Maximizing Business Value with Dynamics 365 ERP: A Summary of the Latest Study
Introduction
In 2024, Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study to evaluate the potential return on investment (ROI) enterprises might achieve by deploying Microsoft Dynamics 365, an enterprise resource planning (ERP) solution. The results demonstrate significant business value for organizations adopting this technology.
Key Findings
The study revealed that Dynamics 365 delivers meaningful business value across various dimensions:
- ROI: 106%
- Present Value of Benefits: $15.8 million
- Net Present Value: $8.1 million
- Payback Period: 17 months
Breakdown of Benefits
The benefits contributing to the total present value include:
- Increased Profitability: $1.2 million from improvements in accounts receivable, inventory turnover, order accuracy, and other areas.
- Cost Savings from Organizational Simplification: $1.8 million, including savings on overhead and professional services.
- Reduced Infrastructure and IT Operations Costs: $3.9 million by eliminating numerous on-premises legacy solutions.
- Increased Productivity: $8.9 million from unified data access, streamlined processes, and automated workflows.
Enhanced Productivity and Decision-Making
Dynamics 365 enhances productivity through:
- AI-Powered Automation
- Business Intelligence Analytics and Dashboards
- System Access and Data Integration Across Business Units
- Integration with Microsoft 365 and Azure
These features contribute to significant time savings for employees across various functions:
- Finance & Accounting: 14.5 hours saved per week
- Supply Chain & Logistics: 8.7 hours saved per week
- Other Employees: 7.4 hours saved per week
Immeasurable Benefits
The study also highlights benefits that are harder to quantify, such as:
- Enhanced Employee Experience: Dynamics 365 provides greater stability and performance, reducing mundane and tedious work.
- Improved Cybersecurity Posture: Fewer on-premises systems and the shift of management duties to Microsoft reduce cybersecurity vulnerabilities.
Cost Avoidance and Organizational Simplification
Organizations experienced significant cost avoidance by transitioning to Dynamics 365. One vice president in the energy sector highlighted savings exceeding half a million dollars in hardware, software, and colocation contract extensions by moving to the cloud.
Conclusion
Dynamics 365 offers a robust solution for organizations looking to streamline operations, enhance decision-making, and achieve significant cost savings. For a deeper understanding of how Dynamics 365 can benefit your organization, read the full Forrester TEI study or contact Microsoft sales for more information.
Deploying a global ERP solution like Dynamics 365 can provide the agility, profitability, and competitive advantage necessary for success in today’s dynamic business environment.
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