In October of 2020, Microsoft introduced the Dynamics 365 Project Operations that is an innovative application within Microsoft the Dynamics 365 collection of solutions.
It’s a re-design of the accounting and project management components that are part of Dynamics 365 Finance, and the earlier Project Service Automation (PSA) solution offered by Microsoft Both of which were purchased by Microsoft.
The project-related functionality that was earlier included in Dynamics 365 Finance as well as PSA is now combined into one SKU known as Project Operations, which can be purchased as a separate item. It is important to note that the earlier Dynamics 365 project management and accounting functions, along with Project Service Automation, which was part of Dynamics 365 project service automation is no longer available. They’ve been changed to Project Operations.
Why Project Operations Doesn’t Work for the Majority of Businesses?
If you had hoped to see that Project Operations for Dynamics 365 would serve as an integrated system of business for the company that is project-based but you’ll be disappointed with the outcomes. Microsoft claims the Project Operations contains a slew of new capabilities, however the reality is that most of them are copies of the earlier project management and accounting modules that was available in Dynamics 365 Finance and Project Service Automation and is now available with an alternative SKU.
This approach, as well as more recently Project Operations, have never performed well in the case of project-based organizations that are in the AEC industry, manufacturing of project/ETO biotech and energy industries as well as the aerospace and defence industry as well as many other professional service industries. There are many elements which are essential to the success of these kinds of companies, but they are not being met with. In short, Project Operations does not offer a solution to most important business issues.
Project Management Capabilities and Characteristics
Project Operations comes with a variety of features and capabilities that Microsoft claims to have. Here’s a quick overview of what’s included.
1. Management of Projects
Project Operations, which is built on Microsoft Project, features a simple interface for project scheduling that can be used drag-and-drop in its nature. Dashboards as well as interactive Gantt charts scheduling, task management and work breakdown structures are all included in the program. The idea is to be utilized as a planning tool instead of an execution tool.
2. Management of Possibilities
It has an engine for pricing and costing that is able to be used to manage deals because it’s integrated with Microsoft Sales, CRM.
3. Resource Management is the administration of resources.
You can match resources to the project’s requirements according to their expertise with the help of a resource profile tool that is part of the program.
4. Accounting for Projects
Project Operations, which is an earlier version of Dynamics 365 project management and accounting system, has a basic accounting features to ensure that projects conform to GAAP as well as IFRS standards. However, it is on however does not have the cost breakdown structure.
5. Dashboards for Projects
A limited set of visualization tools is available with Project Operations in order to assist in the use of resources forecasting, budgeting, and planning as well as other tasks.
Final Verdict
Microsoft’s Dynamics 365 Project Operations is certainly a major leap forward towards Project Business Automation and has the intention of establishing an integrated business system that can be used by project-based companies. Based on the premise of the category project-based businesses must abandon the silos of software and data they typically utilize in favor of one platform that integrates key business operations for projects. Contact Dynamics CRM consulting firm CongruentX for more information.
