Microsoft Dynamics 365 Implementation Cost – How’s the Price Formed?

Microsoft Dynamics 365 Implementation Cost – How’s the Price Formed?

Companies are investing time, effort and money to unify their teams around actionable data and stand out from the competition. Unfortunately, there is still a huge number of businesses using disconnected operational workflow systems, which results in inefficient processes littered with inaccurate and duplicate data. However, with a system like Microsoft Dynamics, businesses can unify their operational workflows and afford the visibility, insight, and collaboration needed to achieve their desired goals. What is the Microsoft Dynamics 365 implementation cost, and how do you benefit from this integration? In this article, we have curated a comprehensive step by step guide on how you can implement MS Dynamics systems into your business processes. We are also going to look at the benefits of Microsoft Dynamics AX custom development, integration challenges of Microsoft Dynamics, and how you can overcome them.

Benefits of MS Dynamics ERP and CRM Integration

The global Microsoft market is expected to grow at a Compound Annual Growth Rate (CAGR) of 12.2% from 2023 to 2033, reaching a valuation of $34,215.8 million by 2033. This growth is largely driven by the shift towards cloud adoption, Microsoft web service integration with AI and IoT technologies, and the development of industry-specific solutions.

Dynamics CRM data integration helps condense data procedures, leading to the creation of and effective management of consistent datasets for all processes. Aside from that, there are many other advantages of ERP implementation.  They include:

Eliminating Redundancies

As indicated earlier, business operations are highly integrated with all segments operating in unison. Using a disjointed CRM and ERP system means that data has to be entered twice, which is not only time-consuming but also prone to error. However, by integrating the two systems, information is updated concurrently, eliminating redundant data-entry tasks.

Improves the Speed and Efficiency of Processes

Eliminating redundant data entry tasks through the integration of ERP and CRM systems makes it easier for teams to locate important information in real-time. For instance, production teams can create lean manufacturing processes by manufacturing goods using real-time order details. You can also partner with ERP implementation companies to design a proper entity mapping system to help streamline datasets and their underlying relationships.

Improve Your Brand Visibility

Integrating CRM and ERP systems gives your sales agents, warehouse workers and production line employees consistent information, making it easy for them to focus on their primary tasks. Better yet, having dashboards that keep everyone in the loop means that timely tasks performed by individual employees don’t contradict those done by others in different departments.

Help Serve Customers Better

Another benefit of CRM and ERP integration comes in the form of improved customer service. By having complete product and inventory records, your sales agents and customer care reps can effectively communicate with prospects and give consistent answers

Power to Differentiate Your Business

D365 also offers cloud functionality, handing businesses the power to conduct rapid digital transformation. Unlike using disjointed, bolt-on ‘solutions’, the unified intelligence systems found in CRM and ERP systems allow you to easily pivot your business processes as new trends and information continue to emerge, even as competitors continue to plod behind.

Factors to Consider Before MS Dynamics Implementation 

Despite the multiple benefits of MS systems, it is important to appreciate that implementation is a huge investment that costs time, effort and money.  How can you ensure that your investment pays dividends, both now and in the future?

Here are some of the critical factors to consider before undertaking integration:

things to consider before microsoft dynamics integration

Your Business Needs

Understanding your business needs and communicating them to your development team is critical in crafting and implementing an MS solution. After assembling your team, you need to carefully explain the core values of your enterprise, your processes, challenges and requirements. By doing so, the development team of MS Dynamics GP consultants can find the most suitable Microsoft solution, as well as the kind of customization your ERP or CRM systems need.

Budget

If you are running a small startup, chances are high that you could be working on a limited budget, and may not have the reserves to buy multiple software tools. For this reason, Microsoft AX developer and integration costs become an issue. Essentially you should be looking for an package combo that gives your business all the enabling tools without breaking the bank. It should include all additional features like customer support and marketing automation. Although it may seem costly to hire a Microsoft Dynamics 365 implementation consultant in the initial stages, they will help find the best package, saving you much more in the long run.

Ease of Use

One of the biggest mistakes you can make when purchasing a package is to choose something with a steep learning curve and almost impossible to comprehend by your employees. If it’s difficult to operate, the level of assimilation will be significantly low, and it may make your employees less efficient.

Competency of Your Microsoft Services Provider

Assigning your project to a dedicated development team with expert knowledge in all the integration manager tools and how your processes work is vital. You may also need the development team to work with a few members of your in-house team during the test period, to ascertain the effectiveness of your solution.

Common Microsoft Integration Options 

Integrating your CRM with third-party systems eliminates the need to keep switching tools and helps create efficient internal processes, streamline internal collaboration efforts and eliminate communication bottlenecks. 

Below, we have listed the most common MS CRM implementation methodologies, and the option you choose is largely dictated by your business needs, size of your company and the budget.

ERP with Dynamics 365

Connecting your CRM with an ERP system like Oracle ERP Cloud, SAP ERP, and Finance and Operations gives your sales representative instant access to information concerning products, prices, order details, invoices, payments and inventory information. With all this information at their fingertips, sales reps can communicate with customers much faster and make informed decisions.

Office 365 with D365

Another unique way for businesses to use the platform is through Office 365 and Dynamics integration. With this form of integration, it becomes easy to:

  • Track emails
  • Track meetings and customer appointments using the Outlook Calendar
  • View sales information and activities
  • Create new records with ease
  • Generate activity lists in response to automatically scheduled emails and new customer records

DMS with Dynamics 365

Integrating DMS with D365 helps businesses manage and electronically archive internal and external documents with ease. These documents are archived within Dyn365FO, and can be searched and accessed by users depending on their security roles.

Analytics Tools 

Microsoft Dynamics 365 becomes a more powerful resource once it is connected to analytic tools such as Power BI. This Office 365 cloud service acts as a built-in analytics solution, as well as a tool that helps automatically refresh online data displayed.

Email with D365

Sales representatives spend most of their working time communicating with colleagues and prospects and customers. For this reason, integrating D365 with client’s emails is important in tracking and managing sales-related email correspondences, receiving emails from clients and generating reports directly from the email.

6 Steps for MS Dynamics Implementation 

The very first step in MS Dynamics entails adding people via the Office 365 Admin Center and assigning them security privileges, which limits what they can and can’t do within the system.

Set Up Email

One of the biggest advantages of Microsoft Dynamics is that it gives you the freedom to store all customer contacts in one place. For this, you are required to synchronize your email system with MS 365.

Get Mobile Apps

The next step in integration is to give users the leeway to access the system either using a phone or tablet. You can choose between D365 for phones or D365 for tablets, and either of them can be downloaded by the users on their devices.

The good thing about these apps is that they are easily customizable to meet specific business needs. You can simply add things that your organization needs and remove unnecessary ones. As the icing on the cake, a single change is implemented for all the users, irrespective of their mobile platform of choice.

Customization

Dynamics 365 is designed and built to allow customization of several aspects of the software. You can choose to add a new logo, change the color scheme, adjust or create new forms and views, configure or create new dashboards and so much more.

Add a Document Management System

One of the best document management systems to integrate is SharePoint. It makes team collaboration and communication easier. However, to complete this merger successfully, you need to activate the CRM list component or the server-based SharePoint integration.

Connect Skype

Skype integration allows your teams to instantly text, call or video chat with each other, as well as share files without switching from the application. Even better, they can easily access customer calls, add footnotes and share them with other users.

Import Your Data

To access the full benefits of your new system, you must populate the system with data. For this, MS Dynamics 365 comes with wizards and templates that allow you to move information from email systems, spreadsheets and other in-house structures. When importing data into your Microsoft Dynamics 365 system, the best place to start is the contacts from the existing system(s), then proceed to leads and accounts. Lastly, store them into single, separate files.

Microsoft Dynamics Cost of Implementation

The cost of Microsoft CRM integration services is largely dependent on your company’s size and the licenses you purchase. It can be as inexpensive as under $10,000 or even be a multi-million dollar project.

Essentially, an On-Premise solution will cost you an average of between $3,000 and $5,000 per user – which can add up depending on the number of users and third-party products – and the annual maintenance fee. A cloud-hosted solution on the other hand will cost between $230 to $530 per user, per month, with the service fee costing up to 4 times the total cost of your On-Premise and Cloud software.

microsoft dynamics crm integration help

What Factors Influence on Microsoft Dynamics 365 Implementation Cost

The Microsoft Dynamics 365 implementation cost can vary widely based on several key factors. Here, we break down these factors to give you a clearer understanding of what affects the overall cost.

Module Type

The type of module you choose significantly impacts the cost. Basic modules like Sales or Customer Service are generally less expensive compared to more complex modules such as Finance and Operations or Supply Chain Management. Each module comes with different features and capabilities, and the more comprehensive the module, the higher the cost.

For example:

  • Sales Module: Approximately $65 per user/month
  • Customer Service Module: Around $50 per user/month
  • Finance and Operations Module: Up to $210 per user/month

Difficulty of Integration with Existing Tech Environment

The challenge of integrating with your current IT ecosystem is another important aspect. If your current systems are out of date or extensively customized, integrating the new platform may involve extra effort and resources. Simple integrations often cost between $10,000 and $20,000, and complex integrations may cost between $50,000 and $100,000.

Data Transfer Requirements

The amount and complexity of data to be sent can play an important impact in deciding the cost. Transferring a modest amount of data with basic structures is cheaper than migrating large amounts of complicated data.

  • Minimal Data Transfer: $5,000 to $10,000
  • Moderate Data Transfer: $15,000 to $30,000
  • Extensive Data Transfer: $50,000 and up

Where to Hire a Specialist

The geographical location of your hired professionals can have an impact on expenses due to variable labor rates. Hiring locally in high-cost areas rather than outsourcing to places with lower labor costs can make a significant impact.

Here’s a comparison table for average annual salaries:

CountryAnnual Salary ($)
USA105,000
Switzerland103,000
Canada85,000
UK80,000
Ukraine40,000
France75,000
Netherlands82,000
Germany78,000
Mexico35,000
Brazil30,000
Colombia28,000

In summary, the Microsoft Dynamics implementation cost depends on the module type, integration complexity, data transfer requirements, and the location of your hired specialists. 

Where to Look for MS Dynamics Developers

As you can see from our Microsoft Dynamics implementation A-Z guide, MS allows businesses to enjoy numerous benefits, including increased efficiency, more lead generations, improved sales, and streamlined in-house and external communication. However, all too often, the process of integrating can be fraught with challenges that can potentially lead to disastrous and costly occurrences. In all cases, the root cause is a lack of skills and expertise compounded by poor project management.

Our specialists are ready to help in the implementation of a new module or this system. Here’s what our Microsoft Dynamics CRM implementation services include:

Development

We provide full-time tech experts through our outstaffing service. These experts are managed technically by our clients, but we handle all HR and administrative matters. This ensures that you get dedicated professionals without the hassle of management. 

Consulting

For those who need part-time tech experts, we offer consulting services where specialists work directly with the client. Our Microsoft Dynamics 365 implementation consultants provide one-time CTO consultations. Similar to our development service, we can also conduct technical interviews for candidates during the recruitment phase, which is a paid service.

Integration

We handle the CRM connectivity with your existing systems. Our staff ensures that all components operate together efficiently. This covers data migration, API integration, and customized middleware solutions.

Implementation 

We guarantee the system is configured to meet your specific business requirements. It include configuring modules, assigning user responsibilities, and ensuring that the system is fully operational and meets your business objectives.

Support

After deployment, we offer support to guarantee that your system functions smoothly. Our support services include system maintenance and updates. We are always ready to help with any concerns that may arise.

Here’s a comparison table highlighting the cooperation models and potential money savings on Microsoft Dynamics implementation:

Cooperation ModelPayment TermsPotential Money Savings
Dedicated Development Team (DDT) ModelPayment starts only after team assembly.Daily rates for actual days worked.Option for fixed monthly prices.Possible retainer fee for recruitment phase.No upfront recruitment costs.Pay only for actual working days, potentially lowering costs.Fixed prices can simplify budgeting.
Consultancy ModelHourly rates prepaid as a deposit.Payments requested as prepaid hours are used.Possible retainer fee for recruitment phase.Prepaid hours ensure controlled spending.Flexibility in scaling consulting hours as needed. Potential cost savings by avoiding full-time salaries.

Need Help? Trust Us with Your Dynamics Implementation

Hire Dynamics Developers is a company that specializes in ERP developers and we will help you find skilled professionals that meet all your Microsoft Dynamics 365 implementation needs. Contact us now to find an experienced expert for quality customization.

Contact Us for Professional Assistance with the Affordable Microsoft Dynamics 365 Implementation Cost!