What is the Microsoft Dynamics NAV concept for multi-site and international organizations (MIOs)?
The concept, previously called "hub and spoke," refers to a parent or holding company's ability to use one business software system that integrates with the systems used by its subsidiaries or divisions or branches (sites). In the world of business management software, the IT system of the parent company must work together with the site systems for the organization to reach its business goals. How can the concept help larger companies with many sites?
An organization's sites tend to have very different needs than the parent company, and therefore sometimes need a different system. First, they usually do not need the same level of system complexity as the parent company, and may not even have the resources to acquire and maintain a system that was designed for a larger company. Second, if they are located in different countries, they will need a business system that reflects their local legal requirements and local business practices. Finally, they may have specialized functions that they perform because of the nature of their industry (for example, manufacturing, distribution, etc.), their way of doing business, or the way that they do business with the parent company. How does Microsoft Dynamics NAV meet the varied needs of sites?
Microsoft Dynamics NAV is designed for small to midsize businesses. It is straightforward to adapt the standard functionality to meet the specific requirements of sites. It has multi-language capabilities, with more than 40 localized country versions. And an extensive network of qualified partners can help local sites with their IT needs. How can local sites adapt Microsoft Dynamics NAV to meet specific business needs?
Minor adaptations such as changing forms are easy to carry out in Microsoft Dynamics NAV. You can remove columns, and add and modify fields without having to manipulate code. Industry templates make it fast and easy for Microsoft partners to adapt the solution for divisions with similar functions, and you can find vertical industry solutions for more specific business needs from the extensive network of Microsoft partners. When would I use industry templates, and when would it be a good idea to look for a vertical solution from a Microsoft partner?
If you have a number of sites—for example, divisional sales offices with similar functions—you might want to apply one industry-specific template to all your sites. If, however, you need a solution for, say, the shoe manufacturing industry, then you might want to implement an industry-specific solution based on the Microsoft Dynamics NAV platform. How do I make sure that the modifications I make to my site's IT systems aren't lost when I upgrade to a newer version?
There is an upgrade methodology and an upgrade tool that provide a smooth transition to newer versions of Microsoft Dynamics NAV. The methodology and upgrade tool provide a framework that allows you to work with a familiar solution and still benefit from new releases. How can I efficiently consolidate the financial data of a parent company and sites?
In Microsoft Dynamics NAV, you can consolidate financial statements for a series of business units from a single database, other Microsoft Dynamics NAV databases, or other programs. You can transfer data from different accounting structures to your own. You can also ensure that financial statements in different currencies are consolidated trouble-free using the exchange rate functionality. Microsoft Dynamics NAV can also help you consolidate with Extensible Business Reporting Language (XBRL), an XML-based specification. XBRL uses accepted financial reporting standards and practices to export financial reports across all software and technologies, including the Internet. With XBRL, you enter information once, and the same information can then easily be produced as a printed financial statement, an HTML document for a Web site, a raw XML file, or in a specialized reporting format. Will Microsoft Dynamics NAV help me meet increasingly demanding international standards, such as Sarbanes-Oxley and International Accounting Standards (IAS) 2005?
A key to compliance with Sarbanes-Oxley and IAS 2005 is the presence of an extensive audit trail. Microsoft Dynamics NAV offers an extensive audit trail, including deep drill-down and broad drill-around capabilities. Will I be able to get monthly reports and answers to ad-hoc questions about my sites' businesses when they are running a different system from my parent company?
With the Business Analytics available in Microsoft Dynamics NAV, site employees can create OLAP cubes based on the data in their system. Business Analytics is integrated into Microsoft Dynamics NAV, giving you the full benefit of access to your stored data. A Data Transformation Services (DTS) package pulls data from Microsoft Dynamics NAV into SQL tables. From here, other DTS packages transform and structure these tables into multidimensional cubes processed in Microsoft SQL Server Analysis Services. Will site employees be able to get analytical insight into their own business operations?
Employees at your sites can quickly generate reports without extensive IT assistance. Because of the Microsoft SQL Server Analysis Services cubes, controllers at the parent company can access reports in Microsoft Office SharePoint Server 2007, Microsoft Office Excel, or other programs that they are familiar with and use every day. The result is clear visibility into your entire organization with fast and efficient reporting tools. How can sharing master data, such as vendor and price lists, help my business?
When data is maintained separately in different systems using different formats, it leads to data inconsistency. However, if the parent company shares master data across the entire organization, it reduces the time spent sending and reentering data manually, and increases opportunities for quantity discounts. Up-to-date and consistent customer data at every point of contact also helps increase customer satisfaction. How can Microsoft Dynamics NAV help parent companies and their sites share master data?
Microsoft tools for electronic exchange of data enable the entire organization to share master data. One such tool is XMLport, which is used to create XML documents. These documents can easily be sent to and read by multiple applications. For example, an XMLport can be created containing your product catalog and price list. This data can then be exchanged between a parent company that uses one enterprise management system and sites that use Microsoft Dynamics NAV. Rather than imposing burdensome requirements on sites that may have limited IT resources, both parties can rely on a straightforward and efficient means of exchanging data. If you need to exchange a large amount or more complex data with your sites, you can augment XMLports with an electronic data exchange solution based on Microsoft BizTalk Server and Commerce Gateway in Microsoft Dynamics NAV. Predefined document exchange criteria together with XMLports enables the application to handle XML documents faster. Are there any scenarios where my company might want to not only share but also to exchange data between the parent company and its sites?
Yes, there are a number of reasons why you might decide to share the responsibility for certain services with your sites. Your customers might deal with multiple sites but wish to receive only one invoice. Or, you may want to divide tasks between sites according to competencies, such as production or distribution capabilities. You might also want to centralize payroll or procurement for greater efficiency or to receive bulk discounts. What tools does Microsoft Dynamics NAV have for exchanging data between the parent company and its sites?
Depending on your organization's needs, either of the electronic exchange of data based on Microsoft BizTalk Server and Commerce Gateway or the Intercompany Postings module in Microsoft Dynamics NAV might be the right solution for you. You could use Microsoft Dynamics NAV with BizTalk Server and Commerce Gateway in Microsoft Dynamics NAV to map data between the parent company systems and its sites' systems, taking into account any difference in currencies. So, whether a purchase order was made via the parent company or locally at one of the sites, the experience would be the same for the user. If, however, the parent company and sites work on a closed network (such as a virtual private network), are controlled by the same legal entity, and do not need to map the data that originates in the sites' systems, then you could use the Intercompany Postings module in Microsoft Dynamics NAV. Intercompany Postings can help you create all the necessary documents (including sales and purchase documents and general ledger entries) for the entire workflow, for more than one company at a time. The integration between the parent company and the sites for sharing services can help you achieve an efficient workflow that reduces costs. What's more, sites may be more willing to adopt shared processes because you do not impose the corporate system on them. They will have the same user experience they are accustomed to in Microsoft Dynamics NAV. Can the sites interact among themselves as well as with the parent company?
Yes, Microsoft Dynamics NAV can be set up to treat interdivisional transactions as normal sales and purchase transactions between sites, supporting an integrated supply chain. Just as with the interactions between the parent company and its sites, the sites can interact among themselves using a BizTalk Server and Commerce Gateway solution to exchange data electronically or using Intercompany Postings, depending on their needs. If two sites need to carry out transactions among themselves, you simply set up a customer account for each of the relevant entities. Microsoft Dynamics NAV then treats them as it would any external customer and vendor. The transactions occur within Microsoft Dynamics NAV, and you save time by eliminating multiple data entry and the sending, receiving, and printing of paper documents at various sites. Can Microsoft Dynamics NAV help my parent company respond proactively to critical business events at sites?
It is possible to set up alerts using the Business Notification feature in Microsoft Dynamics NAV that will automatically generate e-mail messages to inform you of changes in critical business conditions at your various sites, divisions, or supply chain partners. For example, you could get a message warning you that a site delivering raw goods has had an unexpected delay. How can I learn more about using Microsoft Dynamics NAV for multi-site and international organizations? Read about the top seven benefits of Microsoft Dynamics NAV for MIOs.
Learn about the six common integration scenarios for MIOs.
Find out how MIOs are using Microsoft Dynamics NAV.
See what's involved in putting Microsoft Dynamics NAV in place for your company: How to buy.
Your local Microsoft partner can help you get started. Need help finding a Microsoft partner? Contact us.
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