The Comprehensive Guide to Ensuring Success in NetSuite Implementations

In today's fast-paced business landscape, companies are continually seeking ways to streamline operations, improve efficiencies, and gain a competitive edge. Enterprise Resource Planning (ERP) systems, once a luxury, have become a necessity for organizations—big or small—that aim to coordinate complex business processes and drive growth. Among the myriad of ERP solutions available in the market, NetSuite has distinguished itself as a comprehensive, cloud-based suite catering to a range of industry needs. The allure of NetSuite is undeniable, and yet, the path to a successful implementation is fraught with pitfalls.

It's an irrefutable fact that the ERP market is booming. According to market research, the global ERP software market grew by 9% in 2019 alone, reaching a staggering $39 billion in total software revenue. By 2025, this market size is expected to exceed $49.5 billion. North America alone boasts an ERP market size worth over $10 billion, driven primarily by defense, aerospace, retail, and government utility sectors. These statistics underscore the high stakes and substantial investments involved in ERP solutions.

However, what the numbers also reveal is a less than rosy picture when it comes to implementation success rates. As many as 50% of ERP implementations fail the first time around, a sobering statistic that brings into sharp focus the complexities and challenges associated with such endeavors. For Controllers, CFOs, CEOs, CTOs, Project Managers, and IT specialists directly involved in NetSuite implementations, the challenges are manifold. Issues range from lack of C-suite buy-in to poor product and industry fit, to over-complicating the project scope, and lastly, not having a NetSuite-experienced implementation team in place.

Recognizing the complexities and high risks involved, the role of specialized consulting firms like Kimberlite Partners in guiding these implementations becomes invaluable. With over 50 years of combined experience in the ERP domain, 17 years specializing in NetSuite services, and more than 300 successful implementations under our belt, we understand the intricacies of making a NetSuite ERP system work in sync with your business objectives.

In this comprehensive guide, we aim to shed light on the various aspects of NetSuite implementation—why many traditional approaches fail, the vital role of consulting firms, pre-implementation best practices, strategies for effective execution, post-implementation training, real-world success stories, and how all these factors contribute to ROI. Our goal is to equip you with actionable insights and proven strategies, helping your organization navigate the complexities and achieve a successful NetSuite implementation.

5 Reasons Why Traditional ERP Implementations Often Fail

The idea of implementing an ERP system like NetSuite often comes with a sense of optimism, fueled by the promise of streamlined operations and enhanced efficiencies. Yet, a staggering 50% of ERP implementations do not succeed at the first attempt. How does something that starts with such promise end in disappointment for so many organizations? Below, we delve into some of the critical reasons that lead to the failure of traditional NetSuite implementations, substantiated by industry statistics and our own wealth of experience in the field.

1. Lack of Executive Support

It's not uncommon for high-level executives to delegate the responsibility of an ERP implementation to the IT department without fully grasping the implications of such a significant project. However, statistics show that internal organizational elements like support from management are primary reasons for successful implementations. The C-suite's commitment is not merely about allocating resources; it's about fostering a culture that embraces change. Without this foundational support, even the most robust implementation plans can crumble.

2. Poor Product Alignment with Business Requirements

NetSuite's long-standing influence in the cloud-based ERP market has made it an enticing choice for businesses in various industries. However, it's important to avoid being swayed solely by industry trends. The key to a successful implementation lies in selecting software that aligns seamlessly with your specific business needs and industry requirements.

NetSuite excels in certain industries, offering specialized modules and out of the box functionality tailored to the unique needs of several industry sectors such as:

• Software
• Manufacturing
• Wholesale Distribution
• Retail and Ecommerce
• Apparel
• Advertising, Media, and Publishing
• Professional Services
• Nonprofits

If your organization doesn't belong to these sectors, you might find yourself compensating for the lack of native functionality by resorting to extensive customizations. While NetSuite is flexible and can often be adapted to various business needs, excessive customization can derail an implementation project right from the outset. It can not only inflate the project's scope and costs but also lead to long-term sustainability issues, thereby affecting the overall ROI adversely.

It is essential to not let industry trends or market leadership overshadow the unique needs of your organization. Evaluating whether NetSuite offers the necessary functionalities in its native form is crucial. Failing to conduct a thorough assessment can lead to unnecessary challenges and financial risks for your organization.

3. Navigating the Traps of Scope Creep in ERP Implementations

Organizations can be lured by the rich feature set of an ERP system, taking on more functionalities than they can realistically manage. This often leads to a bloated project scope, which can delay the implementation timeline by up to 30%. Keeping the project scope tightly defined is crucial for a successful, timely implementation.

4. The Importance of Expertise in Ensuring ERP Implementation Success

In ERP implementation failures, only a small fraction (12%) are due to software issues. The more pervasive problem is often the skill level of the consulting team. Unfortunately, some consulting firms staff their projects with junior consultants who lack the necessary industry and ERP system experience, risking the project's success. Choosing a seasoned consulting firm with deep industry expertise is essential for ensuring successful implementation.

5. Overlooking the Scalability Factor in ERP Implementations

ERP systems are built to accommodate growth. However, failure to plan for scalability during the initial implementation phase can be costly. A lack of foresight here can lead to expensive adjustments and customizations in the future, extending the time required to achieve a return on your investment.

The Role of a Consulting Firm in NetSuite Implementations

When it comes to successfully implementing an ERP solution like NetSuite, the importance of choosing the right consulting firm cannot be overstated. Specialized firms such as Kimberlite Partners play a central role in ensuring that the implementation process is both smooth and effective. With more than 50 years of combined experience and a specific focus on NetSuite for 17 years, Kimberlite Partners brings an array of expertise that extends beyond merely technical know-how.

Providing Expert Guidance Throughout the Implementation Lifecycle

From the early stages of pre-implementation discovery to the complexities of post-implementation support, challenges abound that can easily derail an ERP project. Kimberlite Partners offers strategic guidance at every phase, thereby ensuring that the implementation remains on track. Their services include meticulous planning, precise scope definition, realistic timeline estimation, and effective resource allocation, all tailored to fit the unique requirements of each organization.

Customization and Integration: Perfectly Aligning NetSuite to Business Processes

One of the key benefits of NetSuite is its flexibility, but this can also become a challenge for teams unfamiliar with the platform. Kimberlite Partners specializes in aligning NetSuite’s capabilities with an organization’s specific operational requirements. They assist in determining what functionalities need customization, what can be used out-of-the-box, and how to effectively integrate the system with existing processes.

Focused on Change Management and Process Reengineering

Introducing a new ERP system is not just a technological transition but also a significant organizational change. Kimberlite Partners provides specialized change management services, ensuring that both the organizational culture and employee workflows adapt seamlessly to the new system. Additionally, they offer insights into how business processes can be reengineered to extract the maximum benefit from the NetSuite implementation.

Prioritizing Training and Ongoing Support

Statistical data highlights that 93% of successful ERP projects owe their success, in part, to effective training programs. Recognizing this, Kimberlite Partners includes comprehensive, role-specific training as part of their service offerings. Their post-implementation support is designed to provide continued value, ensuring that organizations keep extracting the maximum benefit from their NetSuite systems as they evolve.

Leveraging Real-World Experience to Navigate Complexities

With a track record of over 300 successful NetSuite implementations, Kimberlite Partners can anticipate potential challenges and offer proven solutions. Their extensive experience makes them an invaluable asset for any organization seeking to navigate the intricacies of a NetSuite implementation successfully.

In summary, the role of a consulting firm in a NetSuite implementation project is multifaceted. By bringing a range of skills from strategic planning to execution to ongoing support, firms like Kimberlite Partners significantly improve the likelihood of a successful implementation.

NetSuite Implementation Best Practices

Embarking on a NetSuite implementation project without adequate planning is akin to setting sail without a compass. Companies often underestimate the significance of the initial stages, only to face obstacles that could have been easily avoided with proper planning. A well-executed Discovery phase followed by a meticulously planned Implementation stage sets the groundwork for a smooth implementation process. Here's how Kimberlite Partners and other specialized consulting firms can help.

The Discovery Stage: Identifying Needs and Scope

Before any coding starts or configurations are made, the discovery stage plays a crucial role in understanding the company's specific requirements. Kimberlite Partners invests time and resources to conduct a comprehensive analysis of the organization's existing workflows, data structures, and system integrations. This initial investigation is vital for shaping the rest of the implementation process, ensuring that the solution is customized to fit like a glove.

Setting Realistic Timelines and Budgets

One of the common pitfalls in ERP implementations is underestimating the time and financial resources needed. According to industry statistics, most implementations cost three to four times the initial budget and take 30% longer than anticipated. Kimberlite Partners brings their expertise to the table by setting realistic timelines and budgets, thereby helping organizations avoid unexpected costs and delays.

Assembling the Right Team

It's not just about having a team; it's about having the right team. A balanced mix of technical experts and stakeholders from different departments ensures that the implementation aligns well with organizational goals. Kimberlite Partners can assist in assembling a project team, defining roles and responsibilities, and providing the necessary training to get everyone up to speed.

Avoiding Over-Customization

The allure of customization often leads companies down a path of complexity, affecting both the budget and timeline. Kimberlite Partners helps organizations strike a balance between customization and out-of-the-box functionalities. They guide companies in identifying which features are truly necessary for their operations and which can be achieved through native NetSuite functionalities.

Prioritizing Data Integrity

Data migration is one of the most critical steps in an ERP implementation. Kimberlite Partners ensures that data is moved accurately and securely, while also preparing the organization for any changes in data structures. Their rigorous data validation techniques minimize errors, thereby safeguarding the integrity of organizational data.

By following these pre-implementation best practices, companies are well-positioned to steer their NetSuite implementation toward success. Up next, Kimberlite Partners and other experts provide insights into effective execution strategies for NetSuite ERP projects.

Strategies for Effective Execution

Once the groundwork has been laid during the pre-implementation stages, attention must shift to the actual execution of the NetSuite ERP project. Even the best-laid plans can unravel without meticulous execution. This section delves into strategies that can help ensure a cost-effective and efficient implementation, with a particular emphasis on the contributions that Kimberlite Partners and similar consulting firms bring to the table.

Maintaining Scope Discipline

In a world of ever-changing business needs and emerging technologies, scope creep is a common issue that plagues many ERP implementations. Kimberlite Partners emphasizes the importance of sticking to the defined project scope to prevent unexpected expenses and delays. By maintaining scope discipline, organizations can ensure that the project is completed on time and within budget.

Regular Monitoring and Adjustments

Static plans seldom survive the complexities of real-world execution. Regular monitoring is essential to catch any potential issues before they escalate into significant problems. Kimberlite Partners employs a range of monitoring tools and metrics to keep track of project milestones, and they are adept at making adjustments as needed to maintain project integrity.

Minimizing Over-Customization

While NetSuite offers a plethora of customization options, not all of them may be essential for every business. Kimberlite Partners advises clients on the judicious use of customization, focusing only on those features that provide a clear return on investment. By avoiding unnecessary customizations, organizations can significantly reduce both the time and cost involved in implementation.

Effective Change Management During Execution

Change management isn't a one-time activity relegated to the pre-implementation stage. Kimberlite Partners ensures that effective change management strategies are integrated throughout the execution phase. These strategies include constant communication with stakeholders, training sessions, and iterative feedback loops to ensure that the organization smoothly adapts to the new ERP system.

Ensuring Quality Assurance and Testing

Before going live, it's crucial to rigorously test the NetSuite system in a controlled environment to identify any bugs or performance issues. Kimberlite Partners employs thorough testing methodologies, incorporating different scenarios and user roles to simulate real-world usage. Their meticulous approach to quality assurance can significantly reduce the likelihood of operational disruptions during the go-live phase.

Focusing on User Adoption

Finally, the success of any ERP implementation is closely tied to user adoption rates. Kimberlite Partners offers a structured training program tailored to different roles within the organization. Their ongoing support and training resources contribute to higher user adoption rates, thereby maximizing the value gained from the NetSuite implementation.

Through a combination of disciplined scope management, regular monitoring, minimal customization, effective change management, rigorous testing, and user-focused training, Kimberlite Partners aims to optimize the execution phase of a NetSuite ERP implementation.

NetSuite Training and Post-implementation Support

The conclusion of the implementation phase does not mark the end of the ERP journey; rather, it’s just the beginning. According to a 2020 report, 93% of organizations attributed their ERP project success to effective training and post-implementation support. For this reason, companies like Kimberlite Partners place immense emphasis on these crucial aspects.

Structured Training Programs

Post-implementation success is closely tied to how well users adapt to the new system. Kimberlite Partners offers structured training programs designed to cater to varying levels of user expertise. This training often extends beyond mere system operation, encompassing best practices that maximize utility and efficiency. Tailored programs ensure that everyone from executives to entry-level employees gains a thorough understanding of the system, enhancing both competence and confidence in navigating NetSuite's features.

Ongoing Support for Operational Excellence

Once the ERP system is live, companies will encounter new scenarios and challenges that weren't covered during the testing phase. Kimberlite Partners provides ongoing support to help organizations navigate these uncharted waters. Their supproport services range from troubleshooting to minor adjustments in system configuration, all aimed at ensuring a smooth operational transition.

Focusing on Upgrades and Scalability

As organizations grow and evolve, so do their ERP requirements. Kimberlite Partners assists in planning for these future needs by setting up scalable solutions and guiding companies through periodic upgrades. With ERP software continually advancing to meet demands for more customizable features and broader integrations, their expertise in managing updates ensures that organizations remain ahead of the curve.

Continual ROI Monitoring

Implementing an ERP system like NetSuite is a substantial investment, and it's crucial to ensure it yields a positive return. Kimberlite Partners assists organizations in continually monitoring key performance indicators (KPIs) relevant to the ERP system, thereby providing insights into its ongoing ROI. This focus on performance metrics can guide future decisions regarding system optimization and scalability.

In summary, training and post-implementation support are not mere afterthoughts but integral components of a successful ERP project. With structured training programs, ongoing operational support, future-proof scalability plans, and continual ROI monitoring, Kimberlite Partners aims to ensure that organizations reap long-lasting benefits from their NetSuite implementations.

Demystifying the Cost of a NetSuite Implementation

Note: The cost metrics cited here are rooted in Kimberlite Partners' hands-on expertise with NetSuite implementations. Your specific requirements could yield different financial outcomes.

The conversation around cost is often clouded by the multiplicity of variables, ranging from the nature of your business processes to the size of your organization. We at Kimberlite Partners aim to clarify this often nebulous area.

Comprehensive NetSuite Cost Framework

Based on our wealth of experience, Kimberlite Partners finds that a well-managed NetSuite implementation generally costs between $40,000 and $150,000. This encompasses a full gamut of services like discovery, analysis, system customization, and beyond.

NetSuite Expense Breakdown by Service Type

Here's a snapshot of the various cost components you may encounter:

• NetSuite License: The cost is an ongoing commitment, and it varies based on several factors including the number of users and required modules.

• NetSuite Implementation Services: Expect a one-time fee that typically ranges from $40,000 to $150,000. This expense is largely dependent upon who is doing the implementation, project scope and implementation methodology.  

• NetSuite Customizations: Specific alterations to suit your business needs can cost anywhere from $125 to $250 per hour, depending upon who is doing the work.

• NetSuite Integrations: A dual component of set-up and ongoing fees, integration costs can range from negligible to upward of $4,000.

• NetSuite User Training: Usually a one-time expense, training costs can fluctuate between $2,000 and $15,000, with optional ongoing investment.

• Premium Support: This is an ongoing cost, typically accounting for about 10% of the license price.

By understanding these costs and planning accordingly, organizations can not only set realistic budgets but also optimize their investment for maximum return. Kimberlite Partners is committed to guiding clients through this intricate financial landscape, ensuring a lucrative and sustainable NetSuite implementation.

Charting Your Course: NetSuite Implementation Options

When it comes to implementing NetSuite ERP, businesses generally face three primary routes. Each has its own set of advantages and challenges, and the optimal choice often depends on your specific needs and existing in-house expertise. Kimberlite Partners is committed to helping clients understand their choices and guiding them to the most suitable path.

Self-Driven Implementation

While theoretically possible, a self-driven implementation is generally not advised unless your organization boasts a stable of seasoned NetSuite professionals, spanning developers to functional experts.

Insider Insight: Embarking on a self-driven implementation is highly time-consuming. If the same team is expected to maintain day-to-day tasks alongside, burnout becomes a real concern, compromising both the schedule and success of the implementation.

NetSuite Direct Implementation

Going directly through NetSuite seems like an obvious choice, given that they're the creators of the application. However, many have found that this route doesn't necessarily translate into a seamless experience.

Caution: While product knowledge won't be a concern, NetSuite's own implementation services often fall short on customer service and customization capabilities, making this a less preferable option for many businesses.

NetSuite Partner-Driven Implementation

Leveraging the expertise of a NetSuite partner like Kimberlite Partners is generally the most advisable route for most organizations.

Why Choose Kimberlite Partners?:

• Industry-Specific Expertise: Kimberlite Partners brings a wealth of industry-specific knowledge to the table, ensuring that your implementation aligns perfectly with your unique business needs.
• Personalized Customer Service: Being a more boutique operation compared to large-scale service providers, Kimberlite Partners offers rapid response times and a level of personalized service that's hard to match.

Choosing the right implementation partner can make all the difference in how smoothly your NetSuite ERP system is integrated into your existing workflows, and how well it serves your organizational needs going forward.

Why Expert Guidance Matters in ERP Implementations

Embarking on an ERP implementation is an intricate process filled with challenges at every turn. However, it's also an opportunity for transformative change, especially when guided by seasoned experts. The real-world success stories of our clients offer powerful examples of this transformative potential.

Take NAVIS, for instance. They had a seemingly simple but pressing need—to automate the emailing of invoices to multiple addresses. By customizing fields and scripting a more efficient workflow, Kimberlite Partners delivered not just a software solution, but valuable time savings and improved accuracy for NAVIS.

Or consider K1X, which needed a robust system to manage historical pricing data. Our custom-built solution now enables them to document and report pricing history effortlessly. Then there's KitchenCrest Cabinets, a B2B wholesaler that struggled with supply chain visibility. With our specialized solution, they gained real-time insights, making their supply chain more transparent and manageable.

These stories spotlight not just Kimberlite Partners' technical prowess but also our knack for understanding unique business challenges and crafting effective solutions. We go beyond the code, focusing on best practices, disciplined scope management, comprehensive training, and ongoing support to ensure your ERP implementation is not only successful but cost-effective in the long run.

If you're contemplating a NetSuite ERP implementation and are concerned about its complexity, its potential impact on your business, or its long-term ROI, remember that you don't have to go it alone. Reach out to Kimberlite Partners, where proven methodologies and seasoned expertise turn ERP implementation challenges into opportunities for business transformation.