When selecting an ERP (Enterprise Resource Planning) system, understanding its cloud capabilities is crucial. Both NetSuite and RISE with SAP provide robust cloud ERP solutions, but they do so in different ways.
Table of Content:
1. Understanding Cloud ERP Capabilities
2. Implementation Speed and Efficiency
3. Customization and Extensibility
4. Global Management and Compliance
5. Suitability for Different Business Sizes and Industries
6. Making the Right Choice for Your Business
NetSuite operates as a true SaaS (Software as a Service) platform, leveraging Oracle Cloud Infrastructure (OCI). This means no hardware or infrastructure is required on the client’s end, simplifying deployment and management. NetSuite’s multi-tenant architecture ensures continuous updates and improvements, all included in the subscription. This model suits businesses seeking a straightforward, cloud-native solution that prioritizes speed and simplicity.
On the other hand, RISE with SAP offers flexibility through both public and private cloud options. SAP’s public cloud is designed for standardization and rapid innovation cycles, while the private cloud supports deeper customization and deferred upgrade schedules. This dual approach allows businesses to choose a deployment model that best fits their operational complexity and customization needs. SAP’s robust infrastructure options, including AWS, Azure, GCP, and SAP’s data centers, provide extensive control over deployment environments.
Time-to-implementation is a critical factor for any ERP project. NetSuite is known for its rapid deployment capabilities. Utilizing the SuiteSuccess methodology, NetSuite implementations typically range from 3 to 6 months. This expedited timeline is achievable due to its pre-configured industry templates and best practices, making it an ideal choice for businesses that need a quick transition to a new ERP system.
RISE with SAP, while offering significant flexibility, generally has longer implementation timelines. Public cloud deployments can take between 6 to 12 months, whereas private cloud implementations might extend from 12 to 18 months. The increased time is often due to the extensive customization and integration possibilities that SAP provides. Businesses with complex requirements and significant customization needs will find SAP's approach beneficial, despite the longer timelines.
Customization capabilities are vital for tailoring an ERP system to specific business processes. NetSuite excels with its SuiteCloud platform, which includes SuiteScript (JavaScript-based), SuiteFlow, and SuiteBuilder. These tools enable low-code or no-code customization, making it accessible for IT teams with limited resources. Additionally, NetSuite supports over 500 SuiteApps, offering ready-made solutions for various business functions.
SAP’s customization is handled through the SAP Business Technology Platform (BTP). The public cloud edition supports in-app and side-by-side extensibility with a focus on low-code/no-code solutions for standard scenarios. The private cloud, however, allows for more extensive modifications and custom code, similar to traditional on-premise SAP systems. While this provides maximum flexibility, it also requires significant IT expertise and governance to maintain compatibility during upgrades.
For businesses operating in multiple countries, global management and compliance capabilities are essential. NetSuite supports over 190 currencies, more than 100 tax regimes, and 27 languages. It's designed to facilitate real-time global consolidation, making it a strong contender for mid-sized companies with international operations.
SAP, known for its strength in handling complex regulatory environments, offers robust compliance frameworks for both its public and private cloud editions. The public cloud comes with built-in compliance for global operations, while the private cloud caters to nuanced regulatory and internal control requirements. This makes SAP particularly suitable for industries like pharmaceuticals, manufacturing, and financial services, where compliance and traceability are critical.
Choosing the right ERP depends significantly on the size and industry of the business. NetSuite is often the go-to choice for mid-market companies, typically those with annual revenues between USD 5 million and USD 200 million. Its modular approach allows businesses to start with core functionalities and scale up as needed, ensuring a quick ROI and operational efficiency.
SAP, with its deep industry-specific functionalities, is better suited for larger enterprises with annual revenues exceeding USD 200 million. The public cloud edition is ideal for businesses looking to adopt standard best practices quickly, while the private cloud is perfect for those requiring extensive customization and long-term IT governance. SAP's extensive industry modules make it a preferred choice for highly regulated industries and multinational corporations.
Deciding between NetSuite and RISE with SAP boils down to your business’s specific needs and transformation goals. If you prioritize rapid implementation, lower IT costs, and a flexible platform that can grow with your business, NetSuite may be the better choice. Its cloud-native design and SuiteSuccess methodology ensure a swift and efficient deployment, making it ideal for organizations seeking agility and quick returns.
Conversely, if your business requires deep customization, industry-specific functionalities, and robust compliance capabilities, SAP’s offerings might be more suitable. The flexibility of SAP's deployment options and its comprehensive suite of tools for complex business processes provide a powerful platform for large enterprises with intricate requirements.
In conclusion, both NetSuite and RISE with SAP are leaders in the ERP space, each excelling in different areas. Evaluating your business’s complexity, internal resources, and transformation timeline will guide you to the right choice. For those uncertain, consulting with ERP experts like Logiframe can provide the necessary insights to align your ERP choice with your strategic goals.