Microsoft commissioned The Forrester Consulting to make a Total Economic Impact report to examine the Return on Investment (ROI) seven companies experienced by implementing and using Microsoft Dynamics 365 Finance and Operations (now Supply Chain Management) for several years and shed light on the key benefits, insights, and efficiency of the ERP (Enterprise Resource Planning). In the Forrester report, they used the information provided by the seven interviewed companies and created a fictional composite company that averaged the results.
This blog will summarize the key benefits applied to the composite company in the Forrester report.
The following companies started to use Dynamics 365 for Finance and Supply Chain Management after utilizing a legacy system that could not meet their current nor future needs. They admit that their revenue improved after using the ERP. These are the results gathered in the Forrester report:
with less than 500 employees and $500 million to $1 billion in annual revenue.
with between 1,000 and 5,000 employees and $100 to $300 million in annual revenue.
employs up to 5,000 employees seasonally and generates $100 to $500 million in annual revenue.
with 1,000 to 5,000 employees, 100 retail stores, and $100 to $500 million in annual revenue.
employs under 500 employees and earns $100 to $500 million in annual revenue.
with fewer than 500 employees and $50 to $100 million in annual revenue.
with revenue doubling annually to a present state of $50 to $100 million.” (Forrester Consulting).
To provide a total financial analysis for the Forrester report, they created a composite company with the following characteristics:
These are some of the quantified benefits the fictional composite company acquired (through studies and calculations) after using Microsoft Dynamics 365 Finance and Supply Chain Management.
Savings on operations efficiency
Savings on employee productivity
On increased wholesale profit
On increased retail profit
On unnecessary cost avoidance
These are the unquantified benefits the fictional composite company gained (through a series of studies for the Forrester report) after they implemented Microsoft Dynamics 365 Finance and Supply Chain Management.