Point Solutions vs. NetSuite: How to Decide Which is Best for Your Company
All growing companies reach a point where they must decide if they should change software systems to meet customer expectations. Proper guidance can make the difference between soaring profits and stressful system failure.
As the business grows, its software needs evolve—sometimes necessitating entirely new systems. Many companies start with simple point solutions that solve singular problems. Yet, as they expand, those smaller systems no longer cut it, and they have to switch to more comprehensive enterprise resource planning (ERP) systems.
The trick is to find the right time to transfer. Moving too early will cause a business to flounder under the weight of a system it’s unequipped to handle. Switching too late will result in lost potential income, as the company’s disparate systems strain to cover the workload.
SuiteDynamics experts can evaluate your business and help determine whether your company is ready for enterprise software. We work with NetSuite to customize and implement ERP systems and can help you take the next step in expanding operations.
Read our quick guide below comparing point solutions vs. NetSuite, and then schedule a free consultation with our team. We’ll ensure you get a system that eliminates data silos, increases operational efficiency, and boosts productivity.
Key Takeaway
- Growing Pains with Software: Small businesses often start with basic, single-task software (point solutions) but outgrow them as they scale. At this point, switching to a comprehensive system like NetSuite ERP becomes necessary.
- Timing the Switch: Moving to an ERP too early can be overwhelming, while switching too late can hold back growth. It's crucial to find the right time to upgrade and avoid lost income and inefficiency.
- Pros of Point Solutions: They are cost-effective and specialized, perfect for small businesses. Examples include QuickBooks for accounting and Shopify for e-commerce. However, this software may struggle with complex needs as a business expands.
- Benefits of NetSuite ERP: NetSuite integrates all business functions (like accounting, HR, and inventory) into one platform, reducing data silos and errors. It also offers advanced features like e-commerce integration and multi-currency support, which help streamline operations and boost growth.
- Choosing the Right System: When business operations get more complex, an ERP like NetSuite can handle larger data volumes and multiple users effectively.
What Is a Point Solution?
A point solution is an application or program that addresses a single issue, such as accounting, inventory management, or credit card processing. Common point solutions include the following.
- QuickBooks for accounting
- MailChimp for email marketing
- Shopify for e-commerce
- Salesforce for customer relationship management
Why Use a Point Solution?
Point solutions work well for start-ups and smaller businesses because they’re simpler and cheaper than ERP software. SuiteDynamics Principal Finance Consultant Grace Martin says that QuickBooks, for example, serves a simple business model well.
“A non-accountant can perform bookkeeping without a whole lot of training,” she explains. “I think it’s a great solution in those sorts of situations.”
Also, specialization should be considered when weighing point solutions vs. NetSuite. Many single-issue programs include top-of-the-line features not found in more comprehensive software.
What Is a NetSuite ERP?
An ERP, or “enterprise resource planning” software, is a system that unifies all a business’s operating processes onto a single platform. An employee can use this system to access nearly every aspect of a company, including accounting, human resources, inventory management, marketing, shipping, and more.
NetSuite is the world’s top Cloud ERP software system. It separates itself from competitors with cutting-edge features such as a native e-commerce platform and vast multi-currency capabilities.
Why Use a NetSuite ERP?
One of NetSuite’s biggest advantages is its unified approach. Unfortunately, a company that uses a string of point solutions risks creating data silos because each program operates with a different information set. Mistakes can occur as these systems run with separate data and little communication among the programs. In fact, IBM reports that data silos hamper 82% of organizations.
However, a NetSuite ERP runs all business processes from a single database, meaning every department operates with a uniform set of accurate information. This method streamlines processes, saving time and money.
A unified platform also provides more comprehensive and useful reporting capabilities than point solutions. For example, an ERP allows users to compare sales data to marketing KPIs and inventory numbers to purchase orders. NetSuite’s custom segments feature enables users to create reports comparing any combination of data sets.
If you ask Martin, NetSuite’s native e-commerce platform, SuiteCommerce, also makes it a powerful tool.
“If a business has a very active website—and particularly if they want customers to place their own orders—NetSuite is perfect,” she says.
Point Solutions vs. NetSuite: When Should a Company Switch?
Many point solutions aren’t designed to handle multiple users or an enormous amount of complicated data, so companies often grow frustrated with them as their businesses expand.
“QuickBooks, or a solution like that, might not be appropriate when a company has multiple warehouse locations, multiple businesses, or multiple subsidiaries within the same business,” Martin says. “QuickBooks doesn’t handle any sort of inter-company transactions at all.”
Consequently, when business truly ramps up, many companies start to evaluate point solutions vs. NetSuite. They examine the pros and cons of both, including NetSuite’s ability to scale and handle international commerce. And many choose the ERP.
Then, business has a chance to explode.
“As soon as companies are live in NetSuite, it gives them a platform to truly take off,” Martin states. She has personally witnessed a business more than double its sales within a year after going live with NetSuite.
She also explains that the system’s ability to coordinate complex business processes is integral to profitability.
For example, a purchase may occur on a business’s e-commerce site, and NetSuite will immediately know if the item is in stock. Then, the system initiates the shipping process so customers can enjoy same-day shipping. If the item is unavailable, NetSuite will either alert purchasing or manufacturing to restock.
“It automatically takes care of all those process points,” Martin says. “If you’re using a system that requires human intervention, then you’re wide open to mistakes. But NetSuite is seamless.”
Therefore, when considering point solutions vs. NetSuite, you must examine your company’s complexity. How many moving parts are involved in your processes? Do you need a more efficient system?
Then, consider how big you want your company to grow because a NetSuite ERP can spur quite a bit of expansion.
Martin even believes the system is so integral to growth that she can’t imagine a company handling international business without it. Essentially, if an organization wants to expand, point solutions won’t cut it.
SuiteDynamics experts can answer any further questions about point solutions vs. NetSuite and the best time to implement a comprehensive system.
Schedule a free consultation with our team to discuss your company’s needs and which NetSuite modules and features best address them. We’ll ensure you get the right system to help your business reach new levels of success.
Blow Away the Competition
Stop fighting a software system that's working against you. Instead, enjoy the benefits of an ERP that knits your operations together seamlessly and provides the data and analysis you need to trounce your competition.
We know you can rise in your industry.
Team up with SuiteDynamics to develop the ERP system your business needs. As a NetSuite Alliance Partner, we customize and implement NetSuite ERP software for clients in any industry.
The partnership doesn't stop there. We can work with you long after go-live, maintaining the system, training staff, and adjusting the software to accommodate your expansion.
Contact us today to start experiencing NetSuite success.
We pull information from NetSuite material, SuiteDynamics experts, and other reliable sources to compose our blog posts and educational pieces. We ensure they are as accurate as possible at the time of writing. However, software evolves quickly, and although we work to maintain these posts, some details may fall out of date. Contact SuiteDynamics experts for the latest information on NetSuite ERP systems.
Part of this text was generated using GPT-3, OpenAI’s large-scale language-generation model. After generating the draft language, our team edited, revised, and fact-checked it to ensure readability and accuracy. SuiteDynamics is ultimately responsible for the content of this blog post.
