How Oil and Gas Companies Can Benefit from Microsoft Dynamics AX
In this blog, I will provide you with a rundown of how Microsoft Dynamics AX can help oil and gas companies (or companies affected by low oil prices) looking to implement a more affordable and scalable ERP solution. I will also provide an overview of two Hitachi Solutions offerings that help further reduce the cost of installing and maintaining Microsoft Dynamics AX.
In my last blog, A Silver Lining to Low Oil Prices: A Chance to Reflect and Plan, I looked at the realities of low oil prices and the long-term opportunities that exist for companies trying to effectively weather the storm and come out on top.
Bad news is that 90 percent of oil companies surveyed by Ernst & Young don’t have a long-term strategy to stay afloat amid poor oil prices. The silver lining is that, if you’re one of those oil companies, you’re all in the same boat and because oil prices aren’t going anywhere you still have the opportunity to take a hard look at your expenses and create a long-term approach to control costs.
To summarize the findings discussed in my last post:
- The oil and gas industry has not been great at controlling costs.
- This downturn is an opportunity to look at expenditure and find operational efficiencies.
- Companies that are adequately prepared to handle the turmoil come out stronger.
- The vast majority of companies have no plan in place to withstand low oil prices.
- Long-term, structural change must take place because low prices aren’t going anywhere.
Okay, so what can be done to lower overall costs?
As an IT company specializing in Microsoft Dynamics AX and other Dynamics solutions, I’m not sure we could adequately tell you all the all the ways you can lower costs. However, I can tell you a few things about how our technology can help you.
Microsoft Dynamics AX: Dynamics AX is a cost-effective, scalable ERP with enough functionality for the big guys but at a price that won’t make the little guys pass out. Whether you are looking to automate a particular department within your business or replace your current mission critical business application, Hitachi Solutions can provide you with a flexible ERP that will scale to fit your business needs. In this video, energy services company Strike talks about their experience working with Hitachi and the benefits they’re seeing with Dynamics AX.
INSTANT//AX: Since budgets are indeed tight (and let’s face it, will be for a while), we’ve recently come out with a Dynamics AX implementation accelerator. INSTANT//AX provides a rapid cloud-based deployment of Dynamics AX that allows organizations to be up and running with a standard pre-configured and ready-to-go instance of Dynamics AX within four months – all with a low total cost of ownership. In fact, we recently deployed INSTANT//AX for manufacturing company Performance Controls Inc. at a cost of $210,000USD—under half of their original budget. Watch PCI’s video testimonial to learn how INSTANT//AX has dramatically improved their business.
LIVE//AX: If you already have Dynamics AX, but your implementation team is long gone and you want to get more out of your investment, LIVE//AX connects customers with a dedicated pool of Dynamics AX talent on a predictable monthly plan. There are three tiers of service: Bronze, Silver and Gold. At just $3,000USD per month, the Bronze Tier comes with a team of three consultants and 30 hours to help you with all your Dynamics AX needs (upgrades, maintenance, break/fixes, etc.). The three consultants are always your main point of contact; they get to know your business just like regular employees. Each tier up from Bronze increases the number of hours you are allotted each month. Prices are fixed, making system ownership a predictable operating expense. (Surprise surprise, we have a video that explains more about LIVE//AX!)
As an oil and gas company or a company affected by low oil prices, what are you doing to manage costs? If you have any suggestions, we’d love to hear from you!