Get the Most Out of Your Microsoft Dynamics Finance and Operations

In today's connected world, the continuous optimization of enterprise applications to realize your digital strategy is key.

EXECUTIVE BRIEF

Analyst Perspective

Focus optimization on organizational value delivery.

Enterprise resource planning (ERP) is a core tool that a business leverages to accomplish its goals. An ERP that is doing its job well is invisible to the business. The challenges come when the tool is no longer invisible; it has become a source of friction in the functioning of the business.

Microsoft Dynamics 365 Finance &Operations (D365F&O) is expensive, benefits can be difficult to quantify, and optimization can be difficult to navigate. Over time technology evolves, organizational goals change, and the health of these systems is often not monitored. This is complicated in today's digital landscape with multiple integration points, siloed data, and competing priorities.

Too often organizations jump into selecting replacement systems without understanding the health of their systems. We can do better than this.

IT leaders need to take a proactive approach to continually monitor and optimize their enterprise applications. Strategically realign business goals, identify business application capabilities, complete a process assessment, evaluate user satisfaction, measure module satisfaction, and improve vendor relations to create an optimization plan that will drive a cohesive technology strategy that delivers results.

Ricardo de Oliveira
Research Director, Enterprise Applications
Info-Tech Research Group

Executive Summary

Your Challenge

Your D365F&O often involves large capital outlay, unquantified benefits, and high risk of failure.

ERP application portfolios are often messy, with multiple integration points and a failure to maintain end-user training. User dissatisfaction is common.

Application optimization is essential to staying competitive and productive in today's digital environment.

Common Obstacles

Balancing optimization with stabilization is one of the most difficult decisions for D365F&O application leaders.

Competing priorities and often unclear enterprise application strategies make it difficult to make decisions about what, how, and when to optimize.

Enterprise applications involve large numbers of processes, users, and evolving vendor roadmaps.

Teams do not have a framework to illustrate, communicate, and justify the optimization effort in a language your stakeholders understand.

Info-Tech's Approach

Today it is imperative to evaluate your applications for optimization and to look for opportunities to capitalize on rapidly expanding technologies, integrated data, and employee solutions that meet the needs of your organization.

Assess your D365F&O applications and the environment in which they exist. Take a business-first strategy to prioritize optimization efforts.

Validate capabilities, user satisfaction, and issues around data, vendor management, and costs to build out an overall roadmap and optimization strategy.

Pull this all together to prioritize optimization efforts and develop a concrete roadmap.

Info-Tech Insight

Microsoft is investing in "Solutions that fit you. Not the other way around." Companies can choose one or multiple Dynamics 365 applications, which are made to work together and with existing systems. Understand your product(s), processes, user satisfaction, integration points, and the availability of data to business decision makers. Examine these areas to develop a personalized D365F&O optimization roadmap that fits the needs of your organization. Incorporate these methodologies into an ongoing optimization strategy aimed at enabling the business, increasing productivity, and reducing costs.

Insight summary

Continuous assessment and optimization of your D365F&O ERP is critical to the success of your organization.

• Applications and the environments in which they live are constantly evolving.
• This blueprint provides business and application managers with a method to complete a health assessment of their D365F&O systems to identify areas for improvement and optimization.
• Put optimization practices into effect by:
  • Aligning and prioritizing key business and technology drivers.
  • Identifying ERP process classification and performing a gap analysis.
  • Measuring user satisfaction across key departments.
  • Evaluating vendor relations.
  • Understanding how data plays into the mix.
  • Pulling it all together into an optimization roadmap.

D365F&O enterprise resource planning (ERP) facilitates the flow of information across business units. It allows for the seamless integration of data across financial and people systems to create a holistic view of the enterprise to support decision making.

In many organizations, D365F&O is considered the core people system and is becoming more widely adopted for finance and a full ERP system.

ERP systems are considered the lifeblood of organizations. Problems with this key operational system will have a dramatic impact on the ability of the enterprise to survive and grow.

ERP implementation should not be a one-and-done exercise. There needs to be ongoing optimization to enable business processes and optimal organizational results.

Microsoft Dynamics 365 F&O ERP

Microsoft Dynamics 365 Finance and Operations

• Finance
• Human Resources
• Supply Chain
• Project Operations

D365F&O has many modules that work together to facilitate the flow of information across the business. D365F&O's unique data platform allows for seamless integration of systems and creates a holistic view of the enterprise to support decision making.

An ERP system:

• Automates processes, reducing the amount of manual, routine work.
• Integrates with core modules, eliminating the fragmentation of systems.
• Centralizes information for reporting from multiple parts of the value chain to a single point.

Fast facts

Product description

• D365F&O offers Finance, HR, Supply Chain, and Project Operations applications. It aims to maximize financial visibility and profitability, create a workplace where people and business thrive, and connect your project-centric business in one application.
• D365F&O gets more value from its data with Common Data Model, a unified data model that allows you to share data and its meaning more easily across applications and business processes.
• Microsoft is investing in "Solutions that fit you. Not the other way around." Companies can choose one, some, or all Dynamics 365 applications, which are made to work together — and with existing systems — for a comprehensive solution.

Evolution of MS Dynamics ERP

	Employees	221,000
	Headquarters	Redmond, WA
	Website	microsoft.com
	Founded	1975
	Presence	Global, Publicly Traded

Vendor description

• Microsoft was founded in 1975 by Bill Gates and Paul Allen.
• Microsoft Dynamics is largely made up of products developed by companies that Microsoft acquired. Dynamics 365 Finance and Operations is an evolution of Dynamics AX (formerly Axapta).
• Dynamics 365 (cloud) family is growing at a fast pace.
• Microsoft is publicly traded (1986); Nasdaq: MSFT.

Dynamics 365 Business Central

Product Description

• Business Central is a business management solution for small and mid-sized organizations that automates and streamlines business processes and helps you manage your business.
• Highly adaptable and rich with features, Business Central enables companies to manage their business, including finance, manufacturing, sales, shipping, project management, services, and more.
• Companies can easily add functionality that is relevant to the region of operation, and that is customized to support even highly specialized industries.
• Business Central is fast to implement, easy to configure, and simplicity guides innovations in product design, development, implementation, and usability.

Source: Microsoft, 2023, January 16

Evolution of MS 365 Business Central

Source: Wikipedia, 2022

Microsoft Dynamics 365 F&O by the numbers

80% of clients would likely recommend. 78% of clients were satisfied that the cost is fair relative to value, and 90% plan to renew.	Every month over 500,000 companies, including 57% of the Fortune 500, use Dynamics 365. More than 4,500 organizations are using Dynamics 365 ERP to manage their operations successfully.	Dynamics products and cloud services revenue increased 19% (up 24% in constant currency) driven by Dynamics 365 revenue growth of 31% (up 36% in constant currency).
Source: SoftwareReviews, 2022	Source: Microsoft, 2022, January 20	Source: Microsoft Investor Relations, July 2022

Microsoft Dynamics 365 market momentum

YoY revenue growth for Microsoft Dynamics is up, as well as the cloud growth of Dynamics 365.

Microsoft Dynamics Growth

Sources: Jordan Novet, 2020 and Microsoft, 2022, August 23

Info-Tech Insight

Microsoft is focused on maintaining this growth pattern. Recent years show constant growth of all Dynamics' products.

Microsoft Dynamics 365 F&O

Microsoft Dynamics helps you optimize your financials and operations to drive growth and make real-time, data-driven decisions at global scale — all with an intelligent, modern business application.

With a steady rate of growth, Microsoft Dynamics maintained the first/second position in market share for many years.

Enterprise Applications Market Share (in %)

Source: Info Clutch

Microsoft Dynamics 365 F&O challenges and dissatisfaction

Info-Tech Insight

While technology is the key enabler of building strong customer experiences, there are many other drivers of dissatisfaction. IT must stand shoulder-to-shoulder with the business to develop a technology framework for ERP.

Finance, IT, Sales, and other users of the ERP system can only optimize ERP with the full support of each other. The cooperation of the departments is crucial when trying to improve ERP technology capabilities and customer interaction.

Where are applications leaders focusing?

Big growth numbers

Year-over-year call topic requests

Info-Tech case data, 2022; N=3,293

We are seeing Applications leaders' priorities change year over year, driven by a shift in their approach to problem solving. Leaders are moving from a process-centric approach to a collaborative approach that breaks down boundaries and brings teams together.

Other changes

Year-over-year call topic requests

Info-Tech case data, 2022; N=3,293

Software development lifecycle topics are tactical point solutions. Organizations have been "shifting left" to tackle the strategic issues such as product vision and Agile mindset to optimize the whole organization.

Application optimization is risky without a plan

Avoid these common pitfalls:

• Not considering how this pays into the short-, medium-, and long-term ERP strategy.
• Not considering application optimization as a business and IT partnership, which requires the continuous formal engagement of all participants.
• Not having a good understanding of your current state, including integration points and data.
• Not adequately accommodating feedback and changes after digital applications are deployed and employed.
• Not treating digital applications as a motivator for potential future IT optimization efforts and incorporating digital assets in strategic business planning.
• Not involving department leads, management, and other subject-matter experts to facilitate the organizational change digital applications bring.
• "A successful application optimization strategy starts with the business need in mind, and not from a technological point of view. No matter from which angle you look at it, modernizing a legacy application is a considerable undertaking that can't be taken lightly. Your best approach is to begin the journey with baby steps."

– Norelus, Pamidala, and Senti, 2020

Info-Tech's methodology for getting the most out of your ERP

Blueprint deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

Get the Most Out of Your MS Dynamics 365 F&O Workbook

Identify and prioritize your D365F&O optimization goals.

Application Portfolio Assessment

Assess IT-enabled user satisfaction across your D365F&O portfolio.

Key deliverable:

MS Dynamics 365 F&O Optimization Roadmap

complete an assessment of processes, user satisfaction, data quality, and vendor management.

Case Study

Buy online, return in-store, and leverage Click & Collect

INDUSTRY: Retailers

SOURCE: Microsoft, 2020

Challenge

Dr. Martens, the iconic British footwear brand, has more than 100 stores globally. With ambitious plans for retail and e-commerce, and tech-savvy, young customers, it had to reboot its customer experience — and replace all its legacy applications.

"It was recognized that we needed a major transformation project to replace all our legacy applications to give us the tools to be able to grow the business", says Jackie Reid, Program Lead for Project Reboot.

Solution

The company adopted Microsoft Dynamics 365 and the Power Platform. With Power BI, PowerPivot, and self-service, analysts get accurate reporting instantly for better business decisions. Dynamics 365 enables virtual warehouses and automated overnight store replenishment.

"Microsoft Dynamics 365 gives us a globally capable solution to be able to grow the business. And, with a turnover of £500 million, we now have the tools, the platform, and the capacity to grow our business threefold over the next 5 to 10 years. And we're very excited about that." – Jackie Reid, Program Lead for Project Reboot.

Results

• Dr. Martens now has the tools and platform to grow revenues 3X over the next 5 to 10 years.
• Helps teams meet business targets by getting the right products to the right stores in very short lead time.
• Scales to support crucial peak sales periods including Black Friday and Cyber Monday.

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit

"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

Guided Implementation

"Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

Workshop

"We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

Consulting

"Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

Diagnostics and consistent frameworks used throughout all four options

Guided Implementation

What does a typical GI on this topic look like?

A Guided Implementation (GI) is series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI is between 8 to 12 calls over the course of 4 to 6 months.

Workshop Overview

Contact your account representative for more information.
workshops@infotech.com 1-888-670-8889

Phase 1

Map Current-State Capabilities

This phase will guide you through the following activities:

• Aligning your organizational goals
• Gaining a firm understanding of your current state
• Inventorying D365F&O and related applications
• Confirming the organization's capabilities

This phase involves the following participants:

• CFO
• Department Leads – Finance, Procurement, Asset Management
• Applications Director
• Senior Business Analyst
• Senior Developer
• Procurement Analysts

Step 1.1

Identify Stakeholders and Build Your Optimization Team

Activities

1.1.1 Identify stakeholders critical to success

1.1.2 Map your D365F&O optimization stakeholders

1.1.3 Determine your D365F&O optimization team

Map Current-State Capabilities

This step will guide you through the following activities:

• Identifying ERP drivers and objectives
• Exploring ERP challenges and pain points
• Discovering ERP benefits and opportunities
• Aligning the ERP foundation with your corporate strategy

This step involves the following participants:

• Stakeholders
• Project sponsors and leaders

• Outcomes of this step

• Stakeholder map
• D365F&O optimization team

ERP optimization stakeholders

Understand the roles necessary to get the most out of your MS Dynamics 365 F&O .

Understand the role of each player within your project structure. Look for listed participants on the activities slides to determine when each player should be involved.

Info-Tech Insight

Do not limit project input or participation. Include subject-matter experts and internal stakeholders at stages within the project. Such input can be solicited on a one-off basis as needed. This ensures you take a holistic approach to creating your ERP optimization strategy.

1.1.1 Identify MS Dynamics 365 F&O optimization stakeholders

1 hour

Hold a meeting to identify the D365F&O optimization stakeholders.

Use the next slide as a guide.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Understand how to navigate the complex web of stakeholders in ERP

Identify which stakeholders to include and what their level of involvement should be during requirements elicitation based on relevant topic expertise.

Large-scale ERP projects require the involvement of many stakeholders from all corners and levels of the organization including project sponsors, IT, end users, and business stakeholders. Consider the influence and interest of stakeholders in contributing to the requirements elicitation process and involve them accordingly.

EXAMPLE: Stakeholder involvement during selection

Activity 1.1.2 Map your MS Dynamics 365 F&O optimization stakeholders

1 hour

1. Use the list of D365F&O optimization stakeholders.
2. Map each stakeholder on the quadrant based on their expected influence and involvement in the project.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Map the organization's stakeholders

List of stakeholders

CEO VP Corp Services Director, Finance Director, IT Director, HR VP, Distribution VP, Retail CEO, Retail Director, Distribution Director, Customer relations Director, Retail Manager, Finance reporting Manager, Planning & Forecasting Manager, AP & Procurement Manager, IT Applications Manager, IT Infrastructure Manager, IT Architecture Manager, HR Frontline staff IT Security Architect Senior Director, Retail Government regulatory agency

The MS D365F&O optimization team

Consider the core team functions when putting together the project team. Form a cross-functional team (i.e. across IT, Marketing, Sales, Service, and Operations) to create a well-aligned ERP optimization strategy.

Don't let your project team become too large when trying to include all relevant stakeholders. Carefully limiting the size of the project team will enable effective decision making while still including functional business units such as Human Resources, Operations, Manufacturing, Marketing, Sales, Service, Finance, and IT.

1.1.3 Determine your MS Dynamics 365 F&O optimization team

1 hour

Have the project manager and other key stakeholders discuss and determine who will be involved in the D365F&O optimization project.

1. The size of the team will depend on the initiative and size of your organization.
2. Key business leaders in key areas and IT representatives should be involved.

Note: Depending on your initiative and size of your organization, the size of this team w ill vary.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Step 1.2

Build an ERP Strategy Model

Activities

1.2.1 Explore organizational goals and business needs

1.2.2 Discover environmental factors and technology drivers

1.2.3 Consider potential barriers to achieving D365F&O optimization

1.2.4 Set the foundation for success

1.2.5 Discuss D365F&O strategy and develop your ERP optimization goals

Map Current-State Capabilities

This step will guide you through the following activities:

• Identifying ERP drivers and objectives
• Exploring ERP challenges and pain points
• Discovering ERP benefits and opportunities
• Aligning the ERP foundation with the corporate strategy

This step involves the following participants:

• D365F&O Optimization Team

Outcomes of this step

• ERP business model
• Strategy alignment

Align your MS Dynamics 365 F&O strategy with the corporate strategy

Your corporate strategy: Conveys the current state of the organization and the path it wants to take. Identifies future goals and business aspirations. Communicates the initiatives that are critical for getting the organization from its current state to the desired future state.	The ideal ERP strategy is aligned with overarching organizational business goals and broader IT initiatives. All affected business units and departments should be included in these conversations. The ERP optimization can be and should be linked, with metrics, to the corporate strategy and ultimate business objectives.	Your IT strategy: Communicates the organization's budget and spending on ERP. Identifies IT initiatives that will support the business and key ERP objectives. Outlines staffing and resourcing for ERP initiatives.

ERP projects are more successful when the management team understands the strategic importance and the criticality of alignment. Time needs to be spent upfront aligning business strategies with ERP capabilities. Effective alignment between IT and the business should happen daily. Alignment doesn't just need to occur at the executive level but at each level of the organization.

ERP business model template

Conduct interviews to elicit the business context

Stakeholder interviews

• Begin by conducting interviews of your executive team. Interview the following leaders:
• Chief Information Officer
• Chief Executive Officer
• Chief Financial Officer
• Chief Revenue Officer/Sales Leader
• Chief Operating Officer/Supply Chain & Logistics Leader
• Chief Technology Officer/Chief Product Officer

Interviews must uncover…

• Your organization's mission and vision
• Your organization's top business goals
• Your organization's top business initiatives
• The stakeholder's top goals and initiatives
• Tools and systems needed to facilitate organizational and departmental goals

Understand the mission, vision, and goals of the organization and supporting departments

Info-Tech Insight

One of the biggest drivers for ERP adoption is the ability to make quicker decisions from timely information. This driver is a result of external considerations. Many industries today are highly competitive, uncertain, and rapidly changing. To succeed under these pressures, there needs to be timely information and visibility into all components of the organization.

1.2.1 Explore organizational goals and business needs

60 minutes

Discuss organizational mission, vision, and goals. What are the top initiatives underway? Are you contracting, expanding, or innovating?

Discuss business needs to support organizational goals. What are identified goals and initiatives at the departmental level? What tools and resources within the D365F&O system will help make this successful?

Understand how the company is running today and what the organization's future will look like. Envision the future system state.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Organizational goals	Business needs
Organization's mission and vision Top business goals Initiatives underway	Departmental goals Business drivers Key initiatives Key capabilities to support the organization Requirements to support the business capability and process

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

ERP business model

Understand the technology drivers and environmental factors

Info-Tech Insight

A comprehensive plan that takes into consideration organizational goals, departmental needs, technology drivers, and environmental factors will allow for a collaborative approach to defining your D365F&O strategy.

1.2.2 Discover environmental factors and technology drivers

30 minutes

Identify business drivers that are contributing to the organization's need for ERP.

Understand how the company is running today and what the organization's future will look like. Try to identify the purpose for becoming an integrated organization. Use a whiteboard or flip charts and markers to capture key findings.

Consider external considerations, organizational drivers, technology drivers, and key functional requirements.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

External considerations	Technology considerations	Functional requirements
Funding constraints Regulations	Data accuracy Data quality Better reporting	Information availability Integration between systems Secure data

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Create a realistic ERP foundation by identifying the challenges and barriers the project will bestow

There are several different factors that may stifle the success of an ERP implementation. Organizations that are creating an ERP foundation must scan their current environment to identify internal barriers and challenges.

Common internal barriers

1.2.3 Consider potential barriers to achieving D365F&O optimization

1-3 hours

Open tab 1.2, "Strategy & Goals," in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Identify barriers to ERP optimization success.

Review the ERP critical success factors and how they relate to your optimization efforts.

Discuss potential barriers to successful ERP optimization.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Functional Gaps	Technical Gaps	Process Gaps	Barriers to Success
No online purchase order requisitions	Inconsistent reporting – data quality concerns	Duplication of data Lack of system integration	Cultural mindset Resistance to change Lack of training Funding

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

ERP business model

What does success look like?

Top 15 critical success factors for ERP system implementation

Source: Academy of Accounting and Financial Studies Journal, 2019; CC BY 4.0

Info-Tech Insight

Complement your ability to deliver on your critical success factors with the capabilities of your implementation partner to drive a successful ERP implementation.

"Implementation partners can play an important role in successful ERP implementations. They can work across the organizational departments and layers, creating a synergy and a communications mechanism."
– Ayogeboh Epizitone, Durban University of Technology

1.2.4 Set the foundation for success

1-3 hours

Open tab 1.2, "Strategy & Goals," in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Identify barriers to ERP optimization success.

Review the ERP critical success factors and how they relate to your optimization efforts.

Discuss potential barriers to successful ERP optimization.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Business benefits	IT benefits	Organizational benefits	Enablers of success
Business-IT alignment	Compliance Scalability Operational efficiency	Data accuracy Data quality Better reporting	Change management Training Alignment with strategic objectives

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

ERP business model

The business value matrix

Rationalizing and quantifying the value of MS Dynamics 365 F&O

Benefits can be realized internally and externally to the organization or department and have different drivers of value.

• Financial benefits refer to the degree to which the value source can be measured through monetary metrics and are often quite tangible.
• Human benefits refer to how an application can deliver value through a user's experience.
• Inward refers to value sources that have an internal impact and improve your organization's effectiveness and efficiency in performing its operations.
• Outward refers to value sources that come from your interaction with external factors, such as the market or your customers.

Business value matrix

Link D365F&O capabilities to organizational value

1.2.5 Define your MS Dynamics 365 F&O strategy and optimization goals

30 minutes

1. Discuss the D365F&O business model exercises and ERP critical success factors.
2. Thin about the supporting ERP technology through the lens of corporate goals and objectives. How can the ERP system bring value to the organization? What are the top things that will make this initiative a success? What major themes are emerging?
3. Develop five to ten optimization goals that will form the basis for the success of this initiative.
   • What is a strong statement that will help guide decision making throughout the life of the ERP project?
   • What are your overarching requirements for business processes?
   • What do you ultimately want to achieve?
   • What is a statement that will ensure all stakeholders are on the same page for the project?

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

MS Dynamics 365 F&O strategy and optimization goals

Step 1.3

Inventory Current System State

Activities

1.3.1 Inventory D365F&O applications and interactions

1.3.2 Draw your D365F&O system diagram

1.3.3 Inventory your D365F&O modules and business capabilities (or business processes)

1.3.4 Define your key D365F&O optimization modules and business capabilities

Map Current-State Capabilities

This step will guide you through the following activities:

• Inventorying applications
• Mapping interactions between systems

This step involves the following participants:

• D365F&O Optimization Team
• Enterprise Architect
• Data Architect

Outcomes of this step

• Systems inventory
• Systems diagram

1.3.1 Inventory MS Dynamics 365 F&O applications and interfaces

1-3+ hours

1. Enter your D365F&O systems, D365F&O extended applications, and integrated applications within scope.
2. Include any abbreviated names or nicknames.
3. List the application type or main function.
4. List the modules the organization has licensed.
5. List any integrations.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

ERP data flow

Example ERP data flow

Be sure to include enterprise applications that are not included in the ERP application portfolio.

ERP – enterprise resource planning
Email – email system such as Microsoft Exchange
Calendar – calendar system such as Microsoft Outlook
WEM – web experience management
ECM – enterprise content management

When assessing the current application portfolio that supports your ERP, the tendency will be to focus on the applications under the ERP umbrella. These relate mostly to marketing, sales, and customer service. Be sure to include systems that act as input to, or benefit due to outputs from ERP or similar applications.

1.3.2 Draw your MS Dynamics 365 F&O system diagram (optional)

1-3+ hours

From the MS Dynamics 365 F&O application inventory, diagram your network.

Include:

• Any internal or external systems
• Integration points
• Data flow

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Sample MS Dynamics 365 F&O and integrations map

Business capability map (Level 0)

In business architecture, the primary view of an organization is known as a business capability map.
A business capability defines what a business does to enable value creation, rather than how.

Business capabilities:

• Represent stable business functions.
• Are unique and independent of each other.
• Will typically have a defined business outcome.

A business capability map provides details that help the business architecture practitioner direct attention to a specific area of the business for further assessment.

The value stream

Value stream defined:

Value streams connect business goals to the organization's value realization activities in the marketplace. Those activities are dependent on the specific industry segment in which an organization operates. There are two types of value streams: core value streams and support value streams.

• Core value streams are mostly externally facing. They deliver value to either an external or internal customer and they tie to the customer perspective of the strategy map.
• Support value streams are internal-facing and provide the foundational support for an organization to operate.

Taking a value stream approach to process mapping allows you to move across departmental and system boundaries to understand the underlying business capability.
Some organizations over-customize processes, or conversely, don't customize when it's required. D365F&O provides good baseline processes that work for most organizations. However, if a process is broken or not working efficiently, take the time to investigate it, including underlying policies, roles, workflows, and integrations.

Process frameworks

Help define your inventory of sales, marketing, and customer services processes.

Operating processes

1. Develop vision and strategy
2. Develop and manage products and services
3. Market and sell products and services
4. Deliver physical products
5. Deliver services

Management and support processes

6. Manage customer service
7. Develop and manage human capital
8. Manage IT
9. Manage financial resources
10. Acquire, construct, and manage assets
11. Manage enterprise risk, compliance, remediation, and resiliency
12. Manage external relationships
13. Develop and manage business capabilities

Source: APQC

If you do not have a documented process model, you can use the APQC Framework to help define your inventory of sales business processes.

APQC's Process Classification Framework is a taxonomy of cross-functional business processes intended to allow the objective comparison of organizational performance within and among organizations.

APQC's Process Classification Framework

Process mapping hierarchy

A process classification framework is helpful for organizations to effectively define their processes and manage them appropriately.

Use Info-Tech's related industry resources or publicly available process frameworks (such as APQC) to develop and map your business processes.

These processes can then be mapped to supporting applications and modules. Policies, roles, and workflows also play a role and should be considered in the overall functioning.

Source: APQC

APQC's Process Classification Framework

Focus on level-1 processes

Info-Tech Insight Focus your initial assessment on the level-1 processes that matter to your organization. This allows you to target your scant resources on the areas of optimization that matter most to the organization and minimize the effort required from your business partners. You may need to iterate the assessment as challenges are identified. This allows you to be adaptive and deal with emerging issues more readily and become a more responsive partner to the business.

Process mapping and supporting ERP modules

The operating model

An operating model is a framework that drives operating decisions. It helps to set the parameters for the scope of ERP and the processes that will be supported. The operating model will serve to group core operational processes. These groupings represent a set of interrelated, consecutive processes aimed at generating a common output.

From your developed processes and your D365F&O license agreements you will be able to pinpoint the scope for investigation, including the processes and modules.

MS Dynamics 365 F&O modules and process enablement

Finance

• General ledger
• Accounts payable
• Accounts receivable
• Asset leasing
• Budgeting
• Cash and bank management
• Cost accounting
• Financial reporting
• Fixed assets
• Finance insights
• Public sector
• Financials embedded Power BI
• Power Apps mobile support

Supply chain

• Asset management
• Cost accounting
• Cost management
• Inventory management
• IoT Intelligence
• Master planning
• Procurement and sourcing
• Product information management
• Production control
• Sales and marketing
• Service management
• Transportation management
• Warehouse management
• Vendor collaboration
• Time and attendance

Human resources

• Employee self service
• Personnel management
• Task management
• Leave and absence
• Benefits
• Benefits management
• Compensation management
• Employee development
• Learning
• Workflow system

Project operations

• Project sales management
• Pricing and costing
• Project management
• Resource management
• Time
• Expense
• Material usage
• Approvals
• Actuals
• Procurement
• Invoicing
• Project accounting
• Revenue recognition
• Microsoft Project integration
• Project contracts management

1.3.3 Inventory your MS Dynamics 365 F&O modules and business capabilities

1-3+ hours

1. Look at the major functions or processes within the scope of ERP.
2. From the inventory of current systems, choose the submodules or processes that you want to investigate and are within scope for this optimization initiative.
3. List the top modules, capabilities, or processes that will be within the scope of this optimization initiative.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

1.3.4 Define your key MS Dynamics 365 F&O optimization modules and business capabilities

1-3+ hours

1. Look at the major functions or processes within the scope of ERP.
2. From the inventory of current systems, choose the submodules or processes for this optimization initiative. Base this on those that are most critical to the business, those with the lowest levels of satisfaction, or those that perhaps need more knowledge around them.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Step 1.4

Define Optimization Timeframe

Activities

1.4.1 Define D365F&O key dates, and D365F&O optimization roadmap timeframe and structure

Map Current-State Capabilities

This step will guide you through the following activities:

• Defining key dates related to your optimization initiative
• Identifying key building blocks for your optimization roadmap

This step involves the following participants:

• D365F&O Optimization Team
• Vendor Management

Outcomes of this step

• Optimization key dates
• Optimization roadmap timeframe and structure

1.4.1 Optimization roadmap timeframe and structure

1-3+ hours

1. Key items and dates relevant to your optimization initiatives, such as any products reaching end of life or end of contract, or budget proposal submission deadlines.
2. Enter the expected optimization initiative start date.
3. Enter the roadmap length. This is the total amount of time you expect to participate in the D365F&O Optimization Initiative.
4. This includes short-, medium-, and long-term initiatives.
5. Enter your roadmap date markers – how you want dates displayed on the roadmap.
6. Enter column time values – what level of granularity will be helpful for this initiative?
7. Enter the sprint or cycle timeframe – use this if following Agile.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Step 1.5

Understand D365F&O Costs

Activities

1.5.1 Document costs associated with D365F&O

Map Current-State Capabilities

This step will walk you through the following activities:

• Defining your D365F&O direct and indirect costs
• Listing your D365F&O expense line items

This step involves the following participants:

• Finance representatives
• D365F&O Optimization Team

Outcomes of this step

• Current D365F&O and related costs

1.5.1 Document costs associated with MS Dynamics 365 F&O

1-3 hours

Before you can make changes and optimization decisions, you need to understand the high-level costs associated with your current application architecture. This activity will help you identify the types of technology and people costs associated with your current systems.

1. Identify the types of technology costs associated with each current system:
   1. System maintenance
   2. Annual renewal
   3. Licensing
2. Identify the cost of people associated with each current system:
   1. Full-time employees
   2. Application support staff
   3. Help desk tickets

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Phase 2

Assess Your Current State

This phase will walk you through the following activities:

• Determining process relevance
• Performing a gap analysis
• Performing a user satisfaction survey
• Assessing software and vendor satisfaction

This phase involves the following participants:

• D365F&O Optimization Team
• Users across functional areas of your ERP and related technologies

Step 2.1

Assess D365F&O Capabilities

Activities

2.1.1 Complete a D365F&O application portfolio assessment

2.1.2 (Optional) Assess D365F&O process maturity

Assess D365F&O Capabilities

This step will guide you through the following activities:

• Defining capability relevance
• Processing gap analysis
• Completing the Application Portfolio Assessment

This step involves the following participants:

• D365F&O Users

Outcomes of this step

• D365F&O Capability Assessment

Benefits of the Application Portfolio Assessment

Assess the health of the application portfolio

• Get a 360-degree view of the effectiveness, criticality, and prevalence of all relevant applications to get a comprehensive view of the health of the applications portfolio.
• Identify opportunities to drive more value from effective applications, retire nonessential applications, and immediately address at-risk applications that are not meeting expectations.

Provide targeted department feedback

• Share end-user satisfaction and importance ratings for core IT services, IT communications, and business enablement to focus on the right end-user groups or lines of business and ramp up satisfaction and productivity.

Gain insight into the state of data quality

• Data quality is one of the key issues causing poor ERP user satisfaction and business results. This can include the relevance, accuracy, timeliness, or usability of the organization's data.
• Targeted, open-ended feedback regarding data quality will provide insight into where optimization efforts should be focused.

2.1.1 Complete a current state assessment (via the Application Portfolio Assessment)

3 hours

Option 1: Use Info-Tech's Application Portfolio Assessment to generate your user satisfaction score. This tool not only measures application satisfaction but also elicits great feedback from users regarding the support they receive from the IT team regarding D365F&O.

1. Download the MS Dynamics 365 F&O Application Inventory Tool.
2. Complete the "Demographics" tab (tab 2).
3. Complete the "Inventory" tab (tab 3).
   1. Complete the inventory by treating each module within your D365F&O system as an application.
   2. Treat every department as a separate column in the department section. Feel free to add, remove, or modify department names to match your organization.
   3. Include data quality for all applications applicable.

Option 2: Create a survey manually.

1. Use tab Reference 2.1 "APA Questions" as a guide for creating your survey.
2. Send out surveys to end users.
3. Modify tab 2.1 "D365F&O Assessment" if required.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

2.1.2 (Optional) Assess MS Dynamics 365 F&O process maturity

1-3 hours

1. As with any ERP system, the issues encountered may not be related to the system itself, but processes that have developed over time.
2. Use this opportunity to interview key stakeholders to learn about deeper capability processes.
1. Identify key stakeholders.
2. Hold sessions to document deeper processes.
3. Discuss processes and technical enablement in each area.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Capability maturity

Process

Technology

Core finance

Step 2.2

Review Your Satisfaction With the Vendor/Product and Willingness for Change

Activities

2.2.1 Rate your vendor and product satisfaction

2.2.2 Review D365F&O product scores (if applicable)

2.2.3 Evaluate your product satisfaction

2.2.4 Check your business process change tolerance

Product Satisfaction

This step will guide you through the following activities:

• Rating your vendor and product satisfaction
• Comparing with survey data from SoftwareReviews

This step involves the following participants:

• D365F&O Product Owner(s)
• Procurement Representative
• Vendor Contracts Manager

Outcomes of this step

• Quantified satisfaction with vendor and product

2.2.1 Rate your vendor and product satisfaction

30 minutes

Use Info-Tech's vendor satisfaction survey to identify optimization areas with your ERP product(s) and vendor(s).

1. Option 1 (recommended): Conduct a satisfaction survey using SoftwareReviews. This option allows you to see your results in the context of the vendor landscape.
2. Option 2: Use the Get the Most Out of Your MS Dynamics 365 F&O Workbook to review your satisfaction with your D365F&O software.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook

SoftwareReviews' Enterprise Resource Planning Category

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

2.2.2 Review MS Dynamics 365 F&O product scores (if applicable)

30 minutes

1. Download the scorecard for your D365F&O product from the SoftwareReviews website. (Note: Not all products are represented or have sufficient data, so a scorecard may not be available.)
2. Use the Get the Most Out of Your MS Dynamics 365 F&O Workbook tab 2.3 to record the scorecard results.
3. Use your Get the Most Out of Your MS Dynamics 365 F&O Workbook to flag areas where your score may be lower than the product scorecard. Brainstorm ideas for optimization.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

SoftwareReviews' Enterprise Resource Planning Category

2.2.3 How does your satisfaction compare with your peers?

Use SoftwareReviews to explore product features, vendor experience, and capability satisfaction.

Source: SoftwareReviews ERP Enterprise, 2022

Source: SoftwareReviews ERP Midmarket, 2022

2.2.4 Check your business process change tolerance

1 hours

1. As a group, list your level-0 and level-1 business capabilities. Sample on the next slide.
2. Assess the department's willingness for change and the risk of maintaining the status quo.
3. Color-code the level-0 business capabilities based on:
1. Green – Willing to follow best practices
2. Yellow – May be challenging or unique business model
3. Red – Low tolerance for change

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Heat map representing desire for best practice or those having the least tolerance for change

Determine the areas of risk to conform to best practice and minimize customization. These will be areas needing focus from the vendor, supporting change and guiding best practice.

For example: Must be able to support our unique process manufacturing capabilities and enhance planning and visibility to detailed costing.

Phase 3

Identify Key Optimization Opportunities

This phase will walk you through the following activities:

• Identifying key optimization areas
• Creating an optimization roadmap

This phase involves the following participants:

• D365F&O Optimization Team

Step 3.1

Prioritize Optimization Opportunities

Activities

3.1.1 Prioritize optimization capability areas

Build Your Optimization Roadmap

This step will guide you through the following activities:

• Exploring existing process gaps
• Identifying the impact of processes on user satisfaction
• Identifying the impact of data quality on user satisfaction
• Reviewing your overall product satisfaction and vendor management

This step involves the following participants:

• D365F&O Optimization Team

Outcomes of this step

• Application optimization plan

Address process gaps:

• ERP and related technologies are invaluable to the goal of organizational enablement, but they must have supported processes driven by business goals.
• Identify areas where capabilities need to be improved and work toward optimization.

Support user satisfaction:

• The best technology in the world won't deliver business results if it's not working for the users who need it.
• Understand concerns, communicate improvements, and support users in all roles.

Improve data quality:

• Data quality is unique to each business unit and requires tolerance, not perfection.
• Implement data quality initiatives that are aligned with overall business objectives and are aimed at addressing data practices and the data itself.

Proactively manage vendors:

• Vendor management is a critical component of technology enablement and IT satisfaction.
• Assess your current satisfaction against that of your peers and work toward building a process that best fits your organization.

Info-Tech Insight

Enabling a high-performing organization requires excellent management practices and continuous optimization efforts.

Your technology portfolio and architecture are important, but we must go deeper. Taking a holistic view of ERP technologies in the environments in which they operate allows for the inclusion of people and process improvements – this is key to maximizing business results.

Using a formal ERP optimization initiative will drive business-IT alignment, identify IT automation priorities, and dig deep into continuous process improvement.

Assessing application business value

In this context…

business value

is the value of the business outcome that the application produces. Additionally, it is how effective the application is at producing that outcome.

Business value is not

the user's experience or satisfaction with the application.

First, the authorities on business value need to define and weigh their value drivers that describe the priorities of the organization. This will allow the applications team to apply a consistent, objective, and strategically aligned evaluation of applications across the organization.

Brainstorm IT initiatives to enable high areas of opportunity to support the business

Capabilities are what the system and business do that creates value for the organization.

Optimization initiatives are projects with a definitive start and end date; they enhance, create, maintain, or remove capabilities with the goal of increasing value.

• Technology
• Process
• Organization

Brainstorm ERP optimization initiatives in each area. Ensure you are looking for all-encompassing opportunities within the context of IT, the business, and D365F&O systems.

Discover the value drivers of your applications

Business value matrix

Financial vs. Human benefits

• Financial benefits refer to the degree to which the value source can be measured through monetary metrics and are often quite tangible.
• Human benefits refer to how an application can deliver value through a user's experience.
• Inward vs. Outward orientation
• Inward refers to value sources that have an internal impact and improve your organization's effectiveness and efficiency in performing its operations.
• Outward refers to value sources that come from your interaction with external factors, such as the market or your customers.

Perceived business benefits from using digital tools

Collins et al, 2017

Increased revenue

Application functions that are specifically related to the impact on your organization's ability to generate revenue and deliver value to your customers.

Reduced costs

Reduction of overhead. The ways in which an application limits the operational costs of business functions.

Enhanced services

Functions that enable business capabilities that improve the organization's ability to perform its internal operations.

Reach customers

Application functions that enable and improve the interaction with customers or produce market information and insights.

Prioritize MS Dynamics 365 F&O optimization areas that will bring the most value to the organization

Review your ERP capability areas and rate them according to relevance to organizational goals. This will allow you to eliminate optimization ideas that may not bring value to the organization.

Value vs. effort

How important is it? vs. How difficult is it?

Source: Roadmunk

RICE method

Measure the "total impact per time worked"

Source: Intercom

3.1.1 Prioritize and rate optimization capability areas

1-3 hours

1. Use tab 3.1 Optimization Priorities.
2. From the D365F&O Key Capabilities (pulled from tab 1.3 Key Capabilities), discuss areas of scope for the D365F&O optimization initiative.
3. Discuss the four areas of the business value matrix and identify how each module, along with organizational goals, can bring value to the organization.
4. Rate each of your D365F&O capabilities for the level of importance to your organization. The levels of importance are:
   • Crucial
   • Important
   • Secondary
   • Unimportant
   • Not applicable

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Step 3.2

Discover Optimization Initiatives

Activities

3.2.1 Discover product and vendor satisfaction opportunities

3.2.2 Discover capability and feature optimization opportunities

3.2.3 Discover process optimization opportunities

3.2.4 Discover integration optimization opportunities

3.2.5 Discover data optimization opportunities

3.2.6 Discover D365F&O cost-saving opportunities

Build Your Optimization Roadmap

This step will guide you through the following activities:

• Exploring existing process gaps
• Identifying the impact of processes on user satisfaction
• Identifying the impact of data quality on user satisfaction
• Reviewing your overall product satisfaction and vendor management

This step involves the following participants:

• D365F&O Optimization Team

Outcomes of this step

• Application optimization plan

MS Dynamics's partner landscape

D365F&O uses an extensive partner network to help deliver results.

Connect with partners

D365F&O Partners – Get in touch with trusted Microsoft partners to find up-to-date Microsoft-based services for your business needs.

Microsoft Industry Clouds

Microsoft Industry Clouds connect robust industry-specific capabilities across Azure, Power Platform, Microsoft 365 & Teams, Dynamics 365, and Security, underpinned by our common data model. Helping businesses be more agile, make intelligent decisions, and provide richer experiences.

Find consulting services

Connect with experts who can help you digitally transform your organization.

Find the right app

Solve challenges with apps tailored for a wide range of industries and business needs — and begin propelling innovation and productivity today.

With large-scale ERP and HCM systems, the success of the system can be as much about the SI (Systems Integrator) or vendor partners as it is about the core product.

In evaluating your D365F&O system, think about D365F&O's extensive partner network to understand how you can capitalize on your installation.

You do not need to reinvent the system; you may just need an additional service partner or bolt-on solution to round out your product functionality.

Improving vendor management

Create a right-size, right-fit strategy for managing the vendors relevant to your organization.

Info-Tech Insight

A vendor management initiative is an organization's formalized process for evaluating, selecting, managing, and optimizing third-party providers of goods and services.

The number of resources you assign to managing vendors depends on the number and value of your organization's relationships. Before optimizing your vendor management program around the best practices presented in Info-Tech's Jump Start Your Vendor Management Initiative blueprint, assess your current maturity and build the process around a model that reflects the needs of your organization.

Note: Info-Tech uses VMI interchangeably with the terms "vendor management office (VMO)," "vendor management function," "vendor management process," and "vendor management program."

Jump Start Your Vendor Management Initiative

3.2.1 Discover product and vendor satisfaction

1-2 hours

1. Review tab 2.2 Vendor and Product Satisfaction for your D365F&O system.
2. Use tab 3.2 Optimization Initiatives to answer the following questions in the Overall Product (and Vendor) Evaluation area.
1. Document overall product satisfaction.
2. How does your satisfaction compare with your peers?
3. Is the overall system fit for use?
4. Do you have a proactive vendor management strategy in place?
5. Is the product dissatisfaction at the point that you need to evaluate if it is time to replace the product?
6. Could your vendor or SI help you achieve better results?

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

3.2.2 Discover capability and feature optimization opportunities

1-2 hours

1. Review tab 2.2 Vendor and Product Satisfaction and tab 3.1 Optimization Priorities to review the satisfaction with the capabilities and features of your D365F&O system.
2. Use tab 3.2 Optimization Initiatives to answer the following questions in the Capabilities and Features Evaluation area to answer the following questions:
1. What capabilities and features are performing the worst?
2. Do other organizations and users struggle with these areas?
3. Why are they not performing well?
4. Is there an opportunity for improvement?
5. What are some optimization initiatives that could be undertaken?

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Process optimization: the hidden goldmine

Know your strategic goals and KPIs that will deliver results.

3.2.3 Discover process optimization opportunities

1-2 hours

1. Use tab 3.1 Optimization Priorities and tab 2.2 Bus Proc Change Tolerance to review process optimization opportunities.
2. Use tab 3.2 Optimization Initiatives to answer the following questions in the Capabilities and Features Evaluation area to answer the following questions:
   • List underperforming capabilities around process.
   • Answer the following:
   • What is the state of the current processes?
   • Is there an opportunity for process improvement?
   • What are some optimization initiatives that could be undertaken in this area?

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Integration provides long-term usability

Balance the need for secure, compliant data availability with organizational agility.

The benefits of integration:

• The largest benefit is the extended use of data. The ERP data can be used in the enterprise-level business intelligence suite rather than the application-specific analytics.
• Enhanced data security. Integrated approaches lend themselves to auditable processes such as sign-on and limit the email movement of data.
• Regulatory compliance. Large multi-site organizations have many layers of regulation. A clear understanding of where orders, deliveries, and payments were made streamlines the audit process.

The challenges of integration:

• Extending a single instance ERP to multiple sites. The challenge for data management is the same as any SaaS application. The connection and data replication present challenges.
• Combining data from equally high-volume systems.For D365F&O it is recommended that one instance is set to primary, and all other sites are read-only to maintain data integrity.
• Incorporating data from the separate system(s). The proprietary and locked-in nature of the data collection and definitions for ERP systems often limit the movement of data between separate systems.

Common integration and consolidation scenarios

For more information: Implement a Multi-site ERP

3.2.4 Discover integration optimization opportunities

1-2 hours

1. Use tab 3.2 Optimization Initiatives to answer the following questions in the Integration Evaluation area:

1. Are there some areas where integration could be improved?.
2. Is there an opportunity for process improvement?
3. What are some optimization initiatives that could be undertaken in this area?

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Use a data strategy that fixes the enterprise-wide data management issues

Your data management must allow for flexibility and scalability for future needs.

IT has several concerns about ERP data and wide dissemination of that data across sites. Large organizations can benefit from building a data warehouse or at least adopting some of the principles of data warehousing. The optimal way to deal with the issue of integration is to design a metadata-driven data warehouse that acts as a central repository for all ERP data. This serves as the storage facility for millions of transactions, formatted to allow analysis and comparison.
Key considerations:

• Technical: At what stage does data move to the warehouse? Can processes be automated to dump data or to do a scheduled data movement?
• Process: Data integration requires some level of historical context for all data. Ensure that all data has multiple metadata tags to future-proof the data.
• People: Who will be accessing the data and what are the key items that users will need to adapt to the data warehouse process?

Info-Tech Insight

Data warehouse solutions can be expensive. See Info-Tech's Build a Data Warehouse on a Solid Foundation for guidance on what options are available to meet your budget and data needs.

Optimizing MS Dynamics 365 F&O data, additional considerations

3.2.5 Discover data optimization opportunities

1-2 hours

1. Use your 2.1 APA survey and/or tab 2.2 Vendor and Production Satisfaction to better understand issues related to data.
   
   Note: Data issues happen for several reasons:
1. Poor underlying data in the system
2. More than one source of truth
3. Inability to consolidate data
4. Inability to measure KPIs (key performance indicators) effectively
5. Reporting that is cumbersome or non-existent
2. Use tab 3.2 Optimization Initiatives to answer the following questions in the Data Evaluation area:
1. What are some underlying issues?
2. Is there an opportunity for data improvement?
3. What are some optimization initiatives that could be undertaken in this area?
3. Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Approach contracts and pricing strategically

Don't go into contract negotiation blind.

• Understand the vendor – year-end, market strategy, and competitive position.
• Take the time to understand the contract, including contract details such as length of the contract, full-service equivalent (FSE, employee count,) innovation fees, modules included, and renewal clauses.
• Be fully prepared to take a proactive approach to cost negotiations.
• Use Info-Tech's vendor management services to support you.
• Go in prepared.
• Use your leverage points – FSE count, module bundles, CPI and innovation fees.
• Use competition to your advantage.

Microsoft D365F&O has been growing revenues at a fast-paced rate of +40% year-over-year for the last six years.

Organizations considering additional modules or undergoing contract renewal need to gain insight into areas of leverage and other relevant vendor information.

Key issues that occur include pricing transparency and contractual flexibility on terms and conditions. Adequate planning and communication need to be taken into consideration before entering into any agreement.

3.2.6 Discover MS Dynamics 365 F&O cost-saving opportunities

1-2 hours

1. Use tab 1.5 Current Costs as an input for this exercise. Another great resource is Info-Tech's Microsoft Dynamics 365: Understand the Transition to the Cloudwhich you can use to help understand cost-saving strategies.
2. Use tab 3.2 Optimization Initiatives (Costs Evaluation area) to list cost savings initiatives and opportunities.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

What's next?

Financial Reporting

Financial reporting capabilities that natively handle foreign exchange and support multiple legal entities and currencies in a single instance.

Business Documents / Electronic Reports

Configurable tool that helps create and maintain regulatory electronic reporting and enable automation on document exchange (invoices, purchase orders, payment advices, collection letters, and much more)

What's next?

Embedded Dashboards

• Dynamics finance and operations deliver rich and interactive reports integrated into application workspaces with graphics and visuals using Power BI. It provides a highly visual and interactive experience.

Power Platform

• Power BI
• Power Apps
• Power Automate
• AI Builder

What's next?

AppSource

AppSource provides the right application for your business needs: innovative solutions that will help you get better outcomes for your business.

Phase 4

Build Your Optimization Roadmap

This phase will walk you through the following activities:

• Reviewing the different options to solve the identified pain points
• Building out a roadmap showing how you will get to those solutions
• Building a communication plan that includes the stakeholder presentation

This phase involves the following participants:

• Primary stakeholders in each value stream supported by the ERP
• ERP Applications support team

Get the Most Out of Your MS Dynamics 365 F&O

Step 4.1

4.1 Build Your Optimization Roadmap

Activities

4.1.1 Evaluate optimization initiatives

4.1.2 Determine your optimization roadmap building blocks

4.1.3 Build a visual MS Dynamics 365 F&O optimization roadmap

This step will walk you through the following activities:

• Reviewing the different options to solve the identified pain points then build out a roadmap of how to get to that solution.

This step involves the following participants:

• Primary stakeholders in each value stream supported by the ERP
• ERP Applications support team

Outcomes of this step

• A strategic direction is set
• An initial roadmap is laid out

Evaluate your optimization initiatives and determine next steps to build out your optimization roadmap

Activity 4.1.1 Evaluate optimization initiatives

1- hours

1. Evaluate your optimization initiatives from tab 3.2, Optimization Initiatives.
2. Complete value drivers:
   • Relevance to organizational goals and objectives
   • Applications Portfolio Assessment Survey:
     • Impact: Number of users, importance to role
     • Current State: Satisfaction with features, usability, and data quality.
   • Value drivers:
     Increase revenue, decrease costs, enhanced services, or reach customers.
   • Additional factors:
   • Current to future risk profile
   • Number of departments to benefit
   • Importance to stakeholder relations
3. Complete effort and cost estimations:
   • Resources: Do we have resources available, and the skillset?
   • Cost
   • Overall effort rating
4. Gut check: "Is it achievable? Have we done it or something similar before? Are we willing to invest in it?"
5. Decision to proceed
6. Next steps
7. Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Activity 4.1.2 Determine your optimization roadmap building blocks

1- hours

Optimization initiatives; determine which, if any, to proceed with.

1. Identify initiatives.
2. For each item on your roadmap, assign an owner who will be accountable to the completion of the roadmap item.
3. Wherever possible, assign a start date, month, or quarter. The more specific you can be, the better.
4. Identify completion dates to create a sense of urgency. If you are struggling with start dates, it can help to start with a finish date and work backwards to a start date based on estimated efforts.
5. Include periphery tasks such as communication strategy.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Note: Your roadmap should be treated as a living document that is updated and shared with the stakeholders on a regular schedule.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Activity 4.1.3 – Build a visual MS Dynamics 365 F&O optimization roadmap (optional)

1 hour

For some, a visual representation of a roadmap is easier to comprehend.

Consider taking the roadmap built in 4.1.2 and creating a visual roadmap.

Record this information in the Get the Most Out of Your MS Dynamics 365 F&O Workbook.

Download the Get the Most Out of Your MS Dynamics 365 F&O Workbook

Summary of accomplishment

Get the most out of your MS Dynamics 365 F&O

ERP technology is critical to facilitating an organization's flow of information across business units. It allows for seamless integration of systems and creates a holistic view of the enterprise to support decision making. ERP implementation should not be a one-and-done exercise. There needs to be ongoing optimization to enable business processes and optimal organizational results.
Get the Most Out of Your MS Dynamics 365 F&O allows organizations to proactively implement continuous assessment and optimization of their enterprise resource planning system, including:

• Alignment and prioritization of key business and technology drivers.
• Identification of processes, including classification and gap analysis.
• Measurement of user satisfaction across key departments.
• Improved vendor relations.
• Data quality initiatives.

This formal D365F&O optimization initiative will drive business-IT alignment, identify IT automation priorities, and dig deep into continuous process improvement.

If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop

Contact your account representative for more information

workshops@infotech.com

1-888-670-8889

Research Contributors

Ben Dickie
Research Practice Lead
Info-Tech Research Group

Ben Dickie is a Research Practice Lead at Info-Tech Research Group. His areas of expertise include customer experience management, CRM platforms, and digital marketing. He has also led projects pertaining to enterprise collaboration and unified communications.

Scott Bickley
Practice Lead and Principal Research Director
Info-Tech Research Group

Scott Bickley is a Practice Lead and Principal Research Director at Info-Tech Research Group, focused on vendor management and contract review. He also has experience in the areas of IT asset management (ITAM), software asset management (SAM), and technology procurement, along with a deep background in operations, engineering, and quality systems management.

Andy Neil
Practice Lead, Applications
Info-Tech Research Group

Andy is a Senior Research Director, Data Management and BI at Info-Tech Research Group. He has over 15 years of experience in managing technical teams, information architecture, data modeling, and enterprise data strategy. He is an expert in enterprise data architecture, data integration, data standards, data strategy, big data, and the development of industry standard data models.

Bibliography

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