The Truth about NetSuite ERP (NetSuite versus Microsoft Dynamics NAV)
NetSuite vs. Microsoft Dynamics NAV
Fresh & New
- Microsoft Dynamic NAV started in 1994 and NetSuite was started in 1998
- Both have modern architecture and user interfaces
- Both have Robust Reporting and Business Intelligence
- Both have Multi-Tenant Cloud deployment
- Microsoft Has More Choice in Deployment Methods and Pricing Control
- Microsoft is truly all-in-one for your business with integrated software and hardware across the Microsoft Stack.
The Multi-Tenant Cloud
Competitive Advantage or Competitive Disadvantage?
Multi-Tenant Cloud is not “cutting edge” anymore. Microsoft Dynamics NAV 2013 and the new 2015 can be delivered in a multi-tenant cloud.
This is simply a delivery platform not an ERP solution. Is it the best delivery solution for your company? In reality most companies are operating in a hybrid environment. NetSuite does not want you to think of this reality when you are making a buying decision. Most companies have legacy and newly purchased systems that must interface with their ERP system. Customizing business processes (automation) is the true key to realizing ROI from an ERP system. As companies use their ERP system over time, inevitably there is an increase in complexity requiring the same costs for testing incremental and cumulative upgrades no matter your platform for delivery.
How important is choice to you? Has your company changed the way they do business in the past 10 years (average life of an ERP system)? Do you think you will change in the next 10 years? Do you value the option to switch delivery platforms and have the option to keep the same ERP software, employee knowledge, and all of your company’s data?
NetSuite versus Microsoft Dynamics NAV
|Delivery Method Options||Microsoft Dynamics NAV||NetSuite|
|3rd Party Hosted – Single Tenant Cloud||YES||NO|
|3rd Party Hosted – Multi-Tenant Cloud||YES||NO|
Is the cost advantage of delivering an ERP solution using the Multi-Tenant Cloud real?
The scalable infrastructure is really the only cost advantage of the multi-tenant cloud. The normal costs of running an ERP solution apply and in several cases are higher in multi-tenant environments, namely creating and testing incremental and cumulative upgrades, creating and maintaining customizations, automations, and portal connections. Microsoft releases updates every 6 months just like NetSuite. The longer you wait to update the system the longer it will take to test and update. Both systems require testing and are subject to many variables outside of the ERP system.
NetSuite versus Microsoft Dynamics NAV
|MS NAV On Premise||MS NAV Hosted Single Tenant Cloud (Hybrid)||MS NAV Multi-Tenant Cloud||NetSuite M/T Cloud|
|ERP Software (Price Control)||Lower Over Time||Lower Over Time||Higher Over Time||Higher Over Time|
|ERP Maintenance||Equal (Separate)||Equal (Separate)||Equal (Included)||Equal (Included)|
|ERP Support Staff||Equal||Equal||Equal||Equal|
|ERP Software Testing Process For Upgrades and Customizations||Equal||Equal||Equal||Equal|
|Indirect Cost – Loss of Control Over Timing of the ERP Upgrades and Add On Customizations||Potentially Lower||Potentially Lower||Potentially Higher||Potentially Higher|
|Maintenance of Portals for Outside Connections||Equal||Equal||Equal||Equal|
|IT Staff||Depends||Potentially Lower||Potentially Lower||PotentiallyLower|
One Application For ERP, CRM, Ecommerce
Is Microsoft’s complete suite of integrated business applications (Exchange, Office 365, SharePoint, etc.) more of an all-in-one solution or is a magnified look at 3 (really 2) modules in NetSuite a “complete” solution. How many customers actually Suite Commerce? Microsoft Web Services supports XML, SOAP, & Odata connections to allow for outside systems to connect as if they are one.
Breaking down NetSuite’s “all-in-one” Software
NetSuite versus Microsoft Dynamics NAV
|NetSuite Ecosystem||Microsoft Ecosystem|
|3rd party licensed Oracle database||Microsoft SQL database|
|3rd party licensed document management from Box.net||Microsoft Dynamics NAV integrated document management|
|3rd party Google Apps||Integrated Microsoft Office 365|
|No Active Directory Integration||Integrated Microsoft Active Directory|
|No Integrated Microsoft SharePoint||Integrated Microsoft SharePoint|
|NetSuite Integrated CRM||Choice of CRM built-in Microsoft Dynamics NAV or Microsoft Dynamics CRM.|
|3rd Party Ecommerce (Ecommerce built in is not normally used due to restricted functions.)||Microsoft Web Services – allows your choice of Ecommerce Solutions|
|NetSuite “Call Center” Support||Dedicated Expert Microsoft Partner Support who knows your company and software|
|NetSuite One World Module||Microsoft Dynamic NAV native function|
|NetSuite Suite Commerce – Basic Rigid Ecommerce – Must use not native application for robust functionality||Microsoft Dynamics Web Services Connection to your choice of Ecommerce Solutions|
|NetSuite Basic PSA, most go with Open Air, (not native)||Microsoft Dynamics NAV native function or MS ISV Certified Software built in NAV|
|NetSuite non-native H/R – Tribe HR||MS Dynamics NAV Native H/R functions|
Notice how many more Microsoft owned and integrated applications are in the Microsoft column. Microsoft has brought together their software stack to work as a cohesive unit.
How many customers use the NetSuite Ecommerce module?
The Ecommerce module in NetSuite, Suite Commerce, is considered basic rigid ecommerce functionality. This results in it being mostly a marketing tool used the sell. Many NetSuite customers us another outside application to perform the Ecommerce function.
Both Microsoft and NetSuite offer robust reporting and BI out of the box.
Microsoft’s 3-D reports via integrated JetReports can be passed around the office with secure real-time data from NAV in Microsoft Excel.
Microsoft Reporting Advantage
- Office 365
- Power BI
- Power Maps
- SQL Analysis Services
- SQL Reporting Services
What KPI’s are you using to measure ROI on your ERP system?
- Inventory accuracy
- Inventory turns
- Expected margin on a quote vs. actual margin
- Actual Ship Date vs. Expected Ship Date for customer orders
- Customer Order fill rates
- Bill-of-Materials accuracy
- Bill-of-Operations accuracy
- Actual PO Delivery vs. Expected PO Delivery Date
- Actual PO Delivery Quantity vs. Expected PO Delivery Quantity
- PO Quality Performance
- RMA by Product
- RMA by Customer
- RMA by Customer by Product
- Work Order Quality performance by Product
- Work Order Quality performance by Employee by Operation
- Days AP Outstanding
- Days AR Outstanding
- PO spending vs. budget
- Departmental spending vs. budget
Return on Investment
Delivery platform is not a way to determine the totality of your ROI.
Most small and medium sized businesses do not have the budget for a full blown business analysis. However, there are economical methods for estimating ROI from an ERP system. First you have to examine your existing key business processes and assign an estimated cost including risk factors. Second you have to consider the positive impact of automating key business processes, including how positions the organization to accomplish future goals and provide a competitive advantage in the marketplace.
Outline key business processes for the organization and its business units
o Estimate a time for the process
o Estimate cost of the process
o Determine the risk for error for the process
o Determine the potential cost of the potential process error
o Extrapolate an estimated value for the process using the factors above
- Outline key business objectives in the future
o Determine the value of a key process improvement toward meeting business goals
o Consider outside industry/competitive advantages for automating a process
o Assign an estimated value
- Determine the estimated ROI over 3, 5, and 10 years
- Determine if the project should move forward
- Use the data to determine if the ERP system is meeting its ROI objectives over time
Business Process Automation is the key competitive advantage of Microsoft Dynamics NAV.
Microsoft Dynamics NAV is developed in open source software. The architecture allows for customizations, defined as modifying the functions in in the system, with relative ease. Because it is essentially open source code, business organizations, Microsoft partners, and Microsoft Certified Independent Software Vendors can develop functionality needed by the business within Microsoft Dynamics NAV code.
- Because the modifications are written in Microsoft Dynamics NAV code and are part of the core system, Microsoft Dynamics NAV global updates do not interfere with the customizations.
- The modifications act as an all-in-one ERP system.
- These are major advantages realizing ROI in an ERP system.
3 Tier Architecture
Implementation Costs in the Cloud and On Premise
Microsoft’s RapidStart tool combined with its proven Microsoft SureStep methodology is proven to reduce implementation costs by automating and scaling implementations processes. There is no NetSuite advantage here. You should know there are outside processes that can affect the implementation that are not in the domain of the both ERP systems including: employee/executive time commitment, unforeseeable business events, change management, and several more.
Research and Development
Microsoft Invests over 9 Billion R&D each year. NetSuite simply cannot match it.
- Both Microsoft Dynamics NAV and NetSuite are new, fresh and cutting edge having been developed around the same time.
- Both Microsoft Dynamics NAV and NetSuite will provide robust ERP functionality.
- Both offer “true” multi-tenant cloud delivery
- Both provide robust reporting and BI
- Both release new functionality about every 6 months
- Microsoft Dynamics NAV offers deployment platform options and future cost control
- Microsoft Dynamics NAV offers integration with the complete Microsoft Stack of software. This is a true business “All-In-One.”
- Microsoft Dynamics NAV uses Microsoft Developed software throughout the Dynamics NAV system, NetSuite does not.
- Microsoft Dynamics NAV offers a choice of integrated NAV CRM or integrating Microsoft Dynamics CRM through the Microsoft CRM Connector.
- Microsoft Dynamics NAV business process automation is the true key of realizing ROI in your ERP system and NAV makes it easy using its open source code.
- Easy Functional Customizations are a feature of native Dynamics NAV, most without needing IT expertise.
- Microsoft invests over 9 billion in R&D annually.
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