Evolution in the Software Industry Environment

Continuous Innovation Needed: With technological advancements and evolving demands, software enterprises must continually innovate in their technology, products, and services to avoid being marginalized by the market.

Intense Competition: Homogenized competition in the software industry is becoming increasingly fierce, requiring companies to achieve high growth to surpass competitors and ensure survival.

Global Perspective: With ongoing technological developments and resource accumulation, Chinese software enterprises have the capability and willingness to participate in the global industrial chain operations and serve global markets.

Shift to Subscription Models: In the software industry, more companies are replacing traditional long-term licensing models with subscription models or adopting a mix of licensing and subscriptions. Evidence shows that subscription models lead to more satisfied customer relationships and stable revenue sources.

Integration of Multiple Business Aspects: Customers demand software enterprises not only provide software products but also offer integrated solutions. Therefore, to meet market demands, software enterprises need to manage software, hardware, services, and provide integration solutions with third-party products.

5 Major Challenges Faced by the Software Industry

Global Expansion: Chinese software technology companies are deeply involved in the global wave of technological innovation, aiming at a globally unified market. However, they face various challenges due to different regions, currencies, languages, and financial and tax system regulations while boosting revenue.

Coexistence of Multiple Operational Models: Software enterprises commonly have multiple operational models such as commodity software, custom development, research, products, services, and online leasing models. The different management dimensions and focuses increase management complexity.

End-to-End Control: Full business processes require support from multiple departments, positions, and specialized management tools in various fields. Lack of support from an all-encompassing control platform leads to fragmented data across different processes and department-level management tools.

Software Revenue Recognition: With the implementation of new revenue recognition standards globally, the software industry is significantly impacted. The complexities arise from the prevalent "software + hardware + project services" model, posing actual challenges to financial compliance management.

Digital Operations: The software industry itself drives technological development and naturally demands efficient operations and innovative management through digital technology. Establishing modern enterprise digital infrastructure is a universal demand for software enterprises. Meeting this demand requires "high-standard" products.

Highlights of Oracle NetSuite

In the 5G era, the software industry will undergo a new round of transformation. The seemingly independent five major challenges actually have close internal connections. Whether it's driving the transformation and upgrading of existing businesses, actively exploring SaaS business layouts, or achieving scale expansion through acquisitions and mergers, companies will inevitably face certain issues. The limitations of past department-level business management models are becoming more prominent, leading to numerous management systems within companies, lacking an enterprise-level management information platform that spans business development, contract fulfillment, and financial accounting across departments. The varied business models and flexible settlement methods require adaptable solutions for the software industry.

Highlight 1 - Empowering Global Expansion

Oracle NetSuite ERP Cloud inherently possesses an international perspective, serving over 20,000 customers in 200+ countries, supporting 190+ currencies, and applicable to 100+ tax systems. It assists multinational enterprises with multiple branch management concerning different currencies, tax rules, and reporting requirements, ensuring consistent and compliant management across the organization, locally and globally.

Highlight 2 - Managing Multiple Companies, Multiple Formats

Through Oracle NetSuite's software industry solutions, enterprises can rapidly and cost-effectively construct their core integrated business platform. Based on master data control, different business lines or multiple organizational management calibers can globally control the company's product lines, such as software and hardware products, SaaS products, delivery services, and operational maintenance services. With a unified business control platform, it efficiently manages multiple organizations and formats for enterprises.

Highlight 3 - Integrated Systems to Improve Business Process Efficiency

Oracle NetSuite ERP Cloud provides a complete end-to-end business collaboration solution, eliminating information silos from department-level system applications. It resolves issues such as opaque project execution processes, difficult reconciliation between business and financial accounts, challenging accounts receivable collection, cumbersome income recognition, and high communication costs, resulting in low efficiency. Breaking barriers between sales, projects, services, and finance departments, it achieves integrated business-finance management. Through integrated CRM, contract management, and service management, it covers the entire customer lifecycle, providing detailed data covering customer communication records, service processes, and financial relationships, enabling informed customer service and sales decisions.

Highlight 4 - Enhancing Revenue Management Compliance

Oracle NetSuite's software industry solution adheres to new regulations such as CAS 14, IFRS 15 on income criteria, catering to the software industry's mixed "goods and services" business model. As a service provider for software enterprises, Oracle NetSuite has over 2,000 successful application cases for software companies. Considering the characteristics of the software industry, it constructs compliant and real-time accounting systems, easily meeting the business requirements of software enterprises in income recognition, income forecasting, cash flow planning, promotion arrangements, SaaS business subscriptions, and contract renewals.

Highlight 5 - Flexible Expansion, Data Visibility

Assisting software enterprises in constructing interconnected information platforms is a strong suit of Oracle NetSuite ERP Cloud. Its built-in "SuiteCloud Development Platform" is flexible, configurable, and easy to integrate. It easily interfaces with peripheral systems, eliminating data barriers within and between enterprises, creating an open information platform. Big data applications and real-time data visibility are crucial demands for high-growth software enterprises. Oracle NetSuite ERP Cloud's built-in business intelligence analysis technology offers over 300 pre-configured reports and dashboards specifically for software and internet companies. It presents rich reports, charts, and trend analysis on Dashboards driven by processes and based on business big data applications and real-time data visibility. Reflecting income, costs, and expenses realistically and efficiently, it provides users with comparable, authentic, and real-time data anytime, anywhere, achieving beneficial digital operations for everyone.

Highlight 6 - Oracle NetSuite Ecosystem

The SuiteCloud Developer Network (SDN) is an ecosystem network for software developers. Developers can develop on the Oracle NetSuite platform or connect their applications with Oracle NetSuite to extend its functionalities. These extended functionalities are called "SuiteApps". Once a SuiteApp is established and evaluated through "Built For NetSuite," developers can showcase it on SuiteApp.com. SuiteApp.com is Oracle NetSuite's online solution directory, also known as the "Oracle NetSuite App Store." There, customers can search for it based on industry, business needs, or product names, and trial SuiteApps from different developers for purchase. This opens a new sales channel for software enterprises, achieving mutual benefits within the ecosystem.