MICROSOFT DYNAMICS | 8 MIN READ

What is Microsoft Dynamics 365?

Dynamics 365 is Microsoft’s collection of cloud-based business applications.

What is Microsoft Dynamics 365? Everything You Need To Know

TABLE OF CONTENTS

These products are the latest evolution of Microsoft’s popular on-premise solutions, re-engineered for today’s business needs. This sales, marketing, supply chain management, and finance portfolio covers customer relationship management (CRM) and enterprise resource planning (ERP) responsibilities for businesses across various industries.

Key Modules in Dynamics 365

In the past, ERP and CRM solutions were developed separately. To use both types of software, businesses would purchase individual products and integrate them, which could prove costly and clunky.

The Microsoft Dynamics 365 application suite lets businesses of all sizes mix and match the most important modules. While growing SMBs start with Sales and Marketing modules like Microsoft Dynamics 365 CRM and Microsoft Dynamics 365 ERP, there are plenty of tools to choose from.

Microsoft Dynamics 365 CRM

Microsoft Dynamics 365’s CRM modules ensure current and future customers are cared for at every step of the buyer’s journey.

Sales

Built for growing sales teams that need lead tracking and conversion tools, the Sales module automates sales activities to close more deals in less time.

Marketing

The Marketing module empowers teams to reach prospects across any channel and nurture them in the sales funnel.

Customer Service

Customer service representatives can use Dynamics 365 Customer Service to manage cases and tickets, interact with customers across multiple platforms, and speed up problem-solving.

Field Service

The Dynamics 365 Field Service module includes customer communication tools for on-site appointments and strategic upsell and cross-sell features to maximize revenue and customer satisfaction.

Microsoft CRM Demos

Explore the Microsoft Dynamics CRM Demo Center with 8+ videos and uncover the features and benefits that can transform your business!

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Microsoft CRM Pricing

Are you curious about Microsoft CRM pricing? Use our pricing calculator to learn more about pricing for your organization.

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Microsoft ERP

Microsoft Dynamics 365’s ERP applications run the gamut of operational efficiency, all designed to smooth out business processes for varied organizations.

Business Central

Microsoft’s cloud ERP, Microsoft Dynamics 365 Business Central, is a finance and operations management powerhouse with additional features for warehouse management, service management, inventory, manufacturing, and project management.

Commerce

The Commerce module manages digital and physical retail for product-focused organizations. This application specializes in improving customer engagement and employee productivity.

Finance

The Microsoft Dynamics 365 Finance module was originally part of the Finance & Operations suite but has since been established as its own application. This enterprise-level module handles all things accounting, including the general ledger, accounts payable and receivable, sales orders, and more.

Project Operations

The Project Operations module helps teams across a business juggle complex projects with less stress. Its scheduling tool, resource management features, and project accounting capabilities help sales, resource, and finance teams keep projects moving along.

Supply Chain Management

The Dynamics 365 Supply Chain Management module empowers enterprise-level manufacturers and distributors to forecast demand, eliminate stockouts, and fill orders quickly and efficiently.

Human Resources

HR teams can use this module to manage every aspect of the employee lifecycle, whether that means recruiting new team members or managing salaries and evaluations for existing employees.

Business Central Demos

Explore the Microsoft Business Central Demo Center with 8+ videos and uncover the features and benefits that can transform your business!

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Business Central Pricing

Are you curious about Microsft ERP pricing? Use our pricing calculator to learn more about pricing for your organization.

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Additional Applications

Some modules in the Dynamics 365 suite are small but mighty. These solutions work best when paired with the more robust and popular CRM and ERP tools.

Remote Assist

The Remote Assist module allows service techs and other field service agents to run inspections off-site. This gives customers and techs more flexibility to handle maintenance remotely and ensure that on-site visits are worth the trip.

Customer Insights

When connected to the Sales, Marketing, or Customer Service modules, Customer Insights draws from existing data to centralize account information. This helps teams segment customers, forecast needs, and improve overall service.

Fraud Protection

The Fraud Protection module safeguards revenue and customer data with advanced security measures. Industries with a high rate of bot attacks, fake accounts, and fraudulent account access can use Fraud Protection’s adaptive AI to protect company assets and data.

Intelligent Order Management

Large distribution outfits need software that balances ease of use with complex functionality. The Intelligent Order Management module elevates Dynamics 365’s existing features with rule-based fulfillment, drag-and-drop policy designers, and integrated dashboards that show data on every aspect of any order.

Guides

The Guides module improves team productivity with mixed reality tech, which blends augmented reality and step-by-step instructions. With help from advanced hardware, Guides prioritizes hands-on education and practical learning.

Features and Benefits

Bundle and Save 

Microsoft offers a tool platform to cater to businesses of all shapes and sizes, but purchasing all the software you need can be expensive. That’s why Microsoft’s pricing structure includes user license discounts for organizations that bundle apps. If your organization purchases the Sales and Finance apps, you could receive a discounted rate on the user licenses for one of the systems. The cost savings depend upon the license type and the software’s base cost. In addition, pricing is subscription-based, which makes upfront and ongoing expenses more manageable.

Mixing and Matching Microsoft Integrations 

Microsoft allows you to pick and choose the applications you need to run your business. This goes beyond just Dynamics 365 applications; it includes other tools designed by Microsoft to sync seamlessly with Sales, Business Central, and more.  

The Power Platform 

The Microsoft Power Platform is a set of business applications that extend the capabilities of your organization without a significant investment of money or technical resources. These applications provide task automation, data visualization, and business intelligence capabilities. Each Power Platform application can synchronize with Dynamics 365 and Microsoft 365 products. 

For example, companies can embed Power BI dashboards into the Sales, Marketing, or Business Central modules for deeper analytics and more options for data visualization. 

Microsoft 365 

Formerly Office 365, Microsoft 365 is a suite of office productivity tools. Word, Outlook, Excel, and PowerPoint are four of its most well-known applications, but Microsoft 365 provides many more offerings to fit the needs of any business. While these are not Dynamics 365 applications, they integrate seamlessly with Dynamics 365 and the Power Platform.  

The native integrations for Microsoft 365’s applications allow users to manage CRM activities like sales orders in Outlook or export tables between Business Central and Excel to edit large data sets quickly.  

Third-Party Integrations 

Microsoft is no stranger to third-party integrations. The AppSource marketplace is home to a wide range of add-ons that expand the functionality available in Dynamics 365. These custom-developed tools let you plug and play to fit your unique business needs. 

Cloud Platform 

All Dynamics 365 applications are built for cloud deployment. This means they are hosted remotely and can be accessed anytime and from any device with an internet connection. In addition, cloud systems boast hands-off upkeep, with updates pushed out automatically by software providers. Many tools are available offline for added benefit. 

Security 

Microsoft’s number-one focus with its software is security, and nowhere is that more apparent than with Dynamics 365. With enterprise-grade security, data encryption, role-based access, and advanced threat protection, Dynamics 365 ensures information across all its applications is secure while remaining accessible to the folks who need to see it. 

Copilot 

Microsoft’s embedded artificial intelligence tool is a powerhouse for Dynamics 365 users. Copilot is a generative AI application baked into solutions like Business Central that automates routine activities, generates insightful reports, and offers contextual recommendations. While Copilot pulls data and runs reports, your team can focus on making strategic decisions instead of crunching numbers. 

Best Business Applications

Microsoft’s portfolio of products will cover both small and mid-market businesses and enterprise-level organizations. So, no matter the size of your company, you can find a product to fit your needs and your budget with options to scale up as you grow. SMBs might use the Sales CRM and Business Central, while large organizations with complex needs might combine Finance and Project Operations.

CRM tools are great for organizations that want to manage external variables, including customer service and satisfaction, brand identity, and new sales. These solutions directly benefit organizations and their customers by ensuring personalized outreach and interactions while saving time via automation. The best Dynamics 365 CRM tool to start with is Sales because it’s focused on bringing in new customers and keeping existing ones happy.

ERP tools are great for organizations that want to manage internal variables, including accounting, human capital, projects, and the flow of physical products. These solutions indirectly benefit customers by smoothing out internal processes, which gives companies more time to build rapport with new and existing customers. The best Dynamics 365 ERP tool to start with is Business Central because its breadth of features touches upon the other ERP tools in Microsoft’s arsenal.

Which Companies Use Dynamics 365?

Dynamics 365 suits any organization looking to improve operational efficiency, enhance customer engagement, and leverage data-driven insights to drive growth and innovation. Its flexibility and range of applications make it adaptable to various industries and business sizes. With the interconnected Microsoft platform offering even more productivity and data analysis options, any organization can thrive as a Microsoft shop. 

Given the broad applications of Microsoft’s Dynamics 365 solutions, no two companies will benefit from the same suite. However, these use cases illustrate the diverse potential of Dynamics 365:

  • 1

    A distributor struggling to manage growing order volume implements Business Central for inventory management. As years pass, this distributor becomes a much larger outfit and graduates to Supply Chain Management and Intelligent Order Management for enterprise-level control over fulfillment.

  • 2

    A small plumbing outfit experiencing tremendous growth invests in Microsoft’s Field Service module to better manage service orders and implements Guides and Remote Assist to introduce hands-on training for new employees and empower folks in the field with blended tech.

  • 3

    A large B2B software company needs complete process refinement after outgrowing small-scale software, so they purchase Sales, Marketing, and Customer Service to handle all aspects of the customer journey.

Getting Started with Dynamics 365

With so many modules spanning countless business areas, it’s difficult to parse through the best-fit software for businesses in need of such diverse feature sets.  

That’s where a Microsoft implementation partner comes in. Partners know the right questions to ask to understand your struggles and how software in the Dynamics 365 application suite can alleviate stress and improve your bottom line.  

Note that not every Microsoft partner sells every Dynamics 365 module. However, certified Microsoft partners know the entire Dynamics 365 suite and how its modules work together. If you have any questions on the confusing world of Dynamics 365 and all things Microsoft, these software partners are invaluable resources. 

Here are five great starting points to figure out whether Dynamics 365 is a good fit for your organization:

  • 1

    What processes do you need Dynamics 365 to manage? 

  • 2

    What software do you already use across your business?

  • 3

    Are you interested in becoming a Microsoft shop (using mainly Microsoft products)?

  • 4

    Which teams or business areas see the most challenges in day-to-day activities?

  • 5

    Is security one of your top concerns when looking at new software?

Cargas has been a proud Microsoft partner for almost three decades. With hundreds of successful implementations for Dynamics 365 modules like Microsoft Dynamics 365 Sales and Microsoft Dynamics 365 Business Central and our custom development team, we’re well-equipped to set you on the right software path.

Dynamics Business Central vs CRM

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