Microsoft Dynamics AX Strengths and Weaknesses Competitive positioning in the ERP software market is highlighted with the following strengths and weaknesses. Dynamics AX Strengths Dynamics AX 2012 is a dramatic improvement from AX 2009, and features over 1,000 enhancements. Some of the ERP solution's competitive strengths are as follows:
Multilayered architecture offers business agility to cater to rapidly changing business requirements A true mixed-mode mixed-mode ERP ERP solution, solution, offering offering both discretediscrete- and and process-based process-based manufacturing manufacturing functionality Leverage of industry best practices and vertical-market processes through the business process library (BPL) Seamless Microsoft Office integration with Excel, Word, Outlook, and Dynamics CRM, often with one click An enterprise enterprise portal that promotes promotes both internal and external external collaboration, collaboration, as companies can share information upstream and downstream to streamline production and delivery A suite of complimentary complimentary tools tools including including the Management Management Reporter, Reporter, dashboards, dashboards, balanced scorecards, data warehousing and OLAP collectively deliver a powerful business intelligence solution Role-based configuration allows dashboard creation for specific user functions, such as Kanban scheduling visualization, workflows, dataflow, and task lists, whether using the Windows Client or a web browser A very strong strong and integrated integrated CRM CRM solution solution Good global ERP support, with multi-currency and multi-language capabilities An extremely extremely strong strong global partner partner network network and third third party software marketplace marketplace Simple upgrade from Dynamics AX 4.0 and AX 2009 directly to AX 2012 A overall top top competitor competitor in the midrange midrange ERP software software market, market, and a possible possible tier-one tier-one competitor against SAP Business Suite and Oracle in select medium- and large-size enterprises Dynamics AX Weaknesses Strategic ERP weaknesses include the following:
Software as a Service and cloud ERP options are still limited, and don't compete favorably with pure-play cloud ERP solutions Dynamics AX incurs higher costs and risks associated with partner hosting, due to reduced investments, competencies and resourcing as compared to publisher hosted SaaS ERP solutions
The user interface (UI) is satisfactory, but fails to take advantage of the lessons learned from consumer technologies and does not deliver a rewarding user experience Microsoft is extremely behind in recognizing and delivering Enterprise 2.0 and social business solutions Dynamics ERP offers very limited cross-platform support —including narrow support for browsers, operating systems and databases Dynamics AX is no longer well suited to smaller companies, but rather more for midrange and enterprise-level organizations Despite Microsoft's company strategy of aligning along industry markets, Dynamics ERP systems seldom venture into verticals markets. Instead the company relies on its ISV and business partner channels to develop and integrate industry solutions. The strategy is not unreasonable, however, creates a layer of abstraction between the publishers and its customers. The lack of some modules and the fact that some functionalities are provided by partners and third parties can create integration complexity, drive up total cost of ownership (TCO) and impact return on investment (ROI).
Microsoft Dynamics AX Sweet Spot & Alternative Solutions Sweet Spot Dynamics AX 2012 is a midrange ERP top competitor and tier-one ERP system that can compete favorably with SAP and Oracle in select scenarios. Dynamics AX key capabilities include choice of deployment (on-demand or on-premise), feature set depth, productivity (seamless integration with other commonly used desktop programs) and its partner ecosystem. Dynamics customers frequently choose this product for its native Microsoft Office-like user experience, strong functionality, flexible tools and adaptability. Short list Dynamics AX when:
You require functionality in process- and discrete-based manufacturing
You seek highly adaptable and customizable ERP software
Your staff currently use MS Outlook and Office products
You feel you may change software delivery methods from SaaS to on-premises or vice versa
Your IT department is a Microsoft shop and makes use of MS platform products such as SQL Server, Visual Studio, Windows Workflow Foundation, SharePoint and/or Communication Server You feel your company size or sophistication puts you somewhere between the midrange ERP products (i.e. Epicor, Sage or SAP All-in-One) and the tier 1 ERP products (Oracle and SAP Business Suite) Your company headquarters uses SAP or Oracle and you're looking for a tier 2 ERP system for regional locations, subsidiaries or external lines of business Existing Dynamics AX customers considering an upgrade to AX 2012 will need to perform a pricing calculation using the new named-user pricing model. This may have a negative
financial impact for small businesses; given their staff require access to more areas and functions, which in turn puts them in the more costly user types. Alternative Solutions Buyers may be best advised to consider alternative ERP software products when:
Seeking mature vertically focused, industry-specific ERP solutions Your internal IT shop standardizes on non-Microsoft technologies such as Oracle, Linux or Java/J2EE and users are passionate about their consumer devices such as iPhones, Androids or BlackBerrys You are committed to a cloud ERP solution and desire all the benefits of a Software as a Service solution Your company is implementing Enterprise 2.0, social CRM or similar social business strategies Common Dynamics AX competitors include CDC Software, Epicor, IFS, Infor, Lawson, Oracle, Plex, SAP All-in-One and SAP Business Suite. Cloud ERP competitors include FinancialForce, Intacct, NetSuite, Oracle Fusion and SAP Business ByDesign. Concluding Remarks Dynamics AX may be the Microsoft flagship ERP product and is advancing at an impressive pace. The AX 2012 release delivered over 1,000 new enhancements from its previous version and has taken a step toward competing with SAP and Oracle in the tier-one ERP market. Because of the solution's up market shift, Dynamics AX 2012 is no longer a good fit for smaller companies, as pricing and a sophisticated software scope may now be out of these companies' range. Dynamics AX 2012 is targeted to medium- and large-size enterprises. The application's specialties are geared toward manufacturing, public sector, services industries, and distribution-based organizations. While Microsoft has not heavily invested in vertical market solutions, this may be changing somewhat in the near future.
The strength of the Microsoft partner ecosystem should not be under-estimated. Dynamics AX is supported by one of the largest and most mature partner networks in the ERP industry, with thousands of trained and certified partners and over 2,200 software add-ons. These partners provide system integration, professional services, technical support, localized expertise, and vertical specialization to their target industries.
