Thursday, March 19, 2009

Using Managed Services to Expand Competitive Advantages Using Microsoft Dynamics AX

The concept of "Managed Services" is not new. As a matter of fact, many companies have come to the stark reality that creating and maintaining an internal Center of Excellence (COE) is a bit like chasing your tail.

And just when you think you have a handle on the application, out comes a new version and back to square one -- or maybe square two if you are lucky. Also, don't forget about employee turnover and the fierce competition with larger companies and deeper pockets for attracting and holding any A-Grade talent. Is this really the best use of company time and resources? Yet on the flip side, ERP should be the backbone of you company and outsourcing that knowledge can't be good, right?

Having been on both the delivery side and the operational side throughout my career, I have become a strong believer in managed services. True sustainable competitive advantages, in my opinion, are only achieved in the areas of domain expertise, intellectual property, product innovation, people, speed-to-market, integrated supply chains, customer service, and not necessarily from ERP maintenance. The more difficult the business process is to copy, the more significant the advantage.

The X++ code, in the case of Microsoft Dynamics AX (formerly Microsoft Business Solutions, Axapta), and application settings are easily duplicated and, therefore, will not solely keep out your competition. In fact, many of the mid-market solutions from SAP/Oracle are nothing more than copies of larger enterprise deployments that have been allegedly certified by the publisher. The reason why this works in some situations is that the product supply chain for a $1.0B consumer products distributor can and often may look very similar to the product supply chain of a $250M consumer products distributor.

A key challenge for many companies is freeing up resources to use ERP to build on existing competitive advantages. What follows are key considerations in using managed services to free up resources or costs:

1. Does the partner offer flexible packages (remote application support, infrastructure support and/or total support)?

2. Does the partner support one ERP solution or many solutions?

3. Does the partner have relevant industry expertise?

4. Does the partner use outside contractors or can they demonstrate continuity of service and employee tenure?

5. Does the partner have experience servicing publically traded companies subject to SAS70 and Sarbanes Oxley 404/302?

6. Does the partner have a history of doing the right thing?

The value of managed service offering is having access to a team of subject matter experts that have years of relevant, proven experience delivering tangible return on investment for your specific business application. As the US economy contracts at unprecedented levels, many companies are rethinking their competitive advantages. Outsourcing some or all of your Microsoft Dynamics AX support needs just may free up additional time and resources necessary to rethink your distribution strategy, lean out your global supply chain, or increase your level of customer service allowing your business to gain a true competitive advantage.

About Advanced Systems Integration Inc.

Advanced Systems Integration, Inc.(ASi) is a Gold Certified Microsoft Dynamics AX and Learning Solutions partner founded in 1991. ASi 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 solution. Based in Orange County, California, ASi serves the Southern California greater area including the counties of San Diego, Orange, Los Angeles, Ventura, Riverside and San Bernardino. Please visit the company’s web site at www.advancedsystemsintegration.com.
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