Dynamics AX Tutorial - ERP Introduction

After the industrial revolution and with the advent of computer systems, the inception of first central business applications is inevitable. In 1960's the business systems were designed, developed centralized computing systems, automating inventory control systems using inventory control packages. 

Timeline of ERP SYstemS iNTRODUCTION

Material requirements planning (MRP) systems were designed and developed in the 1970's. (MRP II) were introduced in the 1980's with an emphasis on optimizing manufacturing processes by synchronizing the materials with production requirements
such as shop floor and distribution management, project management, finance, human resource and engineering.

The revolutionary growth in information, software, hardware, networking and cloud technologies has advanced computer product applications across all the organizations. Since last few decades the business environment advanced exponentially, no more businesses operate to a defined region and context. Now the businesses operate in local, national and global level as the IT has shrink the world business in to global market. 

In 1990's with more innovation in business and information and networking technologies ERP systems were introduced to collaborate the complex businesses with integration of functional data across Supply Chain Management, Procure to pay processes, Order to cash processes, Management of inventory, Financial accounting, Asset management, Human resources and Distribution of goods and services. The results are phenomenal with better integrated reporting and assistance in cost reduction and better logistics and master planning and forecasting based on historical and current data.

What is ERP?

An ERP application integrates all the business operations across a company to a single central system for functional areas such as company's planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and maintenance, transportation and e-commerce etc.

The backbone or core concept model to integrate all the systems for an ERP application is "CENTRAL DATABASE"  i.e. Relational Database (RDBMS).

ERP is not new as we find it's early inception in 1970's and major break through in 1990's. Since then the ERP systems continuously in enhancement mode following the development of IT technologies and also adapting to concurrent business changes. As long as businesses operate and technology advance ERP systems will continue to adapt and evolve and sustain. 


Advantages of Implementing ERP Systems:

  • No duplicate data  - Relational tables & Access from the Central Database
  • Data consistency   - Central RDBMS - accurate and reliable data
  • Better Reporting    - Helps in forecasting with reliable data from across systems
  • Integration            - Integrating all internal and external systems
  • Module extend-ability - Customize SCM, Trade and Logistics, HR, Project, Services etc.
  • Adaptability           - Adapt to concurrent business changes 
  • Better Accounting  - Reporting and Tracking Financial and Accounting systems
  • Scalability              - Configure many third party integration's, extend functionality
  • Many more            - Auditing, Security, Role based functionality etc.

Implementing ERP in a company is critical whether it's small, medium or large and to accommodate for all types of businesses there are 100's of ERP Products in the market, the big ones being SAP, Oracle and Microsoft

Each one has it's market share and has it's own advantages and edge. The discussion here is not overrate or underrate any ERP Products, however we introduce and train in Microsoft ERP Applications specifically AX.

What is Microsoft Dynamics?

Microsoft Dynamics is an Enterprise Resource Planning (ERP) Product Software primarily focused toward midsize organizations to large-scale enterprise markets.


 Microsoft Dynamics ERP Software family has five primary products:


  1. Microsoft Dynamics AX      (formerly AXAPTA)

  2. Microsoft Dynamics NAV         (formerly Navision)
  3. Microsoft Dynamics GP           (formerly Great Plains)
  4. Microsoft Dynamics SL            (formerly Solomon)
  5. Microsoft Dynamics CRM        Customer Relationship Management

Each Microsoft Dynamics ERP Product has its own targeted market, unique functionalists and features.

Briefly about Microsoft Dynamics ERP Products:

Microsoft Dynamics NAV is the biggest seller among all Dynamics products being Stronger in single-site or distributed implementations and highly configurable with a lot of vertical partners in an industry.

Microsoft Dynamics GP is strong in the financial management and HR modules and mostly implemented in services, finance and public sector domain markets.

Microsoft Dynamics SL is great for project-based businesses and distribution. Mostly suited for companies with less than 500 employees

Microsoft Dynamics CRM offers both on premise and cloud-based CRM solutions for unique business needs. It offers mobile CRM apps and platforms that allow you to manage customer relationships on the mobile devices, and tools that integrate data and reporting from social media directly into your CRM application.

What is Microsoft Dynamics AX?

Microsoft Dynamics AX is a multi-language, multi-currency, industry-specific, global enterprise resource planning (ERP) software product.


Microsoft Dynamics AX is also know as AXAPTA in previous versions and now referred as DAX is a registered ERP solution from Microsoft Dynamics family targeting mid-size to large scale enterprises with highly intuitive, exclusive and scalable features with rich user experience. Microsoft Dynamics AX ERP is the best value and scalable ERP in the market.

Microsoft Dynamics AX streamlines Financial management, Customer relationship, Human capital management and Supply chain processes and supports operational and administrative processes for organizations in Manufacturing, Retail, Service oriented industries and the Public sector.

Microsoft Dynamics AX capabilities are Financial management, Human resource management (HRM), Manufacturing, Supply chain management (SCM), Project management and Retail with business intelligence (BI) reporting.

Example - how Dynamics x erp system integrates different departments and modules (high-Level overview)

Microsoft Dynamics AX is taking on SAP and Oracle for the large-scale enterprise ERP market with its new releases from Microsoft Dynamics AX 2012, R2 and now R3 as a great alternative to the high cost of ownership required competitors. Microsoft Dynamics AX is Strong in manufacturing, distribution and retail, excellent for multi-site and multi-country ERP operations and very fast-growing to other Microsoft's five ERP products.

For more information and latest updates of Microsoft Dynamics AX click here!