IDC review of Microsoft Dynamics Ax and the changing use of erp in business

August 16th, 2016 by Stephen Jones Leave a reply »

ERP applications are the backbone of every business. Often unheralded, ERP applications historically are overlooked when it’s time to upgrade and modernize the business, generally because they just keep working and getting the job done. However, in today’s fast-changing business environment where the news media is filled with stories of the latest industry to be disrupted, businesses are realizing that rigid, stable, heavily customized ERP applications prevent them from
disrupting their own business before someone else does. (IDC whitepaper April 2016)

In 2015, IDC projected the size of the enterprise resource management (ERM) applications market at year-end to be $50 billion and estimates that market to grow at a CAGR of 7.3% through 2019, with the public cloud portion growing at a 15.8% pace. Driving the growth for ERP applications is the demand by small and medium-sized organizations in particular for modern cloud-based applications that provide business insight and increase efficiency for work teams.

Customers have moved beyond basic MRP1 and back office solutions and increasingly expect”:
 “Industry-specific solutions that are microvertical specific (For instance, in manufacturing, it is
food; in retail, it is fashion and accessories.)
 Integrated solutions that enable teams to work together efficiently and productively with access to
real-time business insight
 Solution providers that can put it all together and enable the business to become agile and
disruptive, rather than stuck in the mindset of “we’ve always made a profitable living doing things
this way”
 Access to the latest evolutions in technology and continuous innovation “

“…on-premises solutions remain important as many organizations choose not to disrupt core business functionality in the short term. Many medium-sized and large enterprises are choosing to maintain existing software rather than disrupt their critical business processes surrounding the management of finance, order management, payroll, procurement, projects, and strategic assets. Eventually, however, IDC expects to see many of these core applications move to the cloud.”

“Today’s business users no longer have time to sit through training classes to learn to use a new business application. They don’t understand why someone needs to train them to use the new purchasing application when no one had to teach them how to shop online.
Employees are increasingly mobile and need access to colleagues, training videos, machine schematics, and more when they are working on a device. These services are increasingly delivered through mobile devices in the field rather than on paper or a desktop computer in an office. “

“Microsoft has long offered a variety of ERP solutions that more than 200,000 customers worldwide have implemented successfully. Microsoft also offers productivity and intelligence solutions used by millions of businesses and individuals worldwide. ……IDC believes Microsoft has done a good job re-architecting Dynamics AX for the cloud. We are impressed that the complete application suite is ready and the company is not announcing just a subset of applications with more to follow in future years. …….IDC has long watched Microsoft, and this shift from a dynamics focus to a broadening that embraces all of the power of Microsoft, as well as competitors’ technology (e.g., devices and browsers), is
refreshing”

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