Avoid ERP failure: How to build resilience in your Microsoft Dynamics 365 Programme

Enterprise Resource Planning (ERP) failures are all too common, often due to poor testing, inadequate business analysis, and late-stage interventions. Despite its flexibility and scalability, Microsoft Dynamics 365 implementations frequently falter when organisations underestimate the need for rigorous customisation, continuous testing, and proactive quality assurance.

The Myth of Minimal Customisation

The headlines are all too familiar: another failed ERP implementation, another costly project derailed. Beneath these failures lies a recurring issue: poor or late-stage testing and inadequate business analysis. While testing is often seen as tedious or expensive, the cost of neglecting it is far greater.

Microsoft Dynamics 365 is a preferred ERP solution for organisations of all sizes due to its flexibility and scalability. However, a common misstep is assuming minimal customisation will suffice. This leads to inadequate requirements gathering, insufficient testing, and a lack of planning for ongoing system maintenance. The result? Missed go-live deadlines, expensive rework, and post-launch instability.

One of the most persistent myths in ERP implementations is that off-the-shelf solutions require little customisation. In reality, even a 90% fit is exceptional. Every organisation – whether small, medium, or enterprise – has unique processes, regulatory requirements, and operational nuances that demand adaptation.

For example, one Dynamics 365 implementation faltered due to vague requirements. The solution was built as specified but failed to align with real-world operations. The vendor delivered exactly what was requested, yet the system required substantial rework, delaying deployment and inflating costs.

The role of business analysts and the over-reliance on SMEs

A growing trend is the reliance on Subject Matter Experts (SMEs) to define requirements, often without the support of professional Business Analysts (BAs). While SMEs bring valuable domain knowledge, they are not trained in the craft of eliciting, refining, and validating requirements. This gap often leads to incomplete or impractical “to-be” processes.

Professional BAs play a critical role in bridging the gap between business needs and technical implementation. Their expertise in analysing “as-is” processes and designing future-state workflows is essential to avoid costly misalignments. When this capability is underinvested, the burden often shifts to testers during later phases, exposing issues that should have been addressed much earlier.

The case for early testing

Early involvement of testers, especially those with domain or ERP experience, mitigates risks, reduces costs, and strengthens implementation outcomes. A shift-left approach, where testing begins during the requirements phase, ensures alignment between business needs and system capabilities.

However, testing early is not a silver bullet. It helps expose issues sooner, but it cannot compensate for poor requirements. The real solution lies in a collaborative approach: skilled BAs define and refine requirements, while testers validate assumptions and identify gaps early in the lifecycle.

Continuous testing and the importance of regression testing

While early testing is crucial, continuous testing, especially regression testing, is equally important. Dynamics 365 receives mandatory updates twice a year, along with frequent enhancements. Each change introduces potential risks, including broken integrations or altered functionality.

Automated regression testing is a powerful tool to safeguard against these risks. However, it is not a one-time setup. Scripts must be maintained, updated, and monitored. Not every test should be automated, and automation alone is not a panacea. It must be complemented by testers who understand both the system and the business processes to catch issues automation might miss.

Beyond testing: Quality Engineering as a mindset

Quality Assurance should not be seen as a separate phase or a specialist function. It must be embedded throughout the ERP lifecycle as part of a broader Quality Engineering mindset. This includes:

• Skilled BAs to define and refine requirements.
• Experienced testers involved from the start.
• Automated regression testing to manage ongoing change.
• Continuous collaboration between business and IT.

Organisations that had implemented successful projects have demonstrated the value of this approach – leveraging Quality Engineering to ensure resilience and adaptability in their ERP systems.

Conclusion: ERP success requires more than just testing

ERP implementation should be transformative, not catastrophic. Achieving success demands a holistic approach that goes beyond testing alone. It starts with a strong investment in professional Business Analysis to ensure requirements are clearly defined and aligned with business goals. Testers must be engaged early and remain involved throughout the project to validate assumptions and uncover risks before they escalate.

Equally important is the implementation and ongoing maintenance of automated regression testing, which safeguards system integrity as Dynamics 365 evolves. And crucially, organisations must recognise that Dynamics 365 is designed to support businesses of all sizes, each with unique operational needs. 

Testing early is essential, but it’s only part of the equation. True resilience comes from embedding quality at every stage of the ERP journey, from planning through to post-go-live support.