Did you miss SuiteConnect this year?!?
We had front-row seats and we have put together a valuable synopsis of the event for all those who couldn’t attend but have a genuine interest in a company that is leading change in the ERP and cloud technology space.
Here’s the wrap up:
The Next Disruption: Collision of Product and Services Business Featuring the Latest Research from Frost and Sullivan
Zach Nelson, CEO of NetSuite, delivered some very powerful messages regarding the current pervasiveness of cloud technology into both our personal and business lives. Cloud technology and the internet are changing the way we interact with the world.
Our businesses need visibility, agility and flexibility to survive in this rapidly changing marketplace. Here is how Cloud technology is enabling this:
“Every company is a cloud company.”
- Whether we recognize it or not, we are fully invested as a society in web technologies and the internet. We depend on it as much as we depend on electricity.
- The cloud revolution is not about how NetSuite is has transformed the software industry, it is about how your success in each and every industry is inextricably linked to your exposure online and your digital communication with your customers.
- The question posed is “How do you live in this new age of digital immersion, where you customers, and your customer’s customers, are accessing information anytime, anywhere and from any device?”
NetSuite is growing rapidly.
- NetSuite started in 1998
- Entered the Australian market in 2003
- 2003 earnings = US $8.3 million
- 2014 earnings = US $500 million
- Top 10 ERP provider in the world
- Fastest growing ERP solution to be adopted in the market
- Australia and New Zealand customers readily adopting NetSuite:
- 2010 = 2000 customers
- 2014 = 2800+ customers
NetSuite is driven by these initiatives:
- Build a system that can run an entire business, not just departments
- Deliver that software over the internet, harness the web’s rapid innovation
- Enable SMB’s to leverage leading technology at a fraction of the cost of traditional on-premise systems
Your market, your industry and your customer is changing…faster than ever.
- Technology is enabling everyone from Start-up companies to established SMB’s to challenge leading market players and they are taking away market share at an astounding rate.
- New and emerging business models are being introduced constantly
- “Every company in every industry has to essentially move their infrastructure to the Cloud to keep their business competitive.” – Zach Nelson
- “If you’re not looking to transform your business for your customers in 5 years, half of you will be out of business.”
- “Most of the systems you are using weren’t designed for a modern company, they were designed before the internet existed. Meaning, they were developed with the sole purpose of preventing access from the eternal world.”
- Future-Proof Your Business.
- Develop an Omni-Channel strategy & platform to reach customers everywhere
- Productization and Servitization is changing business with Products turning into Services and Services to Products
Frost and Sullivan Market Research
Frost and Sullivan’s presentation theme: DISRUPT | COLLAPSE | TRANSFORM
The presentation detailed the discovery of key factors and enablers of how innovative, agile companies have been disrupting traditional, established industries.
- Transformation is happening at a faster rate than ever before and it is tremendously unpredictable
- 2-3 year predictions of the future of your marketplace are increasingly unreliable
- The ability to quickly adapt to changing market conditions is essential to success
- The chartered past and future of Fortune 500 companies:
- 1970’s saw an average Fortune 500 company lifespan as 50 years
- 2014 sees an average Fortune 500 company lifespan as 15 years
- 2018 sees an average Fortune 500 company lifespan as 10 years
What do 1500 surveyed Senior Executives think of the rapid pace of change in their industry and how are they responding?
- 2010 – 25% of Executives said their industry is NOT CHANGING
- 2014 – 5% of Executives said their industry is NOT CHANGING
What are the primary factors impacting traditional business environments?
- Emergence of new and disrupting competitors
- Digitisation – digital commerce, the Internet, digital platforms, the Cloud
- New business models born from the innovations of technology
- Productization and Servitization – Products = Services, Services = Products
What are the results of these impacts on businesses?
- In Australia, 50% of businesses won’t be around in 5 years time
- In 10 years only 20% of these same businesses will be around
- Only 30% of Australian businesses utilize online channels to communicate with their market and customers
- Half of the 1500 Executives surveyed DO NOT communicate with their customers via online channels and have NO PLANS to form a digital communication strategy
What is being recognised by those who are embracing change?
- Cloud computing is seen as a response to industry change not just as an enabler
- 40% of businesses worldwide have adopted Cloud applications for at least one core business application (eg. Accounting, Marketing, Sales, Website, eCommerce)
- Cost of their infrastructure has decreased dramatically
- Less tangible benefits are highly valued over traditional cost savings (employee retention, workplace culture, productivity, flexibility, adaptability)
- There is a desire for MASS CUSTOMIZATION vs. MASS PRODUCTION
- Increased ability to respond to industry changes and customer behavior
- Ability to launch new products and services quickly when new opportunities arise
- 80% of Executives say Cloud HAS PROVIDED them a distinct competitive advantage
The pace of change is accelerating. The rate of disruption is accelerating. Industry predictability is reducing and the business environment is constantly in flux.
ADAPT. CHANGE. PREPARE.