Experts On Demand

Extending ERP

NetSuite Inc. announced NetSuite Unlimited, a new offering for large enterprises, and a partnership with social networking vendor Yammer, Inc. at the SuiteWorld 2011 user conference in San Francisco. Meanwhile, SAP AG said that it would be linking its StreamWork problem-solving software to its core applications, and announced a global reseller agreement with visualization software provider iRise.

Focal Points:

 

  • Cloud-based ERP software provider NetSuite announced an array of applications, partnerships, services, and technology improvements aimed at large enterprises. The move represents a shift away from the small to medium-sized businesses (SMBs) that have primarily made up the company's user base. NetSuite Unlimited offers add-on applications, support for unlimited subsidiaries and users, and unlimited storage, as well as access to all NetSuite modules, said NetSuite. Pricing starts at around $1 million per year, according to CEO Zach Nelson. According to Nelson, another component of NetSuite Unlimited is a new partnership with Accenture Plc, which has created a practice around NetSuite's software. NetSuite Unlimited is available immediately for purchase. In other NetSuite news, the company also announced a planned integration with Yammer, a leader in enterprise social networking. According to the two companies, NetSuite SuiteSocial users will be able to push content from the NetSuite system to Yammer for sharing and discussion with others. The content will then be transmitted to Yammer users as "activity streams." The integration will be completed later this year, the vendors added.
  • SAP announced that it would be linking its StreamWork problem-solving software to its core enterprise resource planning (ERP) applications. StreamWork was first released in 2010, and enables SAP users to log in and hash out answers to problems, regarding one-off business issues or ongoing projects. A basic edition of StreamWork is available at no cost; paid versions are available starting at $9 per user per month. According to the vendor, some of the integration work is already completed, including links to the SAP BusinessObjects Strategy Management, SAP Customer Relationship Management (CRM), and SAP Product Lifecycle Management (PLM) applications. SAP has also begun developing links to connect StreamWork to the SAP BusinessObjects Business Intelligence (BI) platform. Additional links to other core SAP applications are planned for down the road, SAP added. StreamWork customers can purchase the links as either pre-packaged solutions from SAP or SAP partners or as small consulting engagements from SAP or consultants, said SAP.
  • Meanwhile, SAP also announced that it signed a global reseller agreement with enterprise visualization software provider iRise, building upon the companies' current partnership. According to the two vendors, iRise technology enables users, even non-technical employees, to visualize an application's ultimate look and feel without having to write code. This can save customers money by cutting down on application rewrites, as well as simplifying training and change management activities, the companies added. Visualizations can be published for viewing, as well as delivered in a password-protected file. SAP will sell the software under the name SAP Application Visualization, per the announcement. Additionally, SAP will market the iRise software as a "solution extension," and as such, the visualization offering will not be included with annual maintenance fees.

Experton Group believes NetSuite's moves to adjacent markets may be premature. The expansion upstream toward large enterprises may result in the company taking its eye off of its core business and actually slow growth. The Yammer social media is a nice add-on but unless the company and sales are focused on core user needs, the company may end up butting heads with the big players at the top end and slow growth in its traditional space. On the other hand, SAP's use of the iRise visualization software may be just what the company needs to transform user adoption. SAP's ERP software has been hard to use and difficult to sort through the work flows. The visualization software appears to be a major productivity aid, which may help improve revenues. StreamWork provides another value add but is not as transformative as the visualization too. IT executives should carefully weigh product or service costs and productivity tools when making ERP assessments. The overall cost structures associated with ERP solutions vary significantly – from at least 4:1 services costs versus software fees to 1:1. Without a detailed assessment and validation through reference accounts enterprises could easily lock themselves into a solution that exceeds budgetary desires.   

Research

 

Your current user status gives you only limited access to documents marked with .

Research Login

Username:

Password: