Dynamics AX and the Internet of Things: Offering New Business Opportunities

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In the era of the Internet of Things (IoT), organizations will have to adopt a bimodal IT strategy to address the complex issues related to ERP applications. ERP vendors have realized that older systems have to be revamped with changing business scenarios and technology headwinds to stay competitive. Research firm IDC estimates that by 2020, 40% of all data will be machine-generated, with 20 to 50 billion devices fueling that growth. The latest version of Dynamics AX, Dynamics 365 for Operations, takes into account the manifestation of interconnected devices through IoT and comes equipped with ancillary capabilities of cloud deployment and business intelligence.


IoT and Dynamics AX: rebuilding enterprise systems

The concept of a unified system to store and access information combines three of the latest tech offerings - cloud, analytics, and mobility. We are entering an era where devices, people, and enterprise software such as ERP and CRM will be intertwined with each other to analyze and interpret the data that they generate. With Azure IoT suite, you can use the cloud to create a comprehensive, customized, and scalable IoT solution that fits your business needs.

One of the key features that Dynamics AX has is the capability of analyzing chunks of information derived from multiple devices and translating them into data. IoT plays a pivotal role in the transformation of legacy ERP systems because of its ability to collect and relay information from multiple devices, which it also does in Dynamics AX.


IoT blends Dynamics AX within industries

Dynamics AX has been in use across industry verticals for a long time; but with the introduction of IoT, the lines of differentiation have blurred. IoT integrated with Dynamics AX allows users to gain total control of their business processes, even remotely, ensuring synchronous and smooth operations. This has resulted in the synthesis of AX systems used across industry verticals. Let’s take a look at this integration through some scenarios across verticals:

Manufacturing and Distribution:

  • Shop floor managers can track the working environment and decide on the precautionary measures that need to be addressed.
  • Information can be collected from sensors attached to machines and equipment on the shop floor and fed into AX to derive quantifiable and useful information.
  • A plant manager can synchronize supply chain process right from the site to the store shelf. This helps in maintaining optimal inventory levels while minimizing inventory holding costs.

Field Service:

  • A field technician can resolve problems before they affect the customer by using IoT to monitor and detect issues remotely at customer sites.


  • Transportation managers can monitor vehicular movement in real time and plan an optimal route for transportation of SKUs. This saves time and costs.
  • Warehouse managers can track the stock of inventory using RFID tags and feed them into their AX system. This again helps in determining the replenishment cycle without having to miss a sales order.
  • Retail vendors and customers can track the dispatched orders in real time. This helps in providing superior customer service resulting in higher customer satisfaction.

Professional Services:

  • A marketing agency can collect the sales data from multiple points of sale, and input them into AX to generate useful sales insights.
  • An engineering service provider can collect the necessary input data from the site without having to be physically present. This helps in reducing labor costs and the time spent in commuting.
  • A media company can earn their customer’s loyalty by selectively accessing critical tasks, analyzing, and taking timely action all through the combined power of IoT and AX.


Dynamics AX and IoT, a perfect match for digitization

More and more organizations have realized the need to leverage the strengths of both AX and IoT to build a single powerful business application. The trend is primarily driven by C-level executives who are seeking to make business decisions from the continuous flow of information derived from multiple devices.  IoT and Dynamics AX are a perfect fit in terms of user experience, handling of data, responsiveness through machine learning, and understanding customer behavior.

Dynamics 365 is the next generation of intelligent business applications. But what does that mean for your business? Read our blog post to learn how Dynamics 365 will transform the way you do business and why to make investment in it.

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