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Microsoft Dynamics 365:

bringing transformative technology to retailers

A move away from traditional CRM and ERP solutions towards a complete cloud-based service

Dynamics 365 represents a major shift from conventional CRM or ERP solutions transforming the way you licence and deploy software. With Dynamics 365, you can now deploy a complete solution to run your entire retail operation or deploy specific business functions with the option to expand into others later. Due to its modular structure you can start with the components most critical to your business and proceed at a pace that’s right for you. At the same time, Dynamics 365 gives you familiar productivity tools that provide built-in insights and business intelligence. This whitepaper takes a look at the development of Dynamics 365 and the impact it is likely to have on retail organisations of all sizes.

The evolution of Dynamics 365

For anyone already using Dynamics CRM online or Dynamics AX online, moving to Dynamics 365 is a straightforward transition.

What is Microsoft Dynamics 365?The software applications of Dynamics 365 help retailers manage fundamental business areas from sales and marketing through to customer management by seamlessly integrating these functions in a unified cloud platform and analysing the data generated.

In this way, each role within your retail organisation can access the data they need for actionable intelligence to enable greater productivity and profitability.

By bringing together CRM and ERP into one comprehensive service, you can choose the purpose-built apps that your retail organisation requires for business functions like finance, sales, customer service, and supply chain operations.

The apps are designed to be easily and independently deployed, so you can begin with the business area you need and scale as your organisation demands. You gain a modern and familiar experience with built-in insights, intelligence and workflow. The common data model and application platform ensure interoperability and consistency.

Associated technologies of Dynamics 365

Dynamics 365 is the next generation of business apps in the cloud powered by Microsoft Azure. The Azure cloud platform offers a common application and data model from which you can access business intelligence and Cortana software within your business apps.

These apps connect users and customers directly to your business through their device. This connectivity allows retailers to make business decisions based on the data

Dynamics 365 unifies CRM and ERP capabilities in a single, comprehensive cloud platform. Microsoft already offers solutions in these categories, but by bringing CRM and ERP together, it has made it easier for retailers to connect their business with their customers.

harnessed from customer engagements through their phones, tablets, or desktop devices.

A more comprehensive picture emerges when this data is integrated with other areas in your retail environment including financial planning and sales. The structured workflow of Dynamics 365 is also connected to Office 365 to give your employees the full spectrum of tools they need to increase collaboration and productivity.

What is holding retailers back?Does your legacy system do what you want it to do? Does it give you overall visibility of all the data you need or are you still running disparate programmes?

It may be that your old system is about to become EoL and you will soon need to make the move to something new. Or you could be growing at a fast rate, but your IT infrastructure is not keeping pace.

Does your system allow you to offer click and collect, pick and collect and all of the other services the consumer now takes for granted? You may want to process orders for next day delivery via multiple channels, but you can’t until you overhaul your systems.

If your retail organisation is being held back by any of these problems, then you are missing out on sales opportunities on a daily basis. One of the first issues to address is to ensure all your systems are connected and operating in harmony with each other – not against each other.

Dynamics 365 already connects multiple apps to enable you to process orders more efficiently, gain visibility of stock, and improve engagement.

To optimise your supply chain, a single version of the truth is essential, and that’s what Dynamics 365 gives you.

What are the benefits of Dynamics 365 for retailers?Dynamics 365 enables greater productivity throughout your organisation by connecting the structured workflow of business applications and processes with the unstructured work of collaboration and productivity.

Users gain tools linked to their roles and business processes that enable them to change, adapt and reimagine their working style. With enterprise-ready intelligent business apps from the cloud, Dynamics 365 helps retail organisations:

• Track leads generated through different mediums• Provide a connected and consistent omni-channel

experience• Drive up sales by improving customer experience• Improve operations by seamlessly connecting staff

with customers• Personalise instore and online interactions

What frustrates shoppers most?These type of benefits are vital as consumers become more demanding. Today’s retailers are under increasing pressure to offer more services both in-store and out.

Capgemini**, provider of consulting, technology and outsourcing services, asked consumers worldwide what frustrated them most with retail stores.

Gartner predicts the use of connected things in the enterprise will drive $868B in spending in 2016.*

Frustrations with Physical Retail Stores According to Internet Users Worldwide*, Nov 2016 % of respondents

71%

66%

65%

65%

64%

Difficult to compare products

Long lines at checkout counters

Discount/promotions are not personalized

Not able to locate products

Lack of in-store associate guidance/demos

Their survey revealed the following complaints:

• 71% difficulty of comparing products in-store• 66% long lines faced at checkout counters• 65% physical retail stores don’t personalise

discounts or promotions• 65% could not locate products• 64% lack of in-store help from associates

Tackling new retail challengesIn a bid to simply customer engagement, TFI Friday equipped their waiters and waitresses with Windows-based tablets, allowing them to quickly and accurately process orders and payments while at the table.

The mobility solution has permitted Fridays to design a system that improves speed, increases time spent with guests, and enhances the overall experience.

New technology approaches like this offer an easy and interactive experience. And it is this interaction that is key to keeping your customers engaged and loyal.

The value of the retail opportunity The following statistics from Retail Economics: UK Retail Stats and Facts*** make for interesting reading:

• £358 billion Total value of UK retail sales in 2016• 1/3 Proportion of consumer spending that goes through

retail• 290,315 Total number of retail outlets in the UK• 5% Amount retail generates of total GDP (GVA)• 10% Average annual growth of online retail sales• 12% Proportion of retail sales made online

That’s a huge market that is evolving by the day. Fortunately, ERP technologies have also evolved to keep pace with the ever-demanding consumer.

So what do shoppers want?According to the Capgemini survey:

• 75% want the ability to check product availability before they visit a store

• 73% want same-day delivery of products from the store• 66% want stores to offer loyalty points for spending time

in-store and visiting that retail store again• 68% want physical stores to offer lower prices with a

store membership• 57% of consumers want retail stores to evolve to social

spaces or provide learning or inspiration What is front of mind for most retailers is to not only provide these services, but to offer them with a personal touch.

Personalise the shopping experienceWhen it comes to personalisation, the successful retailer makes every interaction - whether online, in-store or over the phone – a personal one.

• 70% of shoppers around the world said they are more likely to embrace new in-store technologies such as GPS and WiFi tracking if they receive customised benefits in return such as personalised money-off vouchers+

• 75% of consumers like it when brands personalise messaging and offers+

• 62% of respondents claim they buy more and/or more often when they receive a personalised retail experience+++

Personalisation is a key factor in the future of retail, and the latest technologies are enabling companies to meet this challenge and engage directly with their customers.

Cloud-based ERP solutions such as Microsoft Dynamics 365 give you the scalability and accessibility your retail organisation needs to capture data from across customer touchpoints and use it for wide scale personalisation.

Ensure the success of your ERP projectAlthough it’s clear that ERP is the answer to many of the questions posed by retailers, it’s not always plain sailing when it comes to deploying the right EPR solution. In a bid to find out why, independent researcher Vanson Bourne spoke to financial and IT decision makers about the challenges of implementing ERP. It became apparent that many decision-makers didn’t understand the market well enough to choose the right partner.

Their findings were as follows:

• 48% of businesses find the range of solutions confusing• 50% said lack of industry standards makes it hard to

compare solutions• 50% said the level of flexibility the solution has is often

unclear• 39% felt there was a lack of clarity about the costs• 35% felt there was a lack of clarity about the scheduling• 33% of businesses were unsure about the level of

honest and transparent advice being offered

According to Gartner, around 75% of all ERP projects fail.

Find the right ERP partnerFirstly, most retailers don’t have the in-house capabilities to evaluate the range of ERP solutions available. Therefore, it’s vital to look for a provider who has experience of implementing ERP solutions developed for the retail industry. Because they’ve already designed retail ERP systems, the provider already has the skills and knowledge to adapt the solution to meet your individual needs.

Retailers should look for ERP providers who follow best practices and offer solutions guaranteed to improve operational performance.

Plan for Dynamics 365 successPlanning is central to the success of any project. A common problem for retailers is underestimating the time required to deploy a new ERP solution.

The trick is to avoid putting pressure on your own workforce and to outsource the problem to a provider. Let them take on the task of planning and designing. That way, your business stays on track without disruption to your staff and current systems.

The crucial thing with any ERP deployment is to avoid extending schedules and budgets. Choose a provider with a proven methodology and track record of ERP implementations in your industry. They will take the time to analyse the requirements of your retail business and scope out an ERP solution that works for you.

What they will do, is to take the time to understand your current business processes and then devise a strategy as to how these can evolve with the use of ERP.

You want to guarantee project certainty. And that means using tried and tested technology. This is where it is worth mentioning that Dynamics 365 is not new technology, but has evolved from proven Microsoft solutions.

Why Dynamics 365 for retail?Cloud computing provides a platform to support future growth because it allows retailers to proactively adapt to evolving market, business and service needs. And with a cloud-based ERP solution, you gain the flexibility, scalability, and cost-effectiveness of an online platform.

All Dynamics 365 apps, plus the larger portfolio of cloud solutions like Office 365, share a common data model, so it will be straightforward to adopt additional capabilities. By starting with the apps that fit the roles in your businesses, you can purchase just what you need and then grow at your own pace.

Users of Dynamics 365 can take advantage of new opportunities and revenue streams. They also have the capabilities to focus on specific customers based on insights and predictive intelligence received. Dynamics 365 provides meaningful customer behaviour analysis that can help retailers to offer a personalised customer experience across all channels. Its engagement capabilities include retail store operations, channel management, order management, marketing and customer care, and business intelligence – giving the modern retailer a comprehensive software solution that reduces complexity.

For retailers, this means the ability to deliver a complete shopping experience that is focussed, differentiated and personal to each customer.

Respondents reported spending an average of four months researching potential technology partners and conducting detailed assessments – yet only 26% were then confident that they had made the correct decision.

61.1% of ERP implementations take longer than expected. (Panorama ERP study)

40%of consumers buy more from retailers who personalise the shopping experience across channels.****

67%reported that they need a solution with more industry-specific functionality than their current ERP system gives them. (Mint Jutras)

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About HSO

HSO is a Microsoft Gold Partner with over 25 years of experience in implementing Dynamics solutions. We’ve been named a member of the Inner Circle for Microsoft Dynamics partners for nine consecutive years.

Specialising in implementing, integrating, optimising and maintaining ERP and CRM solutions based on Microsoft Dynamics AX, Microsoft Dynamics CRM and Office 365, we’re ahead of the game when it comes to the introduction of Microsoft Dynamics 365.

Learn more at www.hso.com

Sources:*Gartner**Capgemini***Retail Economics: UK Retail Stats and Facts****mybuys.com+DigitasLBi’s Connected Commerce survey++Aberdeen Group+++Connected Commerce survey

About Microsoft Dynamics

Microsoft Dynamics makes it easy to operate across multiple locations and countries by standardising processes, providing visibility across the organisation, and helping to simplify compliance.