This article was featured in the September, 2007 issue of the Technology First Magazine.

Dayton, OH
September 24, 2007

By Mikhail Roytman, Partner, Ellipse Solutions LLC

This is Part 2 of the ERP Implementation Series based on the Microsoft Dynamics AX product. Today’s topic of discussion is Software Adaptability as a part of the Total Cost of Ownership. It just happens to be one of the top criteria for the selection of an enterprise wide solution.

The year was 2001. The place was Tennessee. A management team of a global distribution and repair company was on the verge of making the important, long-term decision of selecting a business system to run the corporation for years to come. The new all encompassing solution would have to be robust enough to process Customer Orders, manage Financials, support Inventory Control, organize Manufacturing, run Shipping / Receiving functions, prioritize Suppliers and execute everything else in between. Many software applications offered mature applications to handle standard business processes, however this organization moved one of the non-functional measurements to the top of their wish list. “How do you handle Change Management?” – every ERP dealer was asked. We can’t all expect to make the same widgets using the same process, the same vendors, and the same shipping methods for the next 20 years. The company was anticipating a high growth period, where each new client, each new partnership agreement and each new vendor contract would add a new dimension to the established corporate makeup. This in itself would modify internal and external business processes and would require a new customized solution even if the core functionality will not be highly affected. Software Flexibility thus became one of the key factors in this ERP selection decision.

Can It Be Done? How long? How much?

After long and extensive search, the committee selected Axapta, then a mid-market product distributed by Navision, a Danish provider of enterprise business software. Already one of the top European ERP systems, Axapta would be acquired by Microsoft shortly thereafter and experience a significant growth in the US market. Now known as Microsoft Dynamics AX, the application was originally built based on true scalable client server architecture to handle change.

Numerous technical functions highlight the benefits of this system:
(1) Seasoned Programmers and Super-users really appreciate how easy it is to add new fields to the database and propagate these fields to all forms and reports within minutes. AND … No need to re-build or re-compile the application – all modifications are real-time.

(2) A consistent layout generated by a special utility (called IntelliMorph) allows automated control of security, licensing, version control, and configuration options. Concentrate on the essential structure – the design is taken care off.

(3) True object-oriented architecture constructed for the development of large solutions inexpensively and fast.

(4) Other systems provide various methodologies for upgrades and customizations. MS Dynamics AX platform was designed to Manage Change. Unique layers of the development architecture allow for rapid integration of the original AX code with any new built-in solution. Standard AX functionality is contained in its own layer, any vertical solutions designed by Business Partners have a layer of their own, further customizations created in-house are stored in a separate layer, special country-specific modifications are layered independently, etc.

(5) What scares many Managers the most? The cost of upgrades and customizations. Special business connectors and integration capabilities available for Microsoft and non-Microsoft software ensure a more orderly and structured path (read, low-cost) for new releases and assimilation of other applications.

Most of these techniques are not unique or novel, however the combination of these functionalities and the fact, that these options were incorporated in the fundamental software architecture makes AX an intriguing proposition. The size of this column space is the only limitation for describing many other technical innovations, which make this application a perfect example of a solution build for Flexibility. Other notable benefits include the use of the SharePoint services, the Enterprise Portal, RFID, comprehensive support for video and graphics technologies, use of SQL Server and Oracle databases, integration with .NET architecture, reporting and analytical tools, multi-language and country-specific functionality, etc.

Who Benefits From Adaptable Software?

Managers, who dream to control the Total Cost of Ownership by limiting the costs and improving efficiencies and economic impacts associated with procuring, utilizing, and maintaining IT application components over a period of time, get a big boost of energy from Microsoft Dynamics AX.

Software Developers, who enjoy the challenges of creating custom applications without being forced to re-build the foundation every time a new field is added to the database, get a helping hand from Microsoft Dynamics AX.

Users, who are tasked to analyze the data and forced to stay in line waiting for the IT Department priorities, get a comfortable feeling from Microsoft Dynamics AX.

Owners, who are looking for a reasonably priced solution not only on the first invoice, but also for many years of maintenance, upgrades and support, get a chance to enjoy an increased Return On Investment from Microsoft Dynamics AX.

Dealing with enterprise solutions, management no longer asks: “Should it be done?” Instead the question of the day is: “Can it be done?” When it comes to MS Dynamics AX, the answer more often than not: “Yes, it can be done …”

Until next time, your friendly ERP correspondent …

Mikhail Roytman is a Partner with Ellipse Solutions LLC, a global Microsoft Business Partner headquartered in Dayton, Ohio.  For additional information please visit http://www.EllipseSolutions.com