How to optimize the diagnostic phase of your next Microsoft Dynamics 365 project

In everyday life, whenever a problem arises, the logical thought process is to diagnose the problem, figure out how to remedy the solution, and then act upon the solution. The same approach works when it comes to ERP transformation projects. According to Gartner, organizations experience failure rates on planned strategic initiatives of between 50% and 75%, an alarming rate given that majority of businesses and organizations are already investing to become fully digital. Why then is this number so high? It is simple: cost overruns, change requests, miscommunication, wrong expectations and assumptions, and talent shortages. To improve on this, it is vital for the customer and the partner to be able to correctly diagnose the problem even before a project starts.

If an organization has selected Dynamics 365 Finance and Operations as their ERP solution for the future, they can take some key steps early in their planning to greatly improve the likelihood that their partner relationship, project execution, and outcome meet or exceed expectations.

Proper Diagnostic Assessment

Whether Dynamics 365 F&O will serve as an upgrade from AX or a migration from a legacy system, the search begins for a reliable partner in the ecosystem. A successful implementation will involve a partner that not only understands best practices but that knows the industry, has substantial references, and offers clients existing process models.

When issuing RFPs for a Dynamics project, organizations often provide information that is too high level, resulting in partners making misguided assumptions. Likewise, partners run the risk early in an engagement of mis-understanding the required scope and providing an inaccurate estimate. Often customers and partners will engage in a diagnostic phase to get more clarity. The typical diagnostic phase takes place over four weeks, acting as a period of pre-sales and the first phase of a Dynamics implementation.