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For businesses to thrive, it’s crucial to have seamlessly integrated finances and scalability. According to research, in 2021, the worldwide system integration market reached a valuation of $351.8 billion. It is estimated to grow remarkably, with projections indicating a substantial increase to $1838.6 billion by 2031. The sector is expected to maintain a compound annual growth rate (CAGR) of 18.1% from 2022 to 2031, underscoring its potential for significant expansion and development.
By centralizing financial data and enabling seamless integration with other business functions, ERP systems provide organizations with enhanced control, visibility, and efficiency in managing their financial operations. A great example of this is Dynamics 365 for Finance and Operations and Dynamics AX. However, with Microsoft terminating mainstream support for Dynamics AX as of 2023, businesses currently utilizing AX must contemplate upgrading their ERP systems to Dynamics 365.
Let’s dive into how Dynamics 365 Finance and Operations can help businesses grow, why upgrading from Dynamics AX is important and what the Dynamics 365 upgrade process is.
Understanding Dynamics 365 Finance and Operations
Dynamics 365 Finance and Operations brings essential capabilities to businesses, enhancing financial reporting, management, and process optimization.
It streamlines financial operations by providing accessible insights, automating processes, simplifying compliance, and supporting expansive localizations.
The solution empowers efficient financial decision-making through reliable customer payment predictions, intelligent budget proposals, and streamlined financial management for faster book closings.
It mitigates global financial complexities and risks by adapting to evolving regulations, meeting local and global business needs, reducing reliance on customizations, and expediting invoice delivery. Moreover, it ensures compliance with local tax regulations, minimizing non-compliance risks.
Ultimately, by working with a trusted partner that offers Microsoft Dynamics 365 Upgrade Services businesses can switch to Dynamics 365 Finance and Operations and leverage these smart capabilities.
Why upgrade to Dynamics 365 Finance and Operations from Dynamics AX?
In an era where cloud adoption is becoming prevalent, businesses that fail to embrace this shift risk being left behind.
With many versions of Dynamics AX no longer receiving Mainstream and Extended Support, organizations using these versions are deprived of access to new features, fixes for security and non-security issues, and the ability to receive personalized support from Microsoft.
This makes upgrading to Dynamics 365 Finance and Operations a smart alternative. Following is a complete analysis of why companies should upgrade AX to Dynamics 365:
- Deployment model
Dynamics AX was predominantly an on-premises solution, though a cloud deployment option (AX on Azure) existed. On the other hand, D365 F&O is a cloud-based solution hosted on Microsoft Azure, offering the advantages of scalability, accessibility, and continuous updates.
The shift to the cloud empowers organizations to leverage the benefits of a modern, agile, cost-effective platform while eliminating the need to manage on-premises infrastructure.
Dynamics AX was built on the MorphX development platform, utilizing the X++ programming language. In contrast, D365 F&O is built on the Common Data Service (CDS) platform, employing model-driven development.
This transition gives organizations greater flexibility, as they can now leverage the Power Platform tools, such as Power Apps and Power Automate, for customizations and workflow automation. The CDS platform also fosters seamless integration with other Microsoft products and services.
- User experience
Dynamics AX offered a traditional client-server architecture with a rich client interface. In contrast, D365 F&O provides a modern web-based interface, delivering a unified user experience across devices. Users can access the system through web browsers or dedicated mobile apps, enhancing their productivity and flexibility.
In addition, the intuitive and user-friendly interface of D365 F&O simplifies navigation, improves usability, and promotes user adoption.
- Updates and upgrades
Dynamics AX required manual upgrades, often resulting in additional time, resources, and potential disruptions for organizations. However, with D365 F&O being a cloud-based solution, Microsoft delivers continuous updates and enhancements seamlessly.
This eliminates manual upgrades, keeping the system up to date with the latest features, security patches, and regulatory compliance requirements. As a result, organizations can leverage the benefits of new functionalities, innovations, and industry best practices without incurring significant costs or interruptions.
- Integration and collaboration
Dynamics AX had limited integration capabilities with other Microsoft products, often necessitating custom development or third-party tools. In contrast, D365 F&O offers seamless integration with the broader Microsoft ecosystem, including Office 365, Power Platform, and Azure services.
This integration enables organizations to leverage additional functionalities, data analytics, and collaboration tools, enhancing productivity and decision-making. In addition, with unified data management and improved collaboration, teams can work more efficiently and share information seamlessly across departments.
- Analytics and AI
Dynamics AX provided basic reporting capabilities with limited AI functionality. In contrast, D365 F&O incorporates advanced analytics and reporting tools, including integration with Power BI for comprehensive data visualization.
The system also offers out-of-the-box AI features like predictive analytics, intelligent workflows, and fraud detection. These capabilities empower organizations to gain deeper insights into business performance, identify trends, and make data-driven decisions.
In addition, integrating AI technologies enhances automation, optimization, and efficiency across various processes, enabling organizations to stay ahead in today’s data-driven business landscape. As a result, a Microsoft Dynamics 365 upgrade can bring a lot of benefits to businesses and help them succeed.
Use cases of successful Dynamics 365 Upgrade for finance and operations
Some prominent examples of businesses that benefited from a successful Dynamics 365 upgrade for finance and operations include:
SJS International overcame challenges with limited financial visibility and disintegrated processes by upgrading to Dynamics 365 Finance and Operations. The solution provided real-time inventory visibility, streamlined operations across sales channels, and automated tasks, increasing employee productivity.
With accurate financial management, centralized pricing, and AI-driven reporting, SJS International could make informed business decisions, drive profitability, and optimize operations.
Leveraging Microsoft’s technology stack, including Azure and Power BI, the digital transformation delivered an end-to-end solution, resulting in optimized operations and improved financial management.
Hush Puppies implemented Microsoft Dynamics 365 Finance and Operations, aiming to efficiently sync inventory across their retail stores and e-commerce platform. The solution ensured 100% order fulfillment, provided financial visibility, and enhanced data security.
With Dynamics 365 F&O, Hush Puppies achieved an efficient inventory management system and gained end-to-end store-wise financial visibility. This enabled them to optimize operations, improve customer satisfaction, and position themselves for success in the post-COVID retail landscape.
Dynamics 365 upgrade process explained
The Dynamics 365 upgrade process involves several steps to ensure a smooth transition from an existing version to a newer version of Dynamics 365 for Finance and Operation. Here is a general overview of the upgrade process:
- Assess current environment: Evaluate the existing Dynamics 365 deployment, including customizations, integrations, and third-party applications. Identify any potential compatibility issues or dependencies that need to be addressed.
- Plan and prepare: Develop an upgrade plan that outlines the upgrade’s scope, timeline, and resource requirements. Create a backup of the existing Dynamics 365 environment to ensure data safety during the upgrade process.
- Perform compatibility checks: Verify that any customizations, extensions, and integrations are compatible with the target version of Dynamics 365. Update or replace any components that are not compatible.
- Test and validate: Set up a test environment to validate the upgrade process and ensure the system functions as expected. Test critical business processes, data integrity, and performance to identify and resolve issues.
- Execute the upgrade: This typically involves installing updates and applying necessary configuration changes to migrate data and settings to the new version.
- Validate and review: Perform thorough testing of the upgraded environment to validate that all functionalities work correctly. Address any issues or discrepancies identified during testing.
- User acceptance testing: Engage end-users in testing the upgraded system to ensure it meets their requirements and expectations. Gather feedback and address any usability concerns.
- Training and user adoption: Provide training and support to users on the new features and functionalities introduced in the upgraded version. Help users transition smoothly to the new system to maximize its benefits.
- Go live: Once all testing and user acceptance are complete, schedule the go-live date for the upgraded Dynamics 365 environment. Implement the necessary steps to migrate users and data to the new system.
- Post-upgrade support: Monitor the upgraded environment post-go-live to identify and address any post-upgrade issues or user queries. Provide ongoing support to ensure a successful transition and user satisfaction.
Seamless integration and scalability are important for business success. Upgrading to Microsoft Dynamics 365 Finance and Operations offers streamlined processes, enhanced collaboration, scalability, improved data accuracy, and integration with other Microsoft tools.
The upgrade process involves assessing, planning, testing, user adoption, and post-upgrade support. With Dynamics 365, businesses can optimize operations and achieve financial management excellence, driving sustainable growth.
However, it is important to note that the upgrade process can vary depending on the specific Dynamics 365 deployment, the version being upgraded from and to, and the complexity of the environment. Therefore, working with experienced consultants and a Microsoft Partner is recommended to ensure a successful upgrade.
So, streamline your financial operations and ensure seamless integration and scalability by contacting us at email@example.com and leveraging our Microsoft Dynamics 365 upgrade services to successfully upgrade to Dynamics 365 Finance and Operations.