Is your organization currently using on-premises Microsoft Dynamics AX? Upgrading and moving to the cloud will bring many benefits- both in terms of cost-saving and productivity. And, with extended support for Microsoft Dynamics AX 2012 R3 ended in January 2023, it really is the right time to start thinking about your upgrade needs.
Dynamics 365 Finance (formerly Dynamics AX and also known as ‘D365FO’ or just ‘FO’) is a highly customizable, user-friendly business management solution designed to seamlessly connect the different parts of your organization. Ideal for multinational organizations, especially those with international operations, multi-currency needs, or complex manufacturing processes, Dynamics 365 Finance leverages PowerApps and Flow to optimize productivity and enable smooth integration with other Microsoft apps. As a cloud-based solution, it offers a suite of interconnected, modular Software-as-a-Service (SaaS) applications and services.
Microsoft Dynamics AX vs. Dynamics 365
First released in 2002, Dynamics AX was a feature-rich enterprise resource planning (ERP) solution, providing robust capabilities in finance, manufacturing, distribution, and HR. However, with support ended in January 2023, Dynamics AX is no longer available to new customers. Existing customers can still purchase additional licenses through the new Dynamics 365 licensing model. Dynamics AX primarily operates as a desktop-based application with some web and mobile add-ons, but it lacks built-in CRM functionality, which is available separately.
In contrast, Dynamics 365 is a complete web- and cloud-based ERP solution, offering tight integration with the entire Dynamics 365 family. This end-to-end business solution includes built-in ERP and CRM functionality, making it a more comprehensive choice for modern enterprises.
Why Upgrade Microsoft Dynamics AX and Move to the Cloud?
Upgrading to Dynamics 365 Finance offers numerous advantages, especially when moving to the cloud. Cloud technology provides a more cost-effective solution than on-premise setups. With Cloud ERP, your business operates on a common data model and a flexible, extensible platform, allowing users to easily create new processes or modify existing ones without needing IT support. The solution also offers automatic updates, ensuring that you always have the latest version of your ERP. Additionally, Dynamics 365 Finance is highly scalable, allowing you to grow your system as your needs evolve by simply adding users and apps, enabling quick and efficient expansion. This innovative platform is continually developed, with biannual updates released every spring and fall.
Should You Upgrade Dynamics AX 2012 to Dynamics 365?
While Dynamics AX 2012 remains a stable platform with core functionality that can support your business, it’s important to consider the benefits of upgrading. Dynamics 365 Finance enhances efficiency, decision-making, and global engagement through streamlined processes that target customer needs more effectively.
However, as mainstream support for Dynamics AX ends, no new features will be developed for Dynamics AX or Dynamics AX 2012. Delaying the upgrade could lead to higher costs for troubleshooting or upgrading in the future. Ultimately, the decision to upgrade should align with your business strategy. At Pipol, we offer an upgrade assessment that sheds light on how we can help you define a solid Dynamics AX upgrade roadmap, ensuring a smooth and agile upgrade process before, during, and after the solution goes live. Contact us to learn more about our upgrade assessment.
How to Upgrade to Dynamics 365 Finance?
A successful upgrade to Dynamics 365 Finance requires a clear definition of your scope, the formation of a cross-functional project team, a cleanup of your existing data, and thorough testing of your new solution. Most importantly, it’s crucial to work with an experienced Dynamics AX partner who can support the entire implementation process.
The following five high-level steps in the upgrade process can aid you in a successful upgrade:
- Define the Scope
- Engage a Dynamics AX Partner
- Build a Cross-Functional Team
- Start with a Clean Dataset
- Testing, testing, testing
1. Define the Scope
Begin by reviewing your current solution and specifications to accurately determine the upgrade requirements. This includes assessing your on-premise ERP solution and any ISV solutions connected to it. Decide which D365F&O features you need and how much of your existing data should be migrated. Determine which modules need to move to the cloud, and ask key questions about necessary apps, data migration, additional bandwidth, and essential processes.
2. Engage a Dynamics AX Partner
Upgrading to Dynamics 365 Finance is a complex task, regardless of your organization’s size. It’s always advisable to work with an experienced Microsoft Dynamics AX partner throughout the entire upgrade process. Such partners bring the expertise and knowledge needed to achieve your project goals accurately, quickly, and cost-effectively.
3. Build a Cross-Functional Team
Assemble a team of cross-functional experts from various areas of your business to ensure a successful upgrade. These teams foster brainstorming, timely communication, and the completion of upgrade tasks on time and within budget. They can also quickly identify gaps, mitigate quality control issues, and suggest process improvements during the upgrade.
4. Start with a Clean Dataset
Large, long-standing organizations often accumulate vast amounts of data, including outdated and unnecessary information. This might include duplicate customer records, incorrect price quotes, or empty forms. Clean data is vital for effective decision-making, so it’s important to clean your data before proceeding with the upgrade. Doing so can shorten the upgrade project’s duration and improve operational efficiency.
5. Testing, Testing, Testing
ERP upgrades are complex, and thorough testing is a crucial part of the process. Continuous testing ensures the quality of your application and helps identify areas for improvement. Test not only the solution’s functionality and overall business performance but also how different upgrade tasks impact other areas of your tech ecosystem.
Pipol’s Dynamics AX to Dynamics 365 Upgrade Services
Pipol can help your organization define a solid roadmap for a smooth and agile upgrade journey from Microsoft Dynamics AX to Dynamics 365 Finance. Our upgrade service is a proven framework that has been successfully implemented at many companies worldwide.
Whether you plan to migrate to the cloud soon or need your solution to stay on-premise for now, upgrading from Dynamics AX to Dynamics 365 Finance can be both smooth and cost-efficient. Pipol’s upgrade assessment is a smart starting point. Our easy-to-execute assessment dives deep into your current solution and carefully considers your business strategy to determine the ideal upgrade path. The assessment ensures your solution aligns with the Microsoft roadmap and helps you make the right decisions for your business.
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