Companies implementing Microsoft dynamics 365 finance and operations and Microsoft dynamics 365 Supply Chain Management have often faced budget planning issues. Yes, it has various factors, mainly cost, benefit, flexibility, and risks.
To help organizations figure it out through a smooth process, Microsoft hired Forrester.
Forrester has created a Total Economic ImpactTM (TEI) approach for the users.
The framework aims to pinpoint the cost, benefit, flexibility, and risk aspects influencing investment choice. In order to assess the potential effects of Microsoft Dynamics 365 on an organization, Forrester used a multi-step process.
According to this study, people will have a framework to assess Dynamics 365’s possible financial consequences on their organizations.
Methodology
An approach designed expressly to help businesses with the challenges of purchasing technology solutions is the Forrester TEI study. The TEI research helps technology suppliers evaluate and communicate the value proposition of their technologies in an unbiased manner. In order to achieve these goals, the TEI research reported here offers a methodology for company decision-makers to evaluate the possible financial impact of putting dynamics 365 finance operations in place.
The composite firm used in this study is a retail and wholesale company. It has 50 retail sites, 100 wholesale clients, 2,000 employees, 120 members of the finance team, and a $750 million annual revenue.
Key challenges
Several issues were shared by the organizations present in an interview for the TEI study, including:
- Large-scale solution customization
- Lacks financial procedures that are standardized.
- Reliance on traditional knowledge and manual processes.
- Absence of immediate visibility.
Finally, these difficulties led the composite company to seek out and invest in a solution that could:
- Provide standard basic financial and accounting processes.
- Give financial teams real-time visibility.
- It allows the organization to scale in response to current business needs.
Key findings
By deploying Dynamics 365 Finance, businesses can overcome the constraints of prior, highly customized ERP software. Financial experts have no obligation to conduct physically demanding duties as a result.
The Forrester report highlighted the three areas of quantitative impact that were highlighted by the IT department’s increased productivity, the finance team’s increased productivity, and cost savings from legacy charges. Some of the highlights are mentioned below:
- Up to a 55% increase in the productivity of the finance team. This translates into three years' worth of averted hiring for the composite organization and productivity savings of around $2.3 million.
- By using an easier-to-maintain financial ERP solution that offers more functionality with fewer adaptations to create and support, standardizing on Dynamics 365 Finance enables the firm to save IT administrator and developer staff hours.
- Dynamics 365 substantially impacts the organization's regulatory compliance procedures as it manages the regional expansion and fluctuating regulatory requirements.
- For initial (installation) and ongoing support of the Dynamics 365 Finance deployment, the composite organization has designated 12 IT and business personnel.
Finance staff productivity improvements
Interviewees noted how legacy ERP actively restricted the business processes by necessitating manual report production and distribution prior to the implementation of Dynamics 365 Finance. This meant that once reports were distributed, the information was frequently outdated, which meant that not only did financial procedures need more manpower to support them.
The firms were able to standardize and get automated financial processes across all of their sites by implementing Dynamics 365 Finance. At the same time, finance teams could repurpose some team members to support higher-value work. And avoid adding additional staff through external hiring by utilizing real-time information and automation.
The present value of the productivity gains in the finance team over the next three years was $2.30 million.
IT staff productivity improvements
As firms transitioned from old, on-premises ERP solutions to the cloud-based ERP architecture of Dynamics 365 Finance, there were parallel increases in the productivity of the IT team.
The composite organization significantly decreased IT administrator and development hours by standardizing Dynamics 365 Finance by implementing a solution that offered more capability with fewer changes and was easier to support overall.
The three-year productivity gains for the IT team were worth $402,870 in present value.
Get in Touch
If you are also on your way to implementing Dynamics 365 Finance and the supply chain of Dynamics finance, you must get through the key challenges and findings. Looking at the different Microsoft dynamics 365 finance and operations modules, consultancy might still be the need for an hour.
DHRP is here to lend a hand to fulfill your need for expert guidance. Just reach out to the representatives, and we will happily guide you on ERP per your business needs.
