Help organizations manage and optimize their project to profit processes

Applies to: Dynamics 365 Business Central, Dynamics 365 Finance, Dynamics 365 Human Resources, Dynamics 365 Project Operations, Dynamics 365 Sales, Dynamics 365 Supply Chain Management

This article introduces the project to profit end-to-end business process. It outlines how Dynamics 365 products can help organizations manage and optimize their project to profit processes.

Project to profit overview

The project to profit process can be used in any project-oriented business. The process starts when a deal is won and ends when you invoice the customer for the services you have provided. The project to profit business process can be adapted to fit the specific needs and requirements of any organization which carries out some of its work by dividing it into various projects. Industries where this is common include consulting, professional services, engineer-to-order manufacturing, construction, entertainment, and many others.

For example, in consulting services, a project typically includes business analysis, to identify areas where the client business can improve customer experience, streamline operations, increase revenue by expanding services or entering new markets, or meet other client goals.

Next, the consultant designs a solution based on the customer's requirements gathered during business analysis. Realizing the design might include expanding service offerings, redesigning a business process, defining a strategy for entering new markets, implementing a supporting technology or system, and so on. And prior to profitably executing such a project, a consulting firm needs to identify appropriate opportunities in its market and close corresponding sales of the project services it will deliver.

Dynamics 365 includes tools to help project-oriented organizations manage leads, opportunities, the quoting and contracting process, and detailed planning for projects. By using work breakdown structures, organizations can easily define the scope and tasks that need to be completed for a given project. These tools are tightly integrated in Dynamics 365 Project Operations with Project for the Web and our Unified Resource Scheduling.

Once project initiation is complete the next step is to run the project and bill for it as agreed in a governing contract. During project execution, Dynamics 365 includes a variety of tools to help organizations schedule resources, track costs, time, and materials that are used to deliver the service, bill and collect revenue and record corresponding accounting entries. Dynamics 365 also includes tools to help organizations monitor client feedback and adjust the service offering as needed. Similarly, Dynamics 365 includes several tools that can be used throughout the project lifecycle to optimize profitability by measuring key performance indicators, such as revenue growth, actuals versus estimated budgets, customer satisfaction, and employee productivity. Project managers can use this data to make adjustments and improve the service offering to ensure the project continues to generate profit and meets business goals.

In summary, project-oriented businesses can use the project to profit process to sell, analyze, design, implement, and monitor solutions that enable them to increase profitability, streamline operations, and provide better service to their clients. The process can be tailored to fit the specific needs and goals of the organization, regardless of whether it involves technology or not.

Most organizations will differ somewhat in their project to profit business process. Nevertheless, we define here a useful baseline for any organization intending to implement a technology solution to support project to profit.

Impact

The project to profit process is critical in avoiding delays in a project delivering its intended scope. When the project to profit process is not well defined or run, it can have significant impact on both the delivering and target organizations. It is important for organizations to carefully manage the process to minimize these risks and ensure a successful outcome.

For example, inherent in the project to profit process is careful project planning. Many project plans will include analysis, and design work, which can take substantial time and be subject to considerable uncertainty. If the process is not managed effectively, including realistic estimation of work, along with risk management, scope management and accurate analysis of project performance, it can lead to delays in the implementation of the solution, which can negatively impact the organization's operations.

Similarly, if the project to profit process is not managed effectively, it can lead to cost overruns. This can occur if the organization underestimates the cost of the solution or if unanticipated issues arise during implementation.

The project to profit process often also involves changes to the target organization's processes, technology, and culture. If an organization is not prepared for changes or if there is resistance to change, it can negatively impact the effectiveness of the solution. Additionally, it can cause disruption to the business. This disruption can negatively impact an organization's ability to serve its customers and maintain productivity. Avoiding such outcomes requires coordinated project stakeholder and project communications management.

Stakeholders

Executing the project to profit process is often a complex undertaking that involves multiple stakeholders across the organization. Amongst others, here are some of the stakeholders who should be involved in a typical project:

• Executive Sponsor

  An executive sponsor is typically a senior leader in the organization who champions the project and provides executive support and oversight. The executive sponsor ensures that the project aligns with the organization's overall strategy and vision and helps secure the necessary resources and funding.

• Project Manager

  The project manager is responsible for overseeing the successful execution of the project to profit process. They lead the project team, manage the project plan and schedule, and ensure that the project delivers the intended scope, on time and within budget.

• IT Department

  An IT department is responsible for implementing and maintaining any technology infrastructure needed to support the project. They ensure that the necessary hardware and software are in place and that the system is secure and meets the organization's technical requirements.

• Business Process Owners

  Business process owners are the individuals responsible for specific business processes within the organization. They work with the project team to identify areas where the project is impacting their business processes and ensure that the outcome of the project meets their needs.

• Finance Department

  The finance department is responsible for financial planning, reporting, and analysis. They work with the project team to ensure that the project aligns with their financial processes, including budgeting, forecasting, and profitability analysis.

• Sales and Marketing Teams

  The sales and marketing teams are responsible for generating revenue for the organization. They work with the project team to ensure that the outcome of the project aligns with their sales and marketing processes, for example lead generation, customer relationship management, and sales forecasting.

• Business users

  The business users are the individuals who will be using any system delivered by the project. They provide feedback to the project team on the system's usability and functionality and ensure that the system meets their needs.

In summary, executing the project to profit process requires involvement from multiple stakeholders across the delivery and target organizations. Each stakeholder plays a critical role in ensuring the success of the project.

Project to profit benefits

An organization will benefit in several ways from using the project to profit process effectively.

Better alignment of business strategy and project portfolio

Good project governance provides clarity on what a project is meant to deliver. Clearly defined goals and objectives should be used to determine if a proposed solution is a good fit for the target business, drive the specific business requirements for implementing a solution, and measure the success of the outcome.

Increased profitability

By using the project to profit process, a project-oriented organization can, for example, identify new revenue streams, improve operational efficiency, and optimize their use of resources. This can lead to increased profitability and long-term success. By automating several areas of the project to profit process, as well as providing enhanced visibility of their performance, Dynamics 365 Project Operations is a key enabler to maximize the profitability of project-oriented businesses.

Improved customer experience

By analyzing their business processes and designing solutions that meet customer needs, a project-oriented organization can provide better service to their clients. This can lead to increased customer satisfaction, repeat business, and positive word-of-mouth referrals.

Better resource management

The project to profit process enables project-oriented organizations to optimize their use of resources, including staff, time, and materials. This can lead to increased productivity, reduced waste, and better resource allocation. Dynamics 365 Project Operations provides powerful capabilities for estimating projects' demand for resources, finding optimal ways to satisfy it, and then managing the assigned resources' schedules across projects.

Enhanced competitive position

By continually monitoring their profitability and adjusting their operations accordingly, project-oriented organizations can stay ahead of the competition. They can adapt to changing market conditions and customer needs and differentiate themselves from their competitors.

Greater operational agility and flexibility

The project to profit process enables project-oriented organizations to be more agile and flexible in their operations. They can respond quickly to changing market conditions, customer needs, and new opportunities, which can help them stay ahead of the competition.

Next steps

If you want to implement Dynamics 365 solutions to assist with your project to profit business processes, use the following resources and steps to learn more.

1. Define the business process scope of your project. Learn more at Process-focused solution.

2. Request a demo or get a free trial of Dynamics 365 solutions for the project to profit process. Learn more at Request a demo.

3. Get an overview of the project to profit process. Learn more at Project to profit end-to-end overview

Related resources

You can use the following resources to learn more about the project to profit process in Dynamics 365.

• Dynamics 365 Project Operations series
• Dynamics 365 Project Operations
• Microsoft Certified: Dynamics 365 Fundamentals (ERP)
• Project Operations learning paths