What Is Microsoft Dynamics 365? The Evolution, Advantages, Products, & Pricing

Key Takeaways

• What is Microsoft Dynamics 365? - Microsoft Dynamics 365 is a cloud-based platform that helps organisations improve processes with ERP and CRM capabilities.
• The evolution of Microsoft Dynamics 365 - Microsoft built Dynamics 365 by merging different ERP and CRM software applications before transforming them into a single cloud platform.
• Why Dynamics 365 stands out - Dynamics 365 excels because it fully integrates with the Microsoft ecosystem, delivers AI-driven analytics, and enables quick process adaptation with low-code solutions of Microsoft Power Platform.
• Key Dynamics 365 Products include Sales, Customer Insights, Customer Service, Human Resources, Finance, Supply Chain Management, Commerce, Project Operations, and Business Central.
• Dynamics 365’s pricing structure features subscription-based options for each product, reflecting key aspects such as the number of users, required apps, licensing, and the level of deployment.

What Is Microsoft Dynamics 365?

Microsoft Dynamics 365 is a cloud-based business solution that integrates AI-powered ERP and CRM capabilities into a central intelligent system. Dynamics 365 bundles various advanced features, providing broad coverage of business processes from sales, marketing, and finances, to supply chain and customer relationships.

A key strength of Dynamics 365 is that it operates through modular applications, enabling a business to address its specific requirements with a few or a full suite of apps. All these applications also integrate well with Microsoft products, including Microsoft 365, Power BI, Azure IoT, or Azure AI to ensure data integration, work automation and enhanced insights. Such integration assists in eliminating isolated workflows, encouraging real-time interaction, and promoting more data-driven and strategic decision-making.

The Story Of Microsoft Dynamics 365

Microsoft Dynamics 365 journey began in the early 1980s. Its main products were initially developed by separate software firms focusing on ERP and CRM solutions.

In the 1990s, early ERP and accounting systems like Great Plains and Navision were popular. At the same time, Microsoft was growing its software and acquired several of these legacy systems in the early 2000s. As a result of these acquisitions, Microsoft established the Business Solutions division.

In 2006, Dynamics NAV, Dynamics AXE, Dynamics GP, and Dynamics CRM were among the applications that Microsoft rebranded under Microsoft Dynamics. Microsoft has been refining these solutions over time by integrating cloud computing, automation, and artificial intelligence.

The most significant event was in 2016 when Microsoft introduced Dynamics 365 - a cloud-based ERP and CRM solution. With this solution, businesses can take advantage of advanced tools such as Power Platform, Azure, and Microsoft 365 while utilising only the apps needed. Dynamics 365 is still developing today, offering AI, automation and data-driven insights to drive digital transformation for companies all around the world.

What Makes Dynamics 365 Stand Out?

Microsoft Dynamics 365 provides flexibility, intelligence, and integration - key aspects that will help any business boost efficiency and growth in the long term. Here’s what sets it apart:

1. Seamless integration with Microsoft ecosystem

One of Dynamics 365’s biggest strengths is that it is a part of the Microsoft ecosystem: Microsoft 365 (formerly Office 365), Power BI, and Azure. This integration capability can let companies merge the data between emails and documents, spreadsheets and analytics tools, thus creating a smoother business flow. For instance, the sales and marketing department can access customer insights in Outlook; the finance department can work within Excel to pull data from Dynamics 365 to prepare reports.

2. Modular & scalable architecture

Compared to traditional ERP and CRM, Dynamics 365 allows users to deploy only the necessary applications and connect them with the existing solutions. This helps businesses of all sizes whether newly formed startups or large businesses to adapt the platform to their needs without complications. Moreover, Dynamics 365 works in the cloud so businesses can easily add new users and expand operations while the system grows unlimitedly.

3. Powerful AI & analytics capabilities

Dynamics 365 utilises AI and analytics to support business decisions and streamline processes. Integrated AI technologies allow for identifying customer needs or demand patterns, managing logistics, and making decisions based on accurate information and advanced data analysis. Dynamics 365 Customer Insights, for instance, helps businesses in forecasting, while the AI assistant helps improve marketing approaches and improve customer experience. Moreover, with Power BI integration, users can collect patterns and create real-time, plus, visualised reports that would help with decision-making.

4. Advanced customisation with the Power Platform

Microsoft’s Power Platform provides the capability to further enhance or tailor the application. Power Apps enable users to develop applications despite not having much coding knowledge, and Power Automate optimises repetitive tasks. Power Virtual Agents allow businesses to build intelligent customer service chatbots using artificial intelligence. The low-code nature allows users to configure Dynamics 365 to their processes without too much development work.

10 Key Dyamics 365 Products Overview

All Dynamics 365 applications are important in ensuring businesses work more effectively, deliver greater value to their customers, and deliver higher performance and profits. The following highlights key Dynamics 365 products and how they can be of value to an organisation:

1. Dynamics 365 Sales

Dynamics 365 Sales assists businesses in working with leads, opportunities, and pipelines, as well as automating critical selling activities. The app allows sales teams to collect customer data, predict future sales and provide advanced reports. With advanced AI features and integration with Microsoft 365, salespeople can optimise their engagement activities, shorten the deal-closing time, and increase overall sales revenue.

2. Dynamics 365 Customer Insights

Dynamics 365 Customer Insights offers a complete picture of customers by integrating data from multiple channels (i.e. brick-and-mortar stores, online websites, social media, etc.). It helps users to deliver a personalised customer experience with AI-based targeting and predictive analytics. This app also allows users to analyse customer patterns and improve communication quality, facilitating strategic marketing strategies and customer retention rates.

3. Dynamics 365 Customer Service

Dynamics 365 Customer Service helps to support customers by integrating services across multiple touch points and increasing the quality of customer responses. This app enables case management with the help of AI, workflow automation, and self-service tools. Thus, with integrated data in one central location, users can quickly gather information, provide personalised support and increase customer satisfaction levels.

4. Dynamics 365 Field Service

The Field Service app is useful for service-based companies that need to manage and optimise scheduling, dispatching, and operations on-site. Several key features are real-time technician tracking, AI diagnostics and automated work order processing. These capabilities in the app lead to lower downtime, increased service effectiveness and more personalised maintenance support.

5. Dynamics 365 Human Resources

Dynamics 365 Human Resources is built to optimise HR operations, offering features to streamline employee activities, payroll processing, benefits management, and compliance. It allows organisations to boost employee performance and optimise HR workflows with self-service tools. These benefits in turn create a more engaged and productive business workforce.

6. Dynamics 365 Finance & Operations (F&O)

Dynamics 365 Finance & Operations focuses on financial aspects, cash flow prediction, and compliance management. With analytical tools, automated invoicing, and AI-based predictions, an organisation can improve decision-making and avoid certain risks to fulfil its compliance standards across multiple markets.

7. Dynamics 365 Supply Chain Management

The Supply Chain Management app enhances a business’s supply chain performance by optimising inventory, logistics, and demand planning. With real-time data and AI-powered solutions, businesses can reduce stockouts, and optimise the procurement process as well as the planning stage to reduce wasted resources and additional costs.

8. Dynamics 365 Commerce

Built for both brick-and-mortar and online retailers, Dynamics 365 Commerce aims to provide integrated, consumer-centric purchasing experiences and intelligent marketing recommendations. This app helps businesses generate more sales, improve customers’ understanding, and manage inventory that delivers higher business profits.

9. Dynamics 365 Project Operations (PO)

Project-based companies benefit the most from Dynamics 365 Project Operations - an app that is built for resource planning, budgeting and allocation for particular projects. They can use this app to perform AI-powered forecasts, produce real-time reports and work with key stakeholders more efficiently. This solution ensures that users can meet project deadlines and budgets while optimising the overall profitability of the project.

10. Dynamics 365 Business Central

Business Central is a comprehensive cloud ERP solution with core financial, operations, sales, and customer service features for small and midsize businesses. Its integrated automation and analytic solutions enable SMEs to simplify workflows, increase productivity and effectively handle the growth of their operations in the future.

What Is The Cost Of Dynamics 365?

Microsoft Dynamics 365 products have a versatile pricing structure that allows users to select applications based on their needs. This ranges based on the chosen application, number of users, licensing and the degree of deployment. For the latest and accurate information on Dynamics 365 pricing, please go to the official Dynamics 365 Licensing Guide, or leave a quotation request on our Dynamics 365 service page.

Below are the key aspects of Dynamics 365 pricing:

1. Dynamics 365 Licensing

Microsoft Dynamics 365 is available through a subscription-based licensing model and is categorised into three main types: 

• User license: This refers to users or individuals that have access to the system. These licenses include full-access users; team members; and self-service users.
• Device licenses: These licenses are given to a particular device and not to people, meaning that many people can use one device within a company.
• Tenant-based license: This is applied in some cases where one license is granted for the whole organisation for certain applications, i.e., Dynamics 365 Customer Insights or Fraud Protection​.

(source: Microsoft Dynamics 365 Licensing Guide)

2. Dynamics 365 Pricing Structure

The cost of Dynamics 365 varies depending on the application you choose. For example, the Sales app has three pricing packages tailored based on the business scope and features required. For details of each Dynamics 365 app pricing or notice of any exception, please go to Dynamics 365 pricing pages or leave a quote request for Havi.

In case a user needs more than one application, Microsoft uses the Base and Attach model. The first application purchased is the Base License, which costs the most to that specific user of all the license choices. Other modifications can be bought as Attach Licenses and are more cost-effective, but one Attach License requires a Base License.

3. Added Cost Types

Beyond basic licensing, businesses should consider:

• Implementation & customisation costs: If you need help from external agents, the deployment of this software may require extensive costs such as configuration, data migration and customisation.
• Storage & capacity add-ons: Basic storage is available from Microsoft, but any company requiring more storage may need to buy additional storage.
• Integration with Microsoft ecosystem: Depending on whether your company needs to connect Dynamics 365 to other Microsoft offerings, the cost of integration can be different.

What Is Microsoft Dynamics 365? - Frequently Asked Questions

1. What is Dynamics 365 Business Central used for?

Dynamics 365 Business Central is a cloud ERP system built for small to mid-sized businesses. The system integrates finances with sales, operations and customer service to optimise business activities and boost productivity through automated tasks and workflows.

2. Are Dynamics 365 and Microsoft 365 different?

Yes, they are designed to handle different business requirements. Dynamics 365 offers business applications with ERP and CRM features including sales management, financial operations, supply chain control, and customer support services. Microsoft 365 offers tools such as Word, Excel, Outlook and Teams that enable teams to connect and work together online.

3. Where should I get help to deploy Dynamics 365?

When implementing Dynamics 365, it’s highly recommended to work with an Official Microsoft Partner. As a certified Microsoft Partner in Australia, Havi Technology enables local businesses to seamlessly deploy Dynamics 365 with tailored expertise and support that match multiple industry needs. Don’t hesitate to book a consultation with our team for more personalised support.

References:

• Microsoft. Pricing. “Dynamics 365 Licensing Guide”