Microsoft Corporation has been revolutionizing the world of technology and business since its inception in the late 1970s. Since then, the company has introduced numerous top-notch solutions aimed at making our professional lives better – and is still going strong in 2024. Suffice it to say, Microsoft Dynamics 365 CRM and ERP system is not an exception, but another exceptional system.
In this article, we will explain how MS Dynamics 365 works and what benefits it delivers to a variety of businesses across the globe.
What Is MS Dynamics 365?
Microsoft Dynamics 365 is a SaaS cloud-based platform that combines customer resource management and enterprise resource planning services and applications aimed to drive business growth and accelerate the company’s results. The platform’s capabilities are broken down into several powerful applications and numerous features allowing businesses of any size to start with the functionality they actually need.
The solution is based on the MS cloud computing technology called Azure which allows storing all of the platform’s data in the cloud. Dynamics 365 SaaS (Software as a Service) platform applies a subscription-based model meaning that it can be accessed by users through a web browser and there is no need to install software individually on each computer.
Microsoft Dynamics Brief History
Microsoft Dynamics 365 has its roots in two major acquisitions – it all began in the early 2000s when Microsoft acquired Great Plains Software and Navision, two leading providers of enterprise resource planning (ERP) solutions.
This laid the foundation for Microsoft Business Solutions, introduced in 2003. The next couple of years saw the integration of Great Plains and Navision technologies, alongside other Microsoft acquisitions like Axapta (now Dynamics AX) and Solomon. By 2005, Microsoft had a whole suite of ERP and customer relationship management (CRM) solutions under the Dynamics brand.
Perhaps the most significant transformation came in 2016 with the launch of Microsoft Dynamics 365. This new platform unified CRM and ERP capabilities into a single cloud-based solution, making use of Microsoft’s Azure cloud services. Dynamics 365 departed from traditional on-premises software, offering greater flexibility, scalability, and integration with other Microsoft products such as Office 365, Power BI, and Azure.
Apps & Modules
What is Microsoft Dynamics CRM capable of app-wise? MS Dynamics 365 includes 8 modules tailored to specific types of businesses and their goals. Companies can pick their platform’s configuration including or excluding each of the modules. The modules’ list includes Finance, Operations, Sales, Customer Service, Field Service, Marketing, Commerce, and Human Resource.
All the MS Dynamics 365 modules will be explained in detail below. You can also check out our MS Dynamics 365 guide on modules to learn more about each of them.
Microsoft also offers a number of applications to integrate with the platform for various business purposes. For example, Dynamics 365 Business Central is an ERP system used for business management primarily by small and midsize businesses. The app helps employees manage all of the business processes, from accounting and finances to sales and marketing.
AI (Artificial Intelligence)
All of the MS Dynamics 365 data is stored and managed through Microsoft Dataverse, previously known as Common Data Service, a secured data storage that runs on AI. Thanks to the use of artificial intelligence, Dynamics 365 users get valuable insights into their customers’ behavior and needs, as well as their company’s results. All of this information can be efficiently used to make data-driven decisions aimed at improving the quality of your services/products. Dynamics 365 also applies AI technology to help e-commerce businesses improve their customers’ shopping experience, increase sales, and even protect both the company and their clients from fraud.
Valuable Business Insights
Unlike large enterprises, SMBs care a lot about the price of the solutions and services they buy. As we’ve mentioned above, with Microsoft Dynamics CRM for small and midsize businesses you only pay for what your company needs now. For instance, Dynamics 365 SMB pricing options currently include four different plans packed with various features needed to lead a successful business. The company also offers eight product licensing options aka MS Dynamics 365 modules for different types of business.
Interface
The platform uses Unified Interface, an intuitive and easy-to-use interface to allow new users to quickly adapt to the system and apply it for their benefit. Thanks to its responsive web design, users get a whole new interaction experience no matter what device they use to access the platform.
Source: https://dynamics.microsoft.com/
MS Dynamics 365 homepage features all of the modules and applications you are subscribed to. Simply pick one of the apps in the list on the left to access its features.
Source: https://dynamics.microsoft.com/
Reports and KPI summaries are also easy to navigate and analyze. All of the data is well structured in columns, spreadsheets, and even infographics. MS Dynamics users can keep track of the company’s performance and find new opportunities for improvement.
Source: https://dynamics.microsoft.com/
Why You Need Microsoft Dynamics 365
What is MS Dynamics’ biggest selling point? We’ve already looked in great detail at some of the most prominent Dynamics 365 benefits in one of our previous articles, and these are (in no particular order):
- Marketing Automation
- Maximizing Sales
- Improving Customer Service
- Advanced Reporting
- Human Resource Management
- Streamlining Financial Operations
- Strong Security
- Leveraging Advanced Technology
- LinkedIn Connections
- Smart Search
- All Actions on a Single Platform
Marketing Automation
Our Dynamics 365 for marketing automation guide rightly stresses the importance of cutting down on manual marketing efforts, thereby considerably increasing total marketing ROI. While the platform does all the time-consuming work, your team can focus on more challenging tasks such as analyzing ad campaign effectiveness and coming up with new creative ideas for your future marketing efforts. One thing to watch out for is to make sure that the product of the automated work such as email sequences remains personalized enough not to harm customer engagement and conversion rates.
Maximizing Sales
Whilst reviewing Dynamics 365 Sales, we mentioned that the platform is very beneficial for storing and visualizing customer contact information, monitoring and managing leads as well as accurately predicting sales. That alone equips salespeople with enough insight to drive the closure of transactions more than ever before. You can also use Dynamics 365 Sales to carefully analyze the funnel, keep tabs on the status of each contract and spot any possible bottlenecks, ensuring that no opportunities are lost.
Improving Customer Service
In our breakdown of D365 Customer Engagement features we’ve already talked about how the software helps customer service representatives by giving them histories of client interactions, their previous issues, if any, and their preferences. Thanks to that information, agents can provide more personalized and effective support, which, in turn, increases customer satisfaction and loyalty.
Advanced Reporting
Dynamics 365’s sophisticated reporting and analytics enable data-driven decision-making – you can take your business strategies to the next level by examining sales trends, operational effectiveness, and customer behavioral patterns. Moreover, real-time analytics from customizable dashboards allow for quick responses to any changes in the market; be it putting swift focus on bestsellers or planning inventory management. For a more detailed breakdown of D365 reporting capabilities, read our guide.
Human Resource Management
Our analysis of Dynamics 365 Human Resources shows that such vital business processes as hiring, onboarding, and performance evaluation can greatly benefit from D365. The system can manage all the information contained in the job applications and help the recruiter get a 360-degree view of all candidates. Once a person is hired, D365 can assist you in monitoring the development of the new employee and guaranteeing a smooth integration into the team.
Streamlining Financial Operations
As you can read in our overview of Dynamics 365 Finance Operations, the platform also provides reliable tools for all things finance. One powerful piece of software controls all the transactions, reporting, and financial data, improving financial visibility and streamlining such procedures as invoicing and cost monitoring. This enables you to manage your budget in the most efficient manner, and secure the best possible financial health for the company.
Strong Security
Data encryption, identity and access management, and compliance certifications like ISO 27001 and GDPR are among the many layers of security features Dynamics 365 can offer. The platform is able to efficiently safeguard sensitive customer and corporate data and give employees the tools they need to satisfy the strict standards for regulatory compliance. As a result, not only do you reduce security-related risks, but also increase customer confidence in your business since they know their information is being handled with the utmost care.
Leveraging Advanced Technology
The platform Dynamics 365 enables organizations to leverage artificial intelligence (AI) and machine learning (ML) capabilities. AI-driven analytics, for instance, can help examine client behavior patterns to foresee their future needs and changes in preferences. At the same time, ML-powered chatbots can respond to common client questions, freeing up human agents for more complex conversations. This way, your company will stay competitive and adaptive in a technology environment.
LinkedIn Connections
One of the standout features of Microsoft Dynamics 365 is its integration with LinkedIn, which was also acquired by Microsoft in 2016. It’s particularly valuable for sales and marketing teams, as they can use LinkedIn’s vast network to identify and connect with high-quality leads, understand their professional backgrounds, and tailor their sales pitches accordingly – all still within Dynamics 365.
Smart Search
Dynamics 365’s Smart Search AI-powered functionality helps users quickly find relevant information across all modules and integrated applications. This way, sales reps can instantly retrieve detailed histories of customer interactions, while financial analysts can quickly access specific transaction records or financial reports. The system continuously learns from user behavior, improving the relevance of search results over time.
All Actions on a Single Platform
Ultimately, Microsoft Dynamics 365’s greatest strength lies in its ability to consolidate multiple business functions into a single, cohesive platform. This means that sales, marketing, customer service, finance, operations, and human resources can all operate within one ecosystem. Such integration eliminates the silos that often plague organizations, leading to more streamlined processes and improved collaboration across all departments.
Microsoft Dynamics 365 Modules
Microsoft Dynamics 365 for Sales
Microsoft Dynamics 365 for Sales, as the name suggests, is built for your sales team. Whether you have a B2B or B2C business, this Dynamics 365 module is designed to make your sales process easier. It allows you to set up a cohesive sales process by automating your sales cycles through suggested actions, prioritizing important tasks and closing more deals.
Microsoft Dynamics 365 for Sales module has all the features and toolkits you require to transform your customers’ relationships into profitability. Gain smart insights such as competitive market, customer emotion and sentiments, and high-priority leads, emails, and calls for guided selling.
The sales module allows you to:
- Empower smarter selling with customer insights;
- Build strong relationships with personalized experience and engagement;
- Automate the sales process;
- Gain AI-driven insights to Improve sales performance;
- Build innovative sales solutions.
Microsoft Dynamics 365 for Customer Service
What is Microsoft CRM for Customer Service capable of? This module is more focused on after-sales services to retain customers and provide a positive experience. The module comes with Built-in intelligence that allows you to deliver personalized services faster and adds value to every customer interaction.
The Microsoft Dynamics 365 for Customer Service module allows you to:
- Engage with customers across different channels;
- Meet customer expectations;
- Make data-driven decisions and actions using intelligent processes;
- Reduce the cost to serve customers with improved data-driven customer service;
- Empowers flexibility and innovation with third-party apps and services integrations.
It is also quite frustrating when you get a different response every time you connect with different CS agents for customer service. Dynamics 365 Customer Service Hub comes with a “Knowledge Manager Dashboard” that allows cross-company team collaborations that can help your agents resolve customer’s cases quickly and efficiently.
Microsoft Dynamics 365 Customer Insights
Microsoft Dynamics 365 Customer Insights helps you find your potential customers, whether you have a small or a huge marketing team. The module works perfectly whether you own a storefront business, an online business, or both.
Microsoft Dynamics 365 Customer Insights helps you find sales-ready leads and nurture them beyond basic email marketing. This module allows you to combine sales and marketing under a single platform, streamline processes, and make data-driven decisions to get higher returns from marketing campaigns.
Microsoft Dynamics 365 Customer Insights module allows you to:
- Generate more sales-ready leads and nurture them;
- Prioritize leads and track the progress of the sales;
- Track marketing performance with analytics and insights and increase marketing ROI;
- Launch multi-channel marketing campaigns and capture leads;
- Offer personalized shopping experiences.
Microsoft Dynamics 365 Finance
Microsoft Dynamics 365 for Finance module allows you to make better financial decisions by actively monitoring your cash flows, identifying current and future trends, and forecasting cash flows and financial reports. The built-in financial intelligence system offers smart budget proposals from historical data and future trends that help you save a lot of time in forecasting and budgeting.
Microsoft Dynamics 365 for Finance allows you to:
- Make smarter and data-driven financial decisions
- Streamline and unify finance processes
- Reduce cost and make a strategic impact
- Reduce financial risks and avoid global financial complexity
Microsoft Dynamics 365 for Finance and Operations modules are ERP (Enterprise Resource Planning) solutions that are designed on and for Microsoft Azure. The Finance and Operations service offers businesses ERP Microsoft Dynamics 365 functionality that allows them to adjust to dynamic business environments with unique business requirements.
Microsoft Dynamics 365 Commerce
Microsoft Dynamics 365 Commerce module is designed for retailers. This Dynamics 365 module allows connecting your digital, in-store business operations with back-office operations and manages them from a unified dashboard.
Dynamics 365 Commerce is designed to work perfectly with traditional and digital channels, across different business models. You can improve customer shopping experiences across different channels with tailored product selections.
Dynamics 365 Commerce allows retailers to:
- Increase business revenue, customer satisfaction, and loyalty through personalized shopping experiences;
- Manage multiple stores, across different channels, and increase sales;
- Instantly adapt based on ever-changing customers demands and trends;
- Improve inventory management and utilization using operational insights.
Microsoft Dynamics 365 Project Operations
Microsoft Dynamics 365 Project Operations module is designed for project management teams. This Dynamics 365 module allows you to boost business growth by optimizing various processes of project management and increasing profitability. It also helps you manage budgets by avoiding over and under-spending while increasing the collaborators’ productivity.
Microsoft Dynamics 365 Project Operations module enables you to:
- Confidently manage projects;
- Optimize the process and get the most out of your resources;
- Forecast project budget and profitability;
- Improve productivity;
- Integrate third-party applications.
Microsoft Dynamics 365 for Field Service
What is Microsoft D365 for Field Service going to do for your business? Essentially, this module is only suitable for companies that have field service teams. It allows you to deliver an innovative and smooth, end-to-end service experience. The Field Service module also comes with a built-in intelligence system that allows you to resolve potential issues that may occur, reduce operational costs, and help you deliver a smooth and positive on-site (field) experience.
Microsoft Dynamics 365 for Field Service module allows you to:
- Improve your operational efficiency;
- Enhance the quality of your service by detecting and troubleshooting potential to reduce the need for a technician;
- Improve technician scheduling to dispatch the right specialist for the right issues;
- A complete view of your customers to improve resolution time and gain customer loyalty;
- Provide customers with continuous updates such as service tracking to deliver positive experiences.
Microsoft Dynamics 365 Human Resources
The Dynamics 365 Human Resources module allows you to hire employees who can drive results, and develop, and retain them. Microsoft Dynamics 365 for Talent equips your Human Resource team with the right tools that you need to hire the best candidates for different roles and develop them toward success.
Transform your hiring process by leveraging the power of LinkedIn and Office 365 to quickly find and onboard the right personnel for your company. The module offers self-service portals with all the information they need, or request any HR-related tickets. The Dynamics 365 for Human Resource module also handles payroll, holidays, skill training, and many more things related to HR management.
What Is Microsoft Dynamics 365 Used For: Key Benefits
When operating in a business environment with constantly growing competition and changing market requirements, every company understands the importance of digital transformation. MS Dynamics 365 is what helps enterprises drive their business growth, agility, and innovation, thus increasing their chances of success. The key benefits of Microsoft Dynamics 365 include:
Easy Deployment
Since Microsoft D365 is a cloud-based software and can be accessed via a web browser, there is no need to install anything on-premise. You can simply pick one of the subscription plans that meet your company’s needs and introduce it to the existing IT infrastructure.
Cost-Effective
The platform doesn’t require any additional servers, as well as hardware maintenance, thus decreasing the overall costs. No matter the size or type of your business, you can choose only modules and features that you actually need and only pay for functionalities you can benefit from.
Customizable and Scalable Solution
Once a company wants to enter new markets or is standing on the path of constant growth, MS Dynamics 365 can grow together with your business. Add as many features and modules, and connect as many apps as you like to support your company’s growth and improve its performance.
Flexibility
A monthly subscription model allows companies to be more flexible with their operational costs. Save money or increase your spending on solutions only when it’s needed.
Ease of Use
Thanks to the variety of applications offered by Microsoft, every company can find a solution to cover their needs. All of these apps can be easily integrated with Dynamics 365 which makes it easy for employees to understand and use the solution.
Enhance Productivity and Performance
24/7 access to data and numerous functionalities introduced with the system help to improve employees’ productivity and performance across all departments. For instance, Dynamics 365 offers automation across numerous operations, thus decreasing the number of human errors and freeing up time for more important tasks.
Better Customer Experience
Customer relationship management is one of the key elements of Microsoft D365. The platform collects customers’ data and helps you better understand their needs. It also helps better respond to your customers’ requests, personalize customer experience, and increase customer satisfaction rates.
Data-Driven Decisions
Any decision made within the company can now be based on real-time data. Analyze your employees’ and customers’ data to make decisions aimed at improving your products/services, as well as internal processes and operations.
Enhanced Security
What is D365 used for in terms of security? Access control and robust security measures provided by Microsoft allow keeping your data safe and secured. In-built backup systems make sure none of your data is lost.
Microsoft Dynamics 365 CRM 3rd-Party Integrations
MS Dynamics 365 can be extended with a great variety of applications tailored to different business goals and needs. These are only a few of the services that can power up the MS solution and help your company gain a competitive advantage.
Microsoft AppSource
Microsoft AppSource is an application store that offers business applications packed with a variety of features. Once you want to empower existing systems with new functionality, simply find and install an app or an extension to your device. Microsoft AppSource is divided into categories, types of business, and products, thus allowing you to easily navigate the store and find exactly what you need.
Power Apps
A suite of applications and services called Power Apps is not included in the basic version of the MS Dynamics platform but can be easily integrated with the solution to take its performance to the next level. Power Apps allows developers to design and build custom applications tailored to specific business needs. For example, you can build a simple app to automate repetitive tasks or introduce digital transformation to the existing IT environment. Once integrated with MS Dynamics 365, developers can use PowerApps to build an app directly on your system’s data.
Power BI
An analytical service by Microsoft called Power BI provides business analysts with informative and interactive visualizations to help them create impactful reports. Power BI features an intuitive design and powerful business intelligence capabilities that help generate data from different sources and provide deeper insights into the business state. This solution is a part of the Microsoft Power Platform and can be easily integrated with the CRM system.
Office 365
Subscription services offered with Office 365 include all of the applications a company needs to lead its business successfully. From Outlook mailing service and Microsoft Teams business communication platform to Word, Excel, and PowerPoint applications to help you work with different types of data and deliverables.
Dynamics 365 Guides
MS Dynamics 365 Guides is an application that applies mixed-reality technology to help employees learn new skills and instructions. The app is connected to mixed-reality smart glasses called Microsoft HoloLens that operators can use to see how different tools work in real-life situations. It guides your staff workers through different procedures and offers step-by-step directions to make sure none of the mistakes will be made in the future.
Microsoft Dynamics 365 Pricing
Dynamics 365 pricing in 2024 is still more affordable when compared to its 3 main competitors – Salesforce, Oracle, and SAP.
Dynamics 365 Business Central Pricing
- Dynamics 365 Business Central unifies all the teams across the organization under a single platform. Business Central is a complete standalone solution that does not fully operate with all the Dynamics 365 products.
- Starting from $70 per user/month
Dynamics 365 Sales Pricing
- $65 per user/month (Professional: Core sales force automation and Microsoft 365 integration)
- $95 per user/month (Enterprise: Sales force automation with insights and advanced customization capabilities)
- $135 per user/month (Premium: Enterprise + prebuilt customizable intelligence solutions)
- $135 per user/month (Microsoft Relationship Sales: Enterprise + LinkedIn Sales Navigator)
Dynamics 365 Customer Insights Pricing
- $1,700 per tenant/month (For organizations without any other Dynamics 365 application)
- $1,000 per tenant/month (For organizations with a qualifying Dynamics 365 application)
Dynamics 365 Customer Service Pricing
- $50 per user/month (Professional: Core Customer Service capabilities)
- $95 per user/month (Enterprise: Advanced Customer Service capabilities)
- $195 per user/month (Premium: Revolutionary AI-Customer Service capabilities)
Dynamics 365 Field Service Pricing
- $95 per user/month (Includes full application capabilities)
Dynamics 365 Finance Pricing
- $180 per user/month (Core application capabilities)
- $300 per user/month (Full application capabilities)
Dynamics 365 Human Resources Pricing
- $120 per user/month (Includes full application capabilities)
Dynamics 365 Commerce Pricing
- $180 per user/month (Includes full application capabilities)
- $4,000 per month (Includes e-commerce management for Dynamics 365 Commerce)
Make the Most of MS Dynamics 365 With OMI
We hope our Microsoft Dynamics 365 overview helped you to understand what MS solutions are about and what advantages they can deliver to businesses of all sizes and industries. If you are looking for professional support from an experienced MS Dynamics CRM consulting team, get in touch with the OMI specialists. With over 2 decades of experience in CRM services, we know exactly how to help your business grow and thrive.