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Since Dynamics 365 and its range of cloud-native ERP and CRM products were released in 2016, there’s been a lot of buzz in the market. If you haven’t yet upgraded your legacy AX platform to Dynamics 365, here’s why you should.

Gain more control of your disparate ERP systems

ERP update benefits

Organisations that rely on on-premise Dynamics AX solutions typically struggle with a complex network of solutions. This disrupts supply chain management and impacts productivity.

To gain some of this efficiency back and improve infrastructure, organisations invest in additional solutions which end up making the network even more complex. It’s a vicious circle.

When you migrate to Dynamics 365, all these solutions are either consolidated or you will no longer need so many. For example, rather than needing to manage multiple spreadsheets (and versions) filled with customer data, you can use one CRM system that brings all this information together.

Productivity is boosted across the board

Leading on from our last point, consolidated data and systems means the productivity of your employees can be boosted across the board.

For example, users no longer need to perform menial tasks like searching for up-to-date information or data entry. Their time can now be reallocated to other important tasks - perhaps ones that you used to have to outsource (saving you money). This also improves user experience and employee satisfaction.

Infrastructure management is simplified

Why you should upgrade your systems

There are various limitations of on-premise systems and the associated physical infrastructure. To support business growth and change, organisations usually need to add more solutions on top of their existing ones to support everything.

And of course, additional solutions mean higher infrastructure, resource and personnel costs. It all adds up.

A migration to the cloud means your solutions can be consolidated in one place. Not only does this make it easier to manage your various solutions, but it also eradicates the need to maintain physical infrastructure. For example, you no longer need to invest in physical servers or pay for cooling and data security.

Improves the reliability of your infrastructure

As well as simplifying your infrastructure, moving to the cloud also improves its reliability. Hardware-related failures and downtime are no longer a concern or risk to mitigate.

Your business becomes more flexible

To futureproof your business, you need to ensure you’re equipped for sudden changes in demand. Anything could happen, from shifts in consumer preference to a pandemic. On-premise ERP solutions aren’t flexible enough to cope with these unforeseeable demand surges.

This usually leads to supply chain issues such as delays in goods/service availabilities and the inability to process order increases.

Thanks to its cloud-native nature, Dynamics 365 enables organisations to scale as and when. You can easily add more modules to your core ERP solution, such as Customer Engagement applications (Sales, Field Service, Customer Service etc), and not need to bother with physical hardware and setup costs.

Plus, there are AI-driven features that allow them to monitor emerging market trends so they can predict changes in demand.

Drive improvements across your supply chain

Business system migration benefits

Speaking of supply chains, Dynamics 365 has intuitive automation capabilities that enhance team productivity and drive efficiency improvements over your entire supply chain.

For example, you might require your employees to manage your warehouse for shipments. Dynamics 365 can automate this process, with advance ship notice notifications and invoices which are automatically reconciled and your vendors paid. Now you won’t need as many users assigned to the task.

Significant cost savings as a result of ERP consolidation

Thanks to Dynamics 365’s ability to integrate data from multiple sources/solutions, your business gains more visibility over your supply chain. It also strengthens your infrastructure without you needing to invest in physical equipment.

According to a Forrester report that analysed the Total Economic Impact (TEI) of a Dynamics AX to 365 migration, organisations can save:

  • Over £2.2m in on-premises licensing and support fees - support is included with Dynamics 365 subscriptions
  • £1m in on-premises infrastructure costs - there’s no need to invest in on-prem equipment
  • Over £2.8 in IT systems administrator labour costs - the need to maintain on-prem infrastructure is largely reduced or even eliminated and functional/technical updates are automated
  • £3.6m due to operational efficiency gains - supply chain visibility is boosted and once-siloed departments can now be managed centrally
  • £1.5m thanks to boosts in employee productivity - cross-team collaboration is now possible and Dynamics 365’s cloud nature means users can work from any location as long as they have a WiFi-enabled device

Dig deeper into these cost benefits in our visual guide below.

How much could you save by moving to the cloud?

Upgrading to a new business system is almost always a challenge…

There’s a lot to think about when it comes to ERP implementations. For example, is the rest of your business onboard with your idea, everyday users as well as your management team? Have you built your ideal implementation team (it shouldn’t just be made up of your senior leadership team)? Or will you be outsourcing the project?

To help you navigate these challenges, we’ve created a guide to ERP implementations. From a comparison of the pros and cons of keeping it in-house or outsourcing to choosing the right partner, check it out via the button below.

How do you choose an ERP implementation partner?

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