Eight Reasons to Upgrade from Dynamics AX to Dynamics 365 Finance and Operations
It's time for your organization to plan out an upgrade from Dynamics AX to Dynamics 365 Finance and Operations.
Businesses today operate in a fast-paced, digitally driven environment, where staying competitive often requires leveraging the latest technology. Microsoft Dynamics AX 2012, while a robust ERP solution during its time, is now outclassed by Dynamics 365 Finance and Operations, a cloud-based, modern, and future-proof ERP platform.
Why Upgrade from Dynamics AX to Dynamics 365 Finance and Operations?
For companies still using AX 2012, particularly versions R2 and R3, upgrading to Dynamics 365 Finance and Operations is not just a matter of improving system efficiency but a strategic move to enhance business capabilities and process automation. It will not only automate the handling of system maintenance, compliance, and security, it will also open your team up to innovative ways to work smarter. This will save you time and money in the long run.
Here are eight reasons businesses should upgrade from Dynamics AX 2012 to Dynamics 365 Finance and Operations:
1. Microsoft No Longer Supporting Dynamics AX
Extended support for Dynamics AX 2012 R3 (the latest version) ended in January 2023. This impacts Dynamics AX users in several ways:
- Microsoft will no longer introduce new features or enhancements for Dynamics AX
- There will be no more security updates, potentially making organizations vulnerable to data breaches, compliance risks, and other threats
- Companies with AX will no longer have complimentary support services from Microsoft
- AX may have performance issues or challenges related to running integrations with software solutions that are designed for newer applications
As time goes on, running AX will be harder as technology evolves. It would help if you started talking with your team about upgrading to the cloud and can contact Stoneridge Software to help you build a roadmap.
Note: Despite the end of extended support, Stoneridge will continue to support your Dynamics AX environment for as long as you want to run it. While we recommend thoroughly exploring cloud options, you can still come to Stoneridge for support for your on-premises solutions.
2. Future-proofing with Cloud Capabilities
One of the most significant reasons to upgrade to Dynamics 365 Finance and Operations is its cloud-based architecture. Unlike AX 2012, which is an on-premises system, Dynamics 365 is hosted in the cloud, enabling businesses to take advantage of modern cloud capabilities such as:
- Scalability: As your business grows, the cloud environment can easily scale to accommodate more users, data, and processes without additional physical hardware or server space.
- Automatic Updates: Dynamics 365 receives continuous updates, ensuring that businesses always have access to the latest features, security patches, and innovations without the downtime associated with traditional upgrades.
- Global Accessibility: Cloud-based systems enable your team to access critical business data and processes from anywhere, improving remote work capabilities and business continuity.
For businesses still relying on AX 2012’s on-premises infrastructure, moving to Dynamics 365 Finance and Operations offers significant long-term benefits in terms of cost-efficiency, flexibility, and technological advancement.
3. Improved Functionality and Advanced Features
Dynamics 365 Finance and Operations is designed with several key new features that improve functionality across multiple business areas.
Some of the most notable enhancements include:
- Unified Interface: Dynamics 365 offers a modern, user-friendly interface consistent across all applications. This ensures that users can easily navigate between finance, supply chain, and operations modules, reducing the learning curve and increasing efficiency.
- AI and Machine Learning Integration: Built-in AI and machine learning capabilities allow for predictive analytics, helping businesses make data-driven decisions. For instance, AI-powered insights can help identify supply chain inefficiencies or predict cash flow trends based on historical data.
- Enhanced Financial Reporting: The advanced financial management capabilities in Dynamics 365 include multi-currency, multi-company, and multi-language support, which is crucial for businesses operating in global markets. Moreover, the system integrates seamlessly with Power BI for real-time data analysis and custom reporting.
- Robust Security and Compliance: With security breaches on the rise, Dynamics 365 offers advanced security features, such as data encryption, role-based access, and built-in compliance with global regulations (e.g., GDPR).
These functionalities streamline day-to-day operations and provide you with strategic tools to drive growth and innovation.
4. Seamless Upgrade Path with Data and Code Migration
Thanks to Microsoft's dedicated tools and methodologies, upgrading from AX 2012 to Dynamics 365 Finance and Operations is a streamlined process. Unlike migrating to a completely new system, the upgrade path from AX 2012 allows businesses to bring forward their existing data, customizations, and code. Here’s how:
- Data Migration: The upgrade process supports full data migration, allowing businesses to carry forward their entire transactional history. This is critical for maintaining business continuity and complying with audit requirements. Data cleanup tools help reduce the size of the database, minimizing migration time and subscription costs.
- Code Upgrade Tools: Microsoft provides tools to help upgrade existing AX 2012 custom code. The code upgrade estimation tool converts AX 2012 code to the new format and identifies conflicts developers must resolve. This framework helps businesses estimate the cost and effort required to complete the code upgrade.
- AIM (Accelerate, Innovate, Move) Program: For qualified businesses, Microsoft offers the AIM program, which provides access to migration advisors, expert assessments, tools, and even investment offers to facilitate a smooth transition to the cloud.
While the upgrade process may require effort in data cleanup, tuning, and customization, Microsoft’s comprehensive support ensures businesses can make the transition without losing valuable data or custom functionalities.
5. Access Copilot Capabilities in Finance and Operations
The transformative AI capabilities of Copilot in ERP are only available for cloud-based Microsoft solutions. Copilot enhances finance and operations apps by integrating AI capabilities to assist users with various tasks and streamline workflows. It offers three primary types of experiences:
- Sidecar, which provides conversational support and helps users navigate application functionality
- Embedded, where AI capabilities are integrated directly into the app, offering real-time insights and assistance
- Outside, where external agents enable cross-app orchestration and allow users to query finance and operations data
These features offer a seamless, intelligent experience for tasks like reviewing purchase orders, managing workflows, and providing insights into demand planning and customer interactions.
- For all finance and operations apps:
- Chat with finance and operations data on Microsoft 365 Copilot
- Generative help and guidance with Copilot
- Workflow history summary
- For Dynamics 365 Commerce:
- Customer Insights by Copilot
- Store report insights by Copilot
- Enable Copilot statement posting summaries
- Streamline your merchandising process with Copilot-based insights
- Use Copilot in site builder to enrich product detail pages
- For Dynamics 365 Finance:
- Collections coordinator summary
- Customer page summary
- For Dynamics 365 Project Operations:
- Copilot for project overview
- Use Copilot in time entry
- For Dynamics 365 Supply Chain Management:
- AI summaries with Copilot
- Analyze demand plans with Copilot (preview)
- Inquire into inventory with Copilot (preview)
- Review and accept changes to confirmed purchase orders
- Workload insights with Copilot in the Warehouse Management mobile app
6. Enhanced Data and Document Management
In AX 2012, document attachments are stored in various locations, including file shares and local SharePoint servers. Dynamics 365 Finance and Operations stores attachments in secure Azure Blob Storage or linked to SharePoint Online, offering a unified, scalable, and secure solution for managing documents.
During the upgrade process, document attachments are migrated from AX 2012’s diverse storage locations into the database and then moved to Azure Blob Storage in Dynamics 365. This consolidation ensures better data organization and enhances security and accessibility, especially in a cloud environment.
7. Improved Performance and Efficiency
Businesses upgrading to Dynamics 365 Finance and Operations will notice a substantial performance boost over AX 2012. Key areas of improvement include:
- Database Optimization: Dynamics 365 optimizes SQL performance and offers built-in database compression features. By compressing tables and cleaning up obsolete data before the upgrade, businesses can reduce the size of the database, resulting in faster processing times and quicker upgrades.
- Sandbox Testing Environments: Before going live, businesses can perform thorough testing in sandbox environments. These environments allow functional teams to test business processes using real data from the upgraded AX 2012 database, ensuring that all processes work as expected before the final cutover.
- Reduced Downtime: The streamlined upgrade process, combined with automated tools and data compression, reduces the time needed for cutover and minimizes downtime, ensuring business continuity.
8. Compliance with Modern Standards
Upgrading to Dynamics 365 Finance and Operations ensures compliance with modern IT and business standards. Microsoft regularly updates the platform to meet evolving regulatory requirements, such as data protection laws (e.g., GDPR) and financial reporting standards (e.g., IFRS).
For businesses operating in highly regulated industries, the ability to stay compliant with minimal manual intervention is a significant advantage. Dynamics 365 automates compliance-related tasks, reducing the risk of human error and ensuring that the business remains audit-ready at all times.
Ready to Transition to the Cloud?
Get in touch with the Stoneridge Software experts!
We can help you assess your current environment and determine a plan to help you and your team upgrade to Dynamics 365 Finance and Operations.
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