Dynamics AX
Dynamics AX is known primarily to address the complex needs of manufacturing and distribution companies.
Heavy ERP solution for large organizations
The advanced technology of Dynamics AX meant Initially, that the solution could be scaled to support thousands of users. This technology also integrated Microsoft's other ERP solutions, which means that Dynamics AX no longer differs at this area. Dynamics AX is a costly solution that primarily is aimed at large organizations. The powerful platform less a 'out of the box' solution than for example Dynamics NAV and therefore require significantly more resources both that the implement and operate than Microsoft's other ERP solutions. Most companies that use Dynamics AX usually have full-time staff development resources and a broad IT group has expertise in ERP and business analysis.
Microsoft tends to recommend Dynamics AX for companies with a large number of users, this has more to do with how big they assume your budget is, rather than the solution's suitability to your specific business. Therefore we do not recommend that the size of your business the key parameter in your evaluation when you determine which ERP solution is right for your business.
In many cases it will be much more beneficial for a wide range of companies to choose Dynamics NAV rather than Dynamics AX, since this solution is far less costly, but still meet the needs of most companies.
Compare the two ERP solutions Dynamics AX and Dynamics NAV
Microsoft Dynamics product line includes a number of different ERP solutions. Each of the individual solutions are designed for specific industries and applications. However, people have often trouble distinguishing between Dynamics NAV and Dynamics AX. So what's the difference really between the two ERP systems?
Fully integrated ERP functionalities
Both Microsoft Dynamics AX and Microsoft Dynamics NAV offers fully integrated ERP functionalities and has industry specific functionality. The two solutions can both handle multiple languages and currencies and is therefore able to handle both local and regional needs. Both systems also allows that you can develop integrated add-on solutions that complement the existing ERP functionalities and adapts the system to a specific industry or business area.
So how do you choose between Dynamics AX and Dynamics NAV?
Since the two systems support many of the same functionalities the fundamental difference is is not so much the functions they support, but rather the way they solve the tasks at. Therefore, a feature comparison does not reveal some glaring differences and it also does not make sense to compare Dynamics AX and Dynamics NAV on the number of users they can handle even though many, including Microsoft itself, have tried to differentiate the two solutions in this way. The determining factors that separates the two solutions apart is based on how well they complement the objectives and growth plans for the individual organization or business.
Enterprise vs medium size
Basically, Dynamics NAV is aimed at small and medium-sized enterprises with a certain degree of international presence. The solution includes powerful technology that small and medium-sized enterprises would not have the resources to buy, but allows them to compete with organizations that often surpasses their own size. As a company expands and an ERP system that is able to keep up with the organizational goals is a necessity Dynamics NAV comes into its own. The flexibility which makes the solution easy to customize and scale makes Dynamics NAV a really good choice for companies that plan to expand and grow the business.
Dynamics AX however, is designed for large enterprise organizations that has a broad international presence. For companies and organizations in that magnitude, it is important to be able to handle large deployments across national boundaries each of which work in their own language and having their own currency. Actually both Dynamics NAV and Dynamics AX is designed to be scaled and adapted to the needs of an expanding company, but Dynamics AX is better equipped to meet the challenges of projects of a larger scale.
However, we must not forget that AX is a lot more complicated solution than NAV. Therefore, a successful Dynamics AX project will be more complex to implement than a Dynamics NAV project, more time consuming and require much more decisions. Dynamics AX will also often require a greater degree of technical resources when the system is up and running than Dynamics NAV. For these reasons Dynamics AX is both an expensive ERP solution to implement and operate than Dynamics NAV, but also more suitable for established enterprise organizations.
Complexity and maintenance costs
Both Dynamics AX and Dynamics NAV is suitable to trade across borders, as they both support multiple languages and currencies. For enterprise companies in need of an ERP system which can handle global processes across multiple decentralized locations in different countries will Dynamics AX probably be the ideal solution. However, Dynamics NAV is more suitable for growing international companies with a less complicated corporate structure.
Conclusion
Although the two ERP solutions functionalities very much match each other Dynamics AX and Dynamics NAV is designed for different organizational types, structures and sizes. One system is therefore not better than the other, but is simply designed to match companies of similar size and complexity. Having to invest in an ERP system is for all companies a large and extremely important decision. Before making a decision on which ERP solution to choose, you should be aware of the company's objectives, strategies and structure.
Please contact Active Business Solutions, we can help you choose the Dynamics ERP solution that matches your company's current and especially future needs best.
Dynamics NAV and Dynamics AX has many aspects in common, but the difference between the two systems are significant. Therefore, it is particularly important that companies choose the right system.
A quick overview
We will always advise you to consult an expert to advise you on which of the two ERP systems that suit your business best, but the table below may help you to get a better understanding of the differences between the two ERP systems.
Basically, we can say that Dynamics AX is a heavy ERP solution targeted primarily to large global enterprise organizations, whereas Dynamics NAV are primarily developed with medium and large enterprises with a certain degree of international presence in mind.
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AX
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NAV
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Amount of customers
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Developed for large international organizations having organizational challenges with implementation across multiple locations | Used primarily in medium-sized companies wanting to benefit from the powerful technology that enables them to compete with larger organizations as the business expands |
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Global activities
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Supports centralized Master Data Management (MDM) and a range of services. Also allows management of various financial standards | Supports global companies but with a less complex organizational structure |
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Industry adaptation
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Microsoft Dynamics AX is specially designed to handle six specific industries: ∙ Service ∙ Manufacturing ∙ Distribution ∙ Finance ∙ Public ∙ Retail |
Flexible and highly adaptable ERP solution that can be adapted to all industries |
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Manufacturing features
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Designed and developed to be a complete solution for the majority of manufacturing companies | Integrated ERP solution designed for separate production. The solution performs various manufacturing processes and executive functions for manufacturing companies |
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Implementation
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Dynamics AX has a ton of features and therefore requires more decisions during the implementation process, resulting in longer implementation time and increasing implementation costs | The cost of implementation and maintenance of Dynamics NAV is compared to Dynamics AX moderate to low |
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Launching
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Today Dynamics AX can both be installed on your own servers or hosted for you | Dynamics NAV can both be installed on your own servers or hosted for you. NAV 2013 is also available in the cloud on Microsoft Azure |