Review: Up close with NetSuite's deep ERP

One of the pioneers in cloud computing, NetSuite launched a cloud-based ERP system at a time when SaaS was widely considered risky to both the security and the availability of an organization's data. Now it is generally recognized that the SaaS provider will probably have more technical resources and expertise than the average organization looking to invest in an ERP system.

Time has not only vindicated NetSuite's Internet-based delivery model. It has also seen NetSuite evolve from a solution aimed at small companies to one that targets midsized organizations (up to 1,000 employees), as well as subsidiaries of the largest companies. Today, NetSuite combines ERP, financials, CRM, PSA (professional services automation), and e-commerce in a single, integrated business management software solution.

[ Also on InfoWorld: Find out which companies are fueling ERP's comeback. | Don't be a victim -- take a lesson from these real-world ERP failures. | Discover what's new in business applications with InfoWorld's Technology: Applications newsletter. ]

ERP systems such as NetSuite contain more functionality than could ever be reviewed in any one article. This review is based on a subset of features (238 in total) that are indicators of the overall system's capabilities. I evaluated each feature based on demonstrations of the functionality by the vendor and scored them using the following criteria:

7 = Requirement is fully addressed in the standard system ("out of the box")

6 = Addressed by a third party using same tools and database as primary system

5 = Workaround

4 = Minor modification

3 = Addressed by a third party using different tools than primary system

2 = Vendor plans to fully address in the next year

1 = Major modification

0 = Not available

You'll find the overall scores for the main areas of NetSuite's functionality in the table below. To see how each of these scores was determined, please refer to the more detailed tables at the end of this article.

Note that, unlike the score in most InfoWorld reviews, the score for this ERP system has not been subject to any weighting of the priority for a particular feature. This is because the priority for any given feature can vary widely by organization. Also, though this review attempts to be as thorough as possible, it was based on a demonstration by NetSuite of the features used to score the system, and a demonstration of a system will likely not reveal problems that can occur in day-to-day operations. These problems can be related to ease-of-use, performance, or bugs not detected during the demonstration session. My advice is to validate the score by conducting reference checks with organizations that are similar to your own.

This analysis should be considered only a starting point in your search for a new ERP system, as any organization will have requirements not considered in this review. Another resource for an initial evaluation of NetSuite and other ERP systems is the Systems Analysis Tool. Using the same review methodology applied here, the Systems Analysis Tool will find the top ERP systems that match your specific profile and requirements.

Balancing complexity and simplicity
Everyone wants a system that's easy to use, but determining what users actually mean by ease-of-use can be a challenge. Given that NetSuite is built to serve the needs of midsized and large organizations that are complex, it is not a simple system. However, NetSuite certainly has features that contribute to ease-of-use, including an entirely Web-based user interface (UI), global search (the ability to find information anywhere in the system), and a consistent presentation across a broad range of functionality.

When users sign on to the system, they're greeted by a dashboard that displays all the most important information based on their role in the organization. The dashboard includes KPIs (key performance indicators) that are calculated in real time as the underlying data changes. You can also drill down from the KPI to see the related transactions and source documents. In addition, NetSuite includes an ad hoc report writer and a workaround for OLAP (online analytical processing) that behaves like Excel's pivot table. NetSuite doesn't provide OLAP cubes and complete multidimensional analysis as some competitors do.