Five parameters to check if Dynamics 365 ERP is suited to your business

Is your business software more of a burden than a benefit?

Maybe it’s outdated or doesn’t keep up with your growing needs. Choosing the right ERP system can be a game-changer, but with so many options, where do you even begin? If Dynamics 365 is on your radar as one of the top ERP solutions on the market today, here are five key factors to consider before you dive in. These parameters will help you ensure that Dynamics 365 checks all the boxes and enables you to take your business to the next level.

Business size—from Startup Sprint to Enterprise Marathon

Studies state that around 29% of Dynamics 365 customers are small, and 54% of medium-sized businesses (SMEs) have under 500 employees. ERP revenue is expected to show an annual growth rate (CAGR 2023-2028) of 4.78 percent, resulting in a market volume of $62.36 billion by 2028. These agile SMEs find their perfect match in Dynamics 365 Business Central (BC), a solution designed specifically for their needs. D365 BC simplifies core business processes such as financials, inventory management, project management, and customer relationship management, all within a user-friendly interface.

Dynamics 365 also offers Dynamics 365 Finance & Operations (D365 F&O), a robust ERP solution for large enterprises such as Tesla, the State of Maryland, and John Deere. It supports complex global operations with advanced manufacturing, supply chain management, and financial reporting features.

So, look closely at existing case studies and user reviews from companies similar to yours in terms of industry, company size, and geographic location. If others in your field are finding success with D365, that’s a good sign that it could be a fit.

Industry Specificity—Does Dynamics 365 Speak Your Language?

Not all ERPs are created equal. Some excel in manufacturing, while others cater to the intricacies of retail. Dynamics 365 offers a variety of industry-specific modules, ensuring a comfortable fit for your business. According to recent studies, ERP revenue is expected to show an annual growth rate (CAGR 2023-2028) of 4.78 percent, resulting in a market volume of $62.36 billion by 2028.

Dynamics 365 goes beyond manufacturing (where it excels with features like production planning). For example, Financial Services leverage D365 for financial management and personalized wealth services; retail unifies online and physical stores with D365 Commerce, while D365 streamlines patient care and communication in Healthcare.

So, how can you determine if Dynamics 365 understands your industry’s trajectory? Research the available modules and functionalities. Does it cover your specific needs, such as project management for professional services firms or advanced forecasting for e-commerce businesses? Remember, a well-aligned ERP is like a translator that ensures smooth communication between your unique business processes and the software.

Cloud vs. On-Premise? Dynamics 365 offers both

Cloud deployment: You can instantly scale resources up or down to meet changing business needs, freeing your IT team to focus on more significant projects. Think of it as on-demand software with predictable monthly fees, but a reliable internet is necessary.

On-premise deployment: This option is ideal for highly sensitive information, as it keeps your data under lock and key on your servers. You also have complete control over customization to match your workflows perfectly. However, this control comes with local responsibility: a dedicated IT team for maintenance, potential scaling headaches, and a hefty upfront investment.

Choose the cloud for ultimate flexibility and effortless scaling, or opt for on-premise deployment for maximum data control. Consider your needs: Budget, IT resources, and data sensitivity all play a role in finding the perfect fit for your business.

Integration and customization capabilities—Does Dynamics 365 Play Well with Others?

A business ecosystem thrives on interconnectedness. Your ERP should smoothly integrate with existing applications, such as your CRM or marketing automation tools. After all, you don’t want to adopt a system with only critical business processes or data siloed outside the main system. Microsoft Dynamics 365 offers a wealth of out-of-the-box connectors to integrate with popular productivity tools like Office 365 and options to build custom integrations leveraging hundreds of Microsoft Flow data connectors. Additionally, it offers open APIs (Application Programming Interfaces), facilitating easy customization and integration with third-party applications.

A recent survey shows that 47% of organizations report improved customer satisfaction after ERP implementation. If your business relies on seamless integration across a diverse application ecosystem, such as Power BI, Office 365, and SharePoint, pressure test Dynamics 365 connectivity to those must-have existing systems during evaluation.

Licensing Costs and Pricing Model—Is Dynamics 365 a Budget-Friendly Choice?

Dynamics 365 ditches the traditional upfront, “buy it and forget it” model of older ERPs. Instead, it uses a modern subscription approach with monthly or annual payments. This makes the initial cost more manageable, especially for startups on a budget. However, remember, with subscriptions, the fees keep rolling in. Dynamics 365 pricing starts as low as $4,160 per month, scaling based on your specific user and application needs.

Here’s the key: don’t just focus on the subscription cost. Be sure to factor in add-on fees, third-party tools, implementation services, training expenses, customizations, and data migration. Get a clear picture of upfront and ongoing costs over a multi-year period to ensure Dynamics 365 fits your long-term budget. You want your ERP system to be a loyal companion throughout your business journey.

Choose the Right Dynamics 365 Partner

Finally, consider choosing an experienced implementation partner to support your ERP rollout and provide ongoing services. This is especially crucial for more complex, transformative deployments.

Microsoft Solutions Partners represent the top tier of their partner network, recognized for their expertise, innovation, and commitment to customer success. LevelShift goes beyond the standard partner goes beyond what you would expect from a standard partner. We offer the following:

• Deep Microsoft expertise:Our team has extensive experience with the entire Dynamics 365 suite, with over 40+ certified consultants collectively holding 70+ certifications who can tailor a solution that perfectly aligns with your business needs.
• Flexible pricing models: We understand that one-size-fits-all doesn’t work in the ERP world. Our flexible pay-as-you-use model is built to fit your budget and project timeline, from on-demand services to full-scale implementations.
• Client-centric approach: Our experts prioritize understanding your unique business challenges and develop a customized implementation plan to maximize the value you can extract from Dynamics 365.

Do your due diligence, of course, but with a proven track record, industry recognition, and commitment to client success, LevelShift is a strong contender to become your ideal Dynamics 365 dream team. Talk to us to explore if Dynamics 365 is your perfect match.