Kaya Consulting The Netherlands
The digital world is rapidly changing, cloud adoption started only a few years ago through Office 365, followed by CRM. Now we are migrating our entire enterprise data to the cloud. However most ERP cloud projects never go live or stay within budget. This ebook will give you insights in: Dynamics 365, why projects fail and what gaps to avoid. DYNAMICS 365; the sum is greater than the parts Everybody involved in the Microsoft Dynamics AX world: enterprises, partners, and, ISV s, were surprised by the announcement of Microsoft in 2016 to create Microsoft Dynamics 365. Surprised by the speed of transition and size of the operation. Microsoft s answer to the questions: Your transformation starts here To accelerate your digital transformation, you need a new type of business application. One that breaks down the silos between CRM and ERP, that s powered by data and intelligence, and helps capture new business opportunities. That s Microsoft Dynamics 365. End-to-end applications that work great on their own and even better together! All components of a modern and future-proof business solution for enterprises under one roof. Not only talking together but created to ultimately work together seamlessly The kernel of the new offering is Office 365 for all employees in the organization. The technology platform for this new business solution is Azure, which makes it run in the cloud the preferred option. At the same time deployment on premise or as a hybrid model is a possibility.
Functionality has been moved from ERP to CRM, in case the link with the customer is obvious (Marketing, Sales, Customer Service, Field Service and Project Service Automation). The former Microsoft Dynamics AX functionality is now called Finance and Operations, Two new application areas have been added: Retail (separated from AX) and Talent, with direct integration and use of LinkedIn functionality. Another obvious component of the solution stack is the combination of PowerBI, for business intelligence and the Cortana Intelligence Suite for Advanced Analytics opportunities using AI, Machine Learning and IoT. Microsoft s Common Data Service brings all business data together in one place so you can focus on the things that matter: building apps, finding insights and automating your business processes. The purpose of Digital transformation initiatives and implementing business applications for organizations is driving and producing actionable data. Democratizing the data for key users will enable them to make more sense out of the data from all areas of the business. You can then use the data to create BI dashboards/reports using Power BI or configure business apps using Microsoft PowerApps and share it with others in the business as needed. TRANSFORM THE WAY YOU DO BUSINESS WITH A UNIFIED PLATFORM Only the Dynamics 365 Enterprise Edition offers global, omni-channel, Tier 1 supply chain capabilities with built-in analytics on one platform, without all the cost and complexity. This breakthrough cloud technology will unify commerce, operations, and productivity by combining Dynamics AX with CRM, the intelligent cloud, and deep integrations to Office 365! The conclusion: Microsoft s move to create a new solution suite by combining all available business solutions, shows courage and vision. Combined with the Azure technical platform in the cloud and the strategical view on mobile applications, it enables enterprises, partners and ISV s to transform and start the next era of growth, and productivity. 3
THE NEW ERP LIFECYCLE The ERP lifecycle at end-user organizations has undergone interesting changes overtime. The choice for a solution today is much more a platform-choice than a product one. This also implies that the part of the use-phase of the ERP lifecycle will only increase in length. Just buying a product and replacing it isn t enough to stay relevant in today s fast changing environments. A strong focus on innovation and optimization are key in achieving maximum business results. Dynamics 365 is not just an ordinary upgrade. Successful projects demand a different way of thinking. Overlayering is in the past, the new platform is all about extensions. UPGRADE: TECHNICAL FRESH-UP or ALMOST A NEW IMPLEMENTATION? Enterprises new to the Microsoft world will approach the new Microsoft Dynamics 365 offering as a new implementation. It s less obvious that this is also valid for enterprises already using Microsoft Dynamics AX or CRM. The transition from your existing Microsoft Dynamics AX or NAV environment towards the Microsoft Dynamics 365 platform is not just an ordinary update towards a new version of the same product. These elements need to be considered before even touching the new environment: The platform infrastructure: cloud, hybrid or onpremise The integration of new components and the ending lifecycle of existing parts No more customizations, at least minimize and production direction Mobile solutions Data orientation, including external data sources, BI, AI, IoT Long term vision Serious preparation and proper priority planning is a key activity to start with. The innovation project should be driven by outcome and business value, especially since most software projects fail. More about this on the next page. 4 4
Why most software projects fail The Standish Group is publishing a Chaos Report every year, describing the state of software development since 1994. The long-term trend shows that in all those years the success-rate of projects was never higher than 30%. Over 90% of all projects were restarts and 50% costed double the estimated budget. While there is some year-to-year variability in these scores, the trend line is essentially flat. In other words, we are no better at delivering a project today than we were 20 years ago. When you dive into the data, the main reasons why projects fail are: Large projects size Low engagement Project method However, there are some bright spots and markers for the future improvement. Smaller is better Not only projects at smaller companies score better but also projects with a smaller scope do a better job. Opportunities for reducing scale and improving the likelihood of success include: Break large projects into incremental builds Avoid "big bang" implementations Organize teams into self-contained squads of 7 11 people Restructure the work to avoid scale and complexity The approach and execution of experiments instead of real projects gives a better view on the direction of the project to start, together with a much more focused outcome-driven management direction. Experiments will also provide you with the missing information to take the better decision. Both the costs and risks are low. 5
People are the primary drivers The Lack of user involvement and executive support accounted for 20% of the responses for unsuccessful projects. Unclear or unstable requirements are often a symptom of low engagement and support. Also the dramatic increase in mobile apps proves that users are very interested to solve their issues but feel misunderstood by technically oriented co-workers. Talking business language is one of the most successful aspects in a project. The role of executives is also often under-rated. Executive support should be better translated into executive direct involvement, because technology is a business driver and not only a tool anymore. When executives support the project and users are engaged in developing the application, there is greater likelihood that the final product will meet expectations. Agile projects are far more likely to succeed Overall, Agile projects are three times more likely to succeed than Waterfall projects (39% versus 11%). Large and medium projects show dramatic improvement with Agile while small projects demonstrate smaller gains. It is no coincidence that Agile projects outperform Waterfall. Agile processes increase engagement and are focused on delivering software that meets expectations. Ceremonies, such as sprint reviews, and showcases, promote engagement and ensure that the product meets expectations. However, there is a large difference between following a process and engaging in a different way of working. Use an Agile working approach when you execute projects, regardless whether is about development, implementation or creating a road show. An agile approach should start with the portfolio execution of plans, proper planning and prioritizing by all product owners, involving stakeholders, product owners and team-members. 6
Conclusion Microsoft Dynamics 365 is simply not your next version Microsoft Dynamics ERP product. It is more the next step into a new world of integrated business solutions offered in the cloud. The preparation for the move might even result in a more effective approach putting the introduction of CRM or Business Insights first. Descriptive information may be handy, but with focus more on predictive analysis, instant value to the business by analyzing trends and opportunities will be provided. Keep in mind the unsuccessful and restarted projects and the changed business solution lifecycle, before starting to optimize your current environment. In case you consider to move towards Microsoft Dynamics 365, make sure that the planning of the activities is not an IT project to start with. The business situation, strategy and future vision (the tomorrow and day after tomorrow ) are vital starting points and input for the corporate roadmap towards success. Free consult It is not just our opinion, but we offer you a free consult to assist you with the preparation towards the new Microsoft Dynamics 365 world. In case you feel that you are not ready for the transition, we can help you to optimize your current environment. Aad de Jonge - COO Contact us at: info@kaya-consulting.com About Kaya Kaya Consulting is a Microsoft Dynamics AX partner, supporting end-user organizations, ISV s and partners with a broad range of services and solutions to achieve better results and generate business value, using technology. Email : info@kaya-consulting.com Phone : +31 318 795 665 Office : Landjuweel 5, Veenendaal, Netherlands The Ultimate Microsoft AX Guide 7