Experts in finance, operations, and production all agreed that the failure of an ERP
system would have catastrophic results for a business. Before starting digital activities,
it was important to look at the company's financial, operational, and organisational structures.
A new era of computing has begun with the release of Microsoft's Dynamics 365 for Finance.
It uses the power of the Microsoft Cloud to help companies of all sizes improve their
global operations while keeping their current technology infrastructure safe.
Because of how important they are to digital business and how adaptable,
AI-powered, and experience-driven they are, the term "ERP" has been replaced
with the more futuristic "DOPs," or Digital Operational Platforms.
Why is the Research Important?
Forrester released the findings of a Total Economic Impact (TEI) study it had conducted
for Windows to determine whether or not businesses might get a return on investment
(ROI) by adopting Windows Dynamics 365. The study's findings are significant since
many businesses are seriously considering making the transition from on-premises
Enterprise Resource Planning (ERP) solutions to cloud-based apps. This analysis will
present the return on investment for a new ERP system. Finding the TEI is an important
part of research that helps convince executives and other important people that the
investment is worth it.
The choice to invest in Windows Dynamics 365 Finance by organisations was made
with consideration of elements such as cost, benefit, flexibility, and risk
factor, the same elements that could affect the overall economic impact.
The objective is to determine if the claim is reasonable.
How it was done
Four companies with real-world experience using Dynamics 365 Finance were
interviewed as the first step. Forrester then takes the information gleaned from
the interviews and the firms' histories and creates a composite organisation
and uses four fundamental elements of TEI in modelling the investment impact:
benefits, costs, flexibility, and risks.
For the purposes of this analysis, the composite organisation is a retail and
wholesale business with 50 retail locations, 100 wholesale customers, 2,000 workers,
120 finance team members, and annual sales of $750,000. million.
Why do businesses choose Dynamics 365 Finance?
All of the companies that took part in the TEI
study dealt with problems in their systems that were similar, such as:
1. Old ERP systems housed on-premises servers that required costly maintenance.
2. Customised solutions for specific needs
3. There is a dearth of standardised financial accounting as they follow
diverse methods and infrastructures based on factors like geography, industry, and size.
4. Depending on manual procedures
5. Exclusive insider information
6. There is an absence of real-time visibility of financial growth.
Companies were able to overcome the limitations of their old, individually
customised ERP systems by utilising Dynamics 365 Finance. In doing so,
it relieves the stress of work on finance professionals by doing away
with the necessity for time-consuming and arduous manual operations.
At the same time, it gives companies the tools they need to be creative and
productive in a competitive market by helping them make better decisions
based on real-time data analysis.
Areas of impact:
Productivity of the financial team
The use of Dynamics 365 Finance enabled the companies to centralise and
harmonise their financial branches across all geographies and industries.
Using real-time data and automation, finance departments were able to move
some employees to work on more strategic projects without having to hire
new people. Efficiency gains in the finance department are worth $2.30
million over three years.
IT personnel productivity
The composites saved a substantial amount of time and money by
adopting Dynamics 365 Finance as its primary accounting platform.
To achieve this, a more feature-rich, less-customizable, and generally
easier-to-maintain solution was implemented. This means that the organisation
was able to reduce the burden on its IT and developer employees. Over the
course of three years, the present value of increased productivity among
IT personnel was $402,870.
By replacing their antiquated ERP systems with cloud-based Dynamics 365 Finance,
the companies saved a fortune. The transition to Dynamics 365 Finance cuts down
on infrastructure costs , lowers the cost to scale with demand and eliminates
financial auditing fees. By eliminating these maintenance costs, the organisation
expects to save $3.52 million over the next three years.
Improvements in judgement and faster reaction times thanks to real-time
data and knowledge; improved adherence to accepted norms and improved
system dependability; through modularity, the Microsoft ecosystem can
adapt to change in the future, all resulting in satisfaction among
financial industry employees rising.
According to the findings of the analysis, migrating to Microsoft Dynamics
365 Finance is a smart strategic and financial move. By moving their financial
ERP to the cloud, these companies were able to review its role in the business,
leading to improved decision-making based on real-time data and the agility to
adapt to changing market conditions. Organizations saw greater productivity and
cost savings as a result of simplified processes and the elimination of unnecessary
infrastructure and solution expenditures.
Want to explore more about Dynamics 365 for Finance? Please connect with us now!