This article is contributed. See the original author and article here.
Organizations face new challenges every day. Priorities change, markets shift, opportunities emergethe pace isn’t slowing down. As your competitors transform their business models and customer expectations evolve, your future depends on how well you can empower your teams to adapt, innovate, and make a positive impact every day. You need to be ready for disruption, to embrace constant change, and, most of all, be fast on your feet.
Building a more agile future
That’s why we’re excited to invite you to the Microsoft Business Applications Launch Event on April 6, 2022. Register now for your first look at hundreds of new features, enhancements, and innovations to transform your business into a more agile, customer-centric organization.
Catch all the latest advancements across Microsoft Dynamics 365 being unveiled, including:
More collaborative content creation, improved authoring efficiency, and advanced personalization using Dynamics 365 Marketing.
Ambient and actionable business data, a single workspace in Sales Hub, and AI-guided live feedback with Dynamics 365 Sales.
Simplified setup with guided, task-based experiences and inbox enhancements for rapid issue resolution using Dynamics 365 Customer Service.
Subscription billing and intelligent automation around invoicing, ledger settlements, and year-end close services in Dynamics 365 Finance.
And that’s just the start. You’ll also learn how new features across Microsoft business applications are already helping our customers navigate change and seize opportunities. You’ll hear from Charles Lamanna, Microsoft Corporate Vice President of Business Applications and Platform, about how your business can innovate by modernizing processes and uncovering game-changing insights. Then listen in as senior Microsoft engineers and experts behind the technology guide you through the latest advancements in Dynamics 365 and Microsoft Power Platform 2022 release wave 1 and how they’ll help you:
Adapt quickly to change as new business priorities, market conditions, and customer opportunities emerge.
Innovate everywhere by solving problems with solutions that ease collaboration and work seamlessly together.
Deliver more value to your customers in less time by quickly adopting or enhancing solutions that accelerate results.
Create more memorable customer experiences by modernizing your processes and uncovering insights into your supply chain.
Real-life innovation
Your inside look at business applications goes even more in-depth with demonstrations of real-life customer scenarios, led by the experts who know Dynamics 365 and Microsoft Power Platform inside and out. See new capabilities in actionand learn what’s possiblefor organizations big and small, across every industry. You’ll be the first to find out how new features are aligned with customer needs to help solve pain points across organizations, ease everyone’s workload, and take on today’s toughest business challenges.
Fresh insights
Innovation in AI, mixed reality, and industry solutions is enabling a new generation of agile organizations. Understand the why and how behind the trends with insights and best practices from industry leaders on how to accelerate results. Have questions for the experts? You’ll have a chance to ask them during the live Q&A chat. You don’t want to miss this digital launch event packed full of ways to help you adapt fast, collaborate with ease, innovate together, and make a positive impact. We hope to see you there.
This article is contributed. See the original author and article here.
Traditional guidance or upskilling usually requires a trained trainer, a trainee, some mix of resources like work instructions, parts manuals, or checklists, and a real-world or simulated task to perform. In this scenario, a skilled worker (the trained trainer) guides the trainee through the job until they have mastered the process and can work alone. This process is called on-the-job guidance, and while it has been effective in supporting workforce development for decades, it has always been challenging from a resource and scale perspective.
Over the past decade, however, organizations across industries have engaged in digital transformation, leveraging advances in technology to reimagine business processes to make them more effective and efficient. This is what Microsoft Dynamics 365 Guides is all about, including its application in training and development to empower employees with step-by-step holographic instructions right where the work happens. This article highlights three ways to use Dynamics 365 Guides to improve the employee experience.
1. Empower self-guided learning
One of the key benefits of utilizing mixed reality applications is that it frees the trainer from the trainee. For example, a trainer can develop a digital process guide that any number of trainees can then utilize without requiring the trainer to be physically present. This empowers workers to embark on self-guided learning by equipping them with task instructions, essential data, and model visualizations directly in the flow of work. The result is increased efficiency from a resource perspective and improved productivity, quality, and safety from the worker’s perspective.
The idea of self-guided learning is nothing new; in mixed reality, though, self-guided learning is dramatically improved by delivering information where and when it is needed in the training process. For example, in the following video, we see how Dynamics 365 Guides allows for self-guided learning that keeps workers in the flow of work by moving with them, directing attention to the next step, and providing the information needed every step of the way.
This embed requires accepting cookies from the embed’s site to view the embed. Activate the link to accept cookies and view the embedded content.
Similar scenarios unfold thousands of times per day in manufacturing plants around the world. From the machinist securing a part in a multi-axis lathe who needs to check a read-out on a gauge to the repair technician working on a new piece of equipment, when workers can always access a virtual library of parts manuals and assembly instructions wherever they are, they can stay in the flow of work longer. This is one reason that Forrester found that mixed reality improved field task efficiency by 40 percent and reduced rework by 7 percent, saving $13,680 annually per field task worker.1
2. Embrace mixed reality
As shown in the video below, Dynamics 365 Guides works by overlaying 3D visualizations and holograms alongside connected work instructions and reference materials in a real-world environment, all without sacrificing autonomy or range of movement. Plus, Dynamics 365 Guides also allows anyone to create new guides with low-code/no-code authoring so that your organization can respond quickly and efficiently to new training needs. In this short video clip, you can see how authoring steps taken on a PC, automatically align to a hologram placed in the work environment.
This embed requires accepting cookies from the embed’s site to view the embed. Activate the link to accept cookies and view the embedded content.
In addition to providing frontline workers with immersive instructions, Dynamics 365 Guides also allows action-activated triggers to mimic real-world actions. For example, HoloLens 2 can track worker hand movements and automate guidance based on where a worker’s hands are located in the process. This is demonstrated in the video below. When the worker completes a task, such as tightening a bolt or screw, the worker is automatically shown a holographic prompt directing them to the next step in the process. This helps build muscle memory and improves the learning process.
This embed requires accepting cookies from the embed’s site to view the embed. Activate the link to accept cookies and view the embedded content.
Not only do hands-free triggers keep workers in the flow of work longer, but they are also more accurate than asking a coworker what to do next, which may or may not yield the correct answer, and more efficient than referring to traditional work instructions, which breaks the concentration on the task at hand. Moreover, enabling hands-free triggers, either with hand tracking or voice activation, improves process safety, particularly in industries like manufacturing, where significant amounts of rotating machinery are found.
What’s next?
This article shows that embracing mixed reality, empowering self-guided learning, and enabling hands-free triggers are three ways to transform on-the-job guidance. We’ve also published videos that explore how intuitive placing and working with holograms can be, features for hands-free work, and a look at the level of detail you can accomplish with Dynamics 365 Guides. If you are ready to start empowering your frontline workers today, we invite you to get started with a free 60-day trial of Dynamics 365 Guides. Or to learn more, check out our learning path, Work with Dynamics 365 Guides.
This article is contributed. See the original author and article here.
The COVID-19 pandemic has pushed “order management” from the backend of logistics operations to the spotlight of supply chain and commerce strategies. Retailers, consumer package goods (CPG) companies, and distributors rushed to adapt their business models to fulfill the explosive growth of online orders through different digital channels. End-customers and organizations buy through various channels such as marketplaces, in-store, mobile apps, and even social media. They expect faster and more convenient ways for pickups and returns, such as pickup in-store, at a partner’s location, and for returns, drop off at the nearest location, QR codes, and even at-home pickup.
As the number of order sources and fulfillment options grow exponentially, organizations need the right order management solution to keep up with the evolving digital commerce landscape. This blog looks at three key aspects to consider when selecting an order management solution and how Microsoft Dynamics 365 Intelligent Order Management can help you.
1. Open and modern platform
The adoption of online shopping, and the addition of more consumers and businesses online for all types of transactions with the pandemic, have created a demand for convenience and personalization in digital commerce. As the number of online marketplaces grows, retailers, CPG, distributors, and manufacturers with business-to-business (B2B) and direct-to-consumer (D2C) business models require to accept orders from an ever-growing external ecosystem. Receiving orders from multiple sources increases order management and supply chain complexity. Therefore, these organizations need an order management solution that helps them accept orders from anywhere to keep pace with the continuing evolution of e-commerce.
Dynamics 365 Intelligent Order Management has an open and modern platform that seamlessly integrates with organizations’ existing tech stack. Its architecture reduces implementation time through out-of-the-box pre-built connectors to the best-of-breed ecosystem of partners for order source, delivery, tax compliance, price calculation, and logistics services such as Adobe Commerce, J.B. Hunt, Krber, Uber Freight, Avalara, Vertex, Flexe, Big Commerce, Far Eye, Commerce Tools, Flintfox, Ship Station, and Orderful. Moreover, this platform architecture is composable and flexible to allow supply chain professionals to build in an incremental way through a modular and API-first approach and a supply chain control tower, which ultimate goal is supply chain visibility.
2. Real-time visibility and intelligent fulfillment optimization
The 2021 Gartner supply chain risk and resilience survey shows that for 83 percent of large organizations, better supply chain ecosystem visibility is a top priority.1 And another Gartner research shows that 60 percent of chief supply chain officers (CSCOs) are expected to make faster, more accurate, and consistent decisions in real-time.2 The cycle-time of business processes continues to accelerate, particularly in order management processes that serve consumers who expect faster and more convenient shipping to the location of their choice. To succeed in these conditions, companies need a solution that simplifies omnichannel order fulfillment by providing real-time visibility and AI-infused real-time data.
With Dynamics 365 Intelligent Order Management, supply chain and commerce professionals can model and automate responses to order constraints by using a journey orchestration designer and assigning rules in a low-code/no-code friendly user interface with drag and drop actions instead of coding. Dynamics 365 Intelligent Order Management uses an intelligent fulfillment optimization service to infuse AI into order fulfillment within your supply chain network. The intelligent optimization engine works to ensure the right products are delivered from the right source in the right quantities so that you always maximize profits, minimize costs, and satisfy service-level requirements.
3. Faster deployment times
Accepting orders from anywhere carries an additional challenge: implementation. Businesses need an order management solution that allows them to get up and running quickly. Not only do they need to be able to accept orders from anywhere, but many organizations also have existing systems that they would like to augment, not replace. If you are in the process of updating your order management system and fall into this category, then understanding what is involved in the implementation process is critically important. Will custom coding be required to integrate with your enterprise resource planning (ERP) and warehouse management system (WMS)? How about your customer relationship management (CRM) or transportation management system (TMS)? For most, the best solution is a cloud-based integrated-service-as-a-software (iSaaS) that uses RESTful APIs and can be easily configured using a low-code/no-code user interface.
Applications that take this approach enable supply chain and commerce professionals to continue to use and benefit from legacy applications, while also providing the agility to easily connect and integrate with modern web-based solutions. This is the approach that we have taken with Dynamics 365 Intelligent Order Management because it delivers these benefits and accelerates the digital transformation process regardless of where a company is in its digital transformation journey.
It is essential to look for an order management solution that will give you out-of-the-box pre-built connectors to an ecosystem of partners, provide real-time order visibility, intelligent fulfillment optimization, and get up you running quickly with seamless integration with your existing tech stacks, such as ERP and CRM systems. Traditional, on-premises order management systems can lack the flexibility required to keep pace with the rapidly evolving world of e-commerce.
With Dynamics 365 Intelligent Order Management, you can leverage our modern cloud technology, integrate with your existing platforms, and quickly implement new capabilities that enable AI, automation, order flow orchestration, and on-demand scalability. Get started today with Dynamics 365 Intelligent Order Management free trial and turn order fulfillment into a competitive advantage.
GARTNER is the registered trademark and service mark of Gartner Inc., and/or its affiliates in the U.S. and internationally and has been used herein with permission. All rights reserved.
This article is contributed. See the original author and article here.
The challenges of the past few years have highlighted that no business is immune to sudden changes. Embracing mixed reality as a strategic initiative is key to ensuring business continuity and solidifying future stability and resiliency. Microsoft’s comprehensive ecosystem of mixed reality solutions, including Microsoft HoloLens 2, Dynamics 365 Remote Assist, and Dynamics 365 Guides, help manufacturing organizations navigate complex situations, empower frontline workers, and create new customer experiences.
The benefits of adopting mixed reality today are significant. Based on the Microsoft-commissioned Forrester Total Economic Impact (TEI) report (“HoloLens 2 TEI study”), HoloLens 2 is delivering 177 percent return on investment (ROI) and a net present value (NPV) of $7.6 million over three years with a payback of 13 months. According to the HoloLens 2 TEI study, manufacturing organizations that have deployed mixed reality solutions on HoloLens 2 have:
Reduced training time by 75 percent, at an average savings of $30 per labor hour.
Saved an average of $3,500 per avoided expert trip.
Avoided 240 to 320 hours of average lost throughput per year.
Increase productivity with remote inspection and audits
Dynamics 365 mixed reality is reducing the requirement to fly in an expert technician and/or an auditor on site to conduct an inspection. With Dynamics 365 Remote Assist on HoloLens 2, manufacturing companies can conduct routine inspections and audits with remote experts from any place in the world at any time. Manufacturers can deliver real-time, interactive guidance from experts located anywhere in the world right to their employees on the factory floor. This solution allows onsite workers to collaborate with remote leaders and experts to solve business problems in real-time, using 3D annotations to access, share, and bring critical information into view. With accurate real-world overlay of 3D assets, instructions, and collaborative markup, workers are free to see their surroundings and use both hands during inspections.
Dynamics 365 Remote Assist on HoloLens 2 enables manufacturer organizations to conduct site visits, inspections, maintenance, and repairs remotelyboosting efficiency and reducing costs. According to the HoloLens 2 TEI study, manufacturers saved an average of $3,500 per avoided expert trip.
Eaton, a multinational power management company, sought a solution to enable the company to conduct audits remotely. Traditionally, auditors had to travel to plants to conduct audits but during the COVID-19 pandemic travel was brought to a standstill and travel was restricted. With Dynamics 365 Remote Assist on HoloLens 2, employees can walk through the audit checklist with the remote auditor and ensure that employees are following safety guidelines. Since launching Dynamics 365 Remote Assist on HoloLens 2, Eaton is averaging more than 50 remote sessions per month across all global sites saving hundreds of thousands of dollars on travel-related expenses and empowering Eaton to pay-off its mixed-reality investment within five months.
“Using Remote Assist on HoloLens, we’re bringing the outside viewer perspective into the plant. Let’s say they are checking a quality dimension. If someone on the call has been on another Gemba walk in another site, they can say, ‘You should contact plant XYZ, because they do a similar measurement, but they’re using an automated process.”Alexandre Georgetti, Director of Eaton’s Vehicle Group Manufacturing Strategy. Read more about Eaton’s story here.
Address manufacturing skills gap with guided assembly and training
Dynamics 365 mixed reality is reducing the knowledge gap and helping enterprises adapt at the speed of change. Using Dynamics 365 Guides on HoloLens 2, manufacturing companies are accelerating learning, standardizing processes, and reducing errors with step-by-step instructions. Simply use your PC and the Microsoft HoloLens app to author instructions and easily place 2D and 3D content in the real-world environment, showing users how and where to complete tasks.
Dynamics 365 Guides on HoloLens 2 empowers manufacturing organizations to offer expansive training programs that teach skills and processes that are specific to their offerings and production needs. Furthermore, manufacturers see direct improvements in learning and retention, quality of work and downtime, and training costs savings. According to the HoloLens 2 TEI study, manufacturers reduced training time by 75 percent, at an average savings of $30 per labor hour.
Toyota, a multinational automobile manufacturer, produces over a million vehicles each year in North America and depends on solid training programs that ensure team members are building every car to precise specifications. Traditionally, trainers worked one-on-one with team members, demonstrating a process, and then watching them replicate it. Toyota found this approach to be inefficient and susceptible to bottlenecks. With Dynamics 365 Guides on HoloLens 2, trainers create training materials and allow team members to train independently and understand the steps involved and repeating any necessary motions numerous times to develop muscle memory while allowing for one trainer supervisor to supervise multiple trainees at the same time. Since deploying Dynamics 365 mixed reality solutions on HoloLens 2, Toyota has reduced inspection time by 20 percent.
“Our training efficiency is increased, trainers and trainees are receptive to the technology, and they rank Dynamics 365 Guides on HoloLens 2 as their preferred way to learn.”Zach Reeder, Technology Development Engineer at Toyota Motor North America. Read more about Toyota’s story here.
Connect workers with experts to enable always on service
Dynamics 365 mixed reality is helping enterprises deliver exceptional service with personalized customer experiences. Dynamics 365 Remote Assist on HoloLens 2 connects field technicians with remote experts for a seamless collaboration that includes content capture abilities, interactive annotations, and contextual data overlays for easier repairs and fixes. Equip field technicians with all the important, relevant information directly into their line of sight, creating actionable experiences for employees.
Dynamics 365 Remote Assist on HoloLens 2 improves field task efficiency, reduces rework, and improves first-time fix ratesincreasing capacity for work and improving customer outcomes. According to the HoloLens 2 TEI study, manufacturers avoided 240 to 320 hours of average lost throughput per year.
L’Oral, one of the top multination cosmetics manufacturers with employees in 150 countries, has a wide range of products that require sophisticated machinery for production and packaging. When a machine requires service, L’Oreal flies out an expert to address the issue, increasing downtime machine and travel costs. To solve this challenge, L’Oreal deployed Dynamics 365 Remote Assist on HoloLens 2 to enable remote experts to effectively collaborate with frontline workers to resolve the issue expeditiously and reduce operational costs. With Dynamics 365 Remote Assist on HoloLens 2, remote experts can see what the technician sees and react to the same image with annotations and share critical information in real-time. Since deploying Dynamics 365 Remote Assist on HoloLens 2, L’Oreal has reduced downtime by 50 percent.
“The time we spend on diagnostics and resolving issues has been cut in half. This has led directly to lower operational costs. It has also allowed us to be more agile and flexible”Georges-Alban Farges, Industrial Performance Manager at L’Oral. Read about L’Oral’s story here.
Next steps
Stay tuned as we continue this blog series with a deep dive spotlight on healthcare, education, architecture, engineering, and construction industries. In the meantime, learn more about mixed reality applications on HoloLens 2 and get started today:
Request a Dynamics 365 Mixed Reality demo on Microsoft HoloLens 2. Book an appointment with our Microsoft Stores team today. Select ‘Other’ under Choose topic and reference HoloLens 2 demo in “What can we help with”.
This article is contributed. See the original author and article here.
I am thrilled to share an overview of the exciting new capabilities coming in the 2022 release wave 1 for Microsoft Dynamics 365 Marketing, and more importantly, the value that these new capabilities will bring you because we’ve tailored it to meet, and exceed, the needs of today’s marketers and their customers.
Marketing has always been a team sport and is even more so in today’s landscape.
Marketers are being chartered to think about the entire customer journey and to champion across the organization to elevate end-to-end customer experiences. They’re asked to be more agile in responding to market conditions, to be more efficient in content creation, and to deliver it all with higher quality, greater impact, and proof that they’re delivering business impact. With the upcoming release wave, Dynamics 365 Marketing can help you meet every one of these challenges head-on.
It will give you the flexibility like never before to easily collaborate across people, departments, and applications, to personalize customer interactions across the entire customer journey, and to design custom experiences to happen in the moments that matter, thanks to real-time customer journey orchestration.
Here are a few highlights of some of the exciting new innovations that will be released for general availability over the next few months and what they can mean for business users and marketers alike.
Easily collaborate to leverage the full power of your team
Marketing teams need to respond to market conditions quickly in order to create impactful moments. This has gotten more complicated with hybrid workplace scenarios and the fact that more and more marketers are engaging with colleagues in other departments to land the right engagement across the end-to-end customer journey. To keep these cross-functional teams (and frankly all of us) productive, we must avoid context switching, and instead, keep people in the flow of work.
With this release, we bring Microsoft Teams chat natively into Dynamics 365 Marketing to allow you to easily collaborate with your team without leaving the flow of work. Because each Teams chat is tied to the individual work item, it enables everyone involved with the project to have the same context and increases focus so they can create the highest-impact journeys, emails, and other content more efficiently.
For Dynamics 365 Sales and Dynamics 365 Customer Service users, the new unified customer activity timeline will bring cohesiveness across the end-to-end customer journey. The timeline is interwoven with activities from these Dynamics 365 customer engagement apps, so you don’t need to leave your flow of work to view your Dynamics 365 Marketing real-time marketing interactions. With the full picture of engagement history at their fingertips, customer-facing teams can better create impactful journeys, plus easily search or filter to find the relevant interaction history.
And to offer the ultimate in flexibility, in addition to the comprehensive list of out-of-the-box triggers, you can now trigger journeys or measure goals from common customer data changes across any Dynamics 365 customer data. Each interaction, such as a completed application, a renewed contract, or a closed service ticket, represents an opportunity to engage more deeply with your customers. Those interactions can now be used to kick-off, drive, and measure customer journeys in just a few clicks, without requiring developers or customizations.
Hyper personalize experiences with ease
Personalization is no longer a luxury. It is critical to increase the likelihood that customers will make an initial purchase, repurchase, and recommend your products or services to others. Personalization drives impact. Companies with significant growth generally have a higher usage of personalized marketing.
One of the first steps in personalization is to create compelling content that will resonate with your customers. To make this easier, we are introducing reusable content fragments to allow your team to quickly assemble beautiful emails with just a few clicks. These content fragments can include layout, advanced elements, and personalization, so there is no limit on the content you can create and save for reuse. With a library of reusable content, you can simply mix and match different pieces to create your messages.
You can also personalize and customize your emails by creating conditional content with an easy-to-use, no-code experience. Use any mix of personalized text, images, and layouts, and create rules for selecting the right content, using segment membership, attributes, or triggers. For instance, members of the Contoso Winery Red Wine Club will receive the images/text/layout for red wines, while members of the White Wine Club will receive those pertaining to white wines instead. You will also get detailed analytics to help monitor how each variation is performing.
Build personalization into customer-centric journeys that can boost your return on investment (ROI) with the help of AI-powered next best content. In addition to allowing you to specify manual rules for content/offer selections, you can leverage AI-based optimization to tailor content/offers to match the preferences, interests, and motivations of each of your unique customers. After all, compelling content and offers are powerful tools in getting customers to engage or keeping them from churning.
And for Dynamics 365 Customer Insights users, when it comes to getting your message out to the right customers, you can choose to use customer insights data from your own Azure Data Lake Storage to build segments, specify conditions, and personalize messages to build rich, real-time journeys while maintaining full control over the underlying data.
Design custom experiences with flexibility and agility
Customer expectations of today demand that businesses rise to a new level of customer obsession to meet them. Winning and keeping customers is becoming increasingly more competitive. Brands must provide the best experience possible when customers engage. This is why we continue to invest in building out more and more real-time engagement capabilities into our Dynamics 365 applications.
In the last Dynamics 365 Marketing release, we introduced native support for SMS providers Twillio and Telesign to enable organizations to connect around the world via SMS. Capabilities in this release enable you to continue the conversation with your customers by taking action on SMS keyword replies. You will be able to create custom keywords for use in SMS replies that will guide the journey based on the response to ensure flexibility and agility are built into your customer experiences.
Additional capabilities allow you to trigger journeys more selectively based on qualifying conditions to better drive customers to action. We eliminate the need to create cascading branches or specifying conditions with more than two possibilities. For instance, to re-engage buyers who have abandoned carts, you may want to qualify buyers who have more than $100 in their cart for a journey that gives a $10 coupon incentive to complete their purchase. This empowers your marketing team to engage the right audience in the most impactful way, and to have more flexibility by re-using the same event trigger for a variety of scenarios. These capabilities increase a marketer’s productivity by simplifying, not only the journey logic and creation, but also the analysis when journeys are live as well as the readability and maintenance of more complex journeys.
And finally, if you can dream it, you can do it. With a seamless integration between real-time marketing journey orchestration and Power Automate, we enable you to have limitless customization possibilities and fine-grained control of your customer experience by leveraging a wealth of connectors and actions. This allows semi-technical marketers to automate journey steps quickly and easily leaving deep technical resources to be more focused on complex needs.
Leading the next generation of business applications
We are excited to be delivering so much value in the 2022 release wave 1 for Dynamics 365 Marketing, value that will enable you to elevate end-to-end customer experiences, be more agile in responding to market conditions, be more efficient in content creation, and to deliver it all with higher quality and greater impact.
The capabilities highlighted above are planned to be released from April 2022 through September 2022. Consult the release notes for the most up-to-date details.
I’m excited to take you on this exciting journey with usas always, there will be more to come.
Learn more about Dynamics 365 Marketing
To learn more about how your organization can elevate your customer experiences, visit the Dynamics 365 Marketing webpage and sign up for a free Dynamics 365 Marketing trial to explore real-time customer journey orchestration and the other rich capabilities offered in Dynamics 365 Marketing.
TEI is a methodology developed by Forrester Research to assist companies with technology-related purchase decisions by helping technology vendors effectively communicate the value proposition of their solutions. The purpose of a TEI study is to provide business decision-makers with a framework to evaluate the potential financial impact of implementing Dynamics 365 Supply Chain Management.
Forrester Consulting interviewed five organizations that used Dynamics 365 Supply Chain Management to conduct the TEI study. The characteristics of these businesses and the results of the interviews were then aggregated to develop a composite organization. The key findings of the study are based on the composite organization and are summarized below.
Key findings
Dynamics 365 Supply Chain Management is a solution that is helping product-centric organizations to revamp their existing enterprise resource planning (ERP) platform and it enables customers to considerably increase supply chain visibility. It also empowers users to plan better, improves organizational agility, and maximizes asset uptime, allowing companies to operate smoothly and profitably.
Forrester’s study revealed five quantifiable impact areas: increased production volume, reduced downtime, improved quality, reduced infrastructure cost, and increased developer productivity.
Let’s look at each of these areas in more detail to examine how Dynamics 365 Supply Chain Management delivers value across enterprise supply chains.
Increased production volume
Dynamics 365 Supply Chain Management empowers users to improve demand planning by enriching demand forecasting with AI. It also allows companies to deliver production schedule visibility to the shop floor and to dynamically rebalance production schedules based on real-time material, labor, and equipment availability. These improvements translate into more responsive planning and scheduling, an improved synchronization of supply and demand, and the identification and minimization of production bottlenecks. The result for customers is increased production throughput that was worth $24.3 million over a three-year time horizon.
Reduced downtime
Our solution also enables users to create a connected factory and proactively manage the shop floor using a real-time view of production and inventory. This is one reason why customers surveyed by Forrester reported substantial increases in data collection from their supply chains. This data improves visibility into asset utilization and resource availability and provides a systematic means of identifying root causes of machine downtime.
Dynamics 365 Supply Chain Management also provides the ability to rapidly respond to quality issues and parts obsolescence with engineering change management. The organizations in Forrester’s study leveraged these capabilities to reduce costly downtime of business-critical production equipment, which improved overall equipment effectiveness (OEE) and ensured that production lines can run as scheduled 24x7x365. For an organization with 500 manufacturing machines, this reduction in downtime was valued at more than $1.5 million over three years.
Improved quality
Interviewees further noted that Dynamics 365 Supply Chain Management allowed their organizations to uncover new pathways for improving product quality. In particular, real-time production data provided the means for understanding when variations in raw material quality or machine operating characteristics were impacting quality. And, because they were able to make immediate decisions, they could ensure that quality was maintained.
By taking actions to improve adverse conditions in real-time, scrap rates declined, and root causes were identified, allowing these organizations to avoid unnecessary losses while simultaneously improving production quality. Over three years, the improvements to product quality reduced costs by more than $6.8 million.
Reduced infrastructure cost
A critical improvement point for the organizations studied by Forrester were the gains realized by retiring multiple legacy applications that were often on-premises, highly-customized, disparate, and disconnected. By migrating systems and processes to a modern cloud-based solution, users were able to pay less for server maintenance and system administration as well as avoid the significantly higher cost that would have been incurred to scale their prior solutions. These infrastructure cost reductions totaled $11 million in three years.
Increased developer productivity
Dynamics 365 Supply Chain Management takes advantage of Microsoft Power Apps to reduce customization costs by utilizing low-code/no-code extensions. Plus, it delivers operational application services by running on the Microsoft Azure cloud, significantly reducing the need for developers and technical staff to focus on system administration. By freeing up these resources to deliver other, higher-value work, the financial impact of productivity improvements is projected to be approximately $0.7 million over three years.
Unquantified benefits
Study participants also reported other substantial organizational benefits that were unquantifiable in nature. These include increased flexibility to adapt, improved ability to deliver on-time, improved customer satisfaction, better forecasting capabilities for improved supplier collaboration and planning, and improvements to team members’ day-to-day work realized by breaking down siloes between teams and functions.
The big picture
As we have seen here, Forrester’s study uncovered five quantifiable impact areas as well as several unquantified benefits. When these are considered in combination, Dynamics 365 Supply Chain Management delivered a total economic impact of $44.33 million in financial savings over three years. At $23.27 million, the investment provided a ROI of 90 percent and took 22 months to pay back.
Dynamics 365 Supply Chain Management is an agile and composable ERP solution. It enables manufacturers, retailers, and distributors to create a connected, resilient, and digital supply chain by enhancing operational visibility, improving planning agility, and maximizing asset uptime. In addition, it unifies data from almost any source in real-time and generates intelligence by leveraging AI and machine learning to proactively detect opportunities and develop a long-term competitive advantage.
We recently sat down with an analyst from Forrester to discuss the Total Economic Impact of implementing Dynamics 365 Supply Chain Management. You can view the discussion in our on-demand webinar: Build a resilient and sustainable supply chain. If you are ready to see what our modern, cloud-based supply chain management solution can do for your organization, we invite you to start today with a free Dynamics 365 trial.
Recent Comments