally-minded company grow their business by distributing to different markets beyond Australia? How can they diversify into new markets or even simply outsource a part of their business, such as their manufacturing operation?

These are complex business questions that require a case-by-case market analysis. However, what is increasingly universal is the way that leading Australian manufacturers and distributors re-engineer their supply chain to achieve the greatest efficiency and competitiveness.

Simply putting in an efficient manufacturing or supply chain system isn’t going to save a business. To keep up with the global marketplace, businesses need to be able operate in real time with complete visibility into the entire business. That’s only possible when you operate your entire supply chain from one system on the internet—giving you deep and up-to-the-minute visibility of every interaction, transaction and relationship occurring in your business in every market, anywhere in the world.

This is exactly what cloud computing does—it provides businesses the ability to operate in global markets in real time and establish a core platform for manufacturing, wholesale distribution, customers and supply chain, with built-in support for multiple currencies and foreign exchange. A business can have all of these components in a single system that they can replicate for whichever supplier, distributor, retailer or wholesaler they forge a relationship with.

Cloud computing gives you a way to enter new markets without being encumbered by IT infrastructure and huge costs, and provides the agility and flexibility to grow and expand your business globally. Additionally, you can dictate to your suppliers and distributors the system that you need them to use to operate with you effectively. This will give you a key differentiator, not to mention greater power and control over your business.

At a minimum, you need to look globally at how you expand your business and opportunities around that. Everyone is looking at Australia and Asia as a market for growth. If you are going to be a part of that growth story, you need to pick the best technology to make that possible.

- Mark Troselj, Managing Director for Asia Pacific

NetSuite Teams Up with The Australian Financial Review for the 2012 Cloud Tour—Register Now!

The destination is set for NetSuite’s 2012 Cloud Tour. On Tuesday, October 9 in Sydney and Thursday, October 11 in Melbourne, we invite everyone to join us for an exclusive forum featuring The Australian Financial Review and a panel of industry leaders who will share insights into the future of cloud computing.

NetSuite CEO Zach Nelson is also set to speak at the event on the current approaches, findings and real-world experiences of cloud adoption and the advancement of the next generation of cloud computing—Commerce as a Service.

The Australian Financial Review will unveil new C-level research conducted in conjunction with Frost & Sullivan that investigates the key challenges facing Australian organisations, including the consumerisation of IT and the growth and demand for multichannel operations for businesses.

NetSuite’s Cloud Tour will let you in on how leading B2B and B2C Australian companies use cloud technology to transform operations, simplify the commerce experience across all touch points and increase profitability. Whether you are transitioning to the cloud or advancing to the next level, this forum offers strategic insights that can help you make the most of your cloud investment.

Don’t miss the Cloud Tour! Register now!