Services-Based Business KPIs that Matter

Transcription

1 Services Companies Run Better on NetSuite. Services-Based Business KPIs that Matter Sponsored by

2 Results from Businesses Like Yours Business Visibility 360 o Visibility & Actionable Insight Increased 50% - 80% Collection Time for Accounts Receivables 30% - 45% Revenue Performance Increased 2% - 5% Financial Management Time to Close Financial Books Reduced 45% - 75% Days Sales Outstanding (DSO) Reduction 30% - 50% Accounting Staff Productivity Increase 25% - 45% C. All rights reserved. C. All rights reserved. 1

3 Results from Businesses Like Yours Professional Service Engagement Management Sales and Marketing Availability and Utilization of Resources 20% - 40% Report Generation Time 75% - 85% Sales Productivity and Capacity 20% - 40% IT Support Resource Costs Reduction 45% - 75% IT Management Cost to Purchase and Maintain Servers Reduction 100% Business Continuity/Disaster Recovery Costs Reduction 50% - 75% C. All rights reserved. C. All rights reserved. 2

4 Cloud-Based Business Solutions Suite Delivers Key Performance Improvements Real-time business visibility and end-to-end business management Many firms including those in the services industry sector have achieved more efficient and agile business operations by using cloud-based ERP. Executive Summary The services industry sector is highly diverse, not just in the variety of services offered but in the nature of the companies themselves. There are pure, services-only firms, such as systems integrators, consultancies and other professional services providers. And then there are companies that include consulting and/or support services as part of their portfolio offerings, such as software companies, manufacturers and retailers. For either services companies or services-based profit centers, companies need to be able to identify and measure key performance indicators (KPIs). Then, they have a baseline on which to improve and track their critical business processes and achieve a high level of business efficiency. There are financial management processes, including billing, cash collections and end-of-month book closings. Then there are project management processes, including project-based accounting, resource forecasting, allocation and utilization, and a number of other metrics critical to services and business success. C. All rights reserved. 3

5 Project-Based Metrics Are Critical for Services Firms Aligning business operations to meet these challenges Staffing Resource Challenges Resource allocation: Services staff must be assigned to projects based on their skill sets, availability, hourly rates and other factors. Forecasting: Companies must ensure that staff with the necessary skill sets will be available for assignment to upcoming projects. New employees: Companies in this sector must often hire new talent, and must be able to quickly and easily train people to perform critical business processes efficiently. Average Deal Size Shipping Manager Ecommerce Manager CEO External Systems WAREHOUSE MANAGEMENT INVENTORY MANAGEMENT MANUFACTURING ERP CORE BUSINESS Reduction in DSOs Customers SRP CUSTOMER MANAEMENT ORDER MANAGEMENT GLOBAL FINANCIAL MANAGEMENT BILLING MANAGEMENT REVENUE MANAGEMENT SUPPLY CHAIN MANAGEMENT PROJECT ACCOUNTING PROJECT MANAGEMENT CFO RESOURCE MANAGEMENT TIME & EXPENSE Sales Rep/ Manager Support Manager Vendors Partners Accounting Challenges Project-based accounting: Everything from project profitability to rates-per-hour to time and expense reporting must be done on a project-by-project basis. Unique Project Requirements: Because projects vary, companies may need to support, and track, a variety of billing models. Profitability tracking: Companies often track revenues and expenses by client, by service line, by industry and by other variables. Accounting consolidation: project revenues and other project-based numbers must be consolidated and integrated with the company s core financials. Unlimited Expansion Intelligent Order Orchestration Revenue Growth C. All rights reserved. C. All rights reserved. 4

6 Business Visibility Business value for company management Increase in 360 o visibility and knowledge of operations 50%- 80% Siloed applications and data provided an incomplete view of business Analytics solution not integrated Significantly improved real-time visibility into all aspects of the business, allowing faster strategic decision making Easy to spot inconsistencies to find out root cause through drill-downs business agility Not possible to quickly assess and respond to all aspects of a business in response to current and future project opportunities due to siloed applications and data Agility from planning to execution Support better decisions, improve cost control, and increase the profitability of projects and delivery resources real-time project and resource management Difficult to monitor real-time project status Resource availability, utilization and expertise based on gut feel Streamline project status for decision making related to deviations and resources Ongoing monitoring of project and resource profitability and margin C. All rights reserved. C. All rights reserved. 5

7 Financial Management (1 of 2) Business value for revenue analysis and management collection time for accounts receivables 30% - 45% Increased revenue performance 2% - 5% Excessive time required to identify and post collections data Error prone Excel spreadsheet-based operations Lost revenues due to missed or inaccurate billings Error prone Excel spreadsheet-based operations Significant increase in accuracy for accounts receivables Convert active contracts into revenue Significant increase in accuracy of revenue recognition Identify missed opportunities and timely billing billing efficiency Customer resource management systems not integrated with accounting system Inefficient, manually intensive Excel processes Integrated and automated front-end and back-end accounting systems makes the billing process fast and accurate C. All rights reserved. C. All rights reserved. 6

8 Financial Management (2 of 2) Business value for accounting department Reduced time to close the financial books 45% - 75% Reduction in days sales outstanding (DSO) 30% - 50% Increased accounting staff productivity 25% - 45% Extensive time spent on reconciliations, especially with multi-division, multiregion and multi-currency Difficulty in tracking project status to ascertain timing to recognize revenues Difficulties in consolidation of data from multiple entities Difficulty in consolidation of accounts in different geographic regions with multiple currencies Inefficiencies as a result of manual processes Use of spreadsheet based accounting Earlier availability of financial results through faster period-end processes and more accurate reconciliations Real-time project status to recognize revenue Real-time consolidation of data from multiple entities, regions and currencies Support for real-time consolidation of financial information in multiple currencies Reduced time to close books Increased efficiency through integrated and automated reconciliations and reporting Reduced need for large accounting staff Better management of projects C. All rights reserved. C. All rights reserved. 7

9 Professional Service Engagement Management (1 of 2) Business value for project portfolio management availability and utilization of resources 20% - 40% Poor project monitoring as data is spread across different applications Lack of real-time tracking of resource utilization Better visibility into availability and utilization of professional services resources Real-time insights into project status reports and variances Reduced non-billable hours Lack of ability to accurately track and assign non-billable expenses Time consuming Excel based worksheets for project reporting margin per project Real-time visibility into all categories of expenses report generation time 75%-85% Lack of actionable reporting and visibility into the workload Real-time project status and resource utilization report generation capabilities Required reports can be easily generated by project managers without need for IT C. All rights reserved. C. All rights reserved. 8

10 Professional Service Engagement Management (2 of 2) Business value for project portfolio management end-to-end process efficiency Reduced project risks and failures listing and assessment of resources availability Time consuming project monitoring and management process Drill-down analysis into process not easy Lack of real-time monitoring of project costs, resource allocations Lack of ability to take timely decisions to take corrective actions Tracking resources and skill level is cumbersome Resource utilization reports not accurate or available in a timely manner Complete visibility and reporting for all processes required for implementing projects Integrated business suite supports workflows across all functional operations and departments Real-time reporting provides timely insights into project deviations to enable corrective actions Increase in customer satisfaction Real-time availability of resource skills, availability and costs Higher resource utilization and productivity Better ability to forecast future projects and resource requirements C. All rights reserved. C. All rights reserved. 9

11 Sales and Marketing Business value for integrated sales and marketing Increased sales productivity and capacity 20% - 40% Sales-relevant information dispersed among multiple systems, and not readily available Ability to generate more revenue with same number of sales people customer satisfaction sales pipeline C. All rights reserved. Lack of integrated solution and data lead to inefficiencies and disgruntled customers Limited sales tracking and pipeline visibility Lack of real-time resource visibility to bid on new projects or upsell existing customers Integrated customer and project information improves monitoring, reporting and reduces errors Ability to leverage greater number of reference customers Better manage and categorize leads by opportunity Easily track sales pipeline Increase in sales pipeline by tracking leads and opportunities with CRM Monitor effectiveness of individual sales reps C. All rights reserved. 10

12 IT Management and Resources Business value for company operations Reduction in number of IT support people, IT cost savings of 45% - 70% Eliminated the need and cost to purchase and maintain servers 100% Reduction in need for business continuity / disaster recovery solution 50% - 75% IT resources needed to implement, maintain and update on-premises ERP solutions IT resources needed to install and maintain server hardware and software Capital expenditure required to acquire and maintain servers for on-premises ERP application Ongoing management and maintenance costs IT resources and infrastructure needed to support business continuity/disaster recovery Implementation is complex and costly Cloud-based solutions eliminate need for internal IT staff to support ERP application, onpremises servers Faster to implement for productive use of ERP solution No need for IT capital expenses as NetSuite is a cloud delivered solution Greatly reduced management and operational costs Business continuity/disaster recovery are a built-in benefit of the NetSuite SaaS solution NetSuite has redundant data centers to support business suite and data availability at no additional cost to customers C. All rights reserved. C. All rights reserved. 11