NetSuite Health Check ROI: How to Measure and Justify the Investment
Is your NetSuite investment delivering the returns you promised the board? Or is it just another line item on the monthly P&L?
For many CFOs and CIOs, NetSuite constitutes one of their largest software pipeline items. But the industry data reveals a shocking truth: you’re probably not even using half of your ERP system! Just 26-27% of workers functionally use their company’s ERP.
If you’re paying for 100% compliance and only getting 26% of the value in use, you have an ROI leak.
The answer is a NetSuite Health Check an assessment that helps you achieve peak performance by identifying the bottlenecks, weak features, and procedural inefficiencies with your existing setup. But historically, the cost of the health check itself has been a stumbling block to it becoming routine.
In this guide, we’ll break down precisely what the ROI that can be measured from a NetSuite optimization project is and why the “cost” of a health check just might be the easiest obstacle to overcome (hint: because LST Consultancy is changing it up).
The Cost of the Status Quo: Why “Doing Nothing” is Expensive
Before we can discuss gains, we must measure the losses. So, many hesitate to audit it because “it all works perfectly well.” But “fine” is expensive.
- The Data Quality Tax: Gartner research shows that low data quality costs businesses $12.9 million per annum on average. In NetSuite, this comes to life as out-of-date inventory data, inaccurate forecasting, or reconciliation being done manually outside the system because “you can’t trust the system numbers.”
- The Efficiency Gap: Do your teams continue to use Excel to massage data extracted from NetSuite? If that’s the case, you are being charged for automation you aren’t using. Organizations that leverage NetSuite operational analytics to the fullest realize a 30% increase in operational efficiency. If you’re not doing that, you’re leaving money on the table.
Measuring ROI: 3 Hard Numbers for Your CFO
If you are trying to justify a NetSuite Health Check, you can’t stay with squishy “better user experience” type benefits, and if you go strictly financial, it’s harder. Here are three core elements on which to construct your business case:License & Infrastructure Optimization (Immediate Savings)
Shelfware is modules or user licenses that were bought during the initial implementation but were never deployed.
- The Metric: Total Annual License Cost vs Active Utilization Rate.
- The Win: Finding 10 non-employees and/or a premium module that has gone unused for 12 months (value of more than) $10,000 to $50,000+ at renewal time.
Efficiency of Process & Labor Savings (Ongoing Savings)
Measure the time wasted on manual workarounds by your team.
- The Metric: (Hours Spent on Manual Tasks per Week) * (Average Hourly Wage) * 52 weeks.
- The Win: If a Health Check shows that you’re dunning or bank reconciliation (which NetSuite can do natively) automation is saving your finance team 10 hours a week, that’s roughly $25,000–$30,000 in annual productivity gained back.
Process Efficiency & Labor Savings (Recurring Savings)
Real-time data: Only23% of companies have access to real-time data. The rest are flying blind or using dated reports.
- The Metric: Speed of Month-End Close.
- The Win: Reducing the closure from 15 days to 3 is more than convenient. It’s transformative. In fact, slowing things down by another five business days means senior executives are responding to markers two weeks faster than their peers! Data Proves that Data-Driven Companies Are More Likely to Make Better Business Decisions. There is even research that indicates this: data-driven organisations are 1.7x more likely to be better positioned to make their business decisions very successful than those of their competitors.
The Traditional Barrier: Why Pay to Find Out I’m Wasting Money?
Traditionally, the cost for a complete NetSuite Health Check from a top-tier partner would run between $5,000 and $15,000.
This presents a Catch-22 for most IT directors:
- You feel the system is broken.
- You request a budget to hire a consultant to find the problems.
- What’s the ROI guaranteed?” the CFO queries.
- You can’t even prove the ROI until you discover the issues.
- The project stalls.
It’s this cycle that causes so many NetSuite systems to rot over time.
The Game Changer: LST Consultancy’s Free NetSuite Health Check
At LST Consultancy, we feel that you shouldn’t have to pay an entrance fee to save money. We have completely taken away that economic disincentive.
Why Are We Giving This Away for Free?
It’s simple. We are confident in our expertise. We’re so confident that once we reveal to you precisely where your system is leaking value — not to mention the roadmap on fixing it —there’s a pretty good chance you’ll ask us as your partner of choice in executing those fixes. But you could just as easily die, and if you do, the report goes with you.
What You Get:
- System Architecture Review: Where you are now vs. Best Practices.
- Process Gap Analysis: Finding manual workarounds to automate.
- License Utilization Report: Identify idle licenses to reduce your renewal expense.
- Performance Comparison: Script checker and the speed of transactions.
Conclusion: The ROI is Infinite
When the investment cost is $0, the ROI is infinity.
You’ll no longer have to try and pound out a vast, complicated spreadsheet justifying why it’s worth spending a few thousand dollars on an initial assessment for your leadership team! All that is required from you is to choose to no longer buy into the status quo.
Do not let your NetSuite investment stand still while you are being charged maintenance fees. Get the most out of your ERP now!
Ready to Optimize?
Stop guessing and start measuring.
Get your Free NetSuite Health Check and start boosting the speed, slimness, and profitability of your NetSuite today!