Orangetheory Fitness, a global fitness franchise, grappled with the complexities of multi-location financial consolidation and manual inefficiencies. Seeking a unified system, they sought out NetSuite implementation to streamline multi-location management, improve financial visibility, and reduce manual errors.
Many businesses encounter similar challenges that NetSuite can address.
NetSuite provides a scalable solution that adjusts to business requirements while automating repetitive tasks and promoting team collaboration. In fact, a report states that 85.5% of organizations reported that enterprise resource planning (ERP) systems have improved their operational productivity and efficiency.
From planning to execution, successful NetSuite ERP implementation demands a strategic approach. In this blog post, we will outline the key steps and best practices to make Netsuite implementation a success in your organization.
What Is NetSuite Implementation?
Oracle NetSuite is a cloud-based ERP tool. NetSuite implementation refers to the process of setting up, configuring, and customizing NetSuite to meet specific business needs.
The primary objective of implementing NetSuite is to refine business operations through the unification of multiple systems, offering greater customer courting control, making inventory tracking more efficient, and streamlining supply chain management.
For growing businesses, NetSuite implementation is significant as it supports scalability, improves operational efficiency, and provides real-time insights, helping businesses grow more effectively.
NetSuite Implementation Options
When it comes to NetSuite implementation, businesses have three main choices, each with its own advantages and challenges. The choice ultimately depends on factors like company size, budget, operational complexity, and goals.
Self Implementation
Unless your team has significant experience designing, setting up, and deploying complex business applications, self-implementing NetSuite can be challenging. It requires a dedicated in-house team to manage the process end-to-end, demanding considerable resources that may interfere with managing everyday business operations.
Pros
- Complete Control: Your team manages every aspect, allowing for tailored configurations.
- Cost Savings: Avoids expenses associated with external consultants or partners.
Cons
- High Risk of Failure: Between 50% to 75% of ERP implementations fail to meet their objectives due to cost overruns, time delays, or misalignment with business needs.
- Resource Drain: Hiring a dedicated team can strain budgets and require significant time for training.
NetSuite Direct Implementation
NetSuite provides an internal implementation service called NetSuite Direct. This approach will allow you to purchase and implement NetSuite directly from the company. An internal team will help with setup and troubleshooting. It can be suitable for companies that require basic functionality and cookie-cutter solutions without customization.
Pros
- Expertise: More than half of organizations in a recent study stayed within their expected budget, with a median project cost of $450,000. A structured approach like NetSuite Direct can help businesses manage costs effectively.
- Standardization: Ideal for businesses with straightforward requirements, reducing implementation complexity.
Cons
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- Lack of Flexibility: NetSuite’s team focuses on standard implementations, which may not be suitable for complex business needs.
- Limited Customization: NetSuite Direct may not be suitable for companies that require a high degree of customization.
Partner Implementation
NetSuite implementation partners are third-party contractors who typically offer a deeper level of expertise on the software’s uses. They enable tailored solutions for smooth deployment.
For instance, Apty can ensure employees use NetSuite efficiently, reducing errors, improving data accuracy, and maximizing ERP implementation ROI (return on investment).
Pros
- Customization: Partners tailor the system to meet industry-specific requirements while catering to your needs.
- Ongoing Support: They provide post-implementation assistance, ensuring the system evolves with your business.
Cons
- Increased Cost: Working with a partner might incur higher costs compared to other alternatives.
How Long Does NetSuite ERP Implementation Take?
Oracle NetSuite ERP implementation time can vary depending on your company’s size, complexity, and customization. Below, we outline approximate timelines you can expect:
Small to Medium Organizations
ERP implementations for midsize businesses earning between $100 million and $250 million can require six and a half months on average. The cloud-based nature of NetSuite enables faster deployment by removing the need for comprehensive IT infrastructure establishment.
Medium to Large Organizations
Companies with a revenue between $250 million to $750 million may require 9-12 months for a NetSuite ERP rollout. The level of customization and third-party integrations often dictate the timeline.
Enterprises
For large enterprises with revenues exceeding $25 billion, ERP implementations are more complex, typically taking 12.4 months or longer. Factors such as multi-location rollouts, compliance requirements, and large-scale data migrations extend the timeline.
Factors Affecting NetSuite Implementation
Implementing NetSuite can transform business operations, but several factors influence its success. Understanding these elements is crucial for a smooth transition.
Business Size and Complexity
An organization’s size and complexity directly impact NetSuite implementation. Smaller businesses often deploy faster, while larger enterprises with more applications and integrations may take more time.
A structured approach is essential to prevent inefficiencies and ensure smooth implementation.
Level of Customization Required
NetSuite offers strong out-of-the-box features, but companies that need customization can witness higher costs and delayed implementation.
Balancing standard functions with essential customizations is key. Digital adoption platforms (DAPs) like Apty assist in optimizing workflows without overcomplicating the system, ensuring efficient use of NetSuite’s capabilities.
Quality of Data Migration and Integration
Even the most well-planned NetSuite implementation can derail without clean data and effective integration.
27.5% of ERP projects exceed budgets, with the common reason being the unexpected need for additional technology. Seamless integration with CRM, payroll, and third-party apps demands a structured approach.
Tools that provide real-time data validation and automated process guidance, such as Apty, help minimize errors during this phase.
Expertise of the Implementation Partner
Your choice of an implementation partner can significantly impact project success. Experienced partners bring industry knowledge and technical expertise, managing timelines and minimizing risks effectively.
Leveraging Apty further streamlines user onboarding and system adoption, enhancing post-implementation efficiency.
Budget Allocation and Resource Availability
Underestimating costs or lacking skilled resources can cause project delays.
Industry reports find that 56.1% of project delays are due to resource constraints, making it the number one reason. Implementing a DAP like Apty can enhance user efficiency and reduce the need for extensive support, thereby helping businesses maximize their ROI.
Cost of NetSuite Implementation
Implementing NetSuite involves several cost components that businesses should consider for effective budgeting. There is no ‘one-size-fits-all’ solution. However, based on user guidance, costs can be estimated as outlined below:
Licensing Fees
NetSuite requires a license that can be purchased on a subscription basis. The base license costs about $999 per month, with an extra per-user price. These may vary depending on your company’s unique requirements and size.
Data Migration Expenses
Transferring information from legacy systems to NetSuite is a crucial undertaking.
The costs associated with this data transfer can range from nothing to over $10,000, influenced by elements such as the amount of data, its condition, and the complexity of the migration process.
Implementation Partner Charges
Working alongside an implementation partner guarantees a customized deployment to align with your operational workflows. The costs for implementation can vary between $10,000 and $250,000 depending on your needs.
Customization and Integration Costs
Business requirements often make customization and system integration crucial for compatibility and functionality.
The typical pricing structure for these offerings functions on an hourly rate, with fees varying between $150 and $300 each hour. The total expenses fluctuate based on the extent of customization and integration efforts required.
Training and Support Costs
Effective user training and support expenses can cost up to $15,000. It is often included in the implementation partner’s charges but can also be billed separately. Investing in comprehensive training ensures that your team can utilize NetSuite’s capabilities fully.
Pro Tip: Use the ERP implementation calculator from NetSuite to get an approximate cost for implementation.
7 Steps To Successful NetSuite Implementation
A carefully planned NetSuite implementation entails seven essential steps to help companies achieve successful deployment. Let’s go through these.
Step 1: Evaluate Business Needs and Objectives
Defining clean objectives before implementation helps corporations align NetSuite with their unique desires. To do this, you must:
- Identify core business challenges NetSuite should address (e.g., financial automation, inventory tracking).
- List must-have vs. optional features to prevent unnecessary customizations.
- Determine scalability requirements for future growth.
Step 2: Select an Implementation Partner
Choosing the right partner ensures a smoother deployment with minimal disruptions. Here are some things to keep in mind while making a decision:
- Look for partners with NetSuite expertise and a strong track record in your industry.
- Evaluate their approach to project management and post-implementation support.
- Consider partners who offer training and change management support.
Step 3: Develop a Project Plan and Timeline
A well-defined timeline prevents unexpected delays and ensures a structured rollout. To create one, consider:
- Setting realistic milestones for different phases of the implementation process (e.g., planning, configuration, testing).
- Allocate resources, including IT teams and key stakeholders.
- Include risk management strategies for handling unforeseen challenges.
Step 4: Configure and Customize NetSuite
Balancing configuration and customization ensures NetSuite aligns with business needs without overcomplicating the system. Ideally, you should:
- Start with NetSuite’s out-of-the-box features to avoid excessive modifications.
- Customize only where necessary, ensuring changes enhance efficiency.
- Avoid over-customization, which often leads to higher costs and maintenance challenges.
Step 5: Data Migration and Integration
Ensuring data accuracy before migration prevents system issues post-implementation. It’s important to:
- Audit existing data to remove duplicates and outdated records.
- Plan integrations with existing tools (e.g., HR system or payment platforms via a dedicated NetSuite integration).
- Conduct thorough testing to ensure your data transfers seamlessly.
Step 6: User Training and Onboarding
Effective training plays a key role in gaining employee buy-in and ensuring long-term success.
Provide role-specific training tailored to the unique needs of your users. Apty’s in-app assistance offers step-by-step guidance right when it’s needed most. Additionally, promote continuous learning by using contextual tooltips to reinforce knowledge over time.
Step 7: Go Live and Provide Post-Implementation Support
Launching NetSuite is just the beginning—ongoing support ensures continued success. For continued success, you must:
- Monitor system performance and gather user feedback with analytics from Apty.
- Use Apty’s feedback collection features to identify and resolve adoption challenges.
- Provide ongoing training and documentation for new and existing users. Setting up self-service resources is also essential.
Also Read: 7 ERP Implementation Examples Every Enterprise Should Look Into
Challenges With NetSuite Implementation
NetSuite is a strong ERP system, but its deployment presents a few issues. Addressing these concerns early on facilitates a smoother transition and increases ROI.
Low User Adoption
Unfamiliar workflows and a lack of clear guidance make employees resistant to change.
When N&N Moving Supplies expanded across multiple states, they faced resistance to adopting NetSuite due to employee unfamiliarity. They introduced personalized ERP dashboards on iPads at each location to help employees learn the workflows.
Apty helps here by identifying friction points and providing personalized in-app guidance, making it easier for teams to adapt to NetSuite.
Complex Workflows and Processes
Navigating NetSuite’s modules and custom workflows can overwhelm users. Without intuitive guidance, errors increase, and efficiency drops.
Real-time in-app guidance and contextual tooltips ensure employees receive support exactly when needed, helping them complete tasks with confidence while reducing dependency on external training.
Data Migration Errors
Migrating data into NetSuite can lead to errors, affecting accuracy and compliance. Real-time validation and automated error detection help prevent issues. DAP solutions such as Apty streamline the process by automating data entry with auto-fill forms, ensuring a reliable transition.
Inefficient Training and Onboarding
Many businesses underestimate the learning curve with NetSuite.
For instance, Green Rabbit, once a candy wholesale business, struggled with training as it transitioned to a logistics provider. NetSuite team streamlined onboarding, improving real-time data visibility across warehouses and reducing manual errors.
Implementing such comprehensive training programs enhances user proficiency and streamlines onboarding processes.
Customization Overload
Over-customizing NetSuite increases complexity, costs, and delays. To mitigate such risks, prioritize essential customizations and leverage NetSuite’s standard functionalities wherever possible.
Inadequate Change Management
Resistance to change is one of the leading reasons why ERP implementations fail. If employees are not kept informed about system updates and process changes, engagement drops, and confusion increases.
In-app change announcements ensure employees receive relevant updates directly within NetSuite, keeping teams aligned without relying on emails or other external communications.
Turn resistance into adoption. Book a Demo today!
Post-Implementation Support
After NetSuite goes live, employees often need ongoing support. Without it, productivity drops, and IT dependency increases.
AI recommendations and real-time guidance within NetSuite ensure continuous assistance, helping teams resolve issues efficiently and stay productive without relying heavily on IT support.
How Apty Can Simplify NetSuite Implementation
For businesses, NetSuite isn’t a simple software upgrade. It is the foundation for sustainable growth. While setup is critical, the real challenge lies in user adoption. Success isn’t just going live but integrating NetSuite into daily operations seamlessly.
A well-executed NetSuite implementation requires clean data, structured processes, and continuous user training. Many companies rush the implementation process, but adoption remains the real differentiator.
This is where Apty ensures businesses thrive. With real-time guidance, workflow automation, and in-app support, Apty ensures teams adapt quickly, minimize errors, and maximize NetSuite’s potential without disrupting daily operations.
Want to see how Apty helps businesses get more from NetSuite? Book a demo today.
FAQs
What is a NetSuite implementation?
NetSuite implementation is the process of setting up, configuring, and customizing Oracle NetSuite, a cloud-based ERP system, to align with a business’s unique requirements. It helps in streamlining operations, improving efficiency, and providing real-time insights. Many businesses also work with NetSuite consulting partners to ensure a smoother and more efficient setup.
What are the 5 stages of ERP implementation?
ERP implementation follows a structured seven-step process:
- Evaluate Business Needs: Define objectives and key challenges.
- Select an Implementation Partner: Choose between self-implementation, NetSuite Direct, or a partner.
- Develop a Project Plan: Set milestones, allocate resources, and manage risks.
- Configure and Customize NetSuite: Tailor the system to business needs.
- Data Migration and Integration: Ensure seamless data transfer and system compatibility.
- User Training and Onboarding: Educate employees for smooth adoption.
- Go Live and Post-Implementation Support: Monitor performance and provide ongoing support.
How long does NetSuite take to implement?
The timeline depends on company size and complexity:
- Small to Medium Businesses: Around 6.5 months
- Medium to Large Businesses: 9 to 12 months
- Enterprises: 12+ months, depending on integrations and data migration
How hard is it to implement NetSuite?
NetSuite implementation can be complex due to data migration, workflow setup, and user adoption challenges. Success depends on a well-planned approach, the right implementation method, and proper training to ensure smooth transition and minimal disruptions.