1. How the Cloud Enables Consumer Electronics
Success
Ranga Bodla, Director, Industry Marketing, NetSuite
Brian Hodgson, VP of Sales and Marketing, OzLINK
Matt Nelson, Supply Chain, Able Planet
Brendan Florez, Assistant GM, Polyera
2. Agenda
Introductions
The Changing Nature of Global Commerce
The Move to the Cloud
Roundtable Discussion
Q&A
2
3. Speakers
Ranga Bodla Matt Nelson, Brendan Florez, Brian Hodgson, VP
Industry Marketing Supply Chain Assistant GM Sales and Marketing
3
5. Able Planet
Designer and manufacturer of innovative audio equipment
Founded 2004, privately held
40+ Employees; HQ in Wheat Ridge Colorado, locations in China & Taiwan
Customers in North America, Europe, and Asia
NetSuite customer since 2010
6. Overview
Semiconductor supplier for printed and flexible electronics
Privately held; Founded 2005
60+ Employees; Offices in US and Taiwan
Customers in North America, Europe, and Asia
NetSuite customer since 2010
Source: Wikimedia Commons
9. The Typical Way
MRP
Warehousing
Sales
Accounting
Order Management
10. CE Market Drivers Amplify The Problems
Shifting Shrinking
Channels Life Cycles
Incomplete
View Lack of Timely
Necessary Info
Status Quo
Cost of Business
Business
Out of Control
Complexity & Inefficiency
Fickle
Consumer Component
Expectations Obsolescence
12. So What Does This Mean?
− Find fundamentally new ways to cut costs
− Drive better efficiency by automating business
processes
− Cut overhead, consolidate IT
− Manage cash flow
− Drive top line and bottom line improvements
13. The Cloud Enables Today’s 21st Century
CE Business
Complete Business View
Streamlined, Dynamic Processes
Anytime, Anywhere Access
Low Costs of Operations
14. Why Cloud? Why Now?
Reliable backup
Flexibility
Accessibility
Ability to outsource non-core
business
Improved communication
Less administration
Better data storage
Ability to ramp up quickly
when needed
15. Deployment Options
would be considered today
60% 56%
45%
42%
40%
20% 21%
20%
0%
On Demand / Hosted and Hosted and Preconfigured on Traditional
Software as a managed by ERP managed by a hardware licensed on-
Service (SaaS) vendor independent 3rd appliance premise
party
16. Appeal of SaaS
Lower total cost of ownership 52%
Reduces the cost and effort of upgrades 48%
Lower start-up costs 46%
We have limited IT resources 42%
More leading-edge thru more frequent… 39%
Ability to treat as opex versus capex 37%
Ease of remote access for distributed… 36%
Leave security and other IT issues to experts 29%
Ease of bringing up new remote sites 27%
Perceived as lower risk 25%
0% 10% 20% 30% 40% 50% 60%
17. Concerns over SaaS
Security concerns 58%
Possibility of escalating costs 47%
Downtime risk - predictable… 46%
We want to control our own upgrade… 26%
We require heavy customization 25%
On-premise solutions offer more… 23%
We don't find it that much less… 18%
Already invested in IT resources 15%
No real concerns 10%
0% 20% 40% 60%
18. Ecommerce as a Focus
Source: Outlook for Wholesale Distribution in 2013
19. Mobile is a ‘game-changer’
Source: Outlook for Wholesale Distribution in 2013
For the agenda today, I’ll be speaking with you about the changing nature of manufacturing and how today’s manufacturers are faced with a very different world than before. I’ll be discussing the move to the cloud and talking about what some of your peers are saying about cloud technology and the doubts that still exist. We’ll briefly discuss NetSuite and Manufacturing and then I’ll be joined by David Brault (bro) from Eemax (EMACS) who will be discussing how they went through their selection process for a complete solution to run their manufacturing business and ultimately how they evaluated the different concerns about SaaS ERP and decided to move to SaaS ERP. Then we’ll conclude at the end with a Q&A. As Anna mentioned, please feel free to ask your questions throughout and we will answer your questions at the end.
Brian Hodgson, VP of Sales and Marketing, OzLINKMatt Nelson, Supply Chain, Able PlanetBrendan Florez, Assistant GM, Polyera
And just to give you a little more detail on who NetSuite is if you arent aware – NetSuite is the world's leading provider of cloud-based business management software suites. Founded almost 15 years ago, NetSuite was founded on the notion of providing a single system to power a company. Since then we’ve grown tremendously and are now operating globally. But the most important thing you should know about NetSuite is that over 16,000 organizations trust NetSuite to run their business and helps them realize breakthrough performance improvements by managing core business processes with a single, integrated system covering financials, commerce, CRM, inventory and more. After the demo, I’ll work through some specific customer examples and what they’ve been able to build with NetSuite.
I personally think the image above is a great depiction of the reality of today’s supply chain. While not every company is operating across the world in this way, whether you are talking about a small organization of just a few people or a global organization of thousands, the idea of operating across multiple locations, selling and sourcing globally and managing demand and supply across a myriad of sources is no longer a novel concept. This reality of global commerce is something we all hear about and talk about and almost every organization is trying to meet this challenge. Ecommerce provides a solution that enables organizations with the ability to 1) create and expand supplier and sales channels, 2) build a competitive advantage and 3) strengthen customer relationships.In a survey of wholesale/distribution companies, "improving e-commerce capabilities" beat out the expansion or addition of any other sales channel as a strategy to build revenue over the next 12 months, with over one-third of respondents ready for enhanced eCommerce. For retailers, Shop.org, NRF’s digital division, expects online sales in 2013 to grow between 9.0 and 12.0%. This continues the growth trend of online sales during 2012, which is outpacing the growth of instore sales.
NetSuite’s suite really enables the 21st century manufacturing business. Providing a complete business view across the entire business in real-time allowing you to make decisions based on the entire business. We enable companies with streamlined dynamic processes going across the company from finance to sales to marketing to inventory providing for the 21st century manufacturing business to operate in today’s ever-changing environment. And through anytime, anywhere access, netsuite can be accessed from your browser from any computer, mobile phone or tablet computer. And by providing a low cost of operations manufacturers can focus on the business not the infrastructure.
What does this all really mean for you – well first of all – lets define what we are talking about here – Software as a service as the term implies is conventional software delivery turned on its head. Software in the cloud is ready to run, and you get a faster time to go live: You can be up and running with ERP, CRM, Ecommerce applications, on a local or global scale, within a few months, rather than the six to 12 months it would take to install and troubleshoot conventional servers and software. With cloud computing, you pay as you go. You pay for the applications you use, and nothing more, unlike conventional systems where you have a major up-front investment for hardware and software. You benefit from better cash flow and far greater IT flexibility. How many stories are there out there about failed ERP implementations where millions of dollars were spent with no end in sight.Upgrades, maintenance, and system administration take place in the cloud, so you don’t have to spend nights or weekends supervising a new version upgrade or a failed server. And the cloud adjusts to your performance needs, dynamically assigning server cycles whenever and wherever you need them, and automatically adjusting to spikes in your business. Cloud computing even makes it easy to grow your business and support remote workers and locations, or support a highly mobile sales or service team, because people can access the cloud instantly from any browser, desktop or mobile. And probably one of the most important but most misunderstood is the ease of customization. With the cloud, customization is often times easier and much more maintenanable then typical on-premise software. We’ll discuss more of that later.
Matt and Brendan, - would they make the same decision todayBrian – what about in your base – when someone implements you guys – do they ask you about the cloud?
Top Three for each of you Brian – what do you see from your customers?
Brendan,When you were looking – what was your top concern and how did you overcome it?Matt,Brian,Do you hear anything differently from your customers?
Matt,What are you guys doing here?Brendan,What are you guys doing here?