Global Content Lead - Tech & Consulting
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Back in 2017, Gartner predicted that by 2020, AI would integrate into every software product. As anticipated, AI has now made its way into the realm of ERPs. AI-powered ERPs represent a significant advancement in ERP systems. Utilizing machine learning and data analytics capabilities, AI in ERP automates routine tasks, from invoice processing to performing predictive financial forecasting, enhancing efficiency and accuracy in business operations.
Given the trend, ERP giants are heavily investing in AI, with Microsoft leading the charge. Microsoft has integrated numerous AI functionalities and virtual assistants into Dynamics 365. A prime example of this trend is Copilot for Finance, which empowers finance professionals by seamlessly integrating productivity tools like Excel with existing financial systems. This integration supports critical business processes and generates real-time insights and actions, further enhancing the functionality and capabilities of Dynamics 365 Finance, a leading financial management solution.
According to the Total Economic Impact™ (TEI) study conducted by Forrester Consulting on behalf of Microsoft, deploying Microsoft Dynamics for 365 Finance offers significant potential return on investment (ROI) for enterprises.
Through this blog, let’s explore the substantial benefits highlighted by the study.
What is Dynamics 365 Finance? A brief introduction
Microsoft Dynamics 365 Finance is a comprehensive financial management software designed to help businesses manage their financial operations efficiently. It provides tools for financial planning, analysis, reporting, and financial automation (thanks to Copilot), enabling organizations to make informed decisions and drive growth.
Some of the key Dynamics 365 Finance features include:
- Financial planning and analysis: Offers advanced budgeting, forecasting, and financial modeling capabilities.
- Automated processes: Streamlines financial operations with automation, reducing manual tasks and errors.
- Global accounting: Supports multi-currency and multi-entity accounting, making it ideal for global businesses.
- Real-time insights: Through advanced financial reporting capabilities, it provides real-time financial insights and analytics to help businesses make data-driven decisions.
- Compliance and risk management: Ensures compliance with local and international regulations and helps manage financial risks.
Further readings: Discover how CFOs can benefit from Dynamics 365 Finance
Purpose of the study: Exploring the value proposition of Dynamics 365 Finance
Forrester’s TE study explored Dynamics 365 Finance’s value proposition by examining real-world experiences from four businesses currently using the system. The composite organization in the study represented a retail and wholesale business with significant operations, including 50 retail locations, 100 wholesale customers, and 2,000 employees.
Key challenges faced by businesses
The businesses interviewed faced several common issues with their legacy ERP systems:
- High maintenance costs and significant customizations
- Lack of standardized financial processes
- Dependence on manual processes and outdated tribal knowledge
- Limited real-time visibility into operations
These challenges drove the need for a more efficient solution that could deliver core financial processes, real-time visibility, and scalability.
Key findings of the study: Benefits delivered by Dynamics 365 Finance
Dynamics 365 Finance effectively addresses the limitations of legacy ERP systems, providing notable improvements across several areas:
Finance staff productivity improvements
Legacy ERP systems required extensive manual reporting and process management, resulting in inefficiencies and additional headcount requirements. Dynamics 365 Finance streamlined financial processes, enabled real-time data access and allowed staff to focus on higher-value tasks. The present value of productivity improvements for finance staff was $2.30 million over three years.
IT staff productivity improvements
Transitioning from long-standing, highly customized legacy systems to Dynamics 365 Finance reduced the need for extensive IT support and maintenance. Standardizing Dynamics 365 led to a significant reduction in IT administrator and developer hours, with a present value of $402,870 over three years.
Legacy cost savings
The move to Dynamics 365 Finance helped organizations avoid costs associated with maintaining outdated infrastructure and redundant solutions. Projected savings amounted to $3.52 million over three years, encompassing reduced infrastructure expenses, financial auditing costs, and scaling expenditures.
Achieve ultimate financial success with Dynamics 365 Finance
Dynamics 365 Finance is one of the top financial management software that not only delivers substantial cost savings but also enhances decision-making, streamlines regulatory compliance, and integrates seamlessly with the broader Microsoft ecosystem. This powerful solution optimizes your finance department’s functionality, ensuring real-time insights and improved financial operations.
For a detailed exploration of how Dynamics 365 Finance can benefit your organization, contact us at marketing@confiz.com. Let us help you optimize your financial operations and achieve substantial ROI.
