The aim of Enterprise Resource Planning (ERP)

Enterprise resource planning (ERP) is a collection of technologies that assist organizations in collecting and interpreting data that is stored and handled by database management systems that transfer information along to various divisions within the enterprise. In business organizations, the aim of ERP is simply to increase efficiency and overall business results.

Microsoft Dynamics AX was first introduced in the US market in 1998, and it includes features such as warehouse control, human resources, data setup, and sales and marketing (Dittrich, Vacouleur, & Giff, 2009). This system is recommended in the starting of businesses so as to help them grow by adjusting its processes used to link up organizations in various parts of the world or locations by simplifying the ease of access along the various business departments. There are only 3 user types for AX which are self-service user which stakes at $8 per month for budget activities and expenses, task user who deal with invoices on purchasing and sales which goes for $30 per user per month.

Microsoft Dynamics GP was developed and released in February 1993 in Fargo North Dakota it emphasis on inventory control, sales purchasing prospects and the manufacturing bit of the company. This system assists the enterprise in identifying new markets, providing business requirements and also managing the tasks and processes across the region. Nevertheless, GP has a number of costs which include implementation services, hardware and software licensing. The cost increases depending on the number of users and its functionality (Beheshti, 2010). For the starter pack it ranges up to $5,000 for three users, additional full users at $3,000 each, limited users $600 and for self-service at $60 only.

Microsoft Dynamics NAV was developed in 1984 in Denmark. Its functionality is to support warehouse management, distribution, manufacturing and sales and marketing services. In addition, the system assists the organization in the industrial business processes. The NAV programmers’ database also assist in making the administrators’ job effective and convenient. Subsequently, the NAV system has some add-ons so as to improve the performance of the business such as the horizontal, vertical and utility add-on solution. The horizontal part emphasizes on human resource and financial management. However, the vertical add-on supports in the industrial bit such as brewery (Vander, 2009). Utility add-ons enables resellers to make their job effective and convenient by making the program processes faster and at a cheap cost.NAV users incur various types of costs according to the license such as the starter cost which goes for about $5,000 while additional full users spend $3,000 each and for the additional limited users is $600.

Microsoft Dynamics SL which was originally known as Solomon IV developed in Findlay, Ohio by an independent accounting software company. This system enables enterprises to file new reports on projects that are analyzed by the departments on various business areas. It also provides audit requirements so as to enable contractors with relevant information to avoid mismanagement of funds on the many business projects. The system helps to reduce much of the inventory cost and improve customer services. The SL pricing is based on the type of license used for example companies expect to pay $2,250 per user and for light users they pay a couple of hundred dollars per named user.

Microsoft Dynamics CRM is an ERP type that helps in managing the customer relationship in the organization such as analyzing of data, responding to customer service demands and noting sales opportunities so that the organization may gain intelligence on the market. The system provides a platform where the organization interacts with its customers so as to get a feedback on their products and services. It basically helps customers to stick to one organization thus reducing competition thus the business does not fall behind. The enterprise license which best suits the CRM goes for $200 per user, per month which provides features on marketing and professional services.

Reflection

It can be seen from the above analysis that one has to understand the types of ERPs in the Microsoft dynamics that are suitable for an organization and if it will be cost effective for the business to run normally without any hindrances. The pricing strategy that Microsoft adopted with regards to these ERPs involved the identification of the different features that these ERP provided to organizations. The different types of ERPs have been used in organizations to foster development. These technological developments have greatly increased the growth of many enterprises within different locations by linking the business altogether and sending vital information to the organization headquarters. From helping organizations manage inventory, to enabling organizations to maintain their customer relationships, these ERPs have been instrumental in driving growth. Other advantages of the systems include management of supply chains and accounting. All in all, it can be concluded that as a result of using these Microsoft dynamics, small businesses have grown to be big companies since the various ERP systems come with knowledge on how to improve the organization.

References

Beheshti, M. H. (2010). Improving productivity and firm perfomance with enterprise resource planning. Enterprise information sytem , 445-472.

Dittrich, Y., Vacouleur, S., & Giff, S. (2009). ERP customization as software engineering:knowlegde sharing and cooperation.IEEE software,26 (6.) . IEEE software, (p. 26(6)).

Vander, H. (2009). ERP and business processess:illustrated with Microsoft Dynamics NAV. HOEVEN.