This article is relevant when using or considering NetSuite and how attitude and investment capacity play a critical part in unlocking and realizing NetSuite’s latent potential.

Background

Since 2008, working with hundreds of clients and helping them implement or optimize NetSuite, I have come to realize that there are situations and different outcomes that organizations often face as it relates to their relationship to their NetSuite usage and experience.  I can see several articles I can write about this coming from different angles that generally relate to themes:

1. Ambition: the drive to realize a different future, large or small.
2. Investment Capacity: the real-world availability of resources (e.g., leadership, financial, intelligence) to produce that future

This article explores three distinct mentalities that consistently define organizational leadership and orientation to NetSuite.

NetSuite Adoption: Understanding Three Business Mentalities

When businesses implement NetSuite, their ambition and investment capacity dictate how they approach their NetSuite investment.  While some see NetSuite as an opportunity to upgrade one application for another, others leverage it as a strategic platform for long-term organizational capability.

From working with a variety of clients for over 15 years, I’ve noticed three distinct mentalities toward NetSuite adoption:

1. Stronger Feature Set Mentality: “Get better software with more features and capabilities”
2. Operational Mentality:  “Drive greater internal coordination, efficiency, and control”
3. Strategic Mentality:  “Leverage NetSuite for competitive advantage”

Each mentality has its own expectations, challenges, and investment strategies.

Stronger Feature Set Mentality:  Upgrade our Business Software

Organizations with a Stronger Feature Set Mentality adopt NetSuite to simply get software with more capability.  They may have outgrown QuickBooks, relied on disjointed spreadsheets, or needed better financial controls. While they acknowledge NetSuite’s potential, their primary goal is that key set of features they sought rather than business optimization.

Characteristics

• Install: Likely purchased through Oracle’s SuiteSuccess model and was drawn in by “crawl, walk, run” messaging
• Fitting: Minimal thought for fit with the expectation of reliance on out-of-the-box configurations without understanding that NetSuite can do the same things with different approaches
• Replacement: Limited integration with other systems while most business functions remained unchanged; the goal was to upgrade the situation but not transform the business.
• Fatigue: Often experiencing implementation fatigue and may feel disappointed by an inadequate setup

Common Pain Points

• Workarounds: Manual workarounds due to missing processes or misconfigured settings
• Misconfigurations: Underutilized features which are not activated or optimized
• Blindness: Reporting struggles as one can assess the data exists, but getting meaningful information feels too difficult to extract

Investment Approach

• Frugality: Disappointing implementation experiences make one skeptical about further investment
• Distrust:  Avoiding outside help due to past frustrations

Mindset Summary

Stronger Feature Set companies view NetSuite as an upgrade but fail to even come close to harnessing its full potential. While managers recognize its power, they hesitate to invest further due to previous implementation setbacks, growing distrust and pessimism, and going forward cost concerns.

Operational Mentality: Driving Coordination, Efficiency, and Control

Organizations with an Operational Mentality go beyond the basics. They recognize NetSuite as more than an accounting tool and actively seek improvements in automation, reporting, and system-wide coordination.  This mentality gets to the real opportunity afforded by adopting a best-in-class ERP system.

Characteristics

• Scrambling to scaling focus: align the sales, manufacturing, fulfillment, supply chain and  finance operations
• Process automation: reducing manual data entry and streamlining workflows
• Fitting: model and configure NetSuite’s features with tailored adjustments fitted for purpose
• Report Optimization:  improved reporting and analytics with a greater focus on operational and financial insights

Common Pain Points

• Interdepartmental coordination: goal to link operational and financial functions and data
• Deeper user adoption: a more significant concern for higher staff competency and greater system usage
• Managing system complexity:  concerns for confusion and incoherence as business drivers demand more flexibility but mixed processing models

Investment Approach

Management understands they need to make investments to improve the situation.   They will want to do discrete projects to take on concerns.  For example, they may wish to enhance their integrations with networks like eCommerce, marketplaces, third-party logistics (3PL), and supply chain management platforms.  They may also begin to consider hiring an internal NetSuite administrator or working with a long-term partner to get projects complete.

Mindset Summary

Operational-focused businesses recognize NetSuite as a key efficiency driver. While cautious about excessive spending, they invest in continuous project-based refinements to improve processes and coordination.

Strategic Mentality: Leveraging NetSuite for Competitive Advantage

Business managers with a Strategic Mentality treat NetSuite as a growth enabler, not just an ERP.  They leverage advanced automation, deeper system integration, and refined business processes and reporting to drive scalability and competitive differentiation.

Characteristics

• Deep system integration: NetSuite is the central hub for all business operations.  See my related article
• Role-driven automation:  business processes are deliberately designed and interlocked across departments to produce high degrees of coordination and low-cost
• Exception-based processing:  the organization thinks about high-volume processing and how to deliberately focus on anomalies rather than routine transactions.  See my related article
• Advanced analytics and planning:  reliable transaction processing and trustworthy operations open capacities for better planning, forecasting, budgeting and refined business intelligence reporting

Common Pain Points

• Balancing customization with long-term maintainability: ensuring a sustainable architecture working to avoid technical debt. See my related article
• Scalability without excessive complexity:  seeking to adopt more business capability while keeping operations coherent and manageable
• Managing more complex integrations: ensuring NetSuite communicates seamlessly with other platforms as it is integrated as a hub for all operations

Investment Approach

The organization recognizes a need to make ongoing investments in NetSuite enhancements and capabilities, including the following:

• Building reliable NetSuite competency by establishing a team or working with highly skilled external advisors
• Review and implementation of industry-specific solutions tailored to their niche
• Continuous process improvements and automation driven by data insights

Mindset Summary

In this model, organizational managers are mature and understand that NetSuite can be a business enabler that demands ongoing investment for continuous improvement. They will invest in internal competencies while partnering with external providers who have experienced and highly competent professionals who can implement desired marginal operational practices.

Thus, Strategic businesses see NetSuite as a foundation for long-term growth and adaptability. They invest in optimization proactively, knowing that a well-architected NetSuite system creates a significant competitive advantage.

Conclusion: Recognizing and Shifting Your NetSuite Mindset

Every business has a unique NetSuite journey.   It may be valuable to reflect on your company and how it currently operates.  Given the characteristics, are you a Stronger Feature Set, Operational, or Strategic Mentality when it comes to your relationship to your NetSuite investment?

As I speak to prospective organizations, those seeking Operational improvements often see our Accelerator Templates as an opportunity to gain more capability.  However, while we are happy to accommodate, we suggest to them that the real value of unlocking NetSuite’s potential is how we can bring them more leadership when they move to a Strategic mindset driven by their ambition and investment capacity.

If you found this article relevant, sign up for notifications of new articles.  If you’re ready to extract more value from your NetSuite investment, let’s have a conversation.

Marty Zigman

Holding all three official certifications, Marty is regarded as the top NetSuite expert and leads a team of senior professionals at Prolecto Resources, Inc. He is a former Deloitte & Touche CPA and has held CTO roles. For over 30 years, Marty has produced leadership in ERP, CRM and eCommerce business systems. Contact Marty to set up a conversation.

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