Microsoft Business Solutions turns to partners for industry-focused applications

Microsoft Business Solutions' (MBS) rebranding of its midmarket ERP offerings under the Dynamics label, coupled with its use of partners to develop industry-specific solutions on top of its software, is the latest attempt to create a clear strategy for marketing the collection of enterprise systems MBS has acquired in recent years.

In addition to an extensive list of applications integrated with other Dynamics offerings, MBS partners have developed solutions for process manufacturing—including food & beverage—industrial equipment manufacturing, and field-service management. All of these solutions, as well as a supply chain execution offering from Manhattan Associates, are tightly integrated with MBS' AX (formerly Axapta) ERP suite. (See box for a partial list of partners.)

The jury is still out on how successful this strategy will be at helping MBS garner more than its current 3 percent of the total ERP market, but some partners say they already are reaping benefits.

Junction Solutions, Lincolnshire, Ill., offers Dynamics AX-based solutions tailored to food & beverage manufacturing and multichannel retail operations. The company's revenue tripled last year, and Brian Carpizo, president, expects to duplicate the feat this year, making Junction Solutions one of the fastest-growing Dynamics AX partners in the U.S.

Its customers include $11-billion private-label brand manufacturer H.E.B. Grocery, Kerrville, Texas; Salt Lake City-based Mrs. Fields Famous Brands; and Philadelphia-based Frankford Candy. The company also opened Junction Solutions de Mexico in Mexico City, where it is selling a localized version of its solution for the Mexican market.

Not yet four years old, Junction Solutions has always been a Dynamics AX house and developed its vertical vision early. "The Navision acquisition [by Microsoft] was what got us to start the company," says Carpizo. "We started doing the vertical thing before Microsoft started this big push," he adds. "AX's layer technology made it a natural place for us to build solutions. It's built to enable partners to build on top of it."

The combination is what attracted Frankford Candy when its custom-built system could no longer keep up with the new processes required by its expansion into non-chocolate imported candies and the licensing of cartoon characters to appear on packaging. "We are a candy manufacturer, an importer, a licensor, and distributor. Dynamics AX gave us most of the functionality we needed and the technology platform to configure to our needs," says Frankford's VP of operations, Nathan Hoffman. Junction Solutions provided the industry expertise, he adds.

The combination works to Junction Solutions' advantage as well.

"We have a lot of smart people figuring things out in the food & beverage and retail markets. Our expertise isn't in general ledgers and cycle times. We rely on Microsoft to deliver the platform. The vertical strategy is the only one we have, and Dynamics AX is the only Microsoft product we're working with, so we are as pure-play as you can get."