ERP Solution Evaluation Study: Oracle NetSuite

In 2023 ISEE conducted a survey to explore ERP systems’ functional constructs and whether they incorporate Business Model Ontology principles of universal management of any enterprise economy.

This research is critical for the Mission of ISEE which seeks to develop and disseminate new digital technologies for managerial modeling of enterprise economies. Such knowledge, already embedded in the Business Digital Twin software developed by Institute for Systemic Economic Engineering (ISEE), could surpass traditional economic education in terms of practical applicability.

ISEE’s ERP evaluation study in 2023 focused on Oracle NetSuite’s capabilities, assessing its functional construct as a carrier of Business Model Ontology. A detailed questionnaire was prepared to evaluate NetSuite’s ability to reflect and simulate enterprise processes. The survey aimed to compare NetSuite’s functional construct with ISEE’s Business Digital Twin software to determine if similar comprehensive BMO knowledge is embedded and practically applied elsewhere in the world.:

First area of questions

It aims to establish to what extent SAP is aware of the need to reflect and simulate (in order to manage future states) the principle structure of the enterprise as a uniquely identified and hierarchically ordered technological environment.

Second area of questions

It aims to establish to what extent SAP is aware of the need to reflect and simulate (in order to manage future states) the Operational Technological Field (workplace) as a set of technical and organizational elements.

Third area of questions

It aims to provide insight into the system’s capabilities as an effective tool for managing the Operational Technological Field in past and present times, but most importantly in future time horizons and in two key aspects for any enterprise – cost management and capacity management.

Findings and Insights

Holistic Reflection of Technological Environment

Oracle NetSuite lacks the ability to comprehensively reflect the functionally organized technological environment of the enterprise. The system does not integrate knowledge of the enterprise’s principle structure and functioning, hindering effective process management.

Understanding of Operational Technological Field

There is no established, written, and integrated understanding of the Operational Technological Field’s structure. NetSuite does not recognize that this field is the foundational building block of the enterprise’s technological environment, essential for successful operations.

Cost Tracking Capabilities

While NetSuite has some capabilities to track costs incurred on various items due to the operation of the Operational Technological Field, these are significantly less effective compared to holistic Digital Twin systems.

Engineered Organizational Value Analysis

NetSuite does not provide the capability to perform an engineered organizational value analysis of manufactured products. This stems from a lack of understanding of both the enterprise’s principle structure and the way it creates value through the consumption of technical and organizational elements.

Capacity Management

Capacity tracking of the Operational Technological Field is performed only at a minimal level of detail. This limitation impedes effective production planning and may lead to bottlenecks.

Implications

The absence of integrated knowledge about the enterprise’s principle structure and functioning in Oracle NetSuite’s functional construct leads to fragmentation. Despite the integration of multiple modules, the system fails to accurately reflect reality. This defect is substantial.

In conclusion, after detailed research and analysis of Oracle’s achievements in the field of management, it is evident that the investigated ERP system does not effectively reflect the state of the enterprise in its entirety, neither in the present nor the past, and even more so in the aspect management of future states of the enterprise.