Microsoft Dynamics 365 Blog Posts & Articles by DynaTech Systems

The Total Economic Impact of Dynamics 365 Finance - DynaTech Systems

Written by Payal Oza | Mar 6, 2023 3:51:15 PM

Dynamics 365 Finance harnesses the strength of Microsoft Cloud to accelerate global expansion, financial agility, and operational competence while safeguarding existing investments. Organizations may enhance business outcomes by leveraging real-time analytics and automating operations. Synchronization with other Microsoft applications allows secure access to company data inside processes. Organizations may avoid new recruits, decrease staff load, and update unconnected outdated ERP solutions.

Digital projects must drive change throughout the company model, including financial, operational, and organizational processes. Nonetheless, many enterprises resource planning (ERP) programs have fallen short of their promises to consolidate and link company operations. Legacy systems have been highly specialized in order to satisfy the demands of organizations and are difficult to upgrade or adapt in order to accommodate emerging digital business models. Financial, operations, and manufacturing executives are concerned that an interruption to their organization’s ERP system could destroy the business.

Today, we are witnessing the dawn of a new era of operational systems that are so dissimilar that referring to them as ERP systems no longer makes sense. To emphasize their agile, AI-based, and experience-driven characteristics, and the crucial role they play in digital business, Forrester refers to them as digital operations platforms (DOPs).

DynaTech Systems is delighted to share the findings of a recently commissioned Total Economic Impact™ (TEI) research done by Forrester Consulting on behalf of Microsoft in the context of DOPs. The research inspects the possible ROI (Return On Investment) that industries might accept by executing Microsoft Dynamics 365 for Finance.

Methodology and Purposes

Forrester’s Total Economic Impact research is a methodology premeditated to help industries navigate the complexity of attaining technological solutions. The TEI study also succors technology suppliers in objectively scrutinizing and assigning the value proposition of their technologies. To that objective, the TEI study presented here offers a procedure for company decision-makers to appraise the probable financial consequence of installing Dynamics 365 for Finance.

Forrester utilized a multistep strategy to measure the impact of Microsoft Dynamics 365 on a company.

  • Customer Interviews
  • Due Diligence
  • Composite Organization
  • Financial Model Framework
  • Case Study

Forrester Research interviewed five companies for the TEI research. Forrester Research also developed the TEI approach. The goal of this method is to assist businesses in making technology-related purchasing decisions.

The goal was to help technology vendors communicate the value proposition of their technologies. A TEI study’s purpose is to provide a framework for business decision-makers.

They may examine the financial effect of installing Dynamics 365 Supply Chain Management using the TEI methodology.

Key Features

Dynamics 365 Finance is a product-focused solution for the corporation. Users may also plan more successfully using Dynamics 365 Finance functionalities. It enables them to improve organizational agility and increase asset uptime, resulting in greater efficiency.

What features does Dynamics 365 have?

  • It integrates well with other Microsoft products, such as Office 365, allowing for seamless integration. It is straightforward to import client data from Dynamics CRM to Microsoft Excel, for example.
  • It uses a No-Code method since Microsoft Dynamics 365’s Power Apps allow you to quickly and efficiently construct bespoke apps. This business solution has undoubtedly improved the customization method.
  • It empowers your employees by providing free mobile solutions that operate across many devices and web browsers.
  • There is advanced business functionality as well as a scalable database architecture incorporated.

Crucial challenges

Several issues were shared by the organizations questioned for the TEI research, including:

  • Legacy solutions that are very high maintenance.
  • Significant solution customization.
  • Dearth of standardization in fiscal procedures.
  • Dependence on manual procedures and tribal knowledge.
  • Inadequate real-time visibility.

As a final point, these complications prompted the composite organization to seek out and capitalize in a solution that could:

  • Offer customary basic financial and accounting procedures.
  • Give finance teams real-time visibility.
  • Allow the company to scale in response to current business needs.

Crucial findings

Organizations may practice Dynamics 365 Finance to overcome the constraints of significantly customized legacy ERP solutions. In doing such, it gets rid of the burden of arduous and time-consuming operations from financial experts. At the same time, it provides businesses access to real-time data as well as platform agility that earlier solutions were short of, helping them to retain with the swiftness of digital commerce.

The Forrester research acknowledged three quantifiable effect areas: enhanced productivity of finance team members, improved productivity of IT staff, and legacy cost reduction. Let’s take a quick look at each of these findings to discover how Dynamics 365 Finance augments value to business economics.

1. Enhanced Productivity of finance team

Interviewees termed how, prior to setting up Dynamics 365 for Finance, legacy ERP vigorously limited the business by imposing manual report development as well as delivery. This indicated that not only did financial operations need additional personnel, but even once reports were delivered, the information was frequently obsolete. Furthermore, process standardization was very difficult because these firms used vastly varied procedures and systems based on area, location, and kind of site (retail, office, and more). 

By using Dynamics 365 Finance, the firms were able to consolidate and streamline financial procedures across many locations. Simultaneously, by utilizing real-time information as well as automation, finance teams were able to reconfigure some team members to support higher-value-added work while avoiding the need for external recruits. 

2. Improved productivity of IT staff 

Similarly, IT staff productivity increased as firms transitioned from old on-premises ERP solutions to the cloud-based ERP infrastructure of Dynamics 365 Finance. In majority of the cases, legacy systems had been placed for more than a decade, posing quite issues. Most notably, over time, the ERP solutions had become extensively customized, necessitating large personnel to operate and maintain functioning. This situation was made more difficult by the fact that team members with skill and understanding of the numerous adaptations have gone on to other jobs or companies. Further revisions were made extra complex and laborious owing to the absence of uniformity. 

By deploying a system that provided superior capability with less adaptations and was stress-free to accomplish overall, the composite company suggestively decreased IT administrator as well as development hours. 

3. Legacy cost reduction

Dynamics 365 Finance has enabled enterprises to save money by minimizing expenditures associated with their outdated solutions. The migration to Dynamics 365 Finance decreased infrastructure expenses, discontinued redundant solutions across geographies and lines of business, cut financial auditing charges, and lowered the cost to expand with demand by avoiding these legacy costs. 

Core benefits

Apart from the quantifiable benefits mentioned above, the firms probed for the TEI study learnt additional gains, such as:

  • Real-time visibility and data, accounting for informed decision-making as well as agility.
  • Enhanced regulatory compliance
  • Improved system availability
  • Connection to the Microsoft ecosystem
  • Better living quality for financial personnel

Summary

As we’ve seen, Forrester’s TEI research identified three key quantitative effect categories as well as many soft advantages.

To dig deeper about the outcomes and to better comprehend what Dynamics 365 Finance can accomplish for your company, connect with DynaTech Systems. Our professionals at DynaTech have a lot of experience dealing with varied business areas. So, if you’re worried about adopting the Dynamics 365 for Finance module, reach out to us!

We can assist you in calculating the economic effect of Microsoft Dynamics 365 Finance specifically for your firm. Contact us at sales@dynatechconsultancy.com to get started right now!

 
 
 
 
 
 
 
 
 
 
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