4.1 Introduction
Microsoft's Axapta is an ERP system designed for MNEs. It has
been chosen to be evaluated in this study because of its ability to integrate
the value chain in any organisation. In this chapter, the literature review of
Axapta as a case study will be discussed and analysed according to its
background, its generic modules and architecture in order to build a
theoretical framework. In chapter 6 the software attributes will be compared
with the theory behind the ERP concept debated in chapter 3. This will also be
brought into perspective with the different value chain models assessed in
chapter 2. The information on Axapta software has been extracted from
Microsoft's Green Paper on the topic (Axapta Microsoft solution software base
study: available online).
4.2 The background of Axapta
Axapta is a highly respected accounting system and ERP
solution, which was originally brought to the United States from Europe by IBM
in 1996. Brother's Damgaard in Copenhagen, Denmark first created Axapta in
1983. The company claims that from the start, Axapta wanted to create an
international product that was integrated, scalable and flexible in order to
develop a software package for all markets and platforms. It was Damgaard's
vision to build a platform that could evolve with technology and market
demands. Written completely in Java, Axapta is designed to be a complete ERP
solution that includes advanced distribution, process and discrete
manufacturing, built-in CRM capabilities and outstanding customisation.
It is important to note that IBM's motivation behind teaming
up with a successful software application was primarily for marketing leverage.
Most people would not attend a seminar on hardware, databases, or
infrastructure and IBM had a long-standing history of using various software
applications to attract prospects. This is a marketing strategy that works well
for IBM, but the point is that IBM's primary focus was never on Axapta. After
the IBM/Axapta relationship played out in 2000, Axapta (Damgaard Software)
merged with their long-time Danish rival Navision Software.
In 2001 the company made many enhancements including:
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· Rebranding «Navision Financial» as
«Navision Attain» and «Damgaard Axapta» as «Navision
Axapta»;
· Integrating the e-commerce applications, commerce
gateway, commerce portal into both products;
· Introducing user portal and browser-based access to both
products;
· Introducing supply chain collaboration functionality,
manufacturing and distribution capabilities, and new financial management
functionality; and
· Receiving the designed for Microsoft XP logo.
In 2002 Microsoft acquired Navision Axapta and Navision Attain
(Axapta Microsoft base study: available online).
4.3 The analysis of the Axapta solution
system
The analysis of Axapta will be conducted through the factors
below, in order to assess its architecture and configuration. This will reveal
if the software has capabilities to integrate MNEs' value chains.
· Axapta programming language
The Axapta kernel is developed in C++ and the object-oriented
nature of this language is carried on through the application that is written
using the Axapta development tools and source code written in X++ (which is a
Java-derivative with embedded SQL support). According to Navision Axapta, X++
uses object-oriented programming principles such as encapsulation, inheritance,
classes, objects, methods and properties. The language has Java-like syntax and
incorporates SQL data manipulation statements.
The development environment in Axapta is called MorphX. The
architecture behind the Axapta product was built on the concept that it could
evolve with technology and market demands. The initial release of Axapta was in
1998, followed by the release of version 2.0 in 1999. This version introduced
the Axapta object server that made the product a true three-tier offering and a
COM interface to Microsoft products. In 2000 Axapta 2.1 introduced the first
Web applications for Axapta. The current release of Axapta is version 2.5,
which was released in 2001. It introduced new
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modules in the application, more Web applications, and the
commerce gateway that provides an (XML) interface to Microsoft BizTalk
server.
Database - Axapta runs on either the Microsoft
SQL server or the Oracle database.
Source code - Axapta's MorphX development
environment is available to everyone. All resellers are trained in the MorphX
language and in customising Axapta.
· Axapta's database performance
For top performance, Axapta complies fully with Microsoft SQL
server and Oracle standards. Maintenance is simple because it can use the
standard tools of each database. Switching between databases is also easy.
4.4 Axapta supports the entire business
operation
Axapta solution can support the entire business. Selections
can be made from the comprehensive functionality that spans manufacturing,
distribution, supply chain management, project management, financial
management, CRM, human resource management and business analysis. The business
processes can be extended to the Internet with all functionality that can be
stored in one source. In addition, it is easy to connect and collaborate with
the customers, partners, employees and trading community. It does not matter
whether the company is operating in one location, multisite or doing business
across borders. The flexibility and ease of use mean that the organisation's
management team can run the business the way they want and expand quickly.
· Axapta connects everyone
Any customer, vendor, partner, or employee can connect with
Axapta, whether it is via the Web, Windows, WAP, wireless, VAN, LAN, XML, or
COM. They get live access to the data and functionality they need to perform
their role by desktop, laptop, and palmtop or cell phone. No additional
software or hardware is needed. Axapta software has built-in Web applications.
Customers can view product catalogue, get price and delivery quotations and
submit and track orders. Vendors can track orders, view documents and diagrams,
enter prices and change contact information. Employees can maintain contact
details, qualifications, absences, view appraisals and development plans.
Projects can submit time reports and sale representatives can view customer
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records, give quotations, submit orders, change prices, track
current orders and backorder lines.
· Axapta solution and communication with other ERP
systems
Without any additional software or hardware, Axapta software
can exchange information with any other ERP system in a company's IT
infrastructures, such as that of a parent company or subsidiary. Company users
can thus complete tasks such as financial reporting quickly and accurately.
When combined with Microsoft BizTalk server, Axapta can exchange documents with
any company, whatever their system.
4.5 The selected key features of Axapta Microsoft
solution software The features of Axapta Microsoft solution software
are its:
· Speed - Axapta is an extremely fast
product.
· Scaling up - In a recent benchmarking
test, Oracle and Compaq showed that with an average response time of 0.08
seconds, Axapta supports 3 600 simultaneous users processing 315 000 sales
order lines per hour relating to the three-tier architecture.
· Low cost - Even though Axapta has the
power and functionality of a Tier 1 ERP product, it is priced very
reasonably.
· Customisation - Axapta is highly
customisable. It provides a unique feature in which newly created customised
fields are assigned to a category. With this assignment, the newly created
fields then show up throughout the Axapta product on the appropriate user
screens.
· Multiple databases - Axapta can be
deployed on either the Microsoft SQL server or Oracle databases. This
translates to high-end scalability.
· Worldwide features - Each implementation
of Axapta includes all features from around the world.
· All-in-one product - The whole Axapta
product has been developed in-house and written with the Axapta tools. Many
other products have been pieced together when the vendors purchase third-party
add-on products.
· High reseller standards - Historically,
and under Navision's control, Axapta resellers were held to high standards,
which included extensive training and testing requirements.
· Foreign language and foreign currency -
Because Axapta is deployed in so many countries,
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the product has developed excellent multicurrency and foreign
language capabilities. It can work in 37 languages.
· Built-in remote access - With most
high-end accounting software systems, remote solutions such asCitrix or
Terminal Services are required to provide remote access. This is not the case
with Axapta because it has its own built-in remote capabilities, which are
included in the price of the product.
· Questionnaires - Axapta's CRM
solution includes a wizard that makes it relatively easy to create
questionnaires that may be scheduled days, weeks, months or years in advance.
At the appointed time, Axapta sends the questionnaires out to the designated
recipients, and upon return, Axapta automatically computes the results and
compiles a detailed report showing the number of questionnaires sent, number of
responses and analysis of responses.
Axapta Microsoft has a few selected key features within its
package (as summarised in table 4.1 below).
Table 4.1: The selected key features of Axapta Microsoft
solution
Source: Adapted from Axapta Microsoft software base study:
available online.
4.6 The generic modules of Axapta Microsoft
solution
The Axapta software solution offers the full breadth and
functionality equivalent to other high-end products. A complete listing of
Axapta's modules is provided below:
· Financial management - Comprehensive
accounting, financial reporting and analysis. 81
· Business analysis - Helps an
organisation to create, view and understand multidimensional reports.
· Object server - Technology that
minimises bandwidth requirements and offers secure client deployment.
· Tools - These allow almost every aspect
of Axapta to be tailored, including user screens, reports, statements, tables
and fields.
· Commerce gateway - Supply chain
solution.
· Enterprise portal framework -
Workflow is made smoother by allowing employees, customers, vendors and other
business partners to interact directly with an organisation's ERP system.
· HR balanced scorecard - Business
performance can be monitored based on key performance indicators.
· HR business process management -
Business processes can be developed and managed by identifying and monitoring
actions.
· Human resource management I - Helps
gather and structure employee information.
· Human resource management II - Automated
recruitment processes and employee absence analysis.
· Human resource management III -
Resources can be developed to meet strategic goals.
· Logistics - Purchasing, production,
customer demand, inventory and other key areas of other business can be
streamlined.
· Master planning - Product forecasts are
produced to project long-term needs for materials and capacity.
· Product builder - Web-based product
configuration, allows for configuration of complex products.
· Production - Production I: Handles
the material flow from suppliers, through production, to customers.
Organisations can plan and execute routes, operations and do rough capacity
planning. Includes operation management and detailed production scheduling.
· Shop floor control - Personnel and
production can be managed. Tasks, time and material are registered via bar
codes. Definitions of non-productive time are created and management can obtain
an overview of who is doing what, and when.
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· Trade - Automated sales and
purchasing, exchange sales and purchasing information electronically (in
combination with the commerce gateway module). System automatically calculates
tax and cheks inentory and customer credit information. Picking and receiving
documentation is automatically generated. Automatic tracking of back orders.
Automatic unit conversions.
· Warehouse management - Warehouses can
be managed according to individual needs. Warehouse layout is optimised to
increase efficiency. The warehouse can be divided into zones to accommodate
different storage needs. Warehouse locations can be specified on five levels:
warehouse, aisle, rack, shelf and bin. Helps the organisation to find the
optimal storage location.
· Project - Project I: Time, materials
and supplies consumption is entered, and projects and financial follow-up are
managed for shorter-term time and material projects and internal projects.
Project II: Advanced financial management for longer-term time and material
projects, internal project, and fixed-price projects.
· Marketing automation - Specific
audiences are targeted. Prospect information can be used to segment
organisation target audience into meaningful profiles. An organisation can add
and remove targets to meet its exact requirements and import address lists.
· Questionnaires - Online surveys, such
as customer or employee satisfaction, can be designed in a matter of minutes,
without any technical experience. Searches can be done for survey participants
in system by criteria, for example job title. Surveys and results are made
available via intranet or public website.
· Sales management - Individuals, teams
and the entire organisation can be managed and monitored. Sales targets for
individuals, teams and the company can be defined. The system tracks progress
of activities, including pending sales quotes and generate forecasts.
· Sales force automation - Contact
management can be streamlined. One centralised place provides a quick status of
customers, prospects, vendors and partners. The system automatically detects
incoming phone numbers and finds the contact card. Transaction log gives the
organisation an overview of who has been in contact with a prospect or customer
and what has been done. The system supports mail merge files and group
e-mails.
· Telemarketing - Telemarketing
campaigns can be managed. Call lists are generated by selecting fields, such as
sales district, revenue, relation types, segment and past sales behaviour. Call
lists can be distributed to salespeople and telemarketing staff. Questionnaires
and
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telemarketing scripts can be attached to call lists and call
logs can be used to check the status of calls and create reports and future
lists.
· Sales and marketing - Helps the
organisation to access relevant sales information and instant cost-benefit
analyses of revenue for executed campaigns. Gives the entire organisation
access to contact information. Forecasts based on anticipated sales can be
made.
4.7 Conclusion
The Axapta Microsoft software discussed in this chapter will be
compared with the literature review in chapters 2 and 3 in order to highlight
the qualitative outcome of this study in chapter 6.
The next chapter (5) deals with the research methodology used in
this study.
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