Every entrepreneur running a small business faces the tough decision of determining how to effectively manage the operational processes of their business. During the initial stages, it may be viable to start with basic accounting packages. However, as the business starts to expand, the need for a more comprehensive system that can handle the extra baggage starts becoming apparent. At this point, the next best option is to either supplement the existing system with standalone software solutions or choose a unified solution like Dynamics AX to handle everything.
The Microsoft Dynamics market, including Dynamics AX, is expected to experience significant growth. The Compound Annual Growth Rate (CAGR) for the Microsoft Dynamics market is projected to be 12.2% from 2023 to 2033. This growth is primarily driven by the increasing implementation of Dynamics 365 across various industries and the rising popularity of cloud-based Microsoft Dynamics solutions. In comparison, the broader Enterprise Resource Planning (ERP) software market is anticipated to grow at a slightly lower CAGR of 9.1% over the same period.
Enterprise Resource Planning systems are designed to consolidate multiple systems, whereby all the scattered data is compiled, stored, and shared via a single system. And this is one reason why Microsoft Dynamics AX has grown to become one of the best cloud-based ERP solutions for small and medium enterprises.
So, what is Microsoft Dynamics AX used for?
Microsoft Dynamics AX is a robust ERP solution that helps small and multinational corporations organize, automate, and streamline their processes. By consolidating all the data and core processes under one umbrella, Dynamics AX makes it a piece of cake to standardize operations, simplify compliance, and gain deep insights.
Core Dynamics AX modules include:
- Microsoft Dynamics AX Financial Management module
- Dynamics AX Manufacturing module
- Microsoft Dynamics AX Project Management module
- Microsoft Dynamics AX HR module
- Dynamics AX Service Management module
- Dynamics AX 2012 Sales and Marketing module
- Dynamics AX Trade and Logistics module
- Business Intelligence
- Supply Chain Management
- Procurement and Sourcing
- Project Accounting
- Collaborative Workspace
Combined with Dynamics CRM and Microsoft analytics tools, Dynamics 365 gives business deep insights, allowing them to closely monitor the businesses’ pulse and make proactive changes.
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Brief Overview of Microsoft Dynamics AX Market
According to a recent report by Statista, the global enterprise resource planning software market is projected to reach $97 billion by 2023. Technavio, on the other hand, reports that the ERP software market will progress at a CAGR of 9.5% between 2020 and 2024, and expand by $18.91 billion in the same projected period.
This growth is largely propelled by the increasing adoption of cloud-based technologies, the rising necessity for real-time data analytics, and the integration of IoT into business processes.
In terms of the market share, Microsoft Dynamics AX is one of the top four ERP software currently available on the market, and it currently commands a market share of 4.4%. Some of the major companies using Microsoft Dynamics AX include Gartner, General Electrics, Tribridge, and SIFCO industries.
Benefits of MS Dynamics AX in Various Industries
The flexibility and adaptability of MS Dynamics AX make it easy to implement in almost every industry. Here are some of Microsoft Dynamics AX benefits in different industries:
Retail Industry
Over the past few years, the retail industry has undergone major transformations, which has been primarily driven by technological innovations. Worse still, the ever-changing customer behaviors mean that retailers have to look for innovative ways to stay relevant, connect to their audience, and deliver a wholesome shopping experience.
Microsoft Dynamics AX for retail allows retail businesses to automate and integrate all the business processes including, POS-terminals management, finance, logistics, merchandising, control store, and service.
Ecommerce
Over the years, the e-commerce space has continued to see increased competition and advancements in technology, which has raised the end-user expectations. Today, customers are not only looking for lower costs, easy customization and easy set up but also other things like social media integration, mobile friendliness, SEO, AND good user experience. Thanks to ecommerce Dynamics AX integration, they’re able to deliver all these things in a single package.
Service Management
Today, customers are looking for transparent and highly responsive service delivery, and Microsoft Dynamics AX capabilities help service providers deliver reputation-enhancing services that meet and exceed expectations.
By using the Service Management module, service providers can easily manage their service subscriptions, handle service orders, attend to customer inquiries, and gain insights on the effectiveness of their service delivery process.
Manufacturing
Since time immemorial, the manufacturing industry has always been looking for innovative ways to improve productivity against metrics like cost, time, product quality, and inventory maximization. And although globalization has opened new horizons for manufacturing companies, it has also led to the need for in-depth operational insights.
Microsoft Dynamics AX offers real-time insight into all the manufacturing and supply chain processes including inventory, production, and warehouse, which helps in effective planning, optimal utilization of resources, and streamlining the production line.
Along with that, Dynamics 365 Role Centers help organize information, tools, and tasks in a personalized view, allowing workers to easily manage their work.
Project Management
The project management element of Microsoft Dynamics AX solutions equips businesses with tools and applications that simplify and streamline project management. Whether its project controls, supply chain integration, or end-to-end financial overview, Dynamics 365 allows you to prioritize tasks, resolve issues, and make important decisions to drive your project forward.
The built-in business intelligence tools also provide accurate, real-time insights into every stage of the project, furnishing you with all the information needed to make informed decisions.
Financial Management
Microsoft Dynamics AX financial tools helps financial institutions and everyday businesses automate all the critical financial procedures like accounting, financial reporting, financial analysis, and cash flow forecasts.
Better yet, the module fully and seamlessly integrates with other functionalities such as project finance, trade, logistics, production, and many others. This connectivity between modules allows you to trace transactions right from their origin to the end for immediate verification.
Sales and Marketing
The sales and marketing industry will also love the integrated sales and marketing management aptness of Dynamics 365. The Sales and Marketing module helps increase sales and improve customer relationships by offering real-time insights into customer’s data including phone logs and correspondences. By generating all these data insights, it becomes easier to identify customer’s needs as well as make informed sales and marketing decisions.
HR Management
The Human Resource Management capabilities in Dynamics AX ERP afford businesses the strategic tools needed to develop and manage human resources. You can perform varied functions such as staff administration, employee management, compensation, payroll, benefits, safety, and training.
The ERP’s recruiting functionality has an intuitive and user-friendly interface, which helps to easily track and monitor all the HR-related changes in the organization. You can also manage the entire recruitment process from the initial application to the interview, and eventual employment or rejection.
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Dynamics AX Implementation Cost
Dynamics AX implementation can be extremely challenging without the help of a Microsoft Dynamics AX specialist or a Microsoft Dynamics AX project manager. Conservative estimates indicate that 18% of companies overrun their ERP software development budgets by up to 25%. As such, it is critical to know the actual cost of Dynamics AX implementation.
Contrary to the popular belief that the cost is strictly limited to the software license cost, there many are other costs involved. They include the cost of modifying your existing infrastructure, hiring a Microsoft Dynamics AX service provider, software purchase, implementation, testing, training, and post-implementation support.
With that said, the ratio of implementation costs against the upfront software cost should be between 1: 1.5. This means that for every dollar you pay for the software cost, you will spend one and a half dollars as the implementation cost. Although this sounds inconclusive, understanding the scope of a project may yield a more accurate estimate.
Just like the cost, the process of Microsoft Dynamics AX implementation does not follow the straight and narrow path. It is largely pegged on the experience of your Microsoft Dynamics AX developers, the level of customization, number of users, the level of data to be migrated, and many other factors. As a general rule of thumb, it should take anything between 2 to 6 months.
Final Words on MS Dynamics AX Solutions
As you can see, Microsoft Dynamics AX cloud solutions are designed to help and support enterprises of different calibers, cutting across all industries. They not only offer state-of-the-art reporting and forecasting tools but also integrate daily activities and consolidate data under an intelligent database, helping improve productivity and achieve greater profitability.
“The key to a successful project isn’t just about finding the right talent; it’s about creating a dynamic where consultants and in-house teams can collaborate seamlessly.” – Ivan F, Consultants Engagement Manager at HireDynamicsDevelopers.com
As a business owner, the best way to enjoy all these benefits is to get a solution that meets your customers at their point of need. For an ever-changing product kike Dynamics AX, you need to lean on a team of global experts that clearly understand Microsoft Dynamics AX custom development best practices.
Whether you are looking for a Dynamics AX consultant, Dynamics AX business analyst, or even hire Microsoft Dynamics AX developers will help you upgrade and implement your MS Dynamics 365 solution. We will also ensure you get the most out of your solution by helping you define your TCO model, as well as offer training and long term support.