In advance of the eagerly awaited Microsoft Dynamics AX
version 4.0 release in 2006, Microsoft's Business Solutions group
has unveiled another addition to the extended Dynamics AX
enterprise software family. The company and its partners have
turned their attention to salesforce mobility, taking advantage of
new Exchange Server features.
The Dynamics Mobile Sales Assistant is further evidence that
Microsoft is gearing up to hit the market with a splash with its
Dynamics AX product in 2006-2007. Mobile Sales Assistant could
evolve to be attractive as a standard Windows-based mobility
alternative to hosted products from salesforce.com, SAP or
Oracle.
There is a trend emerging in Europe that could be set to
invigorate the enterprise applications market in the next two to
three years.
Every other day I seem to come across companies that have
resolved to evaluate Dynamics AX (formerly Axapta) as a potential
legacy enterprise resource planning replacement strategy or
regional (spoke) system under a large enterprise (hub)
deployment.
Dynamics AX is recognised for its architectural prowess. It is
structured well and is easily expanded. It is also receiving
enormous attention from Microsoft's research and development team,
so the functionality of the core product is maturing rapidly. It
should also take advantage of the upcoming enhancement to the
Windows environment.
European suppliers and service providers are also showing great
interest in the product. As an indicator, two-thirds of the service
providers in Russia count the product alongside SAP and Oracle in
terms of importance and potential to support their growth plans.
Some even position it as having greater potential. It is clearly
Microsoft's flagship application for medium to large businesses in
Europe.
The newest development, announced by Microsoft's Danish
headquarters, home of the Microsoft Dynamics AX development team,
is a salesforce mobility product. It is being piloted at Danish
snack manufacturer Kims.
Kims, coincidentally the same company that implemented
Microsoft's first radio frequency identification system, has
already seen benefits. It claims to be the first Danish company
with a 100% mobile salesforce, providing real-time point of sale
data in the field, including customer-related analytics to aid
cross-selling and account management.
The product has freed 15% of back-office order handling
resources, with projected 30 days per year savings in functions
such as printing, packaging and materials distribution.
It also means that the salesforce can be proactive, thanks to
push e-mail technology. This is available as part of Exchange
Server 2003, Service Pack 2.
Kims estimates that increased stock visibility will make it
easier for the salesforce to control the order process, which could
lead to a 50% reduction in lost goods. Staff will also be able to
alter and consolidate dynamically orders that are already being
packed, reducing delivery frequency and cost.
This is not the first of its kind on the market, but it does
have the potential to be far reaching. Microsoft is already
considering how the same Windows Mobile 5.0-based technology could
be used in areas such as field service, on the manufacturing shop
floor, or in a retail environment. It could be invaluable to a
salesperson wandering around a retail store and needing real-time
information about supplies, pricing, quality and promotions.
But the potential is even greater. Although Microsoft stresses
that the Mobile Sales Assistant has been developed to use its own
applications, other suppliers might not feel the same way.
Because the products are built independently of the back-office
system, other suppliers may see the opportunity to offer vertical
industry/process products over salesforce automation systems from
companies such as salesforce.com, SAP or Oracle.
The Mobile Sales Assistant is only Windows-based. Companies
requiring Blackberry support would need to look to firms such as
Vettro. In addition, this is only a pilot. Packaging it for the
various markets and technology partners will take time, so it is
unlikely that it will be available for another year.
It is not yet clear how it might complement or conflict with
activities across Microsoft or outside the Microsoft Dynamics
group. It is, however, further evidence of the mounting value
proposition being compiled by the Microsoft Dynamics team.
Development partners
Microsoft's Dynamic AX team developed its salesforce mobility
product in conjunction with a series of partners:
- Symbol developed a "sales executive-proof" handheld device,
specifically for pilot customer Kims. According to Microsoft, the
most common reason for PDAs being damaged is being run over by a
car. Apparently salespeople are prone to leave them on the roof of
their vehicle when they drive off.
- Handstep, small Danish developer, created the Windows-based
software system.
- TDC Mobil (Danish Telecom), worked on data transfer and
security encryption.
- Knudsen Consulting created firewall security enhancements.
- Tectura acted as an implementation partner.
Nigel Montgomery is director of European research at analyst
firm AMR