When is Dynamics 365 for Project Service Automation (PSA) the right fit?

SBS Group is well known for expertise in helping project-oriented companies to leverage Microsoft and other technologies to operate more efficiently and profitably.  Solutions like AXIO Professional Services enhance Dynamics 365 for Operations and Progressus for Professional Services provide PSA and ERP for Dynamics NAV.

Another solution, Dynamics 365 Project Service Automation (PSA), is available to project-oriented companies who wish to dive into the Dynamics 365 platform.  Instead of an ERP-based project management solution, Dynamics 365 PSA offers a more client centric based solution.

Each of these solutions provide customers with comprehensive feature sets nested in a full Microsoft customer experience.  The trick is understanding the short-term and long-term benefits of each solution to understand which best fits a specific customer environment.  In this post, we will explore Dynamics 365 for Project Service Automation (PSA) to better understand what types of companies it would serve the best.

Dynamics 365 for Project Service Automation

Key Features of Dynamics 365 Professional Services Automation (PSA)

Microsoft Dynamics 365 for Project Service Automation Enables project-based organizations to deliver every customer engagement on-time and within-budget through an end-to-end solution for sales, planning, resourcing, delivery, and billing.

OPPORTUNITY MANAGEMENT

Provide integrated sales dashboard with project-based opportunities to help forecast profitability and feasibility. Streamline sales manager experience to quickly create project contracts, track labor rates and generate SOWs. Collaborate real-time with customers on the quotes, project scope and resource requirements through customer portals.

PROJECT PLANNING

Make it easy for sales manager to visualize cost, effort, and sales value with project managers to estimate and define the work using standard project templates. Use robust project scheduling and management capabilities of Microsoft Project to complement the collaborative sales planning process.

RESOURCE MANAGEMENT

Optimize resource assignment through a consolidated scheduling engine across all modes of service to ensure right people on the right projects. Simplify engagement across project managers, resource managers and sub-contractors to forecast demand, talent management and resource allocation. Empower consultants to apply directly for relevant project roles, and update skills through mobile devices.

TEAM COLLABORATION

Provide powerful, easy-to-use, mobile-ready O365 productivity tools for project teams, customers, and partners to communicate and collaborate on project deliverables and tasks. Empower project managers by providing real-time status and performance indicators to mitigate project risks.

TIME AND EXPENSE MANAGEMENT

Simplify management, tracking and submission of estimated and billed project time by integrating the tasks and deliverables within calendars. Track all project and non-project schedules on their device or app of choice through integration between exchange and project calendars.

CUSTOMER BILLING

Provide project managers and customers a one-stop-shop dashboard to review, override, track overruns and approve all costs and time impacting their projects. Automate generation, approval, and distribution of accurate invoices in email and on the web. Enable integration with best-in-class back-office applications for financial accounting.

SERVICE ANALYTICS

Anticipate business opportunities, optimize solution offerings, and improve business performance through robust analytics, interactive dashboards, role-base templates, and data visualization for 360 visibility to project and portfolio metrics like resource utilization and practice profitability.

Features included with Dynamcs 365 for Project Service Automation

For additional insight into the features and capabilities of Dynamics 365 Project Service Automation, you might want to read this post written by Sandeep Chaudhury on the Dynamic Community blog.

What Companies are the Best Fit for Dynamics 365 Project Service Automation (PSA)?

This solution helps companies manage the entire project sales and delivery cycle, but shines more in earlier, front office, stages of the client engagement like sales and quoting.

Because it is based on a CRM platform, the solution is fairly flexible and many per-company customizations can be created without back-end programming.  Integration with Office 365 and other Microsoft tools is robust as well.  However, this flexibility comes with a price. While the solution provides strong collaboration benefits between sales and delivery resources, it is most effective for companies with smaller delivery teams and less complex projects.

For instance, the solution provides a very user-friendly scheduling function with Outlook calendar integrations that makes managing resources against a project work quite well.  But, for larger companies with hundreds or thousands of delivery resources, the solution is lacking the strong skills based scheduling that is available in AXIO for Professional Services.

When the team size is small and scheduling resources are familiar with individual skill-sets, this is less of a problem.  When teams get larger and projects become more complex, or when the scheduler is assigning resources across the globe having never meet or assessed the resources being scheduled, this can be a show-stopper.

Examples of companies that might benefit from Dynamics 365 for Project Service Automation are marketing and media firms, light management/consulting firms, smaller IT services firms, and many other white-collar consulting firms.  Although I’m calling out smaller companies, it could be a great fit for large companies as long as their project delivery is still fairly simple.  Think about a company that provides creative design for television ads vs. a consultancy that deploys large, integrated ERP systems.  The latter may take anywhere from 6 months to 3 years and require multiple milestones, different skill-sets and formal call-center or on-site support. Other business that may struggle with CRM-based PSA are Architecture and Engineering, Construction, Software Publishers or even specialty manufacturers.

Here are some example questions you might ask yourself when selecting a CRM-based vs ERP-based Dynamics 365 solution for a project-oriented firm:

  1. Do we manage inventory? 
  2. Do we require advanced revenue recognition processing?
  3. Are our projects complex or simple?  In other words, do you have multiple clauses? Do you bill based on Performance Milestones (ASC 606 and IFRS 2015)
  4. Do we need project accounting to be auditable?
  5. Do we require union payroll?
  6. Do we require T&E reporting audits for DCAA compliance?
  7. Do we need to staff/manage projects across multiple entities?
  8. Do we manage subscription revenue along with or post project completion?

In each of these cases, an ERP-Based PSA solution is likely the better option.  Some of these  issues can be dealt with in Dynamics CRM PSA, but it is unlikely that the amount of development or process configuration required to do so would be worth the effort when systems already exist that meet these challenges.

You only need to ask.

If you are researching your next solution, please feel free to reach out and we’ll help you dig into the details.  After all, selection of this nature can be one of the most important decisions your company will make.

Thanks,

Best regards,

Robbie Morrison
VP Enterprise Solutions and Services, SBS Group

About Robbie
Robbie Morrison has spent nearly 20 years helping customers build and deploy elegant technology and business solutions.  From start-ups to enterprise-class organizations worldwide, his knowledge of the Microsoft Dynamics ecosystem helps SBS Group customers maximize benefits from the ERP investments.  Robbie

Today, Robbie serves SBS Group customers in his role as Vice President, Enterprise Group where he provides thought leadership and manages the enterprise delivery team.  Robbie received his MBA from the University of Georgia, Terry College of Business.
https://www.linkedin.com/in/robbiemorrison

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