Microsoft Dynamics AX

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Microsoft Dynamics AX has been the spine of enterprise resource planning (ERP) for a swath of companies and industries for over a decade, but AX has met its limitations: It’s no longer able to meet the demands of contemporary business. So, what is Microsoft Dynamics AX and why has it become Dynamics 365?.

Good news: AX’s replacement, Microsoft Dynamics 365, has been recognized as an industry leader.


What Is Microsoft Dynamics AX?

Microsoft AX originated as a product called IBM Axapta, launched in 1998. It was a collaboration between IBM and Damgaard Data. Microsoft later acquired Damgaard Data in 2002, gaining the rights to the product.

The first iteration of the Microsoft Dynamics AX ERP software came with the release of Dynamics AX 2012. It would see several iterations over the following years until it became part of the Microsoft 365 suite as Microsoft Dynamics 365 for Finance and Operations.

The legacy software featured a wide range of modules that helped companies handle certain business requirements like:

  • General ledger
  • Accounts receivable
  • Accounts payable
  • Customer relationship management
  • Inventory management
  • Production

Modules included both core features and extended features available on a per-license basis, making Microsoft Dynamics AX a versatile ERP solution.


Why Is Microsoft Dynamics AX Now Microsoft Dynamics 365?

After more than ten years of updates, Microsoft has chosen to discontinue all support for Microsoft Dynamics AX as of April 2022. Instead, they now focus their full efforts on the Microsoft Dynamics 365 cloud ERP solution.

Bringing the ERP solution under the Microsoft 365 suite enables greater access, scalability, and integration with other Microsoft 365 apps that companies can benefit from. This new solution enables businesses to manage finances, manufacturing, distribution, and other key business challenges more effectively.


What Can Dynamics 365 Do as a Business Software?

Microsoft Dynamics 365 includes a wide range of features, including those carrying over from Microsoft Dynamics AX and many additions. These features fall into a variety of modules.


Customer Insights

When in use, Dynamics AX proved to be a powerful tool in boosting customer satisfaction, by supporting logistics and getting products to customers faster. Dynamics AX also offered actionable insights to resolve product issues early—before customer problems could escalate.


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Customer Service

Omnichannel customer service tools let your company develop effective customer engagement through both self-service portals and using support agents.


Field Service

Manage resources, contracts, inventory, and more through IoT integration and other tools that help reduce operational costs.


Finance and Operations

All of your core tools for operations and financial management, including reporting, analytics, planning, scheduling, supply chain, inventory, and more.



Direct integration with Dynamics CRM and other solutions lets you implement the most effective marketing campaigns and obtain the business intelligence you need to make decisions.


Project Service Automation

A variety of automation tools enable streamlined project planning, time and cost management, project planning, and analytics.


Did you know…

Microsoft Dynamics 365 makes up 87.25% of the ERP share worldwide?

Microsoft Dynamics AX

Source: Statista



A dedicated retail module provides key tools for human resources, employee management, operational insights, and merchandise management.



Make the most of service and customer data, stay on top of productivity and performance metrics, and seamlessly integrate with Shopify and other major e-commerce platforms.



Connect directly to LinkedIn and other resources to facilitate hiring and outreach, along with tools for onboarding new employees and ongoing HR programs.


Dynamics AX

Source: Unsplash


When I Upgrade to 365 From Dynamics AX, Can I add RPA?

The built-in tools that come with Microsoft Dynamics 365 make it an incredibly versatile ERP solution. Many of those tools already use AI and other advanced tech to deliver better results. However, your company can use this platform better through RPA.

Robotic process automation (RPA) is a type of business process automation that uses bots to carry out repetitive tasks following a set list of rules. Repetitive tasks often include data entry and migration. RPA can prevent human error, reduce costs, deliver faster results, and let your human experts spend their time on more valuable work.

Under the hood, Dynamics 365 is optimized to allow custom RPA solutions to work seamlessly. The Power Automate feature enables effective synchronization and communication between apps in real-time, leading to a more effective eventual RPA solution.


Benefits of RPA With Microsoft Dynamics 365

A custom RPA implementation with Microsoft Dynamics 365 can greatly improve your existing business processes. The right partner can identify the key areas where your business processes would most benefit from RPA and create a solution.


Improve the Customer Experience

RPA can provide a better experience for your customers, making them more likely to come back next time. Automation in sales, customer service, and other areas can deliver faster responses without the need to increase your support staff.


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Ensure Seamless Interaction

RPA with Microsoft Dynamics 365 offers the unique advantage of seamless integration with other Microsoft 365 apps. This enables the smoothest possible interactions when reading or writing data between apps, along with making connectivity with 3rd party apps easier.


Making the Switch to Microsoft Dynamics 365

If you have an existing ERP solution in place, whether the Microsoft Dynamics AX legacy solution or other options, upgrading to Microsoft Dynamics 365 could be just what your company needs to reduce costs, improve efficiency, and reach new heights.

1Rivet can help you make the switch to Microsoft Dynamics 365 seamlessly. We also provide custom RPA implementation to maximize the impact of your business operations.

If you’re interested in finding out more about what Microsoft Dynamics 365 and RPA can do for your business, contact 1Rivet today for a free consultation with one of our experts.



Featured Photo Credit: Unsplash