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Microsoft Dynamics 365 is a comprehensive, cloud-based business support platform that combines an enterprise resource planning (ERP) system and a customer relationship management (CRM) tool.
When implemented correctly, Dynamics 365 powers time-saving automations and provides a reliable single source of truth on a wide range of business processes. Organizations streamline work, and leaders make better, data-based decisions on the route forward.
However, Microsoft Dynamics 365 implementations often fall short, not because of technological limitations, but because teams underestimate the planning and change management processes.
Learn how to avoid these pitfalls by understanding what a Dynamics 365 implementation involves and the best practices for success when adopting this software. Explore a step-by-step guide to structure your implementation.
What a Microsoft Dynamics 365 implementation involves
Microsoft Dynamics 365 transforms the way a business houses data and performs work, so implementing this tool implies far more than a simple software installation. Here's what the process involves:
- Translating business processes into system design decisions: Implementation leaders must capture current, as-is processes and translate them into workflows that can be replicated in Dynamics 365 or modified to fit the platform's out-of-the-box configurations.
- Coordinating IT, business teams, and partners: A successful implementation depends on the input of stakeholders from across the organization, including IT personnel, leaders, and end users, as well as external partners (from the vendor) who can help navigate the migration.
- Managing data, permissions, integrations, and adoption together: To prevent business downtime, you'll likely need to run data migration, set permissions, and configure integrations at the same time as you're training end users and trying to get them to adopt the tool. This multi-faceted work relies on careful planning and delegating responsibilities.
- Treating implementation as a lifecycle, not a single event: Implementation is an interactive process, and workflows must continually be reviewed and optimized in the Dynamics 365 platform after launch. Invite end-user feedback on improvements and establish dedicated IT support to fix issues. Encourage leaders to check in frequently with their teams on their experience with the platform to uncover problems before they grow.
Dynamics 365 implementation steps
The Microsoft Dynamics 365 implementation lifecycle comprises seven key steps. Use the following high-level descriptions of each to guide your planning.
- Planning and solution design: Gather key stakeholders, from business leaders to select end users, to help plan the implementation process and design the solutions to be configured in the new platform. These configurations should drive overall business goals and support existing, functional ways of working. They should also aim to optimize work where possible.
- Environment setup and configuration: Configure both security roles (permissions, access) and workflows (dashboards, automations, custom fields) in Microsoft Dynamics 365. Define the organizational structure and business units. These are core configurations, but not necessarily ones that will be set in stone. Data migration, testing, and real-life use may reveal the need for modifications.
- Data preparation and migration: Before data migration, information lives in various places (like legacy systems and spreadsheets) and takes several formats. There are often data inconsistencies, errors, and duplicates. So, it's essential to clean up and unify data before attempting to transfer it to Dynamics 365. Moving bad data will only spur errors and compliance concerns when you start using the new system.
- Integration with existing systems: Microsoft Dynamics 365 integrates with a range of other tools, from Microsoft ones (like Outlook and Excel) to external ones (like Salesforce, Adobe, and Shopify). Set up integrations carefully, as Dynamics 365 will have to pull data from these other sources to run optimally.
- Testing across roles and scenarios: Before launching Microsoft Dynamics 365, test individual components and integrations, and perform user acceptance testing (UAT) to ensure that team members can functionally use the tool in everyday work. Take end-user feedback seriously; these team members have first-hand experience with workflows and can offer valuable insights on improvements.
- Go-live: Launch the tool company-wide and have leaders provide comprehensive role-based training, so that end users feel confident integrating Dynamics 365 into their daily work. Without proper training, people may not use the tool.
- Hypercare: Monitor the functionality of the platform and user adoption, with an eye for improvements. You may notice that use drops off after the initial launch and that team members are reverting to obsolete processes and workarounds avoid interacting with the platform. This is a sign that configurations need to be optimized, and end users can provide advice on how to do so.
Common Dynamics 365 implementation pitfalls
Avoid common Dynamics 365 implementations pitfalls by planning to mitigate them and learning how to spot and correct them if they arise. Here are a few typical issues to know.
- Jumping into configurations: Avoid configuring Dynamics 365 until you understand existing workflows and have optimized them. Running broken workflows will only generate errors, confusion, and rework in the new system.
- Over-customization: Instead of spending lots of time and money configuring the system, consider how you can adapt your current processes to the platform's out-of-the-box settings. Over-customization isn't often valuable, and it makes future changes difficult.
- Rushing data migration: Bad data is one of the top root causes of failed implementations, as Dynamics 365 won't have reliable information to feed into workflows and reports. Not only can this data create process errors, but it also leads to analytics you can't trust when making business decisions.
Driving adoption during and after go-live
A major setback in Dynamics 365 implementations is a lack of user adoption. Team members alone won't convince themselves of the value of the tool or teach themselves to effectively use it. So, business leaders need an effective change management strategy that highlights the platform's benefits and comprehensively trains people by role.
Leaders should also monitor adoption after roll-out, as it can drop off as end users revert to old processes and create workarounds. If people stop interacting with the platform, it's likely because it's not serving them practically. Leaders can step in and gather feedback on modifications that would make the platform more valuable in everyday tasks.
If a drop-off in user adoption isn't addressed, work can slow down, and data will start to live in dispersed locations, meaning not everyone will be able to visualize it when they need it. Chaotic data storage can also endanger compliance and put information security at risk.
How Scribe Capture supports Dynamics 365 implementation
Before implementing Microsoft Dynamics 365, you need to know how work currently gets done at your organization. Understanding workflows teams are currently performing is the best route to configuring your new ERP and CRM platform.
Scribe Capture helps teams drive workflow clarity before, during, and after a software implementation by:
- Automatically transforming current workflows into step-by-step process documentation that guides configuration
- Capturing new Dynamics 365 workflows in user-friendly tutorials that support training and act as a single source of truth
- Updating operational documentation as processes change over time, so that teams always have a reliable reference
FAQs
Is Microsoft Dynamics 365 a CRM or ERP?
Microsoft Dynamics 365 is both a CRM and an ERP, allowing businesses to manage core business processes and customer relationships in one place.
How long does it take to implement Dynamics 365?
Implementation times vary based on the complexity of set-up and the size of the organization. A small-to-midsized business with few customizations may only take a few months to roll out the tool, while an enterprise with a complicated deployment and large amounts of data could take over a year.
What usually causes Dynamics 365 implementations to fail?
Microsoft Dynamics 365 implementations often fail because teams don't document as-is processes or clean up data before migrating them to the new system. An implementation can also crash due to a lack of end-user training and a change management strategy that drives adoption.
How often should Dynamics 365 processes be reviewed and updated after launch?
Reviews and updates are core Dynamics 365 implementation best practices. Teams should constantly, iteratively review workflows, flagging issues as they arise and making process improvement recommendations. And formal reviews should be conducted periodically: at least once a year for high-level best practices and monthly for process automations. Finally, any time Microsoft releases new features, you should also review and update affected workflows.
