Microsoft Allows Integration of Dynamics AX with SAP Via New Connector

If you can't lick 'em, join 'em.

That seems to be Microsoft's latest approach to an expanding segment of the enterprise resource planning (ERP) market that is  demanding a two-tier ERP applications strategy instead of the traditional monolithic approach.

As discussed by Hal Howard and Kees Hertogh at Convergence, Microsoft has announced a new connector that accelerates two-tier ERP deployments between Microsoft Dynamics AX and SAP Business Suite. This new connector enables IT organizations to use Microsoft Dynamics AX across subsidiaries, divisions or branch entities to facilitate cost-effective business process integration and easily connect with SAP installations at the corporate headquarters location.

The Microsoft Dynamics ERP two-tier connector will enable common business process integration scenarios for headquarters and subsidiary locations, including the following:

• Financial consolidation. The sharing and consolidation of detailed financial information from subsidiaries using Microsoft Dynamics AX can be automated and exposed through a central SAP installation, increasing visibility of financial performance across the organization.
• Intercompany supply-chain integration. The integration of intercompany procurement and supply-chain processes between local and regional distribution with centralized fulfillment organizations helps facilitate automated order processing.
• Plant automation. Integration of decentralized manufacturing operation processes into centrally orchestrated planning processes enables more accurate and responsive manufacturing planning across the organization.

Microsoft says integration can be easily customized by using Microsoft BizTalk Server to provide sample mappings for electronic data interchange and detailed technical documentation.

"Organizations seeking to streamline their processes and technology should consider a two-tier ERP strategy," said Crispin Read, general manager of Microsoft Dynamics ERP at Microsoft. "With the shifting market landscape, Microsoft is providing a simple and innovative approach ...