Download - E-Business and ERP in One
The Paradigm Shift
The Internet is causing a paradigm shift, revolutionizing our
world and radically changing the ways in which we do busi-
ness. At Navision, we believe that all companies must enter
the brave new world of e-business – or perish. But since none
of us have ever been to this new world before, we are all
explorers mapping out new territory as we move forward.
This booklet presents the Navision perspective on this paradigm
shift and is designed to help you understand these changes and
better equip you to make the right decisions and choices as you
move forward.
As a supplier of ERP systems for mid-sized companies, the
needs and challenges facing this segment of the business
community are naturally our main focus.
Good reading!
Niels Bo Theilgaard
Corporate Product OfficerExecutive Vice President
2
11064 ERP_Brochure 09/07/01 14:40 Side 2
Contents
PART ONE: The Challenge of New Technologies
Why E-Business? Page 4
Lower Cost of Doing Business Page 4
Faster Time-to-Market Page 4
Better Customer Relations Page 5
The Next Wave Page 5
The Heart of the Matter Page 5
Fast Access Page 6
Moving into E-Business Page 6
Management Decision Page 6
Integration Is the Key Page 7
Supply Chain Management Page 7
PART TWO: Getting Started
Selecting the Right E-Business Solution Page 8
Integration Is Vital Page 8
ERP with an E-Business Add-on Page 9
Upgrading the E-Business Solution Page 9
The Need to Personalize Page 10
The Problem of Customization Page 11
PART THREE: E-Business and ERP in One
The Future-Safe E-Business Strategy Page 12
The Navision Advantage:
E-Business and ERP in One Page 12
Here and Now Benefits Page 13
How it Works Page 13
Some Relevant Details Page 13
Customization and Upgrades Page 13
Certified for Microsoft Windows 2000 Page 14
Navision Axapta: E-Business and ERP in One Page 14
In Conclusion Page 14
3
11064 ERP_Brochure 09/07/01 14:40 Side 3
The Challenge of New Technology
During the last few years, the changes brought about by the
Internet and the advent of stunning new technologies have
radically transformed the ways in which we do business. This
paradigm shift is driving companies not only to rethink their
organizational structures and business processes, but to
examine the Enterprise Resource Planning (ERP) systems
which are the living core of their business operations.
Why E-Business?
Why is everybody talking about e-business? What are the most
important reasons for expanding a company’s business into the
virtual realm of the Internet? The answer is simple – e-business
potentially translates into many short- and long-term benefits:
• Lower cost of doing business
• Faster time-to-market
• Better customer relations
In short: e-business translates into competitive advantage.
Lower Cost of Doing Business
Many companies investing in e-business experience high return
on their investments (ROI) with payback periods shorter than 12
months. These high ROIs stem from the reduced cost of con-
ducting business over the Internet. Automating administrative
tasks also results in fewer errors and less repetitive work, free-
ing resources to focus on more value-added activities.
Faster Time-to-Market
All industries around the world are facing increased competi-
tive pressures, with shorter market windows and product life
cycles. Bringing new products to market successfully requires
speed, optimal timing and effective communication processes,
with a seamless information flow to and from the distribution
channel and end-customers. The ability to react quickly to
changing market conditions is critical. In other words, the
capability to edit and change products, pricing and configura-
tions must be fast and flexible enough to deliver and maintain
a competitive edge.
Think about how long it takes for most companies to bring
new products to market and imagine what it would mean to be
able to reduce the gap between product readiness and the
sales revenues generated by that new product.
The ERP market faces a dramatic technology shift to
Internet-based applications.
With e-business, everyone works better and faster
because they have access to better and faster
information.
4
11064 ERP_Brochure 09/07/01 14:40 Side 4
Better Customer Relations
Customers are the business dimension that companies neglect
at their own peril. E-business provides the golden opportunity to
connect more closely with customers by providing them with the
services they need, such as up-to-date information on orders
and products around the clock. In addition, the ability to offer
online information on order history, product availability, price
calculations and delivery times enables customers to make
immediate buying decisions. In this way, costly waiting time is
avoided – and faster, more accurate order processing is ensured.
This translates into increased customer satisfaction and loyalty.
Of course, the really brilliant opportunity that e-business
offers is the ability to customize customer relationships (CRM)
by offering special services to individual customers. Everyone
knows it’s far more cost-efficient to keep present customers
happy and increase their business than it is to bring in new
customers.
The Next Wave
Business Community Integration is the name given by AMR to
the next wave of the e-business revolution – and it’s already
happening. In brief, Business Community Integration makes
the Internet a part of everyday business operations by moving
business processes online, connecting suppliers, partners and
customers. As this begins to happen, we see businesses on the
cutting edge of developments fast becoming even more inte-
grated across organizational lines. We also see the establish-
ment of virtual companies and the electronic inter-linking of
supply chains.
The Heart of the Matter
Despite all the changes in this fast-paced world of emerging
new technologies, ERP systems remain at the heart of the
matter. This is why ERP vendors will play a key role in future
developments. Quite simply, because they understand the
business processes which are at the core of every company’s
operations better than anyone else. Thus, they are in a unique
position to use their expertise to support the development of
Business Community Integration.
As the evolution proceeds, every company will discover one
crucial fact: before a company can take advantage of the great
opportunities offered by the virtual business world, the right
platform must exist. The real benefits of e-business and of
Business Community Integration will be achieved only when
company business solutions are based on a company’s core
ERP system. Ideally, this system should integrate seamlessly
all parts of the organization from purchasing to manufacturing,
logistics, service & support, order administration, sales & mar-
keting, human resources and finance.
To play the game, the right platform must exist.
5
11064 ERP_Brochure 09/07/01 14:40 Side 5
Fast Access
ERP software at its best provides a company with fast access
to high quality business information and ideally facilitates bet-
ter decision-making based on a professional analysis of this
information. It is vital to have a timely and correct picture of the
current business situation when it comes to exploiting new
business opportunities, opening doors to customers and sup-
pliers, and expanding a business beyond traditional organ-
izational boundaries.
Moving into E-Business
One of the biggest strategic decisions facing large and small
companies today is not if they should take the plunge into
e-business but how. This transition must take many factors
into account, such as:
• Existing business processes (so the move does not hamper
relationships with existing customers, dealers and suppliers)
• The infrastructure which already exists within the company
and represents major investments from the past
• The competitive landscape the company operates within,
including the company’s position and potential strategic
alliances made possible by the new business environment.
Management Decision
Entering the e-business arena is a strategic decision for execu-
tive management and not a decision for the IT department or
the sales and marketing department alone. This is because
the choices made when moving forward in e-business will be
a determining factor in the development of company business
opportunities in the future. Thus, investments made to execute
the new e-business strategy should strengthen competitiveness
and enable the company to take advantage of market opportu-
nities as the scope of the new e-business arena develops.
The shift to e-business tends to trigger a reevaluation
and redefinition of a company’s value proposition.
6
11064 ERP_Brochure 09/07/01 14:40 Side 6
Integration Is the Key
Since the implications of e-business are so far-reaching, the
decision to move forward should not be divorced from the rest
of the company’s business processes. In other words, the suc-
cessful move will not be isolated, but rather integrated into the
greater whole.
This is because a successful e-business solution does
many things. For instance, it facilitates the promise of accurate
deliveries, enables overnight order fulfillment and allows real-
time, self-service information. All of these require very tightly
integrated business systems. At the same time, no one wants to
invest in a solution which demands maintenance of redundant
databases, applications and business logic, separate develop-
ment tools, separate software platforms and so on.
Supply Chain Management
E-business is also drastically changing our models of customer
acquisition, procurement, pricing and customer satisfaction.
With e-business, all processes such as receiving and tracking
orders, purchasing, manufacturing, managing inventory and
servicing customers can be optimized. When these processes
are tightly integrated with a company’s full ERP system,
increased efficiency will deliver the full benefits of lower costs
and increased customer satisfaction.
So the question facing most companies is this: Is your
supply chain prepared to deal with the potential offered by
e-business? Can you deliver the speed your customers will be
expecting very soon?
Total connectivity is the end goal – to everyone,
everywhere.
7
11064 ERP_Brochure 09/07/01 14:40 Side 7
Getting Started
Selecting the Right E-Business Solution
Traditional ERP systems meet traditional business needs:
finance, trade, inventory, production, administration, etc. With
e-business being widely accepted as the “next step,” most
ERP vendors now offer e-business solutions. These solutions
can be built for a specific ERP system or they can be third
party solutions, which are packaged together with the original
ERP system.
When selecting an e-business solution, functionality is, of
course, important. The solution must meet your needs. Do you
want to serve customers, suppliers or employees via the
Internet? Most companies start with one of these areas and
then plan to add more in the future.
Developments are moving forward at such a fast pace
right now that the underlying technology is equally – if not
more – important than functionality. Why?
Because it is the basic technology of the system which will
enable companies to take advantage of what the very near
future will bring.
Since it is vitally important to understand the role of tech-
nology when making the decision to embark upon e-business,
let us take a brief look at some of the key points to consider.
Integration Is Vital
The risk of poor integration should not be underestimated.
When an ERP vendor adds e-business applications on top of
an existing ERP solution – by making “add-ons” in different
directions, there is a high risk that the applications are not
really integrated into the old system. As a result, the following
may ensue:
• A high degree of maintenance becomes necessary
• Redundant data develops
• More than one development tool must be used
• More than one database must be maintained
• A lack of flexibility develops
• A lack of adaptability is experienced.
All of the above will obviously increase the overall cost of
operating and maintaining the system.
Why does this happen? Typically because the new e-busi-
ness solutions often start at the customer level, for example,
with a Web shop, or by trading and selling goods via the
Internet. This can be implemented by an “add-on” such as
described above.
8
11064 ERP_Brochure 09/07/01 14:40 Side 8
ERP with an E-Business Add-on
In the scenario shown in the diagram, a separate database is
established when adding a separate e-business solution to the
ERP system. Since the Internet puts different requirements on
solutions running through a browser, the development tools
used to create the e-business solution are most often different
from the tools used to create the ERP system. This is where
problems begin. Suddenly the company has a setup, which
requires maintaining two separate systems, two different data-
bases, using two different development environments. In the
beginning this can work, but as the system increases in com-
plexity and new versions arrive or upgrades are required, all
changes must be coordinated in both databases and systems,
which can be quite a challenge to say the least.
Upgrading the E-Business Solution
Even though upgrading any software to a new version always
introduces the risk of some problems, it will certainly create
even more problems when changing to a completely different
system. This is why it is important to consider the upgrade
options that follow with a software system, be it ERP, e-business
or any other software.
Application maintenance and duplicate data lead to higher cost of ownership.
The diagram shows a traditional ERP system with a number of Windowsclients connecting to the database. The term “business logic” is used todescribe the rules and calculations contained within an application, whichis often placed on the client. In this scenario, this is usually referred toas two-tier client/server architecture.
The clients are so-called "fat" clients because the business logic isplaced with them. Examples of business logic include special customerdiscounts and trade agreements, conversion of measurements foritems in stock, or best inventory locations for incoming items.
Database
Windows clientswith Business logic
Synchronizing
e
Business logicWeb interface
Database
Browser clients
Traditional ERP System with an E-Business Add-on
9
11064 ERP_Brochure 09/07/01 14:40 Side 9
When an e-business solution is added on top of the ERP sys-
tem by the same software vendor, at least the synergy between
the two systems is ensured and there is only one vendor to
deal with. But when the ERP vendor has bought a third party
e-business solution and packaged it together with their own
ERP system, there are now two different systems working
together with only the vendor’s assurance that it will function
smoothly. In the most extreme or problematic scenario, the
ERP and e-business solutions come from two different soft-
ware vendors so the company must rely on consultants or its
own IT staff to integrate the two.
The Need to Personalize
Since the Web is a global phenomenon, internationalization is
an innate requirement of e-business solutions. Thus, most
companies are facing or will face diverse requests for trading
and transactions in different currencies with different date for-
mats and in different languages. Even though a large per-
centage of what’s on the Internet at present is in English,
many new users do not speak English. Add to this the fact that
today most users are accustomed to the new software norms
of screen and menu personalization, which makes this yet
another area to consider when defining Web site capabilities.
The future-safe ERP system and e-business solution will
be able to cope with these changing demands.
Version 3
Version 4
Version 5
STEP 1
e
Customer
preferences
personalization
STEP 2
Customization
e
+
STEP 3
Upgrade syncronization
e
+
+
The diagram below shows areas of concern that apply to all of the above-mentioned cases. Step 1: On the left-hand side is the ERP system. It comesout in version 3 with an e-business solution, e.g. a Web-shop for customers(first column on the right hand side). Step 2: At some point, the ERP systemneeds to be upgraded to version 4. Step 3: With version 4, the e-businesssolution probably also needs to be upgraded, and the vendor now introduces
a new e-business solution. With version 5, the scenario is the same: anupgrade of the ERP system and the two existing e-business solutions, and the introduction of another new e-business solution.
Complications in Upgrading an ERP System with Add-on E-Business Solutions
10
11064 ERP_Brochure 09/07/01 14:40 Side 10
The Problem of Customization
There are many very sound arguments for selecting a stan-
dard ERP package. However, this choice almost always
implies the need for at least some customization. When look-
ing at any e-business solution, the need for customization is
very likely to exist in varying degrees – and most companies
want their solutions to carry their own individual look.
Unfortunately, not all ERP systems support customization
well. So when selecting an e-business solution that is sepa-
rate from the core ERP system, this problem has the potential
to grow exponentially over time. Some things to consider:
• Are both the ERP system and the e-business solution cus-
tomizable?
• What development tools are needed to customize the two
applications? Are they the same or does customization require
two separate sets of tools – one for the ERP system and one
for the e-business solution?
• Especially in cases where ERP systems and e-business
solutions come from different vendors, how will future
upgrades affect customizations in either system?
• Can new e-business applications be added in the future?
• Will adding new applications mean starting again from
scratch and recoding the existing ERP business logic?
11
11064 ERP_Brochure 09/07/01 14:40 Side 11
E-Business and ERP in One
The Future-Safe E-Business Strategy
The bottom line is this: companies should only invest in an IT
system that supports their basic business model and future
strategy. Standardization, simplification of processes, adapt-
ability to changes in business processes, and scalability are
all key elements of a successful IT implementation strategy.
And when it comes to e-business, built-in Web functionality
should be a must.
The Advantage: E-Business & ERP in One
Navision Axapta™ provides the latest and best developments
in ERP systems because it was designed for Windows and the
Web right from the start. The secret behind the system is its
3-tier architecture, which means that Web functionality is fully
integrated into the solution. In other words, both Windows and
Web applications have their foundation in the same business
logic. As a result, with Navision Axapta, the costly and compli-
cated maneuvers mentioned in the previous sections are
avoided right from the start.
i
Business logic
Database
Browser clientsWindows clients
Navision Axapta’s three-tier architecture is the secret behind the sys-tem’s ability to integrate Web functionality into the ERP solution.
Key Characteristics of Navision Axapta include:• Three-tier architecture• One database• One source code• One toolbox• One application• Two interfaces: Windows and the Web
Designed for the Web
12
11064 ERP_Brochure 09/07/01 14:40 Side 12
Here and Now Benefits
Some of the most obvious benefits of Navision Axapta’s
e-business and ERP in one technology include:
• Lower costs
• Less maintenance
• No redundant data
• No redundant business logic
• Easy customization
• Easy to upgrade
• Greater flexibility
• Scalability
How it Works
MorphX™ Development Suite is the name of the Navision
Axapta toolbox. With it, companies can define and set up a
fully functional Web site quickly and easily. The Web client is
just another way to access the system. Navision Axapta con-
nects from Internet applications to the database through the
business logic in the system. This means there is no need to
develop the business logic over again, now or in the future.
A case in point: trade agreements are typically found not
as data in the database but as formulas to be calculated each
time a specific form is opened. With Navision Axapta, this type
of business logic from the backbone ERP system is automati-
cally included when developing front-end Web applications.
In short, with Navision Axapta, there’s nothing to stop con-
tinued growth.
Some Relevant Details
Since Navision Axapta was designed to meet the demands of
today’s business world, the system easily handles different cur-
rencies, date formats and languages. Language and currency
can be changed on the fly – chosen by users when logging on
to the Web site. This means that users of a site will be wel-
comed in their preferred language – with full access to their
order history whether entered via the Internet or using tradi-
tional means. Under the security setup, users can also verify
and correct their information (such as address and phone num-
bers) in the ERP system. This puts customers in charge of their
own data, which improves the data quality in the ERP system
and reduces the maintenance level for the company.
Customization and Upgrades
Because of Navision Axapta’s three-tier architecture, custo-
mizations to the ERP solution are also reflected in the “e” part
of the solution. Customizations can be made by a Navision
Solution Center – or by your own IT staff.
E-business and ERP in one translates into the com-
petitive solution.
13
11064 ERP_Brochure 09/07/01 14:40 Side 13
Even customizations that might need to be treated differently
in the two client interfaces are conducted efficiently since the
same set of tools is used for your ERP and e-customizations.
Due to the Navision Axapta component-based architec-
ture, upgrades to new versions are performed seamlessly.
Traditionally, customizations have caused many problems in
upgrade situations, but with Navision Axapta, the tailored
changes are carried along in the transition.
Since e-business is a completely integrated part of
Navision Axapta, synchronization is not an issue in upgrades
of the ERP and e-business solutions. This means tremendous
savings in resources and time, compared to the scenarios
described earlier.
Certified for Microsoft Windows 2000
Navision Axapta was the first ERP solution in the world to be
certified by Microsoft for Windows 2000. Windows 2000 has
already been deemed one of the most reliable, secure and
easy to use operating systems ever created. The certification
provides assurances to Navision Axapta users that the system
fully supports the Windows 2000 platform and leverages to the
maximum the new technologies introduced. Windows 2000 is
Microsoft’s platform for the Internet and with this the founda-
tion for “The Business Internet” is laid.
Navision Axapta: E-Business & ERP in One
To sum it all up: the technology and features offered by
Navision Axapta ensure your company has ERP and
e-business fully integrated. This delivers the basic freedom
every company is looking for: the ability to develop, change
and grow your systems as your strategic direction is clarified
and directed towards your future success.
In Conclusion
Without doubt, the ERP market in general is facing a dramat-
ic shift to Web-based applications. But the changes we are ex-
periencing at the moment are just the tip of the iceberg.
Market estimates indicate that Internet business between
14
11064 ERP_Brochure 09/07/01 14:40 Side 14
15
enterprises is already about 10 times as high as the business-
to-consumer trade. Some 31% of U.S. businesses are trading
over the Internet and that figure is expected to rise to more
than 90% during 2001. (Source: Goldman Sachs & Company.)
This dramatic shift means that the underlying technology,
design, and user interface of ERP systems must be adapted,
changed or redeveloped to support these new ways of doing
business in the marketplace. Navision Axapta is already there,
leading the way.
For Further Information
If you’d like to know more about Navision Axapta, schedule
a meeting, or see a demo, please check out our Web site:
www.navision.com
The paradigm shift is underway – and it is affecting
everyone.
15
11064 ERP_Brochure 09/07/01 14:40 Side 15
You Will Find
Navision Here
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Finland
France
Germany
Iceland
India
Italy
Lithuania
Norway
Poland
Portugal
Russia
Singapore
Slovenia
South Africa
Spain
Sweden
Switzerland
The Netherlands
USA
United Kingdom
W1-
AX
-A3B
R
Navision a/s is a leading global provider of cost-effective and adaptable
integrated business solutions that help companies in their quest to grow.
The company has 124,500 customers worldwide, a global network of
more than 2,000 partners, and 1,130 employees in 25 countries. The
Navision product line consists of Navision Axapta®, Navision Financials®/
Navision Attain™ and Navision XAL®. Navision a/s was created through
the merger of Navision Software a/s and Damgaard A/S in December 2000.
Its shares are listed on the Copenhagen Stock Exchange (CSE:NAVI).
The company is headquartered in Vedbaek, Denmark. You can learn more
about Navision a/s on the Internet at www.navision.com.
www.navision.com
Copyright © 2001 Navision a/s (NavisionDamgaard a/s),
CBR No. 76 24 72 18.
The trademarks referenced herein and marked with eitherTM or ® belong to Navision a/s (NavisionDamgaard a/s)
or Navision Development a/s.
Microsoft Windows 2000 is a trademark
of Microsoft Corporation. The names of
actual companies and products mentioned
herein may be the trademarks of their
respective owners.
No part of this document may be reproduced or transmitted
in any form or by any means, whole or in part without the
prior written permission of Navision a/s. Information in this
document is based on Navision Axapta version 2.5 and
subject to change without notice.
All rights are reserved.
11064 ERP_Brochure 09/07/01 14:40 Side 16