Wednesday, October 22, 2008

Why some organizations might be slow in planning an upgrade to Microsoft Dynamics AX 2009

Written By Jeff Onesto, Director of Business Development, ASi (Originally released on MSDynamicsWorld.com)

At ASi, we are fortunate to have many years of experience with working with Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta). So, after returning from the AXUG User summit, I wondered, with mainstream support ending for Microsoft Dynamics AX version 3.0 in January of 2009 why does it seem so many customers have delayed planning their upgrade?

In looking back and talking to other colleagues, in many situations, the reasons are a combination of the following:

1. Organizational viability (Going Concern)
2. The processes supported by Microsoft Dynamics AX (Axapta) are not mission critical
3. The business benefits (new features and functionality) are not clearly understood
4. New hardware and operating/database requirements
5. Optimism that Microsoft will extend this mainstream support date for older versions
6. Number of customizations in system increase the difficulty of estimating upgrade cost

For brevity, let’s take a closer look at four of the above considerations that might be delaying some customer’s plans for upgrading to Microsoft Dynamics AX 2009.

Organizational Viability

We all know what is currently happening on “Wall Street” and the spill-over affect to “Main Street”, particularly sectors such as industrial equipment, automobiles, building suppliers, aerospace, and the list goes on and on. When a decision needs to be made between payroll and keeping the lights on or upgrading the ERP system, I am somewhat certain the former come first. This probably explains the relationship between fast growing companies and their likelihood of upgrading. Growth companies require flexibility and scalability which are core attributes of Microsoft Dynamics AX. It is not uncommon to see 200%, 300% year-over-year growth in many of the consumer package goods (CPG) segments served by ASi such as “soft goods; apparel” and “hard goods; action sport equipment”. In our experience, these fast growing companies often understand that utilizing the latest software version gains them some competitive advantage and ultimately, helps them ride the growth curve longer.


Mission Critical Processes or Not

Microsoft Dynamics AX in certain situations has been implemented as a “hub and spoke” solution. Large enterprises may run other ERP applications at the corporate level yet use Microsoft Dynamics AX at the plant/division level. I have seen this “point solution” concept taken much further than originally intended where companies have actually only implemented GL or AP (trade) and nothing more. These smaller implementations of Microsoft Dynamics AX often highlight a direct relationship between the size of the Microsoft Dynamics AX footprint and likelihood of upgrading. Bottom line, companies with a larger footprint of AX that supports many mission critical processes tend to upgrade sooner and with greater frequency than those without.

Mainstream Support

At the AXUG Summit, Microsoft briefly mentioned that they are considering the extension of the mainstream support date for Version 3.0. This may entice some companies to wait longer to upgrade. For those not familiar with the Microsoft Product Lifecycle Support Policy, please see the following Microsoft site: http://support.microsoft.com/lifecycle/?p1=6212. As of today Microsoft Dynamics AX Version 3.0 mainstream support is scheduled to end Jan 13th 2009. I have attached the following diagram that provides information on what support is offered by Microsoft.


Number of Customizations

The flexible platform characteristics of Microsoft Dynamics AX and the available X++ source code layers creates an interesting relationship between the number of customizations and the likelihood of upgrading. The more customizations an organization has implemented may make it increasingly difficult to estimate the actual cost of upgrading and therefore, creating a delay in the decision to upgrade. At ASi, several of our customers will be moving from 3.0 to 2009, we are optimistic that the improved tools in 2009’s upgrade cockpit including comparative tools, estimation reports and the element usage log will help reduce future decision delays on on-going Microsoft Dynamics AX releases.

ASi has been using Microsoft Dynamics AX internally for almost 10 years , hence, we run our entire professional services organization on the solution. We are in the middle of performing our own internal upgrade to AX 2009 utilizing our Upgrade, Migration & Optimization Services (UMOS) methodology and tools. For help understanding how many of the new features in Microsoft Dynamics AX 2009 can benefit your organization, contact your partner. For more information on Advanced Systems Integration upgrade expertise and tools, see our website www.advancedsystemsintegration.com.

Monday, October 13, 2008

Felt Bicycles SPEEDS through implementation of Microsoft Dynamics AX with Advanced Systems Integration

Global Bicycle Manufacturer/Distributor selects Microsoft Dynamics AX over competitors for its ease of use, scalability and manufacturing capabilities.

Lake Forest, CA — October 9, 2008 — Advanced Systems Integration (ASi) is pleased to announce Felt Bicycles is live with Microsoft Dynamics AX (formerly known as Microsoft Business Solutions Axapta). Felt Bicycles selected Microsoft Dynamics AX over SAP and other ERP solutions to standardize business processes and offer real-time visibility into their supply chain. Microsoft Dynamics AX is an advanced comprehensive business-management solution for fast growing, midsize-to-large companies that offers a high-degree of scalability, adaptability, and industry-specific functionality.

Felt Bicycles, with U.S. headquarters in Irvine, CA, designs a complete spectrum of bicycles including road, triathlon, mountain, lifestyle and BMX. The company is widely known for its performance level products including bicycles that have been successfully raced at the highest level including the Olympic Games, World Championships and Tour de France. Felt distributes its own proprietary products through a network of globally authorized distributors and dealers. With a mission of ‘designing, developing and delivering the best bicycles in the world’, Felt knew it needed a scalable, adaptable integrated business-management solution that would help them quickly implement standard processes, collaborate with a network of global suppliers and dealers, and provide immediate and real-time insight to help them with sales and operational planning.

The company evaluated a number of enterprise resource planning solutions to support its U.S. operations before selecting Microsoft Dynamics AX and Advanced Systems Integration (ASi). “We chose Microsoft Dynamics AX for multiple reasons,” said Bill Duehring, President, Felt Bicycles U.S.A., “including ease of use, the Microsoft look and feel that employees are accustomed to, the ability for the solution to adapt to our business processes, and the fact that it was an integrated and complete solution with native warehouse management (WMS), customer relationship management (CRM) and business intelligence (BI) capabilities.” Bill Duehring continues, “When it came to finding a partner we needed an organization that understood and could support the needs of a fast growing consumer product company like Felt. We needed a partner with proven abilities to help us manage the risk associated with implementing Microsoft Dynamics AX, and we knew we had found that partnership with Advanced Systems Integration.”

Advanced Systems Integration is honored to have been selected by Felt Bicycles. Jeff Onesto, Director of Business Development states, “Many of our branded consumer packaged customers are experiencing tremendous return on investment with Microsoft Dynamics AX. All joking aside, it looks like both Felt Bicycles and ASi (utilizing Microsoft Dynamics AX) have a very bright future designing products to make people go faster.“

About Felt Bicycles
Felt Bicycles is a leading designer, manufacturer and distributor of its own proprietary branded premium quality bicycles, framesets, components and accessories. The company U.S. office is located in Irvine, CA and its European office is in Edewecht, Germany. Felt Bicycles is an internationally recognized brand whose bicycles and products are currently sold in over 30 countries, worldwide. Athletes on Felt products have won numerous National and International events including World Championships, Olympic Games, ESPN X-Games, and other major national and international competitions. For more information on Felt Bicycles call (949) 452-9050 in the U.S. or (49) 4405-928015 in Europe, or visit Felt online at www.feltbicycles.com or www.feltbmx.com.

About Advanced Systems Integration Inc.
Advanced Systems Integration (ASi) is a Gold Certified Microsoft Dynamics™ AX and Learning Solutions partner founded in 1991 that delivers comprehensive enterprise class applications that improve customer relations, enhance partner collaboration and create efficiencies across supply chains and business operations. ASi also offers industry specific extensions integrated with Microsoft Dynamics AX platform (formerly Microsoft Business Solutions Axapta). ASi uses its industry focus, enterprise software domain expertise and transparent agile implementation methodology to provide its clients an enterprise class solution that is implemented properly the first time. ASi is based in Lake Forest, CA and has sales offices strategically located throughout the United States. Please visit the company’s web site at www.advancedsystemsintegration.com.

About Microsoft Dynamics AX
Microsoft Dynamics AX is an adaptable business management solution that enables companies and their workers to make business decisions with greater confidence. Microsoft Dynamics AX works like and with familiar Microsoft Office software, with comprehensive features that help automate and streamline business processes, and connect users with global customers, business partners and subsidiaries in a way that helps drive business success. http://www.microsoft.com/dynamics/ax/default.mspx.

About Microsoft
Founded in 1975, Microsoft (NASDAQ “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential. www.microsoft.com
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For more information on this release, please contact:
Lisa Aschenbrenner
Marketing Manager
Advanced Systems Integration, Inc.
(949) 597-2170
lisaa@advancedsystemsintegration.com
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