When you are on the way to modernise your business by changing ERP, there are 2 ways in front of you. One, ERP Implementation. Second, ERP Migration. Now the question is which path is suitable for your business.
Well, implementation means installing a new system, while migration means moving from an existing platform. Now, what’s for you depends on the cost, risk involved, and compliance.
But how do you determine where ERP Implementation vs. ERP Migration fits into your strategy? Here’s your detailed ERP system upgrade guide.
Implementation vs. Migration: What’s the real difference?
- ERP Implementation: It means implementing a brand-new ERP with the latest integrations, features, and better data models.
- ERP Migration: Migration is different from implementation. It is about upgrading or updating your ERP. For example, when you switch from Dynamix AX to Dynamics 365, you are migrating from one system to another. You upgrade to the cloud to save core processes, data, and historical context. Often, it has easier continuity,
How to Make a More Suitable Choice in Australia
If you don’t want to get lost in the way, make the best decision for your organisation.
Here are some things to consider
- Choose Implementation when:
- After M&A, you're replacing a highly customised system or combining several ERPs.
- From the beginning, you want a clean "greenfield" D365 footprint with Copilot and contemporary analytics. The focus of Microsoft's latest release waves is on increased reporting and coverage, embedded AI, and dependability.
- Choose Migration when:
- You want continuity with a faster cloud landing, and your AX processes are largely sound.
- You require code uplift, structured data, and a phased risk profile backed by Microsoft's AIM assessment and migration services.
Benefits of Cloud (and why they matter):
Most often, the one thing that we neglect is the outcome we will get. We get too focused on the process or one idea of changing ERP that we skip what will benefit us the most.
- Dynamics 365 ERP cloud benefits you can count on:
- Faster feature cadence, reduced infrastructure overheads, and elastic scale (security and role management advancements landed in 2024).
- Copilot and embedded AI for analytics and productivity, along with close Power BI integration (release plans mention more than 80 out-of-the-box reports).
- Regional controls combined with worldwide coverage to satisfy Australian data sovereignty requirements.
Roadmap for Migration & Implementation of ERP
If you are doing it for the first time, here is your road map:
If you’re doing a fresh D365 Implementation
- Vision & Value Case: Specify three to five quantifiable goals (automate AP, decrease stockouts, and close more quickly).
- Fit-to-Standard Design: Give configuration precedence over custom code; start with Copilot and Power Platform extensibility in mind. The focus of current release waves is on usability and reliability.
- Data & Integration: Plan for near-real-time integration using Dataverse and APIs; model master data early.
- Security & Compliance: Use audit capabilities and least-privilege roles; keep up with features that enhance license optimisation and role governance.
- Change & Training: Invest in UAT and enablement sprints that use real-world scenarios related to payroll, tax, and reporting in Australia.
To speed up outcome delivery, work with Dynamics 365 implementation services that have regulated industry experience and verified Australian references. (This also ensures support for changes in release waves in the future.)
Migrate from dynamics Ax To Dynamics 365
When you migrate Dynamics AX to Dynamics 365, keep the following steps in mind:
- Readiness & AIM Assessment: Keep track of AX customisations, ISVs, and integrations; scope the effort and landing zone using Microsoft’s AIM resources.
- Upgrade Strategy:
- Data/code upgrade paths are supported in AX 2012 (R2/R3).
- The DMT is used by AX 2009 to migrate data to the cloud.
- Technical Proofs: Verify cloud performance, extensions, and service-protection limits; account for variations in latency when compared to on-premises.
- Cutover Wave Plan: Set up rollback checkpoints and decide between big-bang (one weekend) and phased by business unit/site.
- Stabilisation & Optimisation: Adjust roles, analytics, and Copilot; retire tech debt and deprecate outdated features. Keep an eye on Microsoft’s deprecation notices.
Common ERP Migration Challenges (and how to beat them)
Even the best of you face challenges, so always plan ahead by considering the following:
- Data quality & lineage: Conduct dry-run migrations with production-like volumes to clean and govern data early.
- Customisations that don’t translate: Use Power Platform or extensions instead, or follow established procedures.
- Change resistance: Super-user champions, role-based training, and preliminary demonstrations of workflows aided by Copilot.
- Performance & integration surprises: To avoid service-protection thresholds, plan capacity and API usage, and benchmark critical workloads.
Where D365 Fits in 2025
- Without dragging legacy complexity forward, D365 implementation puts you in a position for modern reporting, embedded AI , and quick innovation cycles.
- While gaining access to cloud analytics, scale, and resilience, a structured migration from Dynamics AX to the Dynamics 365 program maintains established procedures.
- Both routes take advantage of Dynamics 365 ERP cloud features that meet Australia's requirements for data residency and dependability across Azure's local regions. The expansion of the larger ERP market and the move to the cloud emphasise how urgent it is to take action.
Conclusion
When comparing ERP implementation and ERP migration, the right choice depends on your business model, current systems, and future scalability goals.
ERP solutions for Australian businesses must balance continuity, compliance, and innovation, particularly with increasing data sovereignty needs. Whether you are starting fresh with Dynamics 365 or migrating from Dynamics AX, both paths offer access to AI-driven insights, improved analytics, and cloud resilience.
With the right roadmap, businesses can reduce risks, optimise operations, and stay future-ready. Partnering with specialists like DHRP ensures tailored guidance, seamless execution, and ongoing support to help Australian organisations maximise ERP investments in 2025 and beyond.
FAQs
ERP implementation means deploying an entirely new ERP system, while ERP migration involves upgrading or moving from an existing system like Dynamics AX to Dynamics 365, ensuring continuity, improved efficiency, and cloud readiness.
Dynamics 365 Finance and Operations (D365 F&O) is a cloud-based enterprise resource planning (ERP) solution that integrates core operational operations such as supply chain, financials, sales, purchase orders, inventories, manufacturing, and distribution.
Businesses should assess costs, risks, compliance, data quality, customisations, and scalability. They must also consider cloud-readiness, user adoption, integration needs, and local support availability before upgrading their ERP system for future success.
