Enterprise Resource Planning (ERP)

Enterprise resource planning (ERP) is business process management software that manages and integrates a company’s financials, supply chain, operations, reporting, manufacturing, and human resource activities. Fundamentally, ERP software enables you to run the core processes of a business.

Generally, ERP software consists of a set of integrated business functions that automate back-office processes including procurement, inventory management, and assembly. Organizations can gain a real-time view across their operations by using one central database.


An effective ERP system allows an organization to analyze transactional data, resulting in more streamlined processes and greater efficiency.

Microsoft Dynamics 365

Dynamics 365 is a set of intelligent business applications that work together seamlessly. It provides customer relationship management (CRM) opportunities for marketing, services, and sales through its customer engagement apps, and covers operations, finance, commerce, and human resources through its finance and operations apps. Dynamics 365 combines CRM and ERP capabilities by bringing them together in a powerful set of applications and moving them to the cloud. Although CRM and customer engagement apps are an important part of the Dynamics 365 suite of applications, this module focuses on ERP and finance and operations apps.

Dynamics 365 connects with Microsoft Power Platform and Microsoft Dataverse for insights, innovation, and connectivity between your data and your business processes. It consists of transactional applications, like Business Central, and finance and operations applications that help your organization automate processes and increase efficiency.

Finance and operations apps

Finance and operations apps help businesses manage their global financial systems, operational business processes, and streamlined supply chains to empower people to make fast, informed decisions. These include:

Dynamics 365 Finance

Helps you redefine your traditional global financial management to monitor performance in real time, predict future outcomes, and make data-driven decisions to drive business growth. You can automate processes to manage financial complexities, increase efficiency, and decrease operational expenses.

Dynamics 365 Supply Chain Management

Empowers employees and organizations with the ability to obtain a unified view of inventory, warehouse, manufacturing, service, and logistics with predictive analytics that turn data into insights to support better strategic decisions. It brings agility and efficiency to manufacturing by connecting and optimizing production planning, scheduling, operations, and cost management. It gives you real-time visibility into warehousing and transportation business processes to reduce costs, reduce delivery time, and increase accuracy.

Dynamics 365 Commerce

Delivers a comprehensive solution that unifies your back-office, in-store, call center, and digital experiences. Dynamics 365 Commerce enables you to build brand loyalty through personalized customer engagements, increase revenue with improved employee productivity, and optimize operations to reduce costs and drive supply chain efficiencies, delivering better business outcomes.

Dynamics 365 Human Resources

Provides the workforce insights you need to build data-driven employee experiences. Dynamics 365 Human Resources can improve organizational agility, optimize programs, discover workforce insights, and transform employee experiences. Your human resources team can centralize personnel data, automate processes, and enable self-service.

Dynamics 365 Project Operations

Can provide the visibility, collaboration, and agility needed to drive success across the project-centric business—from prospects to payments to profits. It connects sales, resourcing, project management, and finance teams in a single application to win more deals, accelerate project delivery, and maximize profitability.

Why use finance and operations apps?

You are starting to realize the limitations of your current ERP system and are considering an upgrade to something new and modern. It might be time to replace your existing ERP system and implement new software like Microsoft Dynamics 365 if you have:

  • Lack of capacity
  • Lack of insights
  • An existing system that is costly to operate
Lack of capacity

Problem: Your current system has not kept up with you as your company has grown and added more staff, clients, and business processes or entered new lines of business or markets.

Solution: An ERP solution allows your company to expand while the solution manages your company’s everyday business processes.

Lack of insights

Problem: Even though ERP software offers real-time visibility of your entire business, as well as insights into the industry landscape, your company still uses software that works independently from other systems. This can lead to different departments working in silos.

Solution: Dynamics 365 applications offer data analytics and business insights by connecting all the disparate systems together and provides a win-win solution by offering productivity, growth, and a competitive edge.

An existing system that is costly to operate

Problem: You pay a lot to operate your current ERP deployment. You may not know the pros and cons that come with each deployment option, whether it is on-premises, in the cloud, or a hosted ERP solution.

Solution: It may be time for an even closer look to decide if you should move to the cloud, keep things on-premises, or invest in a combination of both.

Discover what a modern ERP system can offer

Dynamics 365 scales with your business as you expand into other markets and helps keep client and company data secure. Additionally, it extends your everyday processes as you grow.

The resource planning tools that Dynamics 365 applications offer can help you:

  • Increase productivity.
  • Get control of financial management.
  • Help with human resources management.
  • Streamline project management needs.
  • Improve supply chain and operations management.
  • Make better decisions by using business intelligence and artificial intelligence (AI).

Credits: This blog post is created using materials published by Microsoft® for marketing and training purposes. 

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