The team behind ZipDo, software streamlining the process of preparing and documenting meeting reports, found that over 61.1% of ERP projects exceeded the expected time for implementation, while 74.1% of projects surpassed the planned budget.
Although not all companies need to opt for implementing the most recent software version from scratch during their Microsoft Dynamics 365 upgrade endeavor, transitioning to the newest version of the ERP and CRM system is frequently accompanied by certain challenges. Explore the following common pitfalls that affect companies undergoing the upgrade process and learn strategies to mitigate them.
Lack of proper planning
Even if your company has successfully used one of Microsoft’s ERP and CRM software products, it does not negate the need for thorough planning for a Dynamics 365 upgrade. This process can be particularly challenging, especially if transitioning from more updated predecessors or if your company requires numerous customizations and integrations.
Proper upgrade planning should include the following steps:
- defining precisely the upgrade objectives and scope;
- assessing the current environment, including the capabilities and limitations of Microsoft Dynamics 365 applications;
- developing a detailed project timeline with clear milestones;
- establishing a dedicated upgrade team, which has representatives from various organizational departments, including business and IT specialists, and experienced upgrade consultants like XPLUS;
- allocating sufficient resources and budget;
- creating risk assessment and mitigation strategies;
- employee training and arranging post-go-live support.
Not adjusting to licensing changes
When transitioning to the latest version of Microsoft Dynamics 365, it is essential to consider the software’s unique licensing requirements and pricing, which can differ significantly from the product your company previously used.
The extensive range of applications included in the comprehensive Microsoft Dynamics 365 suite can pose challenges in selecting the most relevant configuration. To address this more effectively, you might consider a minimum setup for the current upgrade project and expand your suite with additional applications in the future, as the licensing structure of Microsoft Dynamics 365 allows for such flexibility.
Poor customization and integration management
Inadequate planning for Dynamics 365 upgrades can lead to issues related to customizations. While customizations may be necessary to meet unique company needs, it is often advisable to limit or avoid them altogether to minimize extensive testing and maintenance efforts. Upgrades can significantly impact existing customizations and integrations, making it crucial to identify potential compatibility issues with Microsoft Dynamics 365.
Moreover, it is worth assessing whether existing customizations and integrations are still necessary. The enhanced functionality and features of Microsoft Dynamics 365 might be able to replace some of the functionality your company previously achieved through customizations.
Ineffective data migration strategy
Data migration to Microsoft Dynamics 365 is just as critical for companies upgrading to the latest software as it is for those implementing this suite for the first time. Organizations should allocate time to validate the accuracy and integrity of the data they intend to use with their new system. Otherwise, companies may have to face data loss, system errors, and other associated issues causing operational disruptions and generating losses.
Neglecting testing
Regular testing is essential for any organization that utilizes a complex ERP and CRM software suite like Microsoft Dynamics 365. Even if your company is preparing for an upgrade rather than a new implementation, testing should not be overlooked. Otherwise, your software may cause serious disruptions to business operations.
The following types of testing are highly recommended for ensuring a successful Dynamics 365 upgrade:
- Performance testing;
- Unit testing;
- Integration testing;
- User acceptance testing (UAT);
- Regression testing;
- Security testing.
Since testing Microsoft Dynamics 365 can be a daunting and resource-intensive process, it is advisable to automate as many testing procedures as possible. Additionally, opting for no-code solutions can significantly reduce the time needed for writing test scripts.
User adoption
Transitioning to new software can be challenging for users accustomed to using other applications for the same tasks over an extended period. Some employees may struggle while working with Microsoft Dynamics 365, attempting to solve tasks as they did with the previous system, while others may be hesitant about learning to use new applications.
Comprehensive training is essential to boost user adoption. Providing users with hands-on workshops, tutorials, guides, and professional trainers can facilitate the transition process. Furthermore, consider involving tech-savvy employees in your Microsoft Dynamics 365 upgrade team to enhance their understanding of the new system, enabling them to assist others during the software adoption phase.
Additionally, fostering smooth communication and encouraging users to share their opinions about the new software can facilitate further improvements to the system.
Conclusion – successful Dynamics 365 upgrade
While a Microsoft Dynamics 365 upgrade may not seem as exhaustive as starting afresh with the software, it still requires thorough preparation, planning, efficient decision-making, and robust execution.
By addressing common pitfalls such as lack of proper planning, failure to adjust to licensing changes, poor customization and integration management, overlooking data migration strategy, neglecting testing, and challenges related to user adoption, organizations can significantly increase the likelihood of a successful upgrade.
