March 18-21, 2013New Orleans

#conv13

Running the Microsoft® Business on Microsoft Dynamics® AXMike Falkner, Principal Software ArchitectErik Ørum Hansen, Senior Development LeadMicrosoft

IDAX08

“When, where, and why” we use Microsoft Dynamics AX to support business processes at Microsoft

Agenda

Evaluating Microsoft Dynamics AX as an internal solutionProcess for implementation of Microsoft Dynamics AX at Microsoft

Connecting Microsoft Dynamics AX with SAP

Upgrade lessons learned as we moved to Microsoft Dynamics AX 2012

Microsoft RUNS its business on ERPEnables platform simplification, business agility and growthCultivates community of deep enterprise resource planning (ERP) talent and proactive engagement across enterprise

Showcases Microsoft technologies

SAPProvides prescriptive guidance on business, process, and technology

Two teams focused on ERP (Microsoft Dynamics and SAP) reporting to one manager

When, where, and why

•Faster delivery to keep pace with a volatile industry•Competitive total cost of implementation and support•Proven processes and out-of-the-box functionality•Surround SAP without duplicating functionality

When do we use Microsoft Dynamics AX?Business value

Enterprise showcases

•Show how others can benefit from the same business value•Apply real-world scenarios to drive improvements back into the product

Our internal implementations

MSExpenseExpense reporting

Microsoft Business Solutions (MBS) Order CentralInvoicing and collections, inventory, pricing

Microsoft Retail StoresHardware and software sales

Microsoft OperationsPuerto RicoMedia manufacturing

MSNAsset life cycle management

Microsoft Consulting Services *Professional services

Microsoft ITProject management

Xbox HardwareProject management

Microsoft SupplyChain ITProject management

Microsoft SAP

systemsCore ERP systems

* Still in planning stages

• Rapid implementation for a small subsidiary with time constraints• Tax savings if implemented quickly

Why we chose Microsoft Dynamics AXMicrosoft OperationsPuerto Rico

• Out-of-the-box solution to replace custom internal applications for budgeting and planning

• Same functionality as SAP and 25% cheaper to implementMicrosoft IT

• Out-of-the-box solution to fill functionality gap in existing customization MSN

• Rapid implementation • Showcase our products in the Microsoft Store

Microsoft retail stores

• Out-of-the-box solution to fulfill project accounting needs• Wanted disconnected solution

Microsoft Supply Chain

• Out-of-the-box solution to fulfill project accounting needs• Wanted disconnected solution

Xbox Hardware

• Out-of-the-box solution to replace a third-party solution and internal systems• Eliminate manual processing and redundant entry and showcase our products to

potential customers

Microsoft Consulting Services

• Out-of-the-box solution to replace custom internal application• Global solution with minimal overlap with SAP

Microsoft Expense

• Unique business requirements for channel partners and customers• Showcase Microsoft Dynamics AX using the MBS business

Microsoft Business Solutions Order Central

Microsoft Dynamics AX as an internal solution

Acceptable: Extensions• App properties• New elements• Extended classes

Not acceptable: Unnecessary alterations• Application

modifications• Changes to SYS

elements• Duplicated standard

functions

What’s acceptable?Assessment framework

• Adapt business process to fit standard

• Enhance product, if product timelines align

• IT develops, product group guides and adopts -OR-

• Identify third-party/ independent software vendor (ISV) solution

• IT customizes, product group guides

Steps to close gaps

Certified third-party

solution

Customizations

Minor customizatio

ns

Configuration

Out of the box

Nativ

e fu

nctio

nality

RisksC

ost a

nd tim

e to

marke

t

Upgra

de a

nd su

pport

com

ple

xity

• Single team focused on Microsoft Dynamics AX (Center of Excellence or COE)• Requests come to COE for analysis• COE collaborates with IT and business teams to assess fit/gap and high-level

effort• Once approved, COE can act in many roles

• Project owner and implementer• Design and implementation consultant• Infrastructure deployment and management

Governance

Solution assessment principlesChallenge custom

Every system is member of a single corporate system Use SAP core functions: General Ledger, Accounts PayableUse standard connection tools and methods to move data between systems

Synchronize data regularly and consistently

Use enterprise data warehouses for reporting

Solution delivery principlesCreate data once using well-defined rules for data mastering

Stay current

MSExpenseExpense reporting

Microsoft Business Solutions Order CentralInvoicing and collections, inventory, pricing

Microsoft retail storesHardware and software sales

Microsoft operationsPuerto RicoMedia manufacturing

MSNAsset life cycle management

Microsoft Consulting Services *Professional services

Microsoft ITProject management

Xbox hardwareProject management

Microsoft supplychain ITProject management

Microsoft SAP

systemsCore ERP systems

* Still in planning stages

Microsoft Dynamic

s AX 2012

Microsoft Dynamic

s AX 2012

Microsoft Dynamic

s AX 2009

Upgrade planned

Microsoft Dynamic

s AX 2009

Upgrade planned

Microsoft Dynamic

s AX 2012

Microsoft Dynamic

s AX 2012

Microsoft Dynamic

s AX 2012

Microsoft Dynamic

s AX 2012

Microsoft Dynamic

s AX 2012

Our evolving approachFocus on industry solutions and groups with adequate budgets

TodayHosted online business capabilities on a pay-per-use basis

Our aspiration

s

Constrained to the capacity of our specialist resources

Minimized customization

Our wins: stability encourages more adoption; our experiences help product group build for the enterprise

Our challenges: we turn business away if business can’t fund an implementation or our resources are limited

Microsoft Dynamics AX framework that understands enterprise integrations

What we’ll gain: Microsoft Dynamics AX becomes viable for all budgets; we encourage consistent processes across organizations

What we’ll need: ability to host and expose capabilities, internal willingness to snap to common processes

ImplementingMicrosoft Dynamics AX at Microsoft

Our teamsProgram

management

Development

TestBuild

Deploy

Locations:- Redmond- Vedbaek- Fargo- Hyderabad- Vendor

supported

• Obtain business requirements• Design features• Manage project and release

• Technical design• Create and test code

• Create test plans• Test the application

• Manage code check-ins• Compile the application

• Build environments (servers)• Install applications and interfaces

Partner with:•Product team•Support•Consulting

Developing the solutionsDevelopmen

tbox

Development branch Production

Development branch

Development branch

User acceptance

System integration

Development branch

Development

box

Development

box

Development

box

System integration

User acceptance

Full traceability from requirements to production using Visual Studio Team Foundation

End to end VSTF

Virtual machine per developer – onboard in < 1 hourAutomated builds, deployment, code mergesExtend instead of modify – more stable

Scalability

Centralized hosting 100% virtualized environments up to production

VirtualizeShared internal features in single modelAdded to project like an ISV product

Shared framewor

k

Use models for all environmentsDeploy model store into production

Model driven

Shared integration toolkitConnect to SAP via data warehouse

SAP

En

vir

on

men

tsS

tand

ard

s

Release schedulesQ1 (Feb)

Q2 (May)

Q3 (Aug)

Q4 (Nov)Q1

.1 (Mar)

Q1.2 (Apr)

Q2.1

(Jun)

Q2.2

(July)

Q3.1 (Sep)

Q3.2 (Oct)

Q4.1 (Dec)

Q4.2

(Jan)

Major release

Ensures that we will not upset the business cycle- Users are not trying to close the quarter- Time to repair issues before quarter end

Limited scope- Limited schema changes- Cleanup from quarterly release

Minor release

Support Program manage

ment

Development

TestBuild

Deploy

Partner with:

• Product Team• Support• Consulting

We have a support agreement and we log development issues through CustomerSource – just like our customers do

For developers

We belong to the Technical Adoption/Rapid Deployment programs (TAP/RDP) and agree to be early adopters (of course!!!)We agree to work through issues and help the product team deliver higher quality productsWe work closely with the MBS Solutions Architecture and Consulting teams toimplement their recommendations

Users log issues through a Tier 1 help alias that provides Tier 1 and Tier 2 user support, both through email and over the phone

For users

More senior team members offer Tier 3 support for technical and functional issues

Change request process in place for user requests for small enhancements

Connecting Microsoft Dynamics AX with SAP

Every system is member of a single corporate system Use SAP core functions: General Ledger, Accounts PayableUse standard integration tools and methods to move data between systems

Synchronize data regularly and consistently

Use enterprise data warehouses for reporting

Solution delivery principlesCreate data once using well-defined rules for data mastering

Connection pointsKey Processes in Microsoft

Dynamics AXConnection points Common SAP connections

Microsoft OperationsPuerto Rico

• Manufacturing, plan, forecasting• Order management• Inventory

• Purchase orders (SAP)• Packing slips (SAP)• General ledger entries (SAP)

Master data management• Chart of accounts• Exchange rates• Dimensions

• Cost centers• Internal Orders (Ios)• Profit centers• Trading partner

• Materials master• Sales geographies• Employees/vendors• Employee reporting

hierarchies

Transactions• Journal entries• Microsoft Sales (revenue)

Tools• Single integration framework

created to facilitate common approach to master data management for all instances

Microsoft IT • Project management, time reporting

• Budget/forecasting system

MSN • Procure to order• Fixed asset management

• Purchase orders (SAP)• Fixed assets (SAP)

Microsoft retail stores

• Point of sales, HQ management• Back office inventory

• POs, packing slips (SAP)• General ledger entries (SAP)• Warranty vendor• Sales orders (SAP)

Microsoft Supply Chain

• Project management

Xbox hardware • Project management

Microsoft Consulting Services

• Project management, time reporting

• Professional time and billing

• In process

MSExpense • Expense reporting and approval • Reimbursement credit card vendor, employees)

MBS Order Central • Customer/partner setup• Invoicing, credit, and collections• Product mastering, pricing • General ledger

• Print vendor• Fulfillment vendor

Standard connection framework

Microsoft data warehouse (Feedstore)

Financial dimensions

Exchange rates

Employees and positions

Reporting hierarchies

MicrosoftDynamics AX

SAP Databases

General Ledger Accounts

Upgrade lessons learned Microsoft DynamicsAX 2012

Upgrades - Preparation

Planning•Typical project plan for development, system integration, and user acceptance testing•Functional specifications for moving (or removing) customizations•Additional time for security design and testing•Added data validation test plans to ensure data correctness

Analysis•Architectural reviews to update infrastructure•Review business requirements to validate current process and take advantage of new Microsoft Dynamics AX processes• Identify custom features that are now in Microsoft Dynamics AX 2012 and remove them•Eliminate unnecessary reports•Modernize integrations between systems

Upgrades - Delivery Trial upgrade• Three cycles for code upgrade: initial merge and debug, update forms to the new UI, debug and fix bugs in testing•Allowed extra time because we were testing Microsoft Dynamics AX 2012 pre-releases•We tested two RCs (release candidates), RTM, CU1, and CU2 – released on CU2Optimized for Microsoft Dynamics AX 2012

•Completely redesigned security•Reengineered batch jobs and SQL Server Integration Server jobs•Rearranged UI for customizationsData upgrade and data validation

•Multiple cycles for data upgrade: •All iterations should be fully analyzed• Fix bugs and take that learning forward for following iterations•Repeat until you reach your weekend target

•Created a separate migration environment and use the State Transfer Tool• Initiated a separate project to validate data•Created a separate data server where data analysis could be run•Compared counts, amounts by company, by currency against the Microsoft Dynamics AX 4.0 data• Performed significant ad hoc testing of reference data

Functional testing• Full regression testing on the functional areas•Additional end-to-end tests during user acceptance testing to ensure that the data conversion worked

Task name (Iteration x)Start date

Time zone

Finish dateTime zone

By Time Previous

Microsoft Dynamics AX Upgrade Release Week Short Interval Schedule PreProcessing (Pre-Go Live) Restore production database into upgrade environment

12/1/2012 8:45 Central12/1/2012

9:00Central

Joe 0.25 0.25

Prepare production data for preprocessing 12/1/2012 9:00 Central

12/1/2012 10:15

CentralJoe/Sue 1.25 2.25

Perform preprocessing checklist12/1/2012

10:15Central

12/1/2012 10:45

CentralSue 0.50 0.50

Back up upgrade database12/1/2012

10:45Central

12/1/2012 11:00

CentralSue 0.25 0.25

Preprocessing12/1/2012

11:00Central

12/1/2012 21:00

CentralJoe/Sue 10.00 8.50

Remainder of preprocessing checklist12/1/2012

21:00Central

12/1/2012 21:15

CentralJoe 0.25 0.50

Back up upgrade database12/1/2012

21:15Central

12/1/2012 21:30

CentralJoe 0.25 0.25

        Total  12.75 12.50 Go Live Activities               Restore production database into upgrade environment

12/2/2011 8:30 Central12/2/2011

8:45Central

Joe 0.25 0.50 Prepare upgrade environment for state transfer tool

12/2/2011 8:45 Central12/2/2011

9:00Central

Sue 0.25 1.00

Create prerequisite data12/2/2011 9:00 Central

12/2/2011 9:15

CentralJoe/Sue 0.25 2.50

Run the state transfer tool (STT) to load shadow tables

12/2/2011 9:15 Central12/2/2011

9:30Central

Joe 0.25 0.25

Back up STT (single user processing) database12/2/2011 9:30 Central

12/2/2011 9:45

CentralJoe 0.25 0.25

Single user processing12/2/2011 9:45 Central

12/2/2011 10:45

CentralJoe 1.00 5.00

Back up STT database12/2/2011

10:45Central

12/2/2011 11:00

CentralJoe 0.25 0.25

Pre-sync/table creation for post processing12/2/2011

11:00Central

12/2/2011 12:15

CentralJoe/Sue 1.25 0.75

Back up STT (pre-sync) database12/2/2011

12:15Central

12/2/2011 12:30

CentralSue 0.25 0.25

Perform bulk copy of data / post processing12/2/2011

12:30Central

12/2/2011 13:45

CentralSue 1.25 12.25

Complete post processing checklist12/2/2011

13:45Central

12/2/2011 14:00

CentralSue 0.25 0.25

Back up new production database12/2/2011

14:00 Central12/2/2011

14:15Central

Sue 0.25 0.25

Run post processing repair scripts12/2/2011

14:15 Central12/2/2011

15:45 Central Sue 1.50 3.25

Back up new production database12/2/2011

15:45 Central12/2/2011

16:00 Central Joe 0.25 0.25

         Total 7.50 27.00

Note: These are not actual people or timings. Your timings may vary based on your installation!

Data upgrade checklist (sample data)

Functional area

Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5Comments

4.0 2012 4.0 2012 4.0 2012 4.0 2012 4.0 2012

Customers430 430 554 554 650 650 898 898 948 948

 No variance

Partners148 148 168 168 206 206 225 225 570 570

 No variance

Product mastering 957 957 2732 2732 3015 3015 3221 3221 3400 3400

 No variance

Invoices count

15353 15353 16212 16212 17318 17318 19001 19001 21002 21002

 No variance

Invoices value 9,122,222 9,122,222

12,727,771 12,727,771

19,473,738

19,473,738

28,375,021

28,375,021

34,107,440

34,107,440

 No variance

Credit and collections 908,585 908,585 933,946 933,946 511,931 511,931 264,372 264,372 190,149 190,149

 No variance

Finance GL balance

0 0 0 0 0 0 0 855.83 0 855.83

Difference for AUD 855.83

Bug# 1077123

Finance deferrals count

595,766 595,766 N/A N/A 1,021,577 1,021,577 1,892,952 1,892,952 2,045,804 2,045,804

 No variance

Finance deferrals value

324,030 324,030 N/A N/A 538,360 538,360 416,366 416,366 488,240 488,240

 No variance

Agreements21 21 23 23 58 58 58 58 58 58

 No variance Note: The success criteria for the above domains is 100% data match between Microsoft Dynamics AX 4.0 and Microsoft Dynamics AX 2012 (zero variance)

Microsoft Dynamics AX data validation (sample data)

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