A recent article titled, “Microsoft Unveils ERP For Midsized Retailers,” published by InformationWeek, discusses a new Microsoft program called Dynamics AX for Retail. This program allows midsized, specialty retailers to perform multiple functions such as “integrate point-of-sale, store management, supply chain and finance in a single platform.”1 Furthermore, Dynamics AX for Retail is compatible with other Microsoft products. An organization that has employed this program claims it has increased information sharing minus the high costs.
Without a doubt, information is an extremely important part of business. In a society where globalization reigns, one must be omniscient. As a result, technology has developed Enterprise Resource Planning, commonly referred to as ERP. ERP “[allows] companies to implement a single integrated system.”2 The reason Microsoft’s ERP has been publicized is that it is making ERP much easier and more cost effective. It is important to realize that Microsoft has not released the final price of this product. Speculation indicates that this cost effectiveness comes from the fact that less employee training may be required in addition to the lower administrative costs. This point can be substantiated by HDS Retail’s CFO who lauds over this product since he believes that Dymanic AX for Retail “eliminates the need for back-end customizations, eliminates duplication of data and effort, and reduces training time.”3
If HDS’s CFO is being honest then it is fair to say that Microsoft has hit the nail on the head. Research indicates that ERP’s success is “subject to proper implementation, training and use… It is alarming to note the time taken to implement the system in the organization”4 Ignoring the need for ERP will only raise costs and decrease the efficiency of an organization.5
Like anything, despite the negative side there is usually a positive. A majority of ERP programs provide the core functions of accounting, financials, manufacturing, production, transportation, sales and distribution, human resources, supply chain and e-business.6 Generally, ERP will reduce costs over the long term, providing “reliable information access” while allowing for “global outreach.”7 ERP provides the knowledge that is needed to build a successful organization. Knowledge is a must have in a global society in order to be at the top of the market.
As Microsoft releases this product to more retail companies it will definitely be a success. According to Microsoft, this program is a solution that will lower costs while making ERP much easier for the retail industry.8 Common sense dictates that efficient organizations must be directly related to happier customers. Why? Simply put, efficiency, especially in the retail industry, allows operations to run smoothly. Therefore, well-organized operations provide little frustration to management and clients. Essentially, this is what will make Dynamics AX for Retail successful. An inclusive ERP program that is potentially easier to use will benefit the value chain of the retail industry.
See Article:
Paul McDougall, “Microsoft Unveils ERP For Midsized Retailers,” InformationWeek, January 11, 2010,
http://www.informationweek.com/news/software/erp/showArticle.jhtml?articleID=222300398&subSection=ERP (accessed January 23, 2010).
References:
1 Paul McDougall, “Microsoft Unveils ERP For Midsized Retailers,” InformationWeek, January 11, 2010, http://www.informationweek.com/news/software/erp/showArticle.jhtml?articleID=222300398&subSection=ERP (accessed January 23, 2010).
2 Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 80.
3 McDougall, “Microsoft Unveils ERP For Midsized Retailers.”
4 ERPwire.com, Advantages and Disadvantages of ERP, http://www.erpwire.com/erp-articles/erp-advantages-disadvantages.htm (accessed January 23, 2010).
5 Exforsys Inc, The Advantages and Disadvantages of ERP,
http://www.exforsys.com/tutorials/erp/the-advantages-and-disadvantages-of-erp.html
(accessed January 23,2010).
6 Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 81.
7 Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 317.
8 McDougall, “Microsoft Unveils ERP For Midsized Retailers.”
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I agree with the statement that says, "Knowledge is a must have in a global society in order to be at the top of the market." With a system that allows operations to run more efficiently, there will be more time to focus on customer service, thus leading to happier customers. This article relates to the Diamonds in the Data Mine article that we read for class because with this Dynamix AX for Retail, retail companies can handle their information more efficiently, and in turn reduce internal costs while generating revenue just like Harrah's did with their implemented IT system. If this new system works as stated, organizations will be more successful because of access to more reliable information. Therefore, retail companies will begin to generate greater revenues because of the increase in customer satisfaction. The Dynamic AX for Retail appears to be a tool that will become a necessity in the near future for any retail industry that wants to conduct successful and profitable operations.
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ReplyDeleteI think that this article is an excellent current example of our discussions in class. As Prof. Pridmore had pointed out in class, the older ERP systems took years to integrate and cost the company a considerable amount of cash. If Microsoft was really able to develop a well functioning ERP with lower cost, and an easier integration, the company should stand to make a considerable profit. If the program can perform as the CFO had claimed you may never have the problem of walking in a clothing store and only finding sizes XS, and XXL. This system could allow these small and medium size enterprises to manage their inventory better, and collect more customer data on what sizes are sold more often.
ReplyDeleteA cost-efficient ERP program is a necessity in the ever-growing technological age that we are living in. As we endure the consequences of an economic crisis, all companies should be trying to cut costs while still providing quality service. Although the initial cost of an ERP program may be daunting, the long-term profit would most likely outweigh the short-term costs. Although one concern with the program is the excessive amount of time it takes to be implemented, the benefits are worth the wait: less errors, tailored customer service, and increase in overall knowledge of the market a company is in. Also, if the Dynamic AX system is introduced at a reasonable price, it eliminates the fear of spending too much on a system that may not show immediate results. It is great to see that Microsoft is making an effort to make the retail business more efficient.
ReplyDeleteBy Microsoft implementing an ERP system that not only provides more information to the company using it, but also making their overall production cost efficient, it seems that Dynamic AX is a win-win situation. The fact that the new ERP system will remain compatible with current Microsoft programs eliminates the fear companies may have for the transfer of the systems they may be using. Currently, mid-sized companies are struggling due to the economic downfall present. If there is a system that can perform multiple functions, increase information sharing and minus costs, who wouldn’t want to purchase the product? All of these pros provide one thing that every company desires: a happier customer. Since Microsoft has not released the price yet of this system, companies may be a little skeptical whether or not Dynamic AX is worth it. Going off Janine’s blog, the long-term effects of the implementation of Dynamic AX will outweigh the high cost in the beginning. Companies will be able to see results, both in the costs they saved and the revenues produced from happier consumers, which should be a main focus within their strategic business model.
ReplyDeleteThis article is very interesting, and a bold statement for Microsoft. As we discussed in class, IT sysyems, when implemented correctly, can have outstanding effects on the way a company function, building on both its top and bottom line. The issue that most businesses face, however, is making up the cost of implementing an expensive information system, and determining whether or not the investment is a good one for the company. Microsoft is clearly confident that this new program will not only pay for itself but improve the business practices and prfits of any corporation which chooses to implement it. Whil this is a bold claim, Microsoft does in fact seem to be able to back it up, and could have a profound effect on iformation technology.
ReplyDeleteThis system seems like it is a good addition to Microsoft's software lineup. One of the biggest cons of obtaining an ERP system is the purchasing and implementation costs, especially since software should be tailored for the company, and not the other way around. By cutting the cost of this purchasing and implementation, Microsoft has done something that other software companies havn't been able to: create an ERP system with more benefits than costs for small or medium sized businesses. My only concern would be that the system might not be specialized enough for the specific business that buys it. However, I believe this change could ultimately affect businesses in a positive way.
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