Measuring Performance: Key Metrics to Track After Oracle NetSuite GoLive

With over 40,000 businesses using Oracle NetSuite as their preferred ERP platform, the system has proven to offer immense value by providing real-time insights into their operations. However, the work doesn’t stop after the system goes live. The more critical phase begins afterward—continually monitoring and optimizing NetSuite to ensure that businesses reap maximum benefits from their investment.

Tracking essential metrics after your Oracle NetSuite ERP go-live is key to understand the system’s impact on performance, to identify opportunities for further improvement, and driving long-term business growth. In this post, we explore the key metrics you should monitor and how to use them effectively to enhance your business strategies—ensuring that your NetSuite investment delivers substantial returns. We have divided the metric into the following categories:

• Efficiency Metrics
• Cost saving Metrics
• Financial Metrics
• Customer Satisfaction Metrics
• Reporting / Analytics Metrics
• Employee Productivity Metrics

Key Efficiency Metrics to Monitor in NetSuite  

One of the primary reasons businesses invest in NetSuite is to increase operational efficiency. Tracking efficiency metrics post-implementation is crucial to assess whether the platform is helping streamline processes, improve productivity, and optimize resources.

• Cycle Time Reduction: Start by measuring the reduction in cycle time for your key processes. This metric assesses how long it takes to complete key processes, such as ordering cash and procuring payment. Compare the time spent on these processes before and after implementing NetSuite to see if efficiency has improved.
• Transaction Processing Time: Another key metric is transaction processing time, which measures how quickly transactions are processed within NetSuite. Faster processing time can significantly enhance productivity across departments.
• Automation of Processes: NetSuite offers several automation features, such as SuiteFlow, which helps automate workflows. You can track automation effectiveness by examining the percentage increase in automated processes and how this has impacted overall operational efficiency. For example, the workflow status and history feature can be used to monitor the success of automation efforts.
• Event Monitoring: NetSuite’s event monitoring capabilities allow you to track user activity and system events. This data helps you understand when automated processes are triggered and executed, which can be used to fine-tune workflows and increase efficiency.

By focusing on these efficiency metrics, you can gain valuable insights into how well your organization is leveraging NetSuite to reduce manual tasks and streamline operations.

Cost Saving Metrics Post NetSuite Implementation  

Cost savings are another critical area to evaluate following the go-live of NetSuite. ERP systems like NetSuite are designed to lower costs through automation, process optimization, and better resource management. There are several ways to measure these cost savings:

• Reduction in IT Costs: Compare your IT expenditures before and after implementing NetSuite. Assess whether you’ve seen reductions in costs related to software maintenance, hardware infrastructure, and technical support.
• Administrative Costs: The automation features in NetSuite should lead to reduced manual labor, which translates into lower administrative costs. Evaluate how much your business has saved due to these streamlined processes.
• Procurement Savings: When you implement an ERP like Oracle NetSuite – the improved vendor management and optimized supply chain processes can lead to significant savings in procurement. Measure the decrease in procurement costs post-implementation to quantify the benefits.
• Labor Cost Reduction: Reduced labor costs are often a byproduct of ERP implementation. Track changes in staffing requirements, particularly in the finance, accounting, and IT departments, as fewer employees may be needed to handle routine tasks after implementing NetSuite.
• Compliance and Risk Management Costs: Enhanced compliance features and risk management tools within NetSuite can reduce costs associated with fines and penalties. Review whether your organization has seen improvements in compliance management and risk mitigation post-ERP.

By analyzing these cost-saving metrics, you’ll gain a clear picture of how NetSuite is contributing to your business’s bottom line.

Financial Metrics to Track After NetSuite GoLive  

Ultimately, the goal of any ERP implementation is to improve financial performance. To assess whether your investment in NetSuite has been worthwhile, you should closely monitor several key financial metrics:

• Revenue Growth: Track revenue trends after implementing NetSuite to identify any positive impacts on sales and overall profitability. NetSuite’s enhanced reporting and forecasting tools should help drive better financial performance.
• Profit Margin: Profit margins are a critical indicator of the financial health of your company. Evaluate whether NetSuite has helped improve your profit margins by facilitating cost reductions and increasing revenue.
• Cash Flow: Strong cash flow management is essential for long-term business success for any organization. Monitor improvements in cash flow and liquidity post-ERP, as NetSuite’s financial controls and forecasting features can provide more accurate and timely data.
• Return on Assets (ROA): ROA measures how well your organization is using its assets to generate profits. After implementing NetSuite, track changes in ROA to see if you are better utilizing your assets.
• Return on Equity (ROE): If your business has shareholders, ROE is a crucial metric to monitor. It measures how effectively your company is generating profit from shareholders’ investments. Use NetSuite to track this metric and assess overall financial performance.
• Other Financial Metrics: NetSuite offers additional financial metrics, such as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), gross profit percentage, debt covenants, and the current ratio. These other financial metrics in Oracle NetSuite provide further insights into your company’s financial health.

By consistently monitoring these financial metrics, you can ensure that NetSuite is driving positive financial outcomes for your business.

Customer Satisfaction Metrics Post NetSuite GoLive  

An often overlooked benefit of an ERP system like oracle NetSuite is its impact on improving customer satisfaction. NetSuite’s automation and streamlined processes should lead to improved customer service. To gauge the success of your NetSuite implementation, track the following customer-related metrics:

• Order Fulfillment: Measure improvements in order accuracy and fulfillment speed post-NetSuite implementation. These enhancements should result in higher customer satisfaction scores.
• Service Response Times: You can track changes in service response times and customer service levels after NetSuite ERP implementation. NetSuite’s CRM capabilities can help improve service delivery and customer interactions.
• Customer Retention and Repeat Business: Try to analyze customer retention rates, Churn rate, and repeat business after the go-live of NetSuite ERP. A higher retention rate indicates that your improved operational efficiency is translating into better customer experiences.

Monitoring these customer satisfaction metrics can help ensure that NetSuite is delivering value not just internally but also externally, improving your relationships with clients.

Reporting and Analytics Metrics to Track After NetSuite GoLive  

NetSuite provides advanced reporting and analytics capabilities that enable businesses to make informed and data-driven decisions. To ensure you’re fully leveraging these tools, monitor the following metrics:

• Data Accuracy: As we all know, accurate data is crucial for effective and accurate business decision-making. You can track data accuracy by evaluating the precision and reliability of your financial and operational data. NetSuite’s data validation features should reduce the occurrence of errors.
• Real-Time Reporting: You should measure the efficiency and speed of generating real-time reports and dashboards from your NetSuite ERP. NetSuite’s real-time reporting capabilities should help your team make faster, more informed decisions.
• User Adoption: Evaluate the user engagement and user adoption rates of NetSuite ERP among your employees. High user adoption rates indicate that your team is utilizing the platform effectively to enhance performance.

Employee Productivity Metrics PostNetSuite GoLive  

Finally, evaluating employee productivity post NetSuite go-live can provide additional insights into the platform’s effectiveness. Focus on the following productivity metrics:

• Time Savings: Check productivity by calculating the time saved per employee on routine tasks, such as data entry or generating reports. NetSuite’s automation tools should lead to significant time savings across departments.
• Training Effectiveness: Measure how effective your NetSuite ERP training and enablement programs have been in improving employee productivity. The better your employees understand the system, the more productive they will be.
• Employee Satisfaction: Finally, track changes in employee satisfaction and morale post-implementation. A smoother workflow and better tools often lead to higher job satisfaction, which can boost overall productivity.

Conclusion  

Tracking key metrics after Oracle NetSuite Go-live is crucial for ensuring that your investment delivers value. By regularly monitoring efficiency, cost savings, financial performance, customer satisfaction, reporting, and employee productivity, you can continuously optimize NetSuite and drive long-term business success.

We offer a free no no-obligation evaluation of your existing NetSuite implementation. To learn more about how your organization can maximize its investment in Oracle NetSuite, or if you need help with NetSuite optimization, reach out to us today.