In today’s dynamic business landscape, companies are required to make swift decisions and adopt agile methodologies to adapt their operations while maintaining stability and continuity. Outdated and rigid systems often hinder their ability to respond promptly, seize opportunities, and minimize disruption.
According to the recent Microsoft Dynamics 365 Future of Enterprise Resource Planning (ERP) Survey, 93% of business leaders recognize the advantages of flexible and integrated ERP systems. However, only 39% express confidence in their current ERP system’s flexibility and integration capabilities to effectively support business model transformation. This insight is particularly critical for organizations relying on legacy on-premises solutions that may struggle to meet evolving business requirements.
Organizations utilizing on-premises ERP and business management systems encounter various challenges, including:
- Slow responsiveness and delayed decision-making due to disconnected data and lack of real-time information.
- Increased vulnerability to security threats and difficulties in meeting compliance due to limited advanced capabilities and resources.
- Challenges in competing with industry peers that leverage new AI-powered technologies dependent on cloud solutions.
Let’s explore how the transition to cloud solutions empowers organizations to address these challenges and excel in today’s demanding business landscape. Additionally, we will delve into Microsoft’s Accelerate, Innovate, Move (AIM) program, designed to facilitate a seamless transition to the cloud.
Embrace Cloud Innovation to Meet Evolving Business Demands
In today’s rapidly changing economy, the importance of business agility cannot be overstated. With economic uncertainty and swiftly shifting consumer preferences, 77% of business leaders recognize these conditions as the primary drivers necessitating agile business operations. Prioritizing agility enables organizations to effectively respond to evolving market conditions and gain a competitive edge. One example of a company that capitalized on the opportunity to address new business challenges by transitioning from on-premises to the cloud is Ullman Dynamics. Ullman Dynamics is a leading provider of highly advanced suspension boat seats, serving clients in over 70 countries, including the United States Navy. While prioritizing customer satisfaction, Ullman faced obstacles due to outdated technology hindering its ability to meet customer demands in key markets. With a recent surge in growth, experiencing up to a 50% annual increase, Ullman found itself needing warehouse expansions every two years. Additionally, its products had to evolve to meet customer demands, leading to increased complexity that strained its legacy business solution.
“Our traditional on-premises ERP solution couldn’t cope with the complexities of our modern business. We needed to consolidate our data into a more robust system capable of providing a comprehensive overview of our operations.” – Carl Magnus, Chief Executive Officer, Ullman Dynamics. When selecting a new business solution, Ullman had stringent requirements. It sought a solution capable of scaling and supporting its expanding global enterprise while also demanding exceptional flexibility. By implementing the cloud-based Microsoft Dynamics 365 Business Central, Ullman achieved flexibility, efficiency, and access to valuable insights necessary to enhance service quality for its expanding client base. “We are number one in the world everywhere except the United States. With Dynamics 365 Business Central removing growth barriers, we are now fully integrated into the US market, and Ullman Dynamics USA is poised for great success.” – Carl Magnus, Chief Executive Officer, Ullman Dynamics.
Improve security when moving to the cloud
Organizations moving to the cloud benefit significantly from the rapid advancement of security and compliance capabilities. Cloud adoption helps safeguard business continuity, streamline IT operations, and navigate complex compliance requirements as businesses expand. Microsoft’s substantial investment in security measures equips organizations with higher levels of security than they could achieve on-premises. This is especially valuable for small to medium-sized businesses lacking the resources to keep up with evolving security threats.
Recent Microsoft research indicates that 70% of organizations with fewer than 500 employees are vulnerable to human-operated ransomware attacks, which are increasingly sophisticated and difficult to detect. These attacks often target unmanaged devices lacking proper security controls, with 80 to 90% of successful ransomware compromises originating from such devices. This poses a significant security risk for on-premises organizations lacking advanced cloud security features. Microsoft customers benefit from insights gathered from 135 million managed devices, along with advanced threat detection leveraging 65 trillion signals synthesized daily using AI and data analytics. Migrating to the cloud allows organizations to innovate rapidly and simplify the implementation of crucial security practices, threat detection, and device management, thereby enhancing their protection.
In addition to bolstering cybersecurity, cloud technologies simplify compliance with regulatory standards, a critical aspect for organizations. Managing complex certifications independently is challenging, with 65% of firms struggling with General Data Protection Regulation (GDPR) compliance. Microsoft aids customers in evaluating data protection controls and provides solutions for compliance, including GDPR, California Consumer Privacy Act (CCPA), International Organization for Standardization 27701 (ISO 27701), International Organization for Standardization 27001 (ISO 27001), Health Insurance Portability and Accountability Act (HIPAA), Federal Financial Institutions Examination Council (FFIEC), and more, facilitating swift and scalable compliance. With Dynamics 365, organizations can confidently enhance the security of their business systems during cloud migration. Access to advanced technology for scaling and managing security, coupled with a network of thousands of specialized security experts, ensures a smooth migration process.
Unleash Cloud-Powered AI and Productivity
Transitioning from on-premises to the cloud presents a compelling opportunity for business leaders to enhance daily work and productivity through collaborative applications and AI. A significant majority of business leaders, 73%, underscore the importance of productivity enhancements, while 80% recognize the transformative potential of AI. The cloud facilitates the establishment of hybrid work models, automation, and the utilization of artificial intelligence, leading to a notable improvement in overall productivity.
The recent introduction of Microsoft Copilot introduces transformative AI technology that revolutionizes workplace efficiency by automating routine tasks and fostering creativity. With a substantial portion of individuals facing challenges in managing their time and energy, Copilot alleviates this burden, allowing employees to focus on their most meaningful work.
Combining Copilot and AI with other cloud capabilities, particularly collaborative applications, fundamentally changes the way work is conducted. By seamlessly integrating Microsoft 365 (including Teams, Outlook, and Excel) with Dynamics 365, organizations can rapidly enhance productivity through cloud adoption. This integration streamlines workflows, minimizes context switching, and facilitates more efficient actions by connecting employees, data, and applications.
Research from Harvard Business Review reveals that the cost of switching between applications is significant, with the average user spending nearly four hours per week reorienting themselves after switching to a new application. This translates to five working weeks annually, amounting to 9% of total work time. Leveraging the cloud to connect employees to data and collaborative tools presents an opportunity to save valuable time and enable organizations to achieve more.
Transitioning to the Cloud with AIM
“At Microsoft, we are committed to empowering organizations to adopt cloud technologies seamlessly. To facilitate this transition, we have introduced AIM – Accelerate, Innovate, Move.
AIM is a comprehensive program tailored to assist organizations in migrating critical processes to the cloud smoothly. This initiative focuses on optimizing systems to enhance business agility, security, and integration with AI technology. AIM provides qualified customers with access to a dedicated team of migration advisors, expert assessments, investment incentives, valuable tools, and robust migration support.
Through AIM, customers can access a variety of licensing and deployment offers aimed at reducing costs and maximizing their investments. On-premises customers can benefit from discounted pricing when transitioning to the cloud, enabling them to optimize investments as their businesses grow.
Transitioning from on-premises to the cloud with AIM typically yields a positive ROI. Extensive studies indicate strong customer ROI over a three-year period for Dynamics 365 ERP solutions:
- Dynamics 365 Business Central boasts an impressive 172% ROI.
- Dynamics 365 Supply Chain Management delivers a solid 90% ROI.
- Dynamics 365 Finance demonstrates a notable 122% ROI.
With Microsoft Dynamics 365, organizations can confidently embrace cloud migration, equipping themselves with essential capabilities to thrive in a rapidly changing economy.”
Conclusion
Transitioning to the cloud with Microsoft Dynamics 365 offers numerous benefits for organizations. It enables enhanced productivity, security, and innovation through the use of collaborative applications, AI technology, and advanced cloud capabilities. Microsoft’s AIM program provides comprehensive support for a smooth transition, offering expert guidance, investment incentives, and robust migration support. With the potential for significant returns on investment and the ability to thrive in today’s rapidly changing economy, embracing cloud migration with Microsoft Dynamics 365 is a strategic move for organizations looking to unlock their full potential. To know more, explore our innovative digital solutions or contact us directly.
