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How the Cloud Enables Consumer Electronic Success
This document summarizes a panel discussion on how the cloud enables success for consumer electronics companies. The panel consists of representatives from NetSuite, Able Planet, Polyera, and OzLINK. They discuss how the changing nature of global commerce and the move to cloud-based systems can help consumer electronics companies address challenges like shifting sales channels, shrinking product lifecycles, cost control, and access to timely business information. The cloud provides benefits like a complete business view, streamlined processes, anytime access, and lower costs of operations. Common deployment options considered are software-as-a-service and hosted private clouds. Security, costs, and customization are key concerns for some. Ecommerce and mobile are highlighted as areas of
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How the Cloud Enables Consumer Electronic Success
- 1. How the CloudEnables 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
- 4. NetSuite: Quick Take Background Performance Founded 1998 Used by 16,000+ global organizations World’s most deployed cloud ERP Publicly traded on NYSE: “N” 13 Internet Retailer 500 etailers Offices in 10 countries Codie Awards: 1,700+ employees Best Ecommerce Solution Best Business Management Solution 2012 revenue: $309M Best Relationship Management Solution Powers Enterprises Powers eCommerce © NetSuite Inc. 2013
- 5. Able Planet Designer andmanufacturer 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 forprinted 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
- 7. OzLINK Overview Company Founded 2002 Privately held Over 10,000 customers Over 500 joint customers with NetSuite NetSuite partner since 2005 Integrating and automating order management © NetSuite Inc. 2011 Confidential 7
- 8. Today’s Global SupplyChain International Connectivity through satellites and cloud technology DEMAND/SUPPLY Global Air Retail Store Component Home Delivery Supplier Global DC Component Supplier Retail Store Global DC Home Delivery Global Customers Ocean Raw Materials Supplier Customers Raw Materials Supplier Customers DEMAND/SUPPLY © NetSuite Inc. 2013
- 9. The Typical Way MRP Warehousing Sales Accounting Order Management
- 10. CE Market DriversAmplify 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
- 11. Top Customer FocusedInitiatives Source: 2013 Annual Order Management Survey
- 12. So What DoesThis 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 EnablesToday’s 21st Century CE Business Complete Business View Streamlined, Dynamic Processes Anytime, Anywhere Access Low Costs of Operations
- 14. Why Cloud? WhyNow? 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 aFocus Source: Outlook for Wholesale Distribution in 2013
- 19. Mobile is a‘game-changer’ Source: Outlook for Wholesale Distribution in 2013
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Editor's Notes
- #3 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.
- #4 Brian Hodgson, VP of Sales and Marketing, OzLINKMatt Nelson, Supply Chain, Able PlanetBrendan Florez, Assistant GM, Polyera
- #5 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.
- #9 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.
- #14 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.
- #15 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.
- #16 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?
- #17 Top Three for each of you Brian – what do you see from your customers?
- #18 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?
- #19 Matt,What are you guys doing here?Brendan,What are you guys doing here?