Upgrading from AX 2012 to Dynamics 365 is a smart move for businesses, especially those operating in multiple locations, countries, and languages. Dynamics 365 Finance and Operations has advanced features and a strong system that makes managing everything easier. Moreover, upgrading from an on-premise system to a cloud-based one is a good idea when everything is going digital and moving to the cloud.
The upgrade from AX 2012 to Dynamics 365 requires careful planning and execution. It may seem challenging, but working with a trusted Microsoft Dynamics 365 Gold Partner can make the transition much smoother. But you must have a basic understanding of what this upgrade involves so you can make informed decisions along the way. So, let’s begin.
Why Upgrade from AX2012 to Dynamics 365?
Microsoft Dynamics AX 2012 has helped businesses for years by managing their finances, operations, and supply chains. No doubt on that. But as technology keeps improving, companies need a newer and more flexible system, like Dynamics 365, to keep up. Moreover, Microsoft has stopped its main support for Dynamics AX 2012. Without support, businesses may face security risks and may have trouble following important rules and regulations.
Microsoft Dynamics 365 is a cloud-based ERP platform offering better integration, automation, security, accessibility, and more than AX2012. Hence, your business remains secure and technologically advanced. Moving from Microsoft Dynamics AX to Microsoft Dynamics 365 helped reduce total ERP costs by 3.4%. So, shifting to Dynamics 365 will positively impact your profitability.
Benefits of AX 2012 Upgrade to Dynamics 365
The AX 2012 upgrade to Dynamics 365 has many benefits. Business operations become smoother and more efficient. It offers various advanced tools to help companies keep up with the latest technology. Some of the key benefits include;
1. Reduced IT and Maintenance Cost
Since Dynamics 365 runs on the cloud, you don’t have to spend money on expensive servers or maintenance. Microsoft handles all updates and security fixes, saving companies time and money.
2. Better Accessibility
One of the best things about Dynamics 365 is that it works on any device or operating system. You can log in from anywhere. It makes your work more flexible and convenient.
3. Advanced Security and Compliance
Dynamics 365 includes strong security features to protect business data. Access is role-based. This reduces security risks while ensuring companies follow industry regulations and keep sensitive information safe.
4. Centralized Platform with Smart Features
Dynamics 365 combines ERP and CRM tools in one platform. Hence, you don’t need extra software. It also includes AI-powered insights and automation to help your company work smarter and faster.
5. Easy to Use
If you are already using AX 2012, moving to Dynamics 365 will feel familiar. This means employees can adapt quickly without spending too much time on training.
6. Flexible and Customizable
You can customize Dynamics 365 to fit your needs. Whether it’s automating tasks or improving customer service, you can adjust the platform accordingly.
7. Built-in Analytics and Reporting Capabilities
Power BI gives you real-time reports and analytics on a simple dashboard. You can track progress, analyze data, and make better decisions quickly.
8. Integration with Microsoft Tools
Dynamics 365 connects easily with Microsoft tools. It works with Office 365 and Power BI to help with data and tasks. With this integration, you can streamline operations, improve teamwork, and make faster, more informed decisions without switching between multiple platforms.
9. Regular Updates
Dynamics 365 gets regular updates with new features and improvements, so you can always use the latest technology without dealing with big system changes or complicated upgrades.
Key Differences between AX 2012 and Dynamics 365
| Features | Dynamics AX 2012 | Dynamics 365 |
| Deployment | Installed on company servers, needing extra hardware and IT support | Cloud-based, so it runs online without needing extra servers |
| User Interface | Older design, mostly for desktops | Modern, easy-to-use design that works on any device |
| Integration | Harder to integrate with other Microsoft tools | Connects smoothly with Office 365, Power BI, and other Microsoft apps |
| Updates | Manual updates that take time and effort | Automatic updates from Microsoft |
| Customization | Requires a lot of coding to make changes | Allows quick changes with simple, low-code tools |
| Security | Security depends on company IT teams | Microsoft handles security with built-in protections |
| Scalability | Expensive and slow to upgrade | Easily scales up or down as needed without big costs |
| Accessibility | Works on office computers | It can be accessed from anywhere on any device |
| Reporting & Analytics | Basic reports with limited real-time data | Advanced AI-powered reports with real-time insights |
| Licensing Model | One-time purchase with high upfront costs | Subscription-based model |
| Performance | Runs on older technology, which can be slower | Faster and more efficient with the latest technology |
| Internet connectivity requirement | Low | High |
Upgrade Path for the Transition from AX2012 to Dynamics 365
Upgrading from AX 2012 to Dynamics 365 can seem like a big task, but breaking it down into steps makes it easier. These steps are;
Step 1: Planning and Assessment
Before you start, take a good look at your current AX 2012 system. Identify the customizations, integrations, and data that you need to move to Dynamics 365. Also, check if your current system meets the upgrade requirements.
Step 2: Prepare Your Data
Clean up your data before migrating. Remove any unnecessary or duplicate records. This will help your new system work well.
Step 3: Choose the Right Upgrade Path
Microsoft offers different upgrade paths:
- Classic Upgrade: Moves your system’s customizations and all data to the cloud.
- Re-implementation: This involves building a fresh system and moving only necessary data.
- Hybrid Approach: This option lets you keep your custom code and choose what data to move. It’s a popular choice because businesses can use migration tools to update only the important information.
Step 4: Test Your Upgrade
Before moving everything, do a test. This helps you check if your data and other crucial aspects, like customizations and integrations, work correctly in Dynamics 365. Fix any issues before going live.
Step 5: Train Your Team
Your employees need to learn how to use the new system. Provide training sessions to make sure they understand the new features and processes.
Step 6: Go-Live
Once testing is successful, migrate your final data and go live with Dynamics 365. Have a support team ready to handle any issues that may come up.
Step 7: Monitor and Optimize
After the upgrade, keep an eye on system performance and user feedback. Adjust workflows, fix issues, and make improvements to get the most out of Dynamics 365.
Challenges and Best Practices
Although upgrading from Dynamics AX 2012 to Dynamics 365 has many benefits, companies face several challenges during this upgrade. Let’s look at these challenges and the best ways to make the upgrade smooth and successful.
Challenges in AX2012 Upgrade to Dynamics 365
1. Training Requirements
AX 2012 is an on-premises system, while Dynamics 365 F&O is cloud-based. This shift requires you to learn about cloud technology and train IT teams to handle the new system.
2. Customization and Integration
You would have customized AX 2012 to fit your needs. These custom features may not work in Dynamics 365, which means you have to modify them or rebuild them from scratch.
3. Data Migration Issues
Moving data from AX 2012 to Dynamics 365 isn’t simple. You must clean up and organize your data and make sure it transfers correctly without losing important information.
4. Recreating Reports
Reports made in AX 2012 might not work in Dynamics 365. You have to redesign and recreate important reports in the new system.
Best Practices for a Successful AX2012 Upgrade to Dynamics 365
Plan the Upgrade Carefully
You should start by reviewing your AX 2012 setup. Decide which features, customizations, and data you want to keep and which you don’t.
Use Microsoft’s Lifecycle Services (LCS)
Microsoft provides tools in LCS to help manage the upgrade process, which track progress and detect problems.
Use the Upgrade Analyzer Tool
This tool checks the AX 2012 system for potential issues. By identifying these problems, you can understand what needs fixing before upgrading.
Estimate the Workload with Code Upgrade Service
The Code Upgrade Service converts old AX 2012 code. It makes it work in Dynamics 365 and highlights which parts of the system need extra work.
Try a Demo Version
Before fully upgrading, you should test Dynamics 365 in a demo environment to help your employees get used to the new system and identify any problems before going live.
Follow Microsoft’s Data Migration Process
Microsoft provides guidelines for moving data safely. Follow these steps to make sure data transfers correctly and remains usable.
Partner with Experts
Consider partnering with experienced professionals or consultants who specialize in Dynamics upgrades. Their expertise can provide valuable insights, reduce risks, and ensure that best practices are followed throughout the upgrade process.
How Can Dynamic Netsoft Technologies Help with Your AX 2012 Upgrade to Dynamics 365?
As a Microsoft Gold Partner, Dynamic Netsoft Technologies can simplify your AX 2012 to Dynamics 365 upgrade process with expert guidance and a structured approach.
- Our skilled team knows how tricky Dynamics 365 upgrades can be. We make sure the switch is easy.
- We analyze your business needs to implement the most effective upgrade strategy.
- We minimize downtime and disruptions to keep your business running.
- Our migration process ensures data accuracy and consistency.
- Our team is ready to address any concerns post-upgrade.
- Stay up-to-date with platform updates every 3 months and application updates every 6 months.
- Optimize your ERP system by integrating CRM, BI, and IoT into a single data model.
Contact Dynamic Netsoft Technologies today for a smooth and hassle-free upgrade from AX2012 to Dynamics 365.
FAQs for AX2012 to Dynamics 365 Upgrade:
Question 1: Should I move to the cloud or stay on-premise while upgrading from AX 2012 to Dynamics 365?
Answer: Moving to the cloud offers benefits like cross-platform UI, real-time BI, ease of access, and reduced IT maintenance. However, the choice depends on your organization’s specific needs and infrastructure.
Question 2: If I migrate to the cloud, can I move back to an on-premise deployment in the future?
Answer: Yes, Dynamics 365 lets you switch between cloud and on-premise setups based on your business needs.
Question 3: What happens to my existing reports and BI content during the upgrade from AX 2012 to Dynamics 365?
Answer: Reports and BI content may require redevelopment. Microsoft’s upgrade tools can migrate some reports and BI cubes from AX 2012 R3. Older versions may need more work.
Question 4: What happens to my existing customizations while upgrading from AX 2012 to Dynamics 365?
Answer: Customizations may need optimizing. Dynamics 365 uses extensions instead of over-layering, and Microsoft provides tools to simplify code migration.
Question 5: How long does the AX 2012 to Dynamics 365 upgrade process take?
Answer: The timeline varies based on factors like data volume, customizations, and business complexity, but a standard upgrade can take anywhere from a few months to a year.