Subsidiaries and branches of large businesses tend to have different needs than their parent companies, and therefore it can be an advantage for them to work with different business systems. The data in their systems, however, must be capable of integrating with that of the parent company for the organization to function as a whole. The Dynamics NAV "hub and spoke" concept is a way to do so efficiently.
On these pages, you see why the "hub and spoke concept" is an effective model for companies that need to integrate their business-management software between the parent company and smaller divisions of the company, and how this approach can help larger companies work more efficiently with subsidiaries or branch offices.
The hub and spoke concept refers to a parent or holding company that uses one business software system (the hub), which is integrated with the systems used by its individual subsidiaries or divisions (the spokes).
This concept is a metaphor, which uses the image of a wheel with a core component (the hub) and many subcomponents (the spokes). Together, the hub and spokes form a whole that can progress forward as one unit.
Similarly, in the world of business management software, the IT system of the parent company (hub), must work together with the systems of its subsidiaries (spokes) to reach its destination, or business goals.
Subsidiaries or divisions tend to have very different needs than the parent company, and therefore need different systems. Dynamics NAV is a standard solution that still has enough flexibility to meet the varied needs of local subsidiaries or divisions, regardless to their size, location, or type of business.
Subsidiaries typically do not need the same level of complexity in their system as the parent company. Furthermore, they may not have the resources necessary to acquire and maintain a system that was designed for a larger company. Dynamics NAV is an excellent choice for subsidiaries because it was designed for small to midsize businesses. It has a low total cost of ownership because it is relatively inexpensive to acquire, and easy to use and maintain.
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