Today, cloud computing is at the forefront of the shift to the digital business and is enabling manufacturing companies to adapt to these changing business models, both strategically and operationally. Manufacturing companies with a cloud-first strategy have learned that the cloud’s real value comes with being able to delegate the Service Level Agreement (SLA) of an entire solution, from infrastructure to application, instead of components.
It is also widely recognized that integrated suites reduce complexity, increase reliability and cost less—it’s just that now, with cloud, the suite includes hardware, security and operations. Most agree that the cloud paradigm has cost and convenience benefits: availability, speed, agility and TCO, enabling faster development processes and providing higher reliability and lower risk.
Companies that take an ad hoc Grab a seat and enjoy. Read Time: 20 minutes approach miss out on many of cloud’s benefits and experience a variety of pitfalls. In the current state of the market, not all cloud providers can step up to the challenge of providing an integrated offering, and that forces companies to manage more than they want to.
NetSuite Value Proposition
As a leading cloud ERP company, NetSuite has championed the cause to deliver not only a true cloud platform but also strives continuously to develop a truly integrated suite for our growing global customer base of more than 18,000.
“Enterprises run the risk of getting nasty shocks when the thing they thought they were buying turns out to be something altogether different. Hosting and application management are not synonymous with SaaS.” — Gartner
In this document we hope to provide you our perspective on the components and scorecard to use to not only evaluate a true cloud solution, but also analyze for yourself how our various platform offerings help you to meet your organization objectives today, adapt to the industry disruptions of tomorrow and realize savings of more than 20%-50% in Total Cost of Ownership (TCO) alone1 or incur $64k-$242k annually in hidden or unexpected costs.
Incorporation of IoT
Cloud ERP platforms can adopt new technologies more easily than legacy systems. For example, the Internet of Things (IoT) is becoming increasingly important to businesses in all sectors, both for its ability to gather data and reduce downtime with predictive maintenance. The right cloud ERP system can serve as a hub for these activities, allowing users to track automated devices and report on their status. It can also help monitor the movement of supplies, strengthening the connection between the performance of a business’s supply chain and its bottom line.
Mobile devices generally represent a security vulnerability, since they don’t require physical access to an organization’s facilities. However, simply prohibiting their use would reduce an organization’s competitiveness. Furthermore, most organizations don’t maintain the large IT staff needed to protect their own systems from the latest exploits. Cloud ERP vendors have a strong incentive to make security a priority, since a single serious breach could put them out of business.
It’s technically possible for an organization to individually integrate each of its applications into its own system, but it’s much easier to do so with the right cloud ERP system. Such a platform can serve as a hub for all business applications, allowing the vendor’s existing integrations to connect data services, equipment and software. Customers then only need to spend their IT budget on building the custom integrations they still need.
Many cloud platforms can perform functions that all businesses need such as accounting, delivery cost estimation and workforce management. However, businesses with distribution operations need much broader functionality. ERP vendors typically offer versions of their solutions specifically designed to perform distribution functions.