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Optimizing Dynamics AX Implementations

© 2013 Forrester Research, Inc. Reproduction Prohibited


058 IT services decision-makers Source: Forrsights Services Survey.Companies are gearing up for innovation and growth How much of an impact do you believe the following changes and initiatives will have on your firm's IT services spending over the next 12 months? Moderate impact The need to innovate and grow our business The need to lower our IT operational costs Senior business management's conservative approach to spending on large projects The increasing use of smartphones and tablets. more innovative vendors to help us implement new technologies Base: 1. infrastructure or business process asa-service offerings Business executives taking a more active role in the provisioning and decision-making for technology and IT services The need to grow/expand the business in new geographies and developing countries The increased reliance on predictive analytics to help inform better and timelier business decisions We are bringing in new. smaller. Q2 2012 Significant impact 50% 42% 31% 37% 34% 28% 21% 35% 37% 41% 34% 34% 38% 38% 24% 26% 30% 28% 17% 10% . as well as the apps on them Consolidation of business units or streamlining operations The increased use of software.

the IT spend “iceberg” 35% 65% .Make your spend count: spend on innovation and business value Spend on operation and maintenance vs. innovation Average performers -.

Step 1: Get current on your version of Dynamics AX › Technical upgrade to reduce maintenance and support costs › Functional upgrade to improve business value › Move away from extensive custom code – revaluate need for this and look to leverage a more vanilla Dynamics AX • Look to out-of-the-box best practices › Upgrade to a current version to be able to leverage new features and add-ons .

Step 2: Optimize Infrastructure and Maintenance Spend And Value › Consider instance consolidation if you are fragmented › Move to virtualized or cloud models to gain economies of scale › Centralize support and management functions .

look for lower cost labor pools › Evaluate productized IP and solution accelerators that can remove cost .Step 3: Evaluate your sourcing strategy › Evaluate whether an outsourced or managed services model would generate cost savings – and potentially business value › Cost savings can be on the order of 20% to 30% or higher › Look for outcome-based contracts – on better service but also on business value › Leverage the providers' economies of scales › Evaluate offshore or other low-cost delivery options --.

Plan now for future growth and needs © 2013 Forrester Research. Reproduction Prohibited 8 . Inc.

Inc.Major technology forces maximize and extend ERP value © 2013 Forrester Research. Reproduction Prohibited 9 .

SaaS alternatives drive agility and speed to value How important were the following benefits in your firm’s decision to use SaaS? 5 . 1=Not at all a factor) 39% 34% 29% 28% 35% 20% 24% 24% 17% 14% 11% 25% 23% 22% 28% 24% 23% 32% 35% 32% 25% 33% Improved business agility Allows us to focus resources on more important projects Speed of implementation and deployment Faster delivery of new features and functions from SaaS/as-a-service providers Lower overall costs Ability to substitute upfront costs with regular monthly payments To support a large number of mobile and remote users Lack of in-house IT staff to maintain a traditional software solution Gaining a feature or functionality that is not available in a traditional. Q4 2011 .Very important factor 4 (On an importance factor of 1-5. licensed software package Iterative deployment model supports a higher level of innovation within the business Having access to a wide ecosystem of solutions around the core SaaS application Base: 920 packaged application decision-makers Source: Forrsights Software Survey.

Inc.Maximize ERP value by extending to the cloud › Add-on technology areas that surround core ERP • HCM • CRM • Collaboration › Two-tier ERP with cloud-enabled ERP in divisions or regions • Faster time to value • Greater ongoing agility › Cloud-enabled technology for test/dev or pilots • Quick spin up of new solutions • Scale up / scale down for “spikey” workloads › Full ERP suite deployed in the cloud • Still a growing area – but more organizations moving in this direction • Software vendor solutions and partner.(ecosystem-) enabled © 2013 Forrester Research. Reproduction Prohibited 11 .

not expanding Expanding/ upgrading implementation Reporting Web analytics (e. analysis of Internet/web page traffic) Dashboards 21% 36% 27% 19% 15% 27% Performance analytics 15% 21% Embedded analytics (e..g. Q4 2012 .g.. CRM) 16% 19% OLAP (AKA 'slicing and dicing' analytics) 11% 16% Base: 1.Most firms have not yet implemented advanced analytics…yet What are your firm's plans to adopt the following business intelligence and analytics technologies? Implemented.631 software decision-makers from firms with 20 or more employees who are involved in packaged application software decision-making Source: Forrsights Software Survey. within ERP.

Q4 2012 . and decision-support tools and services Upgrade packaged applications to a newer release 45% 20% 46% 16% Increase deployment and use of technologies Use custom development for better business support and/or differentiation Invest in mobile applications for employees.444 software decision-makers Source: Forrsights Software Survey. or partners Increase the use of enterprise app stores to improve end user service and support Increase our use of open source 25% 46% 14% 37% 17% 39% 14% 6% 21% 5% Base: 2. analytics.BI Tops The List Of Software Priorities For The Next 12 Months Which of the following initiatives are likely to be your IT organization's top software technology priorities over the next 12 months? Increase our use of business intelligence. customers.

data-driven decisions › Analytics and BI can unlock the value – put information and recommendations into the purview of business stakeholders › ERP users seek KPIs and “best practices” from vendors and partners © 2013 Forrester Research. faster. Reproduction Prohibited 14 .Analytics unlock the value in ERP › Massive amounts of data collected but many firms are stuck at basic reporting / minimal analysis › Competitive and market dynamics compel firms to invest in better. Inc.

Reproduction Prohibited 15 . employees. inventory › Real-time updates back into the ERP system • Rather than waiting for the daily / weekly updates from ERP users › Real-time alerts inform ERP mobile users of new developments • Change in customer status • Cancellations or reroutes of appointments • Manager approvals › Mobility solutions from software vendors and partners • Industry-specific • Cross-platform. support for multiple devices © 2013 Forrester Research.Mobility extends ERP to real-time data and decisions › “On the go” access to data – customers. Inc.

Reproduction Prohibited . Inc.Best practices to maximize value from ERP and ERP services partners © 2009 Forrester Research.

Domain) • Relationship • Cultural Fit • Innovation • Results • Execution • Case Studies Cost • Innovative pricing models (skin in the game) • Pre-built solutions / accelerators • Solution models • Contractual flexibility Market Presence • • • • Revenues Growth FTEs Partners .Forrester's Criteria For Vendor Selection Capabilities • Competency • Strategy • Technology • Methodology • People • Specialization (Industry.

Pre-built solutions speed time to value 20% to 30% • Time and cost savings by using pre-built solutions and accelerators • Encapsulated industry best practices .

LOB.Clients seek embedded KPIs and benchmarks to drive business value • Data proliferation creates new challenges for clients to drive value out of sourcing information • Embedded KPIs and benchmarks can provide new insight by industry. or category • ERP program managers can give business stakeholders greater value – more strategic business alignment • Move from reactive to predictive -identify new opportunities for value with the business .

and annual meetings Detailed escalation paths Named executives and RACIs 3.Critical Internal Factors For Success 1. Change management • • • Detailed organizational readiness assessment Focus on change management throughout the organization Champions as well as drivers . quarterly. Strong governance – internal and with partners • • • Daily. from start to finish 2. Executive buy-in and sponsorship • Senior and clearly defined sponsors who can evangelize and drive the change and secure funding.

tools. • Look for industry and application knowledge relative to your specific business needs.Recommendations • Examine accelerators. • Look for providers that will bring their own best practices rather than work with you to develop procedures. • Look for client references with similar needs/goals – and make sure to interview them . and templates that speed time-todeployment and reduce implementation cost and risk.

com .Thank you Liz Herbert +1 617 613 6011 eherbert@forrester.

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