March 18, 2021

    Forrester’s Clear Case for Microsoft Dynamics 365 and the Cloud: 60% ROI

    Leading technology research firm Forrester recently interviewed seven Microsoft Dynamics 365 customers that implemented the cloud-based ERP to replace aging, siloed ERP systems that offered bad user experiences.

    As in most cases, the decision to invest in a new ERP was not a choice: Their legacy systems were failing to meet capability and performance needs as their businesses grew. They all chose cloud ERP – Microsoft Dynamics 365 – so that they could accelerate the implementation and roll it out in modules to avoid potential disruption. They also wanted to reduce the cost and pain of administering their own systems.

    Forrester found that all seven organizations benefited in the areas of enhanced data, business insights, operational efficiency and productivity improvements, among others.

    Forrester went beyond qualitative benefits however, calculating a three-year risk-adjusted present value based on a composite organization based on the ROI experienced by the seven companies. The bottom line: a 60% return on their investment in Microsoft Dynamics 365.

    Here’s where they gained:

    Operations efficiency savings: $39 million

    Real-time data analysis, automation and streamlined processes enhanced forecasts, improved quality, reduced waste and prevented delays — reducing cost of goods sold by 10% and improving gross margin by 2.4 percentage points.

    Employee productivity savings: $20.6 million

    Automation, better user experience, reduced rework and enhanced forecasting increased productivity companywide. The composite organization reduced shop floor staffing by 6%, increased finance productivity by 20% and increased sales representative productivity by 4%.

    Increased wholesale profit: $3.3 million

    Better quality, reduced delays, improved ordering and invoicing combined with increased sales productivity avoided lost revenue, increased customer retention and drove additional sales to increase wholesale revenue by 3%.

    Increased retail profit: $1.3 million

    Improved tracking and sales forecasting enabled organizations to optimize inventory in stores, preventing lost sales from out-of-stock products and reducing inventory.

    Legacy cost avoidance: $10.6 million

    Organizations avoided legacy license, maintenance, hardware and systems administration costs by adopting Microsoft Dynamics 365 for Finance and Operations.

    Other tangible benefits included:

    • Cloud simplicity with enhanced system performance
    • Improved user experience with a better user interface and greater flexibility to access systems anytime, anywhere
    • Agility to quickly deploy and integrate new lines of business, reducing labor costs and accelerating time to market
    • Enhanced security, governance and fraud prevention
    • Ability to build applications that leverage core ERP data without risk of breaking ERP functionality

    Read the full report from Forrester to get more details on how these seven organizations saw real ROI from Microsoft Dynamics 365: The Total Economic Impact of Microsoft Dynamics 365 for Finance and Operations

    Enavate Recent Posts

    September 3, 2025

    How AI Can Empower SMBs to Do More with Less

    According to the U.S. Chamber of Commerce, there are 85 workers for every 100 open jobs nationwide, and hiring managers are feeling the strain. According to a survey by... Read More
    September 3, 2025

    The Future of Aircraft Process Automation with Robotics and AI

    Aviation business owners have been hunting for better ways to maintain, upgrade, and optimize their aircraft for as long as aviation has been an industry. For decades, slow,... Read More
    August 21, 2025

    Planning for the Impact of Tariffs and Uncertainty in Distribution

    How do you plan for your company’s future when the only thing that feels certain is uncertainty? That’s what distributors face in today’s volatile tariff environment.... Read More

    Subscribe to Receive Email Updates