Microsoft Stresses Flexibility In Its Case for Dynamics AX in Two-Tier ERP Scenarios

Large, distributed organizations that want to streamline their processes and technology should consider a two-tier ERP strategy, according to Rudy Dillenseger, Senior Product Manager, Microsoft Corp. Doing so will enable them to connect their local, smaller business units to the ERP system used by their headquarters.

Large organizations often realize that some ERP solutions are just too complex to adapt to the unique requirements of their smaller, local entities. But Microsoft believes that  Dynamics AX offers these companies a viable alternative that lets them easily customize their solutions to meet the specific requirements of their smaller subsidiaries, implement vertical functionality, more easily manage changing business requirements and save money, Dillenseger told members of the AX User Group in a recent webcast.

A recent survey in the chemical manufacturing industry suggests that large organizations remain divided on if and how to move from a large single installation like SAP Business Suite toward a two-tier ERP strategy that could incorporate Dynamics AX in the remote locations.

"We're seeing in the enterprise a quest for one ERP system," Dillenseger said. "Large companies want to centralize everything and get everything on the same ERP system. They want to be able to have a single view of the truth and they want to get all their users to use the same application in all their locations."

Dillenseger told the audience that many financial services companies have already made the decision to use large ERP systems from vendors like Oracle and SAP for their headquarters and larger business units while deploying another ERP system designed specifically for the needs of their smaller business units.

But it's difficult for these large companies to align ...