CRM and ERP software are the backbone of Microsoft Dynamics, with many available SaaS instances as well as on-premise, and a plethora of supplementary and integrative services rounding out the ecosystem. It can be difficult to wrap your head around a system with as many moving parts as Microsoft Dynamics AX 2012, whether you’re considering its use in your organization or just curious about the widely adopted ERP platform. However, read on to find out more about Microsoft Dynamics AX and its transformation into Microsoft Dynamics AX 365.
Enjoy the ride!
What Is Dynamics AX?
Microsoft offers a business software called Dynamics AX. It’s an ERP system, which stands for “enterprise resource planning,” and it’s used to manage the administrative tasks that keep a company running smoothly.
Business intelligence, inventory management, financial management, retail and e-commerce, project management, service management, human resources, manufacturing, and distribution are just a few of the functions that are catered to by Dynamics AX. It lacks some of the functionality of a full customer relationship management system, but it does have some sales and marketing tools. Microsoft Dynamics AX is an ERP system in the company’s Dynamics suite, which also contains CRM apps.
What Is Microsoft Dynamics AX?
When it comes to enterprise resource planning (ERP), Microsoft Dynamics AX is one of the most potent options available. The platform is easy to learn and deploy, and it provides a rapid return on investment. Through consolidated financial management knowledge and embedded analytics, Microsoft Dynamics AX allows you to seize opportunities in emerging markets around the world. The one-stop shop lets your organization adapt to local needs in dozens of countries, including fast-growing markets. Since Microsoft will no longer support AX, many firms are switching to Dynamics 365 Finance.
Advantages of Microsoft Dynamics AX
Here are some of the main advantages of Microsoft Dynamics AX to consider if you are still set on sticking with your current AX ERP system.
#1. The Logistical Benefits of Microsoft Dynamics AX
Boost Customer Satisfaction
By improving logistical processes, Dynamics AX speeds up the time it takes for a company’s items to reach consumers. In addition, you may boost product quality by catching problems early with the use of real-time insights. Microsoft Dynamics AX also provides linked order procedures, which results in quicker replies to customers.
Boost Your Visibility
Microsoft Dynamics AX is able to keep track of assets with minimal reporting errors and maximum automation. Insights into any part of your supply chain can be gleaned through data collection and predictive analytics.
#2. The Operational Benefits of Microsoft Dynamics AX
Cut Down on Running Expenses
Why not try to cut back on the money your business spends on daily operations if you can? Automation, encumbrance, and control over budget planning, as well as three-way matching, are all available in Dynamics AX’s financial module. When you deploy Dynamics AX, your entire supply chain will become automated, cutting down on unnecessary expenses.
Maximize Efficiency
With the support of Dynamics AX’s smart and focused solutions, your staff will be able to make educated, forward-thinking decisions. Microsoft Dynamics Role Tailored organizes data, including tasks and insights, that are pertinent to individual roles. Automation, task prioritization, and integration features are all part of the Role Tailored package. This enables easy access to information, which improves efficiency and productivity.
#3. Dynamics AX’s Advantages from an Architectural Perspective
Scale Smoothly
As your company grows, Dynamics AX can easily be modified to meet your specific needs. A model-driven, layered design simplifies the creation, management, and update of custom business processes and subsequent versions.
With instant-on features, deployment may be streamlined and sped up to keep up with the dynamic needs of your business. Because of the modular design, Microsoft Dynamics AX can be rolled out in stages or all at once. This method speeds up rollouts by focusing on a single business situation at a time.
Dynamics AX gives you access to even more Microsoft products.
You can use other Microsoft products in addition to Dynamics AX. Maximize the product’s potential by integrating it with other enterprise services, such as apps and communication platforms, hosted locally or in the Cloud. Your company as a whole will benefit from increased connectivity, communication, and cooperation.
#4. The Industry-Specific Benefits of Microsoft Dynamics AX
Dynamics AX includes preconfigured industry functionality for many different businesses, including manufacturing, distribution, services, retail, government, and more. However, Take a look at the following retail and manufacturing instances:
Microsoft Dynamics AX for Distribution and Retail
In order to provide you and your consumers with a more satisfying experience, Dynamics AX streamlines omnichannel administration, retail operations, merchandising, and financial processing. Using these retail solutions, you can:
Connect with Customers
Use omnichannel management to reach customers when and when they shop, regardless of their location.
Maintain a High Standard of Service
Increase consumer participation and output with real-time data and thorough order management.
Easy to Scale
Dynamics AX’s nimble omnichannel capabilities can let your e-commerce enterprise expand without a hitch.
Microsoft Dynamics AX for Manufacturing
Dynamics AX provides operational and customer service tools to help you compete in the global manufacturing game. To wit: you can use manufacturing solutions to:
Adapt to the Needs of Your Customers
Due to the ever-changing nature of customers’ requirements, an adaptable and scalable platform like as Dynamics AX is essential to sustained expansion.
Boost Productivity
Improve responsiveness to customers and time to market by increasing visibility and streamlining internal operations.
Empower Your Employees
Give your staff the tools they need to succeed by implementing an ERP system that can adapt to their changing requirements.
Microsoft Dynamics AX 365
Microsoft Dynamics AX 365 is the new name for Dynamics AX. The cloud-based version of Dynamics 365 for Finance and Operations (D365F&O) has some new capabilities but is otherwise virtually the same product as the on-premises version (formerly known as Dynamics AX7).
When Compared to Dynamics AX, How Does Microsoft Dynamics 365 Stack Up?
Microsoft unified its customer relationship management (CRM) and enterprise resource planning (ERP) offerings under the Dynamics 365 brand in November 2016. While Dynamics GP and Dynamics SL will continue to be sold separately, the rest of the software was rebranded and integrated into Microsoft Dynamics 365. The previous Dynamics AX was rebranded as Dynamics 365 for Finance and Operations, the previous Dynamics CRM as Dynamics 365 for Sales, and the previous Dynamics NAV as Dynamics 365 Business Central.
Modular software was created from a subset of the original apps’ capabilities so that enterprises could pay for only the aspects they needed. Dynamics 365 includes nine primary apps and numerous ancillary ones. The new name for Dynamics AX is Dynamics 365 for Finance and Operations.
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Does Microsoft Dynamics 365 Differ in Any Way Technically from Dynamics AX?
The cloud-based version of Microsoft Dynamics 365 for Finance and Operations (D365F&O) has some new capabilities but otherwise is virtually the same product as the on-premises version (formerly known as Dynamics AX7).
Users are likely to notice the most recent improvements in deployment and interface right away. Users can access any of the Dynamics 365 apps directly from their browsers, eliminating the need to download and install any software. With the new login process in place, the app may be accessed and used from virtually any device so long as it has an internet connection.
Since Microsoft Dynamics AX 2012, there has been a significant change in the appearance of Finance and Operations compared to its predecessors. The modern redesign was created to enhance the user experience and promote group work. Each user has the ability to set their own default start pages and homepage colors, making the interface very personalized.
The reporting and business intelligence capabilities of Dynamics 365 are superior to those of earlier versions of AX because of the availability of analytical services powered by artificial intelligence and larger collections of business data. Another major distinction between AX and D365F&O is that while the former can be modified through development, the latter can be augmented with readily available, third-party add-ons and extensions.
What, Therefore, Does Microsoft Dynamics 365 Accomplish?
If you’re looking for an ERP solution with extensive financial management features including accounting, financial management, budgeting and planning, and tax administration, go no further than Microsoft’s Dynamics 365 for Finance and Operations. Also included are modules for sales and marketing, customer service, time and expenditure tracking, project management, human resources, inventory management, and more. The app’s business intelligence and reporting tools support each of these modules.
The product’s international availability and the worldwide presence of Microsoft partners place it in the upper third of the Magic Quadrant’s providers in terms of geographic reach. Customers also praised the solution’s cutting-edge analytic technology, praising its ability to embed Power BI and do real-time in-memory multidimensional analysis. Power BI, a cutting-edge business intelligence platform from Microsoft, aids customers in making better use of their company’s data by facilitating the visualization of key insights and providing artificial intelligence-driven recommendations for how to proceed and where efficiencies may be gained.
Who Uses Microsoft Dynamics 365 and Why?
The app is designed for large and medium-sized businesses, while it may meet the needs of some international corporations as well. The retail, manufacturing, distribution, professional services, and public sectors are where it has seen the most adoption because of its versatility. About 20,000 businesses in 2015 were using it, and the majority of them had yearly revenues of $3 billion to $5 billion. Despite the fact that the majority of customers have a few hundred users, the product’s scalability and appeal to larger enterprises have increased as its functional footprint has grown.
With current support for 118 nations and 24 languages (plus another 4 languages supported by partners), it has widespread international appeal. The majority of D365F&O customers are sufficiently sizable that they require dedicated ERP/business analysis experts among their full-time workforce and development resources. Since Microsoft abandoned its cloud-only stance on Dynamics 365 in favor of on-premise and hybrid deployments, many businesses have found this flexibility to be an attractive feature. For companies still on the fence about fully committing to SaaS ERP, the option to begin in-house and migrate to the cloud as their needs evolve is a huge benefit.
While the cloud is quickly becoming the preferred deployment choice for tasks like human resources and financial administration, interest in the cloud is far lower in operational sectors. D365F&O stands out from the crowd of ERP suites on the market because it provides multiple deployment options. Microsoft has also put considerable resources into its Lifecycle Services, which offer assistance to businesses from the solution’s inception to its retirement.
How Can Microsoft Dynamics 365 Help Businesses Grow?
From a monetary perspective, Dynamics 365 for Finance and Operations aids firms in increasing company-wide visibility, bolstering financial controls, speeding up cash flow, improving forecast accuracy, and attaining corporate compliance. It can also aid businesses in increasing productivity (and hence, profitability) through improving project management. Using D365F&O, organizations can better connect with project team members, optimize project setup processes, improve and automate resource scheduling, monitor project time, expenses, and bills, manage budgets, and more.
Combining discrete, lean, and process methods in a cohesive solution allows manufacturers to develop unique operating procedures that meet their own goals and objectives. To better connect with suppliers and customers, expedite deliveries, and enhance communication, businesses with a supply chain to manage can take advantage of the platform’s features to review and streamline logistics with real-time visibility and automation.
Reasons to Migration from Microsoft Dynamics AX 2012 to Microsoft Dynamics 365
The followng are reasons why you should migrate from Microsoft Dynamics AX 2012 to Microsoft Dynamics 365:
#1. Elimination of Widespread Acceptance
Microsoft has ceased general availability of security patches, bug fixes, and new features for Microsfot Dynamics AX 2012 users. Because of this, a company may be at risk of security breaches and other problems. As Microsoft’s support for AX will eventually stop, the only question is not “if” but “how smoothly” you can make the transition.
#2. Scalability Issues
The ERP system of a growing company must be able to accommodate its increasing workload. There are scalability issues with Microsoft Dynamics AX 2012, which might make it difficult for businesses to run smoothly.
#3. There Is no Real-Time Access or Visibility
Businesses struggle to make well-informed decisions in real-time due to the lack of visibility and access in Microsoft Dynamics AX 2012.
#4. Increased Competition
The growing popularity of cloud-based ERP solutions has put on-premises solutions like Microsoft’s Dynamics AX 2012 at a disadvantage, as they limit a company’s ability to respond quickly to market changes.
#5. Return on Investment
The Return on Investment (ROI) of upgrading from Dynamics AX to Dynamics 365 Finance varies from company to company and feature set to feature set. However, organizations that have made the switch to Dynamics 365 F&O have reaped significant benefits and savings as a result.
Benefits of Microsoft Dynamics 365
The folllowing are the benefits of Microsoft Dynamics 365:
#1. Increased Effectiveness and Output
Microsoft Dynamics 365 F&O makes it easier to manage financials, supply chains, and production with optimized workflows. This, in turn, can lead to fewer hours spent on manual labor, more worker productivity, and more sound judgment.
#2. Improved Oversight and Management
Dynamics 365 F&O also provides real-time analytics and insights, allowing business executives to optimize operations and boost profits by focusing on what matters most to the company.
#3. Spend Less on Information Technology
Due to its cloud-based nature, Dynamics 365 Finance eliminates the need for costly upgrades and repairs to both hardware and software. Microsoft periodically releases upgrades for Dynamics 365 F&O, which include new functionality and eliminate the need for time-consuming and expensive customizations and integrations.
What Is Microsoft Dynamics AX 2012 Used For?
When it comes to accounting and business operations, Dynamics AX is an excellent choice for an ERP system. It facilitates on-premises, cloud, or hybrid deployment for global organizations in order to help them manage, automate, and optimize their processes.
What Is Microsoft Dynamics AX Called Now?
Microsoft Dynamics AX is now called Microsoft Dynamics 365 for Finance and Operations. Since the Dynamics AX brand has been removed, the product will be referred to as Dynamics 365 for Finance and Operations unless otherwise specified.
How Many Companies Use Microsoft Dynamics AX?
Over 8,719 businesses started using Microsoft Dynamics AX as an enterprise resource planning (ERP) application globally in 2023. With 2,683 customers, Microsoft Dynamics AX is the most popular enterprise resource planning (ERP) solution in the United States.
Final Thoughts
With Microsoft Dynamics AX, your company may boost its financial performance, cut expenses, and boost earnings. Microsoft Dynamics AX also gives organizations an edge by integrating cloud-based connections between their partners, customers, and workers to improve safety and service for all parties involved.
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