CPQ for Dynamics 365 is simply CPQ software that integrates with the Dynamics software. This article will explore what Dynamics 365 is, and why users are urged to consider combining the application with their CPQ. The aim of this combination is to solidify the functioning of CPQ for Dynamics 365.
What is Microsoft Dynamic 365?
Microsoft Dynamics 365 is a cloud-based platform based upon Microsoft Azure, which is a cloud computing technology service. It consists of a common data model, which permits integration with Microsoft applications as well as applications that use a standard API.
Dynamics combines the key elements of CRM and ERP software. This combination is supplemented by AI tools and productivity applications.
The software also provides power BI reporting functions, contextual data and insights, and analytical dashboards. Beyond this is the ability to incorporate new applications and functions into the software whilst your business grow. Such a function enables the scaling of the business whilst eliminating the potential to become overwhelmed by a multitude of tools when the software is first adopted.
Functions of Dynamics 365
Dynamics 365 is comprised of multiple applications:
- Sales- The sales application is intended to generate leads, shorten the length of the sales cycle, track relations with customers, and provide insights into their purchase tendencies.
- Customer service- This application is extremely straightforward in the personalized services it offers, providing a human element to the software’s functioning.
- Operations- The operations tool offers supply chain management, financial and operational planning, financial and operational reporting, and manufacturing.
- Guided action suggestions- Guided actions simplify adding and auto-populating flows in component user interfaces.
- Marketing- This application unites marketing and sales services, consequently increasing the efficiency and effectiveness of both departments.
The two editions of Microsoft 365:
- Enterprise – The Enterprise edition merely consists of sales, finance, and marketing tools.
- Business: This edition centers on retail, talent, finance, and operations. Unlike the Enterprise edition, the Business edition offers a Field Service tool which consists of contract and inventory management. Finally is the Project Service automation, which provides budgeting, resource management, and contract management.
Microsoft 365 offers 3 different plans at different prices:
- Customer engagement plan, $115 a month per user
- Unified operations plan, $190 a month per user
- The dynamics 365 plan, is the best value for money as it provides access to all applications. The other two options only provide limited access. Dynamics 365 is $210 a month per user, however, this price frequently changes.
What is CPQ?
CPQ is software that generates quotes, manages the price and potential discounts of a product, and configures products. Research demonstrates that only 38% of companies without CPQ software produce accurate quotes. Furthermore, users of CPQ produce 30% more quotes per month than non-users. The functions of CPQ vary from: managing product and service options, feature combinations, discounts, and commissions, and centralizing pricing information.
Additional advantages of the software include the ability to cross and up-sell throughout the configuration cycle, and more efficient product configuration. Integrating CPQ with Dynamics 365 means that contract renewals can be automated, proposals will be standardized, and the sales process will be streamlined even further.
Why Dynamics CPQ isn’t sufficient by itself
A key issue that arises from Dynamics CPQ centers data storage limits. The limits of the software are low in comparison to other CPQs on the market, and many businesses find themselves having to purchase more data storage. This, combined with the $210 monthly fee per user, accumulates at a rapid pace. Customers have also reported difficulties regarding the mobile application.
Certain tools are inaccessible through cellular devices, and this limited access is problematic for efficiency. Other CPQ software offers full access to mobile phones, making it possible to complete tasks regardless of where you are located.
Other complaints surround the complexities of navigating the software, and difficulties integrating Dynamics 365 with third-party platforms.
Issues solved by integrating Dynamics 365 with CPQ
- A reduction in the number of quote errors and margin mistakes.
- The integration provides real-time insights into buyer engagement. Comprehension of this increases the number of deals a business can close.
- Strengthened data hygiene through synchronizing CPQ and CRM data.
Essentially, adopting CPQ alongside Dynamics 365 solidifies its efficiency.
Conclusion
To conclude, Dynamics 365 is a cloud-based platform that stems from Microsoft Azure. The software combines elements of features such as ERM, CPQ, and AI into a single platform. CPQ is Configure, Price, Quote software which simplifies the quoting process as well as configuring products and automating their prices.
The CPQ functions included in Dynamics 365 have proved to be inefficient without the installation of additional CPQ software. This is due to its incompatibility with cellular devices, low data storage limitations, and the consequential costs which accompany the need to buy more storage. However, combining CPQ and Dynamics 365 optimizes both the software and strengthens data hygiene and efficiency.
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