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Why will Microsoft not let me speak about Dynamics NAV at Convergence?

Today is the last day of Convergence 2007 EMEA in Copenhagen. And today is where I will be speaking about the Dynamics CRM implementation my company ISS is doing (session: CRM313 Thursday at 14:30). After 3 days of listening to several very borring customer cases, then I would think Microsoft should have asked me to be presenting the Dynamics NAV Core roll-out in ISS. Or maybe the one we made in my previous company GN Store Nord rolling out NAV to 15 countries. For years I have been working with these large international multi-site/multi-country implementations, and with very good results and many happy users.

But yesterday at the Multi-Site International session (NAV212 - Microsoft Dynamics NAV for Multi-site and International Organizations) I basically got my answer to why I would never be selected to present my customer case.

The first reason is that we both in my current and previous jobs have selected the "one database" strategy. That means that are implementing after a "one code in all countries" plan. Having all localizations in one database. Not that we are using the official country localizations and try to put all that into one database. That will basically never work, as most of the localizations done by local Microsoft offices are all done without coordinations with other countries. But we are creating exactly what we need for our company to apply to the local legal requirements and nothing more, whereas the official localizations by Microsoft have the target that they must support all type of businesses in the country. That that means that there are often create a lot of localizations that we do not need in our business.

But this is NOT Microsoft's strategy. Microsoft's official recommendation is that multi-site companies create a Core and then implement this core in separete database for each country. They actually claimed that the TCO (total cost of ownership) would be a lot higher by selecting the other approch. I can easily prove that this is NOT the case!

The other reason for why they would not want me to speak about Dynamics NAV is that Microsoft's official strategy is that all implementations should be done in cooperation with a Dynamics NAV Partner (VAR/NSC). Both in my previous job and my current we had the best intentions about working very close with a "lead partner". But in both cases this proved very quickly not to be possible. At least not if we still wanted to keep full in-house control of the project and costs (keep them low). What we experienced in both cases was that as soon as the initial project was done (Core development - and the majority of the project cost paid) it was very difficult to get the attention and resources we are requesting.

The only way I can get the resources I nedd is currently by using the body-shopping method, and getting individual resources from different partners (or freelancers). Also the issue about knowledge transfers has proven a very big issue, which we would have thought that the international partner we selected whould have had a lot more experience in. At least that was what they claimed when we signed the contract ("we have a proven international implementation model"). I don't know if it was the fact that we wanted to stay in control of everything and did want just to put everything to the partner that made the model not work or what it was!

At the same time I must say that our model of managing everything inhouse (have our own solution management) is not the right model for all multi-site implementation, as it does require that you have number of in-house resources with the experience in running this type of projects.

But clearly our project setup is very far from Microsoft's recommendation and strategy.

So all in all I do understand why they don't want me to present our project. Although all we can show is good results, low TCO and happy end users in many countries.


Posted 10-25-2007 10:23 by Erik P. Ernst

Comments

walter@kirz wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-25-2007 15:05

Hi Erik,

What do you expect? Microsoft's recommendation and stategy IS the only choice! ("Nothing else beside me.") Even if other companies and/or people can do better and can proof them wrong.

DenSter wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-25-2007 15:35

I've been involved in a 'one-database-for-multiple-countries' project (which is probably one of the projects that partner claimed the experience Erik), and we got absolutely no cooperation from Navision, which was not yet MS at that time. In fact the only contribution we got was "that will never work" and we had to solve all the problems ourselves. The single biggest reason why that project was such a success is because the customer took ownership of the implementation, they ran the show with our assistance.

We can argue about whether it is the right business model, but it is the one in place, and I understand completely why they would not support something like that. Even if they'd want to use a one-database model, the license would become very expensive, and they'd have to make all the "NTR's" happy. How will they divide profits?

The key here is that it's the customer who needs to take ownership, and with the partner model currently in place for NAV that is just not going to work.

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-25-2007 19:35

Yes the response we initially got when we said we would do this in my previous company was the exact same "that will never work". But they actually also claimed that we could not do it because if the license agreement. In fact I had to explain them how their license agreement said that I could do exactly what I wanted. It wasn't before their own legal department had confirmed me, that they believed me!

But you're also right that I have so far only seen this model work where the customer has taken ownership of their project. In my eyes it's not really because of the partner model is wrong, but that the partners are not mature enough for the biggest NAV customers.

In my previous job our NAV group was in fact bigger than any of the Danish NSC's (we had almost 50 certified NAV experts in the department - and no salespeople to mess it up! Wink). So what could a VAR/NSC actually help us with? Besides providing some extra hands - nothing!

Alex Chow wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-25-2007 21:00

But seriously though, there are not a lot of Erik P. Ernst in this world.

For your strategy to work, you need very good professionals with ample requests from the end users to keep them busy.

Microsoft's method is designed so it doesn't put too much strain on the customer and the partner that provides the service to them.

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-25-2007 22:03

Hehe, well just here in Denmark I know at least 4 other projects (which I have not been involved in!) who have done the exact same thing.

But you're right the method designed to make a rather easy project for the customer and partner. But I would anytime say that your TCO will be a lot lower with a one-code strategy, if your project is of a certain size.

Rashed wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-26-2007 19:40

In US we have NA version, which has all the requirements and some more for 3 counties.

I'm surprised why they don't consolidate countries in europe.

Countries that have very similar gov requirements should be all in one version.

This will lower the merging of different databases.

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-26-2007 20:04

They have actually done the same in Asia Pacific. The versions convering Thailand, Singapore, the Philippines, Australia and New Zealand actually all have all localizations in the same pack. It's basically only India who are on their own.

Dmitry Katson wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-27-2007 1:32

I was in this session and heared your question about localisations in one db. Microsoft gue didnt understand you. If ypu are talking about local implemations ypu should say customizations instead od localisations. And customizations should be equal in every db. Such words said men from microsoft in the retail session.

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-27-2007 11:41

Hi Dmitry,

It was not me. I didn't ask any questions in that session, because I did know the answers already.

But I don't really understand what you talk about regarding localizations vs. customizations. When I talk about localizations then I'm talking about changes to the NAV system to make the system live up to local legal requirements and also local business requirements. This is basically what the local Microsoft countries are doing in their country versions, but if you do a global one-database implementation, that's also what we do per country, if we are not using Microsoft's localizations (which in general we are NOT).

Customizations are (for us) all the changes we do cross-country (in our Core - COrporate REquirements). Changes that are made to support OUR BUSINESS and doesn't exists in the local or world wide versions.

Steven Malme wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-27-2007 18:36

Hi Erik,  

Your post is quite interesting to me and I would think that a discussion on this topic would be quite interesting in one of our upcoming Dynamics Partner Advisory Board meetings.  The approach that you have outlined is challenging for the majority of customers.  However, the gap that you have highlighted (multi-site, multinational deployments) and the need for capable customer / partner resources to address this issue is an obvious bridge that we need to build to do this work at scale.

Would this discussion be of interest to you?

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-28-2007 8:03

Hi Steven,

This is always a very interesting discussion and I have taken it quite a few times before, both with Microsoft and many of their Partners. I think that there is really not just "one answer" or one "right way" to the question about what methodology is the best. It all depends on the scope of the implementation and what team the customer is able to build, both internally and externally.

But please contact me if you want to discuss this topic further.

David Singleton wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-28-2007 8:59

Hi Steven,

Back in the old days when I was responsible for Localization of Navision though out Central and Eastern Europe, we developed one code base for all countries, and it was no problem at all.

But that was because it was just me driving this, so I would look and see if the "local legal requirement" was really a legal requirement or just laziness on the part of the local people to do their job.

From what I have seen of localized versions these days, is that there is no ONE person in Microsoft that is able to coordinate all the regional requirements. There is too much reliance on local people to set the rules. They just let countries go mad and put anything they want into the standard.

The ONLY local version of Navision I know of that was done properly was the NA version.

It would be far better for all concerned, if the product could be more consistent across countries. If nothing else, it would make for much faster product releases.

For those localizations that are used by less than 20% of implementations, those customizations should be released as an Add-On, and not as part of the local code.

And India should move either to W1 or NA, because what they have now is the major reason that sales and implementations in India are falling apart.

David Singleton wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-28-2007 11:59

One other thing, is that "back in the good ole days" most NTRs were actually independently owned companies. Those companies invested heavily in localization of the Navision product for their region. Since we were handling 7 or so countries, it made good economic sense to integrate the localizations. But it also meant it was possible for a client to buy in one country and us in another. Thus the NTRs wanted their protection, so they added a lot of garbage to their localizations, just so they could tell clients that they had to buy the local version for legal reasons, and that if you bought say the W1 version, then you would be sent to a siberian slat mine for 50 years as punishment by the local tax authorities.

Local authorities just need their reports, so that was all just BS to try to keep revenue int he country that did the localization.

But now its all just one company, so Microsoft even fromt he economical point of maintaining less versions need to see that a merged product is a good idea.

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-28-2007 12:01

I think you are very right. As I see it then Microsoft sure is on the right track. If we look at the Asian countries then they have made "one version" with all localizations integrated.

Niels Nybo Jensen wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-28-2007 17:47

All,

I presented the NAV 212 session Multi-site and International Organizations (MIO). I would like to take this opportunity to clarify some statements made here in this forum.

First, let me state that I have never been approached by Erik P. Ernst around his feedback to this topic nor around any opportunity for him to speak at any Convergence.

Second, we as Microsoft do understand the various deployment model for Microsoft Dynamics NAV supporting MIOs. As I stated in the presentation and as noted here in the forum, we have a recommended strategy and we do not recommend consolidating various localizations into one database. As I stated in the presentation, we know that some partners and customers have followed this approach.

Third, our global localization and development department are consolidating localizations where this makes sense. Still, we release the localizations in seperate databases as our strategy. This was also the case in the past.

You are welcome to contact me directly as I will not post on this forum.

Regards,

Niels

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-29-2007 10:59

Hi Niels,

I know you said you will not post on this forum (although I don't understand why - as it is now fully allowed for Microsoft employees to do this - as long as they state that they do work for MSFT - just talk to Ilana Smith in Vedbæk if you want to know more), but I will still answer your post here (and send it in a separete mail to you).

As I do understand and actually appriciate that MSFT do send out a clear message regarding their general recommendations, then what I'm just saying and objecting against is the message that we did get from Session NAV212, where you said that it was clear that any other method than the recommended would mean a higher TCO.

You are very right that a company should never try to consolidate the various official MSFT localizations into one database. That approch will not work, as they are very often in conflict with each other. The only real alternative is really to analyze each country and create the changes required by your company. And yes, for some industries it might show up that there are so many local requirements that the TCO will be higher, but so far it's my experience (based on four different large international implementations) that this is not the case very often.

I just think that MSFT should acknowledge that there are alternatives to the "one-country/one database" approach, which could be ok. That message is really just telling people who have done it that MSFT doesn't really know how to implement their own product succesful.

BlackTiger wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-30-2007 12:48

It will be a lot of fun to see "one DB to rule then all" version... :D

For instance, our latvian "localization" is just a bunch of bugfull unneeded hacks, nothing more...

but it's ok, we'll wait... next several years...

My hairs will became absolutely gray much sooner than new NAV will be released... Please put a CD with NAV installation onto me grave.

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 10-30-2007 16:25

That's exactly what I mean. A lot of these localizations are really "just a bunch of bugfull unneeded hacks" (to quote you). And that's why a company (like mine) rather easy can create their own "global version" which support all "the real stuff".

Ralph Hartendorp wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 11-01-2007 12:10

I raised this question at the Microsoft Convergence last week about Microsofts opinion about the centralisation of localisations in a truelly International Database. I still consider it is a good investment for them to select only the true legal localisations and combine them in one Database. Because we have also done it ourselves for UK, Germany, Sweden, Portugal, Spain,BeNeLux and Italy and we selected only 10% of all localisations to be crucial for the local adaptation.

Erik P. Ernst wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 11-01-2007 13:28

Ralph, that's a good method. The only issue is that even if you only select 10% of the localizations done, then they would still end up with conflicts..

Art27 wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 11-12-2007 16:00

Erik, Niels,

Interesting discussion.

I have been involved in several projects with a kernel development and international rol-out. And all with a different approach in how to handle the local requirements. For both ways there are pro's and contra's. At the moment I am assisting a company with 8 subsidiaries over the world. They have choosen Erik's model. But they made a mess off it. Not because the model is right or wrong, but because they didn't know what they are doing. And that's the most important thing when 'choosing' a model.

Personally I agree with David: it would be great if MS minimizes local functionality and merges several countries into 1 release, like in NA and Australasian.

And it shouldn't be too hard to do that. Different legal functionality could be triggered by a setup or license trigger. Maybe MS can make a start with it now 6.0 has been postponed?!

So Niels, I know you don't answer on the forum, but let me know if I can be of any help with this.

Regards,

Maarten

Ludo Van den Ende wrote re: Why will Microsoft not let me speak about Dynamics NAV at Convergence?
on 07-02-2008 23:15

Hi,

I was responsible for the localisation of the Belgian version in the "old days" (1997-2003). On the other hand I have been involved in several international projects as well: you get the questions mentioned here everytime. Personally I think making a mix (or the regional approach if you like) is the solution to go for.

Some countries require more localisations than others, that is true. To give an example for Europe: the finance area in NAV is oriented towards Anglosaksian bookkeeping (England, US, Australia, but also Denmark, ...). In this kind of bookkeeping system there is a lot of "freedom" so to speak. This is quite opposite to so called "Roman" bookkeeping (that starts with Belgium and down to the south of Europe: France, Italy, Spain). In this kind of bookkeepping system the left hand doesn't trust the right hand .. if you know what I mean. Hence a lot of extra controls must be build in..

Like David Singleton mentions: no one is on top of it. The process has been out of control (for several reasons, politics is just one of them).

That said, it obvious that there is the given situation today and it will be tough to get arround it.

One element of the orginal discussion is not mentioned: Dynamics AX. Dynamicx AX is THE reason for Microsoft to leave NAV like it is/was for several years. Microsoft does not want to mess up their Marketing. They don't want to make the gap between the two products smaller ... Thats why you, Erik, probably had no chance of explaining your case...

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