Implementation of MS Dynamics Financial Services

Implementation of MS Dynamics Financial Services

Business owners often need updated financial information to make decisions on the go. They also require AI-driven insights to get more control over expenses. MS Dynamics 365 for financials offers these and many other features for your financial management. Below, we’ll explore them and learn how to implement the Microsoft D365 solution for financial services.

About MS Dynamics Finance

MS Dynamics 365 is a system of CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) solutions. It includes around 15 modules that customers can use separately or with other apps. All of the D365 instruments are cloud-based.

Top MS D365 products are:

  • Customer Service
  • Sales
  • Field Service
  • Marketing
  • Business Central (formerly Dynamics NAV)
  • Supply Chain Management 
  • Finance.

The Dynamics 365 Finance module was earlier known as Dynamics 365 F&O (Finance and Operations). The F&O software’s previous version was Microsoft Dynamics AX. The Dynamics 365 for Financials allows managers to control budgets, automate routine tasks, and improve performance due to AI-powered insights.

Why MS Dynamics for Financials Is Helpful 

MS Dynamics offers financial solutions for businesses of all sizes. Whether you use D365 financials SME or for a large enterprise, you can:

  • Enhance financial analysis and planning
  • Manage tax issues under various jurisdictions 
  • Monitor liquidity
  • Leverage AI-driven billing, receivables processing, and collecting 
  • Streamline error-free financial reporting.

However, switching to D365 from your current solution for accounting and finance will take time. Moreover, most Dynamics products will have overlapping functionality, so you’ll need to consider the industry, necessary features, and integration with other tools.

In this article, we’ll discuss the key benefits of Dynamics Financial Services, cover their implementation phases, and explore the main challenges. Also, we’ll share two real-life examples of how companies started using the D365 products.

Understanding Microsoft Dynamics Financial Services

You need to remember that Dynamics 365 financial services isn’t a ready-to-use solution. It’s instead a list of apps and packages that can improve the way you approach your finances and deliver services. This is possible with D365 developers, who will help you select and customize the tailored-to-your-needs modules for your workflows. So, first, let’s check how your business can benefit from using Microsoft Dynamics. 

Key Features and Benefits of MS D365 Products for Your Finances

Here’s what you can improve with MS D365 tools.

#1. Financial Management and Accounting

Dynamics AX financial module will help you store and reconcile data and get error-free information on payables and receivables. It’ll allow you to generate and send invoices automatically. The financial data will be consistent and updated so managers can see refreshed metrics on customizable dashboards. The advanced analytics provides valuable insights and recommendations to keep your company financially healthy.

#2. Customer Relationship Management (CRM)

Not only large entities need to synchronize customer data across departments or teams. Dynamics 365 offers companies of all sizes the opportunity to improve customer experiences and increase satisfaction. Dynamics 365 tools will analyze each touchpoint and aggregate information about every client. You can use Microsoft Dynamics CRM solutions for retail banking, manufacturing, legal advising, etc., to generate leads and grow revenues.

#3. Supply Chain Management (SCM)

Whether you’re a large clothing manufacturer or a small restaurant, a reliable SCM tool is vital. The MS D365 solution works perfectly for all industries and workloads, optimizing resources and processes. This platform offers warehousing, material management, product returns, demand forecasting, and more functions. And you can tailor its capabilities to your needs with Microsoft Dynamics 365 for distribution experts.

#4. Human Resource Management

Connected employee experiences, consistent architectures, and automated processes will make your HR infrastructure another business driver. Microsoft D365 keeps employees motivated and, thus, your customers happy. You’ll make your HR team more efficient by minimizing manual tasks and introducing better collaboration. The system also allows managers to integrate and monitor learning programs to ensure their employees grow.

#5. Business Intelligence and Reporting

Microsoft Dynamics aggregates all business-related information, making it consistent and easily accessible for all users. The collected data becomes your business knowledge that helps to attract more customers. Dynamics NAV financial management will become your business intelligence solution. It’ll engage AI and bring more value to data, letting you make informed decisions and promote your brand.

How D365 for Financials Differs from Other Products

What benefits does Microsoft Dynamics CRM 365 financial services have over other solutions?

  • It’s an all-in-one solution. You don’t have to search for multiple third-party software around the globe. Microsoft has applications and add-ons you may need in one place. You have plenty of options to cover any functionality. 
  • It’s a full-fledged ERP. D365 Finance will embrace not only the financial aspects of your business but also handle your company’s manufacturing, supply chain, and operations. 
  • It’s compatible with other MS apps. Dynamics 365 Financials data integration with other MS products is seamless. You won’t need new solutions to connect with other tools you use daily.

Pre-Implementation Planning for Your D365 CRM or ERP

Switching to MS Dynamics to enhance your financial services can be easy. However, such investment requires thinking through the entire migration journey. The next four steps might help you.

A. Assessing Business Needs and Goals

It’s critical to remember that technology is only an instrument for achieving your business goals. So, you need to highlight current business processes and visualize how your organization works. Define how you bring value to customers and communicate with suppliers. The core steps for the right digital solution are creating the business model and stating business goals. 

B. Selecting the Right MS Dynamics Package

Often, managers believe that the new D365 app will transform the business processes. Though its implementation will require changing some workflows, your business model should dictate how to structure operations. So, choosing the right tools is vital. However, a Microsoft Dynamics CRM for banking, for instance, will only be a one-off solution for some banks. Thats because it’s a set of modules you need to select for your tasks and priorities. 

C. Building a Project Team

Even large organizations rarely have an in-house Microsoft D365 developer or a team to implement Dynamics solutions. That’s because their installation and configuration require specific skills. An MS Dynamics 365 implementation team for a mid-sized or large organization typically includes around 5 people. They are a project manager, a solution architect, functional and technical consultants, and a test expert. Also, it’s vital to engage a business representative who knows how the new solution should function.

D. Budgeting and Timeline Planning

The cost of your Dynamics solution will go far beyond the price for one license’s price multiplied by the number of potential users. You’ll have to pay salaries to your Microsoft Dynamics AX developer and other implementation team members. They’ll need working space and equipment. So, the longer the implementation will last, the more you’ll spend. Moreover, your employees will need training. So, crafting a thorough plan with the help of a consultant will let you forecast expenses. This way, you’ll assess if the digital transformation fits your budget.

5 Phases to Implement Your MS Dynamics 365 Solution

Once your implementation team is ready and the budget is reserved, it’s time to incorporate your Dynamics 365 module. This process has five phases.

Phase 1: Project Initiation and Requirements Gathering

Launching the project means you state the capabilities of the existing tools and detailed requirements for the future software. The implementation project team needs to run the functional and technical analysis. Specialists define gaps that must be covered and additional tools that have to be connected. As a result, you’ll get a scope of work where experts document all the requirements. 

Phase 2: System Design and Customization

Now, it’s time to craft a new solution based on the tech specifications. If, for instance, you implement a Microsoft Dynamics CRM for insurance, you’ll need to create a single window for each client with all interactions. You might also require a meeting scheduler, Outlook, telephone system integration, claim management, loyalty programs, etc. All these features will be stated in a document with a functional design. 

Phase 3: Data Migration and Integration

This phase includes the implementation of the technical and functional requirements of the software. Technicians access the Dynamics 365 financials developer functions to build the solution according to the Scope of Work. At this stage, experts should plan for data migration to ensure the data is non-duplicated, updated, and unified. Also, the implementation team must agree on the data transition time to avoid affecting business processes. 

Phase 4: User Training and System Testing

Once the first version of the solution is ready, the project team tests how its functions work. However, making bug fixes and re-tests is possible while other features are under development. During phase 3, the team works out the training materials. So, at this point, employees and future D365 system users read user manuals, visit workshops, and get personal training. 

Phase 5: Going Live and Post-Implementation Support

After the implementation team finishes the testing and transfers all the data, they agree on the go-live time. This typically happens on weekends to avoid a possible collapse. Even if the transition goes smoothly, the project technicians keep supporting the software. They answer users’ questions and resolve issues for the agreed time.

Overcoming Dynamics AX Financials Implementation Challenges

Microsoft Dynamics 365 is exceptionally helpful software, but switching to it implies particular challenges. Below are the most popular issues you can face and ways to overcome them.

Data Security and Privacy Concerns

Many business owners are worried about transferring their data to the cloud. For instance, accessing Microsoft Dynamics for financial advisors means compromising the banking accounts of many people. However, Microsoft invests around $1 billion in the security of its clouds. 

Resistance to Change among Staff

Employees will resist new tools because they don’t want to spend additional time and effort. However, if you engage key users at all levels, the transition might happen faster and with a more welcoming mood. 

Technical Glitches and Downtime

Minimizing tech issues is possible when you arrange thorough testing of your MS D365 product. It’s best to initiate migration at a low-load period to avoid downtime — at night or on weekends. 

Ensuring Continuous Training and Support

Users will always have questions about the new system, especially rarely used functions. Moreover, any software requires maintenance, so you might need to hire Microsoft AX developer to ensure system support and training users.  

Case Studies: Successful MS Dynamics Implementations in Financial Services

Let’s look at examples of how Dynamics 365 can help small and large companies equally well. 

Kambukka — a Small Producer of Eco-Friendly Vessels

A premium Belgian brand was selling around 100 items per day. A seller had to manually create invoices and decrease the number of vessels in stock, which was time-consuming and not error-free. Moreover, the Kambukka used different tools for monitoring orders and managing inventory. With Dynamics 365 Business Central, the company’s team saves one day each month to focus on sales. The Chief Marketing Officer says they can easily cover peal loads with D365. 

Wesleyan — a Group of Companies Offering Financial Services 

A large UK-based organization had to deal with various spreadsheets manually to upload and reconcile its clients’ bank accounts. However, after switching to Dynamics 365 Finance, its 200 users automatically process bank and financial statements. The migration took 15 months. Enterprise Architect at Wesleyan also stresses better and easier team collaboration. A supplier relationship manager says he can see the whole picture by accessing data in real-time. 

Future Trends and Developments in Financial Services Software

Do you use Microsoft Dynamics insurance, banking, e-commerce, or other industries? Check the upcoming trends for finance-related software. 

Integration with Emerging Technologies 

The market for software for financial services will only expand. This assumes that integration with many top technologies will only grow. Cloud banking, embedded finance, open banking, and mobile payment processing are among them. Financial tools will also leverage the development of cybersecurity, fintech disruption, blockchain, regulatory technology, biometrics, and AI. 

Predictions for MS Dynamics Evolutions

Microsoft keeps investing in its best-in-class Dynamics 365 solutions. For instance, its Optical Character Recognition allows reading invoices, while Globalization Studio enables electronic invoicing and legal compliance. In the future, the tech giant will continue developing its own Dataverse (data repository) and its integrations. For the upcoming years, predictive capabilities (ML), creating customized devices (IoT), and advanced cloud capabilities are core goals of MS. 

Preparing for Future Changes in Financial Technology

Since the FinTech sector has evolved, a new industry — Welltech — has appeared. It’s focused on helping people stay financially healthy and enjoy well-being. This will give rise to personalized AI-driven financial advisors. Also, we’ll probably witness more blockchain-powered financial services and products that will make the financial market more secure and transparent. Mobile payments will gain more popularity, becoming even more comfortable and safe. 

Using MS D365 Finance Is Your Strategic Decision 

Microsoft Dynamics 365 for financials boasts real-time visibility, faster reporting, deeper financial data analysis, and valuable AI recommendations. Teams can access the cloud-based apps of D365 from anywhere. Smart integrations with MS products make businesses more productive. Your data remains secure even when your business scales up. So, implementing D365 for financial services is a wise strategic decision.

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