Microsoft Dynamics AX e -Commerce Solution Has Four Key Pillars

Microsoft Dynamics AX e -Commerce Solution Has Four Key Pillars

1. Centralized data and order management across the following channels:

1.  Channel management
2.  Catalog management
3.  Merchandising
4.  Order fulfillment

2. Cross-channel and cross-device workflows, as follows:

1.  Cross-channel fulfillment
2.  Omni-channel loyalty
3.  In-store orders

3. Symmetrical omni-channel retail services, as follows:

1.  Pricing, sales tax, and shipping services
2.  Discounts and promotion services
3.  Quantity and store availability services

4. Out-of-the-box Ecommerce with storefront developer platform, such as the following:

1.  Out-of-the-box “starter” storefront
2.  Retail data exchange and commerce runtime
3.  Integrated payment processing 

System Architecture AX 2012 

If you understand the internal architecture of Microsoft Dynamics AX, you can more effectively make decisions when you plan, customize, and deploy a system. This topic provides a high-level overview of the system architecture of Microsoft Dynamics AX.

Microsoft Dynamics AX system architecture

The following diagram provides a high-level overview of the system architecture of Microsoft Dynamics AX. This diagram does not depict the system topology or physical infrastructure that are required for the deployment. Your infrastructure can consist of many Microsoft Dynamics AX components, and these components can be installed on either a single physical server or multiple physical servers. For factors that you must consider when you plan a deployment infrastructure, For detailed information about Microsoft Dynamics AX components, For the current hardware and software requirements for Microsoft Dynamics AX.

Authentication and authorization

Microsoft Dynamics AX uses integrated Windows authentication to authenticate Active Directory Domain Services users. If you configure Microsoft Dynamics AX to use a different authentication provider, users are authenticated by that provider. Authorization for access to data, business functionality, and presentation elements, such as forms, menus, fields, and reports, is governed by Microsoft Dynamics AX security. Anonymous web users can access Enterprise Portal for Microsoft Dynamics AX. However, only limited functionality is available to these users.

 

Presentation tier (clients and external applications)

A client provides an interface to Microsoft Dynamics AX data and functionality. An external application is integrated with Microsoft Dynamics AX to programmatically integrate functionality or exchange data.

·         The Windows client for Microsoft Dynamics AX is a native 32-bit program that provides a rich user interface.

·         Supported web browsers provide access to Microsoft Dynamics AX functionality and data through Enterprise Portal.

·         External applications interact with Microsoft Dynamics AX via services and Application Integration Framework (AIF). Services and AIF provide an extensible framework for XML-based scenarios for enterprise application integration (EAI), business-to-business (B2B), and service-oriented architecture (SOA).

For more information about the architecture of the presentation tier, see the following topics:

·         Client architecture

·         Enterprise Portal architecture

·         Services and AIF architecture

Application tier

The application tier consists of one or more of the following Microsoft Dynamics AX components or computer roles.

 

Active Directory domain controller

A domain controller for AD DS is a prerequisite for installing Microsoft Dynamics AX.

 

Application Object Server

Application Object Server (AOS) controls communication among Microsoft Dynamics AX clients, databases, and applications. AOS also hosts Microsoft Dynamics AX services and the workflow system. You can deploy AOS on a single computer or create a load-balanced cluster of multiple AOS instances. AOS is a Windows service that requires a Windows Server operating system. For the current hardware and software requirements for Microsoft Dynamics AX, see the system requirements document that is available from the Microsoft Download Center.

AOS uses libraries from the Microsoft .NET Framework version 4, such as Windows Communication Foundation and Windows Workflow Foundation.

Enterprise Portal

Microsoft Dynamics AX provides a set of websites that give you access to data. On these sites, you can also participate in business processes by using web-based forms. These sites are collectively called Enterprise Portal.

Reporting

Microsoft SQL Server Reporting Services is the primary reporting platform for Microsoft Dynamics AX.

Workflow

Workflow is a system that is installed together with Microsoft Dynamics AX, and that runs on AOS. The workflow system provides functionality that you can use to create individual workflows, or business processes.

 

Data tier

Microsoft Dynamics AX requires several database components.

The Microsoft Dynamics AX database

The business database is a Microsoft SQL Server database that stores transaction and reference data. This database is functionally equivalent to the principal database in Microsoft Dynamics AX 4.0 and Microsoft Dynamics AX 2009

 

Other databases

Enterprise Portal requires content and configuration databases for SharePoint 2010 products. Reporting Services requires a Reporting Services database. Support for OLAP cubes requires an Analysis Services database. Support for Enterprise Search requires a SharePoint Search Administration database, crawl database, and property database.

How To Get Full ROI (Return Of Investment) via ERP System

Enterprise resource planning (ERP) systems have come a long way in accelerating business growth. ERP empowers organizations with real time access to information, and enables them to take quick decisions to boost growth. However, these applications are not routine software applications; they directly impact how the business conducts itself. In most cases, existing business processes have to be re engineered and mapped to the business process as defined in the ERP system. This has many implications – the approach to crafting solutions, implementation and eventual system sustenance have to be carefully managed to reap the full potential of an ERP implementation.

While ERP implementations are successful, they have their share of failures as well - to minimize the chances of failure; organizations should adhere to a set of principles, beginning with a clear business case and an effective ERP software selection process.

• Define clear business goals
  Investment in an ERP system must be driven by a strong business case. Organizations must know the objectives of the investment in ERP – improved cash flow, reduced operating expenses, or implement a ‘single version of truth’ enabling faster decision making. ERP implementation is a business project and not a technology project. However, most often, companies focus too much on the technology capabilities or features, forgetting the fact that ERP is about business processes. Hence, what really matters is how you want your business to run, and how you map your business processes to the best practices as defined in the ERP. In short, ERP must be implemented to achieve certain business metrics, and organizations must define these before implementation.
• Get top management commitment and support
  This is one of the most critical success factors for any ERP implementation. An ERP implementation must be overseen by a steering committee, with participation from key decision makers at the CXO level. The steering committee should meet periodically to review the status of the project and proactively resolve any issues that may be affecting the implementation. The team must have equal participation from both business and IT.
• Define milestones and prepare road-maps
  Every ERP implementation requires extensive preparation. Organizations should prepare a detailed roadmap with clearly defined milestones and also have a contingency plan to deal with any exigency.
• Analyze existing business processes and define target processes
  The core of an ERP system is business process optimization. Organizations should prepare a comprehensive business process blueprint, understand their dependencies and remove non value-added activities that are part of current business process. The next step is to prepare the target process, also called the ‘To-be’ process, adopting best practices, wherever applicable. Gap analysis tests must be conducted, comparing new process with that available in the ERP. Steps that need to be undertaken to transition the business process must be thorough and implemented through a detailed change management program.
• Design a comprehensive change management program
  Depending on the process defined in the ERP, roles may have to be reassigned, changed - or in some cases simply not exist. In such cases, it is natural human tendency to resist change and block the implementation process. To counter this, senior leadership has to proactively anticipate issues and have answers and solutions to questions posed by employees. Employees must also be given comprehensive training to enable them to fully understand the benefits of the ERP system, and how will it affect their day-to-day operations. In any change management, communication is the key issue.
• Establish specific performance metrics
  Before any ERP implementation process, organizations must establish clear performance metrics to gauge if the project is meeting desired expectations. Instead of general performance metrics such as ‘significantly reduce inventory levels’, organizations must have defined performance metrics such as ‘reduce inventory by 10% in the first year.’ Organizations must benchmark this against the best in the industry, and try to meet or exceed these industry-standard benchmarks.

ERP implementation is not the same as ERP installation

Most organizations often treat ERP like any other software. But ERP is not an average piece of software – it is one that enables business processes defined in it. Organizations need to conduct regular performance audits to get an accurate picture of the implementation status.

Determining ROI

In any ERP implementation, the total costs of the solution are calculated by including components such as software, hardware servers, upgrades, support and maintenance services, IT training, application customization and development services, implementation services and more. These costs are then compared with tangible benefits obtained to determine ROI. Tangible benefits could be in the form of process improvements enforced by the ERP that have helped the organization improve its efficiency, or rise in revenues or profits due to identification of new revenue opportunities.

Hence, the success of an ERP is not only based on cost savings, but also through business benefits - which are true indicators of ROI. This could be related to reduction of inventory levels, reduction in operational costs, improvement in shipment time, and reduction of defects. Organizations, however, need experienced software service providers to quickly implement ERP systems using industry standard best practices and methodologies. The time and quality of the implementation will have a huge impact on ROI.

Conclusion

ERP implementation is not a destination, but a journey towards continuous improvement. To achieve positive ROI, organizations must approach the ERP implementation in logical, manageable phases. This ensures manageability of organizational changes, and also prepares organizations to handle any challenges that may arise out of previous implementations.

10 Big Reason To Implement Successfully ERP System

1. Need Assessment

The first step in any ERP implementation is to identify your company’s needs.  Start by finding and documenting the critical business processes, inflection points and key performance indicators (KPI).  This will help you pinpoint the right ERP solution, as well as the appropriate specialists needed as you go through this important transition. Remember this is about business processes that support the enterprise.  While information technology considerations are important, IT shouldn’t be the driver of the analysis.

2. Hire a Team of Specialists

Many organizations lack the internal expertise and experience for ERP implementation.  You need to consider hiring or contracting with an experienced professional to guide you through the implementation process.  This will prevent a lot of headaches and wasted time, as well as giving you the time to focus on other tasks.

3. ERP System Evaluation and Selection

Selection of the right ERP solution is one of the most critical steps in the process.  The right program depends on your industry, your business needs and your system preferences.  One consideration is whether you need an on-premise ERP system or a cloud computing ERP system.  Many businesses have made the jump to the cloud.  That may be the right solution for you, but understand it’s not always the best option.  It will depend on your specific business requirements and your organization’s capacity to support the process.   Your ERP consultant can also assist with this decision.

4. Prepare for Change

Implementing a new ERP system can be a major change for a company, especially if you’ve never used one in the past. It’s important to stay transparent with your employees about the change and engage them when possible.  ERP transitions are as much about changing culture as changing technology.

5. Data Preparation

Don’t assume that all of your current data can be converted into the new system. Analyze your current data and decide which pieces need to be converted. After your data is all entered into the ERP database (most databases allow data entry via spreadsheet) you need to clean it up. Review the information database and weed out anything that you deem unnecessary, like old customers or those who are no longer in business.  Data integrity is critical to a successful implementation.

6. ERP Implementation

After completing the first five steps, it’s time to launch the new system. Your ERP consultants have mapped out a specific plan of how to install, configure and optimize the system for your working environment. Plans are bound to change (at least slightly) during this process so always keep your major needs and end goals in mind.

7. Testing

While the performance and integrity of ERP systems have come a long way since their introduction in the 90’s do not assume everything will execute smooth.  System and user acceptance testing is a key phase of the implementation process.

8. Training & Education

After your system is configured, you need to train you employees on how to use the new program. Try finding a group that specializes in onsite training to make sure everyone is up to speed. You’ll want to make sure your IT team has an extra session of training to know how to handle any tech problems that may arise in the future.

9. Go Live!

Once your system has been configured, tested and your employees have been trained, it’s time to go live. You can now safely activate your ERP system. It wouldn’t hurt to do another round of testing after launching, just in case.

10. Ongoing Support

Unfortunately, you can’t just install your ERP system and never touch it again. Advanced ERP implementations require time and attention beyond the initial installation. This includes upgrades to your system and general maintenance.

What Companies Want From ERP System

Because the ERP system offers a single repository for company-wide data that is accessible to everyone, the risks associated with working with disparate systems and data -- like the potential for error or duplicating business functions in different departments -- can be reduced.

Large enterprises in particular have many different systems that have been independently installed by departments -- and they want to implement a single ERP system that takes the place of these earlier systems and that can also get rid of the operational inefficiencies and time delays that have developed through the years.

Mid-sized companies want these advantages, too -- but they also want a way to level the playing field with their larger enterprise competitors. These companies may want to select an ERP system that can be scaled out to cover more organization business processes as a company grows.

With cloud-based ERP offerings, even small companies can afford an ERP system that instantly brings more efficient business processes into their organizations, which often lack the internal resources or expertise to institute the software.

Finally, many large-, medium- and small-sized companies look for ERP that is specialized to the needs and requirements of their particular industries. There are several ERP vendors that provide this industry vertical specialization.

An ERP system must fit well with the company's existing operations and systems -- and it must also be able to deliver on key performance and profitability goals that the company's existing systems can't deliver on. This is a tall order -- and it is also the reason why ERP has a higher failure rate than any other software. It can be a career-ending project for many managers if an ERP installation doesn't go well.

For an ERP decision maker, whether it is an internal ERP champion/user, a CFO, a COO, a VP of manufacturing or someone else, this means that it is important to find an ERP partner that is as capable of working with you on system installation, integration, consultation, training and support as it is in delivering a new ERP system.

Despite the wide variability in company needs for ERP, there is a core set of ERP components that most companies want:

Finance

Companies want to record, track and consolidate all of their sales and operational information in a central accounting system. ERP financial software delivers this capability with centralized general ledger, accounts receivable, accounts payable and payroll systems.

HR

ERP offers a centralized HR system that enables organizations to track personnel hours and employee performance evaluations across the organization, as well as administer benefits and manage talent and staff development.

Purchasing/procurement 

ERP purchasing software streamlines the procurement process from purchase-order issuance and vendor management to payments and reporting. ERP purchasing software also has the ability to automatically route approvals of purchase orders and payments to the appropriate corporate decision makers.

Business intelligence

Organizations increasingly want data analytics that enable them to assess and act on information about the business. To facilitate this, ERP vendors provide pre-designed reports that companies use to assess business sales and operations, along with the ability to perform data mining and to develop custom reporting.

Customer relationship management

The ERP CRM application is a centralized repository of customer information that customer-facing organizations across the company can use and access. It includes information about company interactions with prospects, customers, clients and partners, and can track all of these interactions across marketing, sales, service and any other customer-facing department. ERP CRM includes sales force reporting, tracking and automation, marketing, service and support

Ten Reason to Choose ERP

Using an enterprise resource planning (ERP) system can significantly enhance supply chain management performance by improving purchasing, inventory control, and information exchange between internal departments, as well as external partners. Mark Butler, manager of professional services at software solutions provider offers these insights on implementing an ERP system.

1. Understand Your Current System's Shortcomings:- Analyze why you need to change the current system. Is the software outdated? Does it lack the features you require to enhance on-time performance and throughput? Define the shortcomings in relation to your business practices to create a wishlist for the new system.

2. Start In The Boardroom:- Secure executive-level sponsorship to mitigate risk and ensure your goals for the new ERP system align with larger corporate goals. This applies to the initial key performance indicators, and the corresponding mapped plan for improving the manufacturing process—from the inbound processing of supplies to inventory management and the movement of goods through the internal system and on to the customer.

3. Appoint A Strong Internal Project Team:- The project manager must understand the project, be organized and detail-oriented, know when to take the lead, and be able to negotiate. Add representatives from key business areas—operations, purchasing, inventory control, and customer service—to round out the group.

4. Create Internal Mapping:- Establish a clear vision of your organization's processes, and identify the challenges. Then define new workflows to support improvement goals.

5. Determine Equipment Needs:- For example, if you need real-time inventory data to meet performance goals, and you decide to implement mobile solutions and radio frequency identification (RFID) technology, the ERP you choose will need to support these tools.

6. Define The Budget:- Ensure all relevant costs—such as hardware, software, third-party implementation, and training—are included.

7. Engage The Entire Company:- Keep the project team informed, but also periodically update the whole company about the ERP implementation's progress. Communication will help create a positive teamwork environment for all involved.

8. Resist The Urge To Use All The Bells and Whistles Right Away:- Some companies try to implement all the ERP system's features and functions from the start. Just because the system offers mobile-friendly apps, RFID integration, and retinal scan security, doesn't mean you need to use it. Pick the mission-critical functionality, then deploy less-critical functionality later.

9. Update Business Processes Selectively:- Carefully weigh whether to customize the software to conform to your processes, or change your processes to work within the standard solution. Your process may better suit the operation than the ERP's best practice does. In general, the biggest improvements usually involve some level of reevaluating business processes in light of current conditions.

10. Evaluate Regularly:- Create a plan to periodically evaluate the system. Include participants from all areas of the organization to gauge how well the system is working, decide what you need to change, and identify functions to implement in the future.

Microsoft Dynamics AX 7

1. Cloud Application: This new version of Dynamics AX is a cloud application that is compatible with Microsoft Cloud OS, Windows Server, and Microsoft Azure cloud platform. It has been launched on Azure initially and can be moved to the cloud for integration with other cloud based products such as Office 365. You can now use Dynamics across various devices globally.
2. Web Based Client: Unlike previous versions of AX, AX had EP as a web based client earlier. The new Dynamics AX7 is now moved to web based client instead of any Windows desktop client. This innovation enables user to access the application data without installing the customized applications on various devices. Business collaboration and productivity would be increased to a great extent with this new development in AX.
3. New User Experience: Dynamics AX7 have been launched with HTML5 interface that is not only lightweight, web-orientated but intuitive as well. This new interface allows two browsers to be linked and enables you to collaborate side-by-side on multiple screens. You can view your urgent actions, to-do tasks, and other work-related activities within the new interface. The new interface also allows you to share everyday activities with your peers or other end users. The new web-based interface also allows you to access various Dynamics modules from anywhere.
4. Efficient Lifecycle Services Management: Microsoft has greatly expanded the life cycle services which has been a game changing platform for Microsoft which has been helping customer implementations with system guided procedures and controls. The new Dynamics AX 7 thereby offers more reliable and better quality of existing lifecycle services. This would lead to efficient roll out of new custom features in AX 7.