BY Dan Gangai, Director of Product Management, Create!form Bottomline Technologies
PUBLISHED: December 21, 2008
Whenever the conversation turns to changing or upgrading ERP systems, the question seemingly on the tip of everyone's tongue has to do with ROI: "How am I going to get a return on my investment and how soon can I expect it?" I think it's safe to say that since its introduction over the summer, Microsoft Dynamics AX 2009 has been well received. But interest and buzz aren't enough to quell those persistent fears that attaining ROI from an ERP system just isn't a reality.
As a provider of document process automation solutions, we've had the opportunity to work with a number of Microsoft Business Solutions Partners in an effort to help their clients extend the value of a Dynamics AX investment. So this month, I thought we'd take a different approach to this column, and share an interview my colleague Jon Rivers recently conducted on the topic of ROI as it relates to AX 2009 with Dave Weiner, Dynamics AX Division President of New York City-based Cole Systems Associates.
Q: Dave, given your experience with Microsoft Dynamics AX, what would you estimate to be the length of time required for an organization to realize a return on their investment?
With the right approach, I believe companies using Microsoft Dynamics AX can attain a return on their investment in 12 months or less. Our organization, for example, has successfully applied a pre- and post-implementation process that enables us to develop and track specific metrics with our customers that we ultimately use to measure ROI.
For instance, at the beginning of the process we work closely with our clients to create a business case around Microsoft Dynamics AX, taking into consideration the client-identified value opportunities (i.e. re-allocation of headcount, improvement of the cash-to-cash cycle, etc.) and comparing those goals to benchmarks we've established with other clients. This type of approach allows us to calculate an anticipated ROI from which we can measure results at the conclusion of the implementation. It also allows stake holders on both sides to fully understand the project's success metrics.
Q: Reducing costs and improving performance continue to be business priorities. For organizations implementing AX 2009, how do you think new features such as Role Centers and the BI framework will impact return on investment?
The beauty of the role-tailored client is that it's available straight out of the box. Plus the use of 32 different ‘personas' featured in the Role Centers ensures that everyone within an organization will be able to identify with at least one of the roles from day one. In the past, it would take weeks, and even months in some cases, to build a similar environment in which you could put relevant information at a user's fingertips so quickly.
The workflow component of the Role Centers also has a positive impact on ROI because it helps to bring tasks forward, enabling users to create a work-ready list of activities, for them to better understand what tasks need to be addressed next and which tasks have fallen behind the intended completion date.
Q: How critical is the new role-tailored client in supporting an organization's goal of ensuring that core business units are as productive as possible?
For many organizations today, having the ability to view business-critical information in real-time is a top priority. With the role-tailored client, AX 2009 users are able to make better, more informed decisions because the data most relevant to their roles is at their fingertips. This enables users to become more productive and proactive in their job functions.
Q: What do you think are some best practice approaches businesses should be adopting in order to maximize success with AX?
Implementing an ERP is no small task. It requires expertise and dedicated resources, which is why most companies chose to work with a consulting firm. When it comes to choosing a consulting firm, I can't stress enough the importance of identifying one that can demonstrate their knowledge of not only AX but of the customer's specific industry, and provide multiple reference customers.
I also recommend to our clients that they explore the use of certified third-party products. For all of the business benefits associated with AX, there are functionality gaps where a proven third-party product can help accelerate implementation time, improve existing business processes and reduce risk. A perfect example is using a document process automation solution to enhance reporting.
Typically, improving the look and feel of a document such as an invoice or account statement requires extensive custom programming. But solutions such as Create!form from Bottomline, allow users to bypass that customization, and quickly design and distribute documents through different electronic channels. In some cases, the use of document process automation solutions have shown to reduce forms-related costs by a 2-to-1 margin. It's a win-win for the partner as well because we can focus our resources on more pressing issues associated with the implementation.
Q: Are there other specific benefits of AX 2009 that will be major contributors in generating a return on investment?
In addition to the Role Centers and BI framework, another highlight of AX 2009 is the Compliance Center. Companies that have been through any type of compliance audit can attest to the time and resources required to gather the necessary data. With this feature, users gain the ability to create a full audit trail, which will allow them to more quickly comply with different regulatory mandates, such as Sarbanes-Oxley. Incidentally, compliance is also an area where third-party document process automation solutions can provide additional capabilities. Being able to transition away from paper-based documents opens the door for greater visibility into historical business information.
Achieving a return on investment from an ERP implementation is perhaps one of the most difficult business challenges any IT/IS team faces. But as Dave has outlined, the new features and functionality inherent in Microsoft Dynamics AX 2009 are creating exciting new possibilities. When combined with an experienced consulting firm and third-party solutions that can further extend the Dynamics investment, reaching that ROI summit is getting a whole lot easier.
Jon Rivers is a Microsoft Channel Solutions Engineer Manager for Bottomline Technologies. Dave Weiner, Dynamics AX Division President for Cole Systems, has been working with Dynamics AX since 2001, consulting on and managing more than 20 implementations worldwide. In addition, Dave co-authored Dynamics AX: A Guide to Microsoft Axapta, a book providing an introduction to Dynamics AX.
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