Microsoft Dynamics 365 is one of the best enterprise resource planning (ERP) software on the market. However, as with any software, there is always a risk that something could go wrong during its implementation or use.

These risks include data loss, system downtime, and even user errors. And, sometimes, these risks can lead to project failure causing a loss of time, money, and resources.

Fortunately, there are several things you can do to help reduce the risk of your Dynamics project failing.

Here is a list of 8 simple steps you can take:

1. Define The Scope and Objectives

As the first step, you need to define the scope and objectives of the project clearly from the outset. Also, ensure that everyone involved in the project knows what needs to be done and that they are working towards common goals.

To define the scope of the project, you should create a Project Charter. It should outline the high-level goals of the project, as well as any constraints or risks that need to be considered.

When you do this, be sure to involve all of the key stakeholders in the project so that they can provide input and sign off on the Project Charter.

2. Appoint a Project Manager

Appoint a dedicated project manager who will be responsible for overseeing the project and keeping it on track. They should have experience dealing with Microsoft Dynamics 365 project risks. You should consider the below while hiring a project manager:

• Make sure they have the necessary technical skills to understand the software and its implementation.
• Consider their soft skills such as communication, leadership, and problem-solving.
• Check how they deal with pressure and handle difficult situations.

With a project lead who has relevant experience, you reduce the risk of your project because you have a single point of contact responsible for ensuring its success.

3. Create a Detailed Plan

Create a detailed project plan that outlines all of the tasks that need to be completed, who is responsible for each task, and when it needs to be done.

To create a project plan, you can use Microsoft Project or a similar tool. If you’re not familiar with these tools, many online guides and tutorials can help you get started. A Microsoft Dynamics project plan must ideally consist of:

• All high-level project tasks
• A timeline for each task
• Dependencies between tasks
• Who is responsible for each task

4.  Use a Project Management Methodology

Use a project management methodology for reducing Microsoft Dynamics 365 project risks. With that, you can ensure that the project is completed in a structured and organized manner.

Many different project management methodologies can be used for Microsoft Dynamics implementations, such as waterfall, agile, or scrum.  It’s important to choose the right one for your project, as each has its advantages and disadvantages.

When to Use the Waterfall Methodology?

Waterfall is best suited for projects with well-defined requirements where there is little to no chance of these requirements changing during the project.

Advantages:

• Provides a clear and concise roadmap for the project from start to finish.
• Allows for easier progress tracking as the project progresses through each stage.
• Since all requirements are defined upfront, there is less risk of scope creep.

Disadvantages:

• Not well suited for projects with complex or rapidly changing requirements.
• Progress can only be tracked at the end of each stage, which can make it difficult to identify and fix problems early on.

When to Use Agile?

Agile is best suited for projects with complex or rapidly changing requirements. It is a more flexible approach that allows for changes to be made to the project as it progresses.

Advantages:

• Allows for changes to be made to the project as it progresses, which is ideal for projects with complex or rapidly changing requirements.
• Progress can be tracked at the end of each sprint, which makes it easier to identify and fix problems early on.
• Since requirements are only defined for each sprint, there is less risk of scope creep.

Disadvantages:

• Not well suited for projects with well-defined requirements where there is little to no chance of these requirements changing during the project.
• Can be more difficult to track overall project progress since each sprint is its mini-project.

5.  Set a Dedicated Test Environment

Set up a dedicated test environment before starting the project. This will allow you to test the Microsoft Dynamics implementation without affecting your live production environment.

It’s important to have a dedicated test environment because it:

• Allows you to test the implementation without affecting your live production environment.
• Provides a safe space for experimentation and trial and error.
• Enables you to catch and fix errors before they go live.

To create an ideal test environment for the project, you will need:

• A copy of the live production environment.
• A separate test database.
• A dedicated team of testers.

When you have a proper staging environment for the project, you can test the implemented features and functionality, and catch and fix errors before they go live. You can also ensure that the implementation will not adversely affect the live production environment.

6. Create Sustainable Business Processes

When you’re designing and implementing business processes, it’s important to keep sustainability in mind. This means creating processes that can be maintained long-term without requiring constant monitoring and intervention.

There are a few things you can do to make sure your business processes are sustainable:

• Make sure the processes are well documented.
• Ensure that they are reviewed and updated regularly.
• Make sure the people who are responsible for them understand and buy into the importance of sustainability.
• Test the processes regularly to make sure they are still working as intended.

7.  Limit software customization

To reduce the risk of your Microsoft Dynamics 365 implementation, limit the amount of software customization that is done. That is because customizations can create problems when upgrading to new versions of the software and make it more difficult to support the software. It can even lead to errors and instability.

Customizations should only be done when there is a clear business need for them. If customization is not necessary, it’s best to avoid it. But in case you need to make changes,  make sure to:

• Thoroughly test the customizations before putting them into production.
• Document the customizations so that they can be easily understood and maintained.

8. Focus on the ROI

When you’re implementing Microsoft Dynamics, it’s important to focus on the return on investment (ROI). This is the value that you will get from the implementation in comparison to the cost of the project.

Some ways to increase the ROI of your project include:

• Improving communication and collaboration with Microsoft Dynamics.
• Automating processes with Microsoft Dynamics.
• Integrating Microsoft Dynamics with other systems.
• Make sure that users are properly trained on how to use Microsoft Dynamics.
• Providing post-project performance measurement and projects.

With the above steps, you can increase the ROI of your project and reduce the risk of failure.

In conclusion, by following these 8 simple steps, you can reduce the risk of your Microsoft Dynamics 365 project and increase the chances of success.

If you are looking to execute Microsoft Dynamics 365 ERP at your organization with the least risk involved, reach out to Oblige IT—a Microsoft Dynamics 365 Partner for ERP. We will help you with a pre-project analysis, stakeholder management, processes, data mapping, and more to make sure your project is successful at minimum costs and risks.