Are you a Microsoft Dynamics 365 user? If so, you’re surely not alone. In fact, over 48,000 small and mid-sized businesses trust Dynamics 365 for their business management. But what started as Dynamics AX has evolved over the years into Dynamics 365. There are many differences; the main one being that AX was designed in a different time (before things like Wi-Fi and smartphones). If you’re looking to transition to Dynamics 365, that may seem like an overwhelming task. We’re here to help.
In this post, we’ll cover the differences and evolution of these tools, what you need to know to make the transition, and how bringing in business intelligence consulting will ensure you’re set up the right way. Expert consultants can help you navigate the intricacies of data analytics, reporting, and visualization tools within Dynamics 365, maximizing your decision-making potential and overall ROI. When you work with a consultant, they’ll make transitioning from AX to 365 seamless and, even better, maximize your ROI by aligning the software with your unique business intelligence needs.
What Is the Difference Between Dynamics AX and Dynamics 365?
Dynamics AX has been a reliable on-prem ERP solution, but Dynamics 365 is a cloud-based solution that combines ERP and CRM into one flexible, scalable solution. AX is a desktop-based application with a traditional, less intuitive interface. Dynamics 365 gives you a modern, user-friendly experience that you can access anywhere on any device.
Dynamics AX focuses on ERP functionalities like finance and project or supply chain management. Dynamics 365 gives you a broader range of functionalities by adding CRM capabilities and better integration with Microsoft products like Power BI, SharePoint, and Office 365. Updates and upgrades to AX need to be done manually by your IT team, who probably have enough on their plate. And if you’re using AX, Microsoft support for many versions has ended.
With Dynamics 365, Microsoft handles everything from automatic updates with new features and functionality to major upgrades, software monitoring, and preventative maintenance, so your IT team is off the hook.
The transition from Dynamics AX to 365 can be done with either an upgrade or a full migration. Either way, an experienced consultant will be your best friend here. They understand the criteria needed for whichever direction you go. P3 Adaptive will guide you through the entire process and help decide whether an upgrade or migration is best for you. Our team of experts helps our clients to leverage Dynamics 365 by developing business solutions that fit your unique needs.
Modern businesses need a modern ERP solution. That’s where Dynamics 365 (and the right consultant) comes in. The strategic advantages include:
- Pick What You Need: Choose just the apps that fit, plus it’s easy to scale resources on demand and as you grow.
- Built-In Intelligence: Get real-time, AI-powered insights with Power BI integration. No more jumping between tools.
- Work Smarter, Not Harder: Automate the busywork and boost productivity with centralized data.
- Don’t Sweat Security: Microsoft manages updates and security and you control who sees what data.
- Streamline Your Day: Improve operational efficiency—no more switching systems. Your tools are unified with a familiar Microsoft feel.
What is Dynamics AX Called Now?
Dynamics AX has gone through some transformations over the years. The name Dynamics AX has been retired; Microsoft support for AX or releases of new features and updates is also gone. AX was rebranded as Microsoft Dynamics 365 Finance and Operations (or F&O) but was split into two applications (Dynamics 365 Finance and Dynamics 365 Supply Chain Management) back in 2019. If you’re still using the old version of AX, you need to consider transitioning to a more modern platform to stay current.
What does this mean for existing users? The good news: the shift from Dynamics AX to Dynamic 365 Finance means the system is cloud-based, meaning frequent updates and broader access to features. Users gain improved functionality, access to Copilot, enhanced data management, better security and compliance, and improved BI with AI-powered analytics. The downside? Most users will need training on the new interface, workspaces, and functionalities. Migration can also be a challenge, needing tuning and customization for a smooth transition.
By partnering with a consultant, like our expert team, the transition will be as smooth as butter on a hot biscuit. P3 Adaptive’s experienced consultants will help you navigate any challenges, handle migration and customization of your system with ease, and our expert-led, custom training will get your team up and running.
Unpacking Microsoft Dynamics 365 Finance
Dynamics 365 Finance gives you the power of generative AI and automation to stay on top of your finances (and profits). Its core features handle things like managing your general ledger, accounts receivable, cash management, and cost accounting. Keep an eye on your organization’s overall performance with built-in reporting and analytics that help with budgeting and forecasting. Automation and AI take the repetitive stuff like invoicing and reconciliation off your team. Plus, it ensures you stay compliant with regulatory and tax requirements. That should help you sleep better at night. This Microsoft article gives you a list of topics and resources to explore.
Informed data-driven decisions are key to staying competitive. Dynamics 365 Finance’s integration with tools like Azure and Power BI (and a good consultant) can help you do just that. This powerful team helps you visualize and analyze your data with interactive reports that give you valuable insights. A consultant will connect Power BI to your Dynamics 365 data for a real-time, holistic view of your business. They can also embed custom AI-driven Power BI dashboards into Dynamics 365 so all departments are empowered to dive deeper into insights that inform decision-making. Plus, Power BI makes sharing reports across teams easy and secure. A consultant will set up access controls so only the right people can see and share what they need (and not what they don’t).
Strategic Business Outcomes With Dynamics 365 Finance
With Microsoft Dynamics 365 Finance, real-time data and insights are at your fingertips. Partner with a consultant and they’ll show you how to leverage those insights for better strategic business outcomes. For example:
- Faster, smarter decisions: With real-time financial insights, you’ll spot trends, improve performance, and be able to act quickly.
- Cut costs & save time: Automate invoicing, payments, and budgeting to reduce manual work and errors.
- Better budget control: Track budgets in real-time to track performance and adjust before issues become bigger problems.
- Stay compliant & stress free: Reduce reporting headaches with built-in tools that help you meet regulations.
- Works well with others: Dynamics 365 Finance easily integrates with Microsoft tools like Power BI and Office 365. Plus, you can add or remove modules to scale with your business needs.
Yeah, we know, it’s all about ROI. How can Dynamics 365 Finance and P3 Adaptive maximize ROI? Well, first of all, since Dynamics is cloud-based, you’ll cut back on pricey hardware and IT maintenance. Our team will set you up with Dynamics’ customizable modules and we’ll deploy them quickly, so you’re up and running with less implementation time and faster ROI. We’ll also add in automation, real-time data access, and unified workflows—your team will work faster and with less headaches. Lastly, Dynamics grows with you without costly reinvestments or system overhauls. We’ll design a solution that easily scales as you grow. You’ll see ROI faster than a coffee run before an 8 a.m. meeting.
Understanding AX in Finance
Way back in 2002, Microsoft acquired AX, and it was widely adopted by mid-sized companies, mostly in the manufacturing, retail, and distribution sectors. Over the years, it has evolved and expanded its capabilities to reach more industries, including finance. By strengthening its financial modules to handle complex financial operations and advanced financial features, it offers an all-around financial management solution for the finance sector. In 2017, Microsoft rebranded the Dynamics line and created Dynamics 365 Finance to tailor to the specific needs of finance.
AX’s evolution to Dynamics 365 Finance supports financial management with things like real-time reports, global tax engine, and AI-powered Copilot to automate tasks. Dynamics Finance gives you a centralized financial management platform for a comprehensive view of financial data and operations and a 360-degree view of your business’s performance.
You want your business to stick around a while and beat the competition, right? In order to do that, you’ll need to be sure to future-proof your business and your finance processes. Dynamics 365 (and P3 Adaptive) can help. P3 Adaptive will help you optimize your financial operations using Dynamics 365.
The key here is embracing AI with AI-powered features like automated audit trails, real-time alerts, and predictive analytics. Our team works with you to leverage the Microsoft Power Platform to build custom solutions, streamlined workflows, and interactive reports. Another key to future-proofing is tapping into the power of configuration over customization. Yup, we’ll help with that too—our team works side by side with you to design a solution that will keep you ready for whatever the future holds.
Dynamics AX vs. Business Central: Key Considerations
First thing to think about is your company’s size and needs. Dynamics AX (Dynamics Finance) is designed to support large, fast-growing, or global companies and complex business processes. With advanced features and scalability, it’s able to handle large transaction volumes and more complex reporting. A broader range of functionalities and customizations handles diverse business processes and industry-specific requirements. If you’re multinational, Dynamics Finance unifies all your business operations in one place. Plus, it’s available in thirty countries with the ability to customize tax rules per region.
Business Central caters to small or mid-sized companies with simpler requirements that are looking for a comprehensive ERP solution that is also user-friendly. Its intuitive interface and rapid deployment options make it great for businesses with small IT teams or limited specialized expertise. Business Central still offers robust features like built-in intelligence and seamless integration with other Microsoft tools, but scalability and customization may be limited if your business grows. It’s great at processing a large number of transactions per day and unifies your business across all areas.
So, how do you choose? That’s where we come in. Using our experience and expertise (and our love for problem solving and developing solutions) we’ll guide you through the entire process—from choosing the best fit to implementation to empowering your team with successful adoption.
The Strategic Value of Transitioning to Dynamics 365
Dynamics 365 Finance offers you significant strategic value. How so? Decision makers can make better, faster decisions with real-time visibility into financial performance, cash flow, and margins. Predictive analytics and AI help with insights that improve budgeting, forecasting, and cost control. Automating manual, routine tasks (think invoicing and reconciliations) means finance teams can focus on more value-add work. Lastly, global compliance features and scalability supports international growth (all while keeping operating costs in check).
Transitioning to Microsoft Dynamics 365 is a strategic shift that can transform your business strategy to drive growth and innovation. You’ll improve productivity, reduce operational costs, and enhance customer engagement. By combining ERP and CRM you can manage operations seamlessly and connect all your teams (finance, sales, marketing, and operations) in a single platform.
P3 Adaptive’s consulting services will empower you to unlock the full potential of Dynamics 365. We’ll assess your current setup, customize modules that make sense for your unique needs, and train your team for success. We’ll develop a strategy that aligns Dynamics 365 to your business goals. Maybe you’re looking to scale operations, improve agility, drive data-driven decisions—whatever you want to do, we’ll set you up for long-term growth and a competitive advantage that’ll leave your competition in the dust. Let’s get started—contact us today.
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