What Microsoft has done with Navision and Axapta

Dynamics NAV and Dynamics AX are two Enterprise Resource Planning (ERP) platforms from Microsoft that offer multiple features in the areas of supply chain management, financial reporting and business planning, HR and performance management, and key performance factors. Targeted industries include financial services, manufacturing, retail, the service industry, and the public sector.

Dynamics NAV (formerly Navision)

Originally named Navision and then branded as Microsoft Dynamics NAV, the Danish-built platform is an ERP tool designed specifically for small and mid-sized businesses. This platform enables customers to automate transactions such as ordering, shipping, invoicing, purchasing, and inventory management. In addition, Dynamics integrates well with CRM (customer relations management) systems and add-on financial modules. The name originated from the program's ability to quickly navigate to relevant data within an easy-to-use interface.

Microsoft has standardized database languages and user interfaces to better align the Dynamics offerings with other Microsoft products. Originally designed to support 300 concurrent users, NAV has been expanded to allow more than twice that in some cases. It is used in 140 countries globally, has over a million users, and remains a popular mid-market company (or similarly sized divisions of larger corporations) ERP solution. Originally, users had source code access and customizations were frequent. Now, Microsoft has incorporated many of these additional features into their base product. It is more of an out-of-the-box ERP than the Dynamics AX and requires less investment in hardware. Microsoft NAV continues to focus on distribution, job control, manufacturing, as well as CRM and other service areas.

NAV provides a user-friendly interface that compiles data for easy display. It is also a completely cloud-based product with web and mobile access. As a result, it is attractive for companies that use other cloud supported platforms like Microsoft 365. Microsoft recently retired the scheduling tool in Dynamics NAV as it was not robust enough to respond to users needs; this demonstrates their interest in refining products based upon user trends and feedback.

Dynamics AX (formerly Axapta)

AX (formerly called Axapta) was originally a Scandinavian ERP solution focused on complex manufacturing and distribution processes. With its sophisticated technical infrastructure, it is capable of supporting thousands of users and, thus, is aimed at larger organizations. The platform is robust and requires more customization than Microsoft's other ERP platforms. Implementation takes longer than NAV and it competes directly with other enterprise systems like SAP or Oracle. Microsoft AX requires full-time development resources and a sophisticated IT team.

AX is utilized with large projects but has a smaller number of installations than NAV. Functionally, AX works best with large data volumes, project management centered initiatives, the public sector, and manufacturing. Furthermore, it can support lean methodologies and process advanced manufacturing needs. Some of the challenges with Microsoft AX include supplying data summaries only on demand and the lack of a web or tablet client.

While Dynamics NAV boasts an incredibly user-friendly interface, Dynamics AX features enhanced functionalities to deal with large data volumes. The choice of system does not solely depend on the company size, but rather a combination of size, type of industry represented, complexity of processes, and the need for a user-friendly interface.