Microsoft Dynamics 365 – the perfect platform for new business ventures
You are here:Startseite»Microsoft Dynamics 365 – the perfect platform for new business v...
Are you looking for expansion options for your current business? Or do you dream of starting (and running) your own business? Are you held back because you haven’t yet found out which product or service you should offer to which type of customers? Then here is my suggestion: Take a look at Microsoft Dynamics 365. Consider starting or expanding your business as a Value Added Reseller (VAR) or an Independent Software Vendor (ISV). The timing may be perfect just now. Here is why:
All types of companies all over the world are currently considering how they can take advantage of the digital transformation opportunities offered by cloud-based solutions. Their objectives are to reduce capital expenditure and improve productivity, profitability and competitiveness. This movement has been going on for a while and I believe that we are approaching the infliction point where the adoption enters the steep section of the S-curve.
Microsoft, the world’s biggest software company, is currently investing billions of dollars in extending its broad suite of cloud-based business applications for the SMB-market: Microsoft Dynamics 365. The objective of the investments is to serve the needs for digital transformation. Their go-to-market approach is to use VARs and ISVs to complement, implement, and support the solutions.
This shift in the market and the industry is offering opportunities for new insurgents. The “new kids on the block” are not tied to the legacy of the on-premise business model and the skill set it requires. The insurgents can build their business models from scratch and match the needs of those customers prepared to move to the cloud now.
We don’t all embrace innovation
The fewer “new” you have in your business model they less risky is your endeavour.
Three new: A new company offering new services to new customers is the riskiest scenario.
Two new: Offering new services to new customers from a recognised company already have much better chances for success.
One new: Offering new services to existing customers or current services to new customers have the best odds for success.
You can leverage your domain expertise and expand your services to customers with a preference for Microsoft Dynamics 365. Or you can grow into new areas of the Dynamics 365 application suite offering your current customers new services.
Why most new business ventures fail
Starting a new business venture is a risky business. According to most sources on the subject, 90 per cent of all startups fail and I will claim that existing businesses launching new initiatives into new markets share the same characteristics.
Take the Apple Newton. Launched in 1993 and defining the new category Personal Digital Assistant it failed miserably and was removed from the market in 1998. Costing an investment of $100M even a company like Apple ran out of budget to support it and Steve Jobs killed it upon his return.
Startups and new business ventures fail for a combination of numerous reasons and recent research reveals what those reasons are.
No product/market fit
The primary reason (42 per cent) for failure is that there is currently no pressing need for the product (or service).
With thousands of customers already using Microsoft Dynamics, we can conclude that there is a compelling and recognised need in the market. From a product perspective, a VAR-initiative serving this market can jump the entire product/market-fit stage, and an ISV.startup can accelerate the proof-of-concept.
You will still need to develop a compelling value proposition for the services that you believe will attract customers and make them choose you, but with Microsoft Dynamics, you eliminate the risk that there is no market need for the product.
Out of cash
Close to 95 per cent of all ventures are funded by the owners.
The five per cent of startups that does receive funding from Business Angels and VCs are those that can potentially turn $1 million into $100 million. When such companies raise money, you can read about them in the newspapers, magazines, and on blogs. Because such deals are rare and thus, news!
So when 29 per cent of failing ventures claim that they ran out of cash, they are primarily referring to their own money and not somebody else’s.
When you don’t need to spend time developing a product from scratch and running through several iterations before you know whether there is a market or not willing to pay for it, then you will have more cash left for testing and fine-tuning your value proposition and your marketing, lead generation and sales approaches.
In a market where customers want standard products delivered from the cloud in a subscription-based format only companies that can figure out how to win new projects, with low customer acquisition cost and short sales cycles will proposer.
The design of a productive revenue generating formula becomes just as important as finding the compelling value proposition.
Most new business ventures that develop their product from scratch never get to that stage because they run out of budget.
A venture building a business on Microsoft Dynamics 365 can focus their limited cash resources on finding a revenue generation model that works.
Not the right team
When you don’t know exactly where you will end then it is hard to decide which skills are required to get there.
Starting a business venture with Microsoft Dynamics 365 as the core component simplifies the job of setting the team considerably.
First and foremost you need to understand your customers and how digital transformation can help them become more productive, profitable and competitive. Some customers expect you to have industry insight before the first meeting some do not. However, they all assume that your learning-curve on understanding their specific issues are very short. Thus is a major advantage and a substantial portion of business acumen will bring you ahead of the game.
Then customers expect you to be an expert on the products you offer and, that you can guide them in how they can use these products with as little customisation as possible and how they can standardise, simplify and optimise their business processes along the way. Thus you need people who understand the details of what Microsoft Dynamics 365 offers.
Finally, they expect that you can help them set up and integrate the various modules to form a coherent application suite with no need for data redundancy. Thus you need the technical skill set required to configure and integrate software systems.
Across these disciplines, you need to master business development, marketing, lead generation, sales, project management, training, documentation and support.
If you have ambitions of becoming an ISV, then you need additional skill sets covering product development, product management and product marketing. If you want other resellers to sell your solution, then you need to add resources for partner recruitment and management.
Being the only company in the world offering a specific value proposition (lex Newton) has shown to be a significant disadvantage. Building a business within the Microsoft Dynamics 365 ecosystem provides multitude sources of inspiration and offers opportunities for cooperation with other partners that can complement your skill set.
People around the world get the same ideas at the same time. Then they start the race for market leadership. 20 per cent of startups claim to be outcompeted.
If you are attracted to starting or extending your business helping SMBs with digital transformation, then you are facing a need for massive investments. Customers want off-the-shelf functionality supporting business processes across their organisation. They want analysis and visualisation tools that can help them better understand data and enhance all the building blocks in their business model. They want mobile apps for staff on the road and to better serving customers. And they do not want to manage a host of suppliers to
achieve these benefits.
Building your business on top of Microsoft Dynamics 365 allows you to surf one of the biggest waves in the world. You will have thousands of developers steadily improving the software platform and striving to keep you ahead of the competition. You will be supported by a marketing effort that hardly anyone in the industry can match.
The chances of being outcompeted with Microsoft Dynamics 365 as the core of your value proposition are minimal.
Pricing/cost issues or CLV versus CAC
A subscription-based economy is a tough challenge for any startup. You have to fund product development from scratch and pay the Customer Acquisition Cost up front. Then you can enjoy the Customer Lifetime Value as time progresses. If you can get that relationship right fast enough.
According to the CBInsight research 18 per cent don’t get that relationship right and experience that the faster they run, the sooner they go broke.
New business ventures notoriously have high customer acquisition costs. Often because they have two marketing jobs to perform.
Convince customers that they have the problem that your solution addresses
Convince customers that now understand they have that problem to choose your (somewhat untested) solution.
Most new ventures face “the law of diffusion of innovation”. The law divides the market into five segments.
Although you can demonstrate that your solution provides an attractive and fast return on investment, the mainstream market, which represents 85 per cent of the total are reluctant to do anything just because you are new and they prefer to wait until a market leader has materialised.
Most new ventures have to work their way through the technology enthusiasts, and the visionaries (15 per cent of the market) and many never manage to make the journey across the chasm to win mainstream market customers.
Do the math.
Let’s say that 20 per cent of the market is in buying mode at any point in time, but 85 per cent will not consider your new solution. That leaves you with 20 per cent of 15 per cent = 3 per cent. No wonder that customer acquisition cost is high for new ventures.Building your business around or on top of Microsoft Dynamics 365 will help you jump and maybe even eliminate the chasm. Microsoft is already a market leader. You remove a considerable chunk of risk for the mainstream market customer.
Are there no drawbacks?
Microsoft has thousands of business partners. Is this market not the red ocean?
The reason that Microsoft can entertain thousands of business partners offering the same products is the opportunities for differentiation around and on top of their Dynamics platform. Dynamics 365 is not a hit and run type of business, where competition drives a race to the bottom. The value for the customers comes from close cooperation between the customer and the business partner. It’s the value-add that the business partners offer that determines the return on the investment in the new ERP-platform.
The opportunities for differentiation from consulting services and product extensions are infinite. And just now, with the shift from a prepaid and perpetual license model and to a cloud-based subscription economy, there are plenty of blue ocean opportunities.
Being a Microsoft reseller is a service business. Isn’t this hard to scale internationally?
Service businesses are usually considered harder to scale than product businesses. If that’s true, then your service business is better protected domestically than a product business.
However, the main reason that only a few Microsoft business partners cross national borders is that they don’t have the appetite for running an international business with the additional management complexity it demands.
There are plenty of examples of Dynamics partners that have thriving international businesses. They enjoy the work that Microsoft has done in localising and making the Dynamics products available in all major markets.
If you have ambitions of scaling your business globally, then Microsoft has already done the groundwork and matured the market for you.
Das könnte Sie auch interessieren
Ready to Start – Dynamics 365 Business Central
Goodbye to NAV and Hello to 365 Business Central – with a German twist
Don't miss this article about the historic background of NAV.
The 7 secrets you must know to be successful with your Dynamics 365 App
Read this blog to hear from one of the experts in the field of successful Apps.
Aufzeichnung: Neues rund um Microsoft Dynamics 365 Business Central – Mai 2019
Sehen Sie hier die Aufzeichnung des Webinars (39 Minuten)
Neues rund um Microsoft Dynamics 365 Business Central
In diesem Webinar informieren wir Sie über die aktuellen […]
5 July 2019QBS Webinar
Customers know what they want – or do they? (We asked our Partners!)
By Hans Peter Bech “Customers don’t know what they […]
QBS group getting shareholder majority in 1ClickFactory – Executive Interview
Interview with Soren Fink Jensen, CEO of 1ClickFactory, and Michael Hartmann, CEO of QBS group.
What does the latest Dynamics 365 Business Central Update (April ’19) mean for Europe, Middle East & Africa?
The April 2019 Business Central Licensing Guide has recently been released, but are there differences from the previous ones? In short, yes.
Pressemitteilung: QBS group wird Mehrheitseignerin von 1ClickFactory
QBS group und 1ClickFactory bündeln weiter Ihre Kräfte
Erfolg im Cloud Business – Interview mit Nico Straub
Lesen Sie hier, wie NAS Erfolg im Cloud Business erreichen konnte.
Daily reports from eXtreme 2019, Amsterdam
Daily news from Amsterdam.
Business Central is now available in Microsoft Graph – could this be the end of RapidStart?
Microsoft Dynamics 365 Business Central is now available in Microsoft Graph as an endpoint.
All you need to know about Microsoft Dynamics NAV coming to an end and becoming Microsoft Dynamics 365 Business Central
(this page will continuously be updated as information arrives) […]
Aufzeichnung: Mehr Leads und mehr erfolgreiche Abschlüsse durch Kundenschulungen
Sehen Sie hier die Aufzeichnung des Webinars (37 Minuten)
White Paper – Microsoft Dynamics 365 the perfect platform for digital transformation in the mid-market
At QBS group we’re all about Dynamics partners – […]
Aufzeichnung: Neues rund um Dynamics 365 Business Central – Februar 2019
Sehen Sie hier die Aufzeichnung des Webinars (18 Minuten)
Aufzeichnung: Neues rund um Dynamics 365 Business Central – Januar 2019
Sehen Sie hier die Aufzeichnung des Webinars (28 Minuten)
2019 predictions for the Microsoft Dynamics business partner community
What does 2019 have in store for you, what should you expect to accomplish in the new year and how can you make it happen?
Aufzeichnung: Neues rund um Dynamics 365 Business Central – Dezember 2018
Sehen Sie hier die Aufzeichnung des Webinars (18 Minuten)
Aufzeichnung: Neues rund um Dynamics 365 Business Central – November 2018
Sehen Sie hier die Aufzeichnung des Webinars (32 Minuten)
How to integrate Power BI in Dynamics 365 Customer Engagement dashboards
Watch the recording of the webinar (39 Min.)
Recording: Introduction to D365 Marketing
Watch the recording: 49 min.
Aufzeichnung: Neues rund um Dynamics 365 Business Central – Oktober 2018
Sehen Sie hier die Aufzeichnung des Webinars (55 Minuten)
Recording: Build a Powerapp in 5 minutes
Watch the recording: 1 h 7 min.
It’s that time of year again, Directions EMEA
We will be covering the event for those partners that are not able to make it.
Business Report Directions EMEA 2018 – Reserve your copy now!
Reserve your copy now!
The moment you stop learning, you stop leading…
"The moment you stop learning, you stop leading ..." applies to everyone. "Learning" starts and ends with yourself.
Aufzeichnung: Neues rund um Dynamics 365 Business Central – September 2018
Sehen Sie hier die Aufzeichnung des Webinars (34 Minuten)
eLWIS Has Left the Building – Goodbye to Customization of ERP Systems
Customisations are risky, expensive and becomes an anchor to the past.
Microsoft partner success with Dynamics 365 Business Central
Read about ideas to setup a high-volume sales engine.
The Strength of PowerApps – Accelerate your business with PowerApps
Read more about Power BI, Microsoft Flow and PowerApps.
QBS group ist Teil des Inner Circle for Microsoft Business Applications
QBS News, 1. August 2018
Aufzeichnung: Hot News from Inspire 2018
Watch the recording of this Webinar (59 minutes).
Aufzeichnung: Neues rund um Dynamics 365 Business Central – Juli 2018
Sehen Sie hier die Aufzeichnung des Webinars (39 Minuten).
This is how we got posted on AppSource!
Watch this video to learn how infostudi was able to publish an app for Microsoft Dynamics 365 Business Central
The new requirements for CSP Direct: Is license administration part of a Microsoft Dynamics partner’s core business?
One might consider to switch to the CSP Indirect scenario.
What every Microsoft Reseller should know about Microsoft Dynamics 365
Watch this video to know everything about the pricing and licensing of Microsoft Dynamics 365.
Organisational Change Management – The Key to Project Success!
Aufzeichnung: Introduction to Microsoft Dynamics 365 for Project Service Automation (PSA).
Watch the 30 minutes recording here.
QBS Business Report von der eXtreme 365 EMEA 2018 – Jetzt erhältlich!
Sichern Sie sich jetzt Ihr persönliches Exemplar.
Aufzeichnung: Starke Vorlagen für Ihren Vertriebserfolg
Nachlese und Aufzeichnung
To upgrade or replace that is the question
Dynamics 365 Business Central completes you customer dialogue In […]
Build your businesses muscle and keep fit (in the QBS gym).
Don’t worry we are not suggesting here that you […]
Dynamics 365 for Sales Acceleration Program – Reference MKB365
MKB365 has set up a separate business model for implementation […]
Hot news from the eXtreme 365 EMEA event
The most important Microsoft Dynamics partner event in the […]
Update on Dynamics 365 Business Central
This series of webinars is intended to share […]
Highlights from eXtreme 365 EMEA 2018
Get all the highlights of eXtreme 365 EMEA 2018 and watch this 6 minutes video.
Na endlich! Dynamics 365 Business Central wird veröffentlicht.
The Cloud – Impact on Business Valuations
The shift to the Cloud is well underway, and […]
Dynamics 365 „Tenerife“ ist bald da doch Ihre Kunden arbeiten noch immer mit NAV 2009?
Never change a running system?
Ready to Go – Microsoft Dynamics 365 Business Central
Ready to Go – Dynamics 365 Business Central
4 Business reasons to start a CRM practice
Microsoft switches from single category products towards bundles or suites.
Why should I care about IoT as an Microsoft D365/NAV partner?
Adoption of Internet of Things solutions across industries continues […]
What can Dynamics CRM Partners expect from eXtreme365 EMEA 2018?
eXtreme 365 is the annual event for Microsoft Dynamics […]
The evolution of Dynamics 365 opens the door for new opportunities
Being a Dynamics CRM partner today is like dancing on a volcano – far from boring!
“Ever change a winning team”
“Ever change a winning team” Alex Ferguson, former football […]
Bringen Sie Ihren Dynamics 365 CRM Geschäftsbereich mit QBS group zum Erfolg
Wie Sie die Sichtbarkeit Ihrer Website erhöhen können
Ein gut gemachter Firmenblog ist Werbung ohne Werbeausgaben.
Wie Sie die Sichtbarkeit Ihrer Website erhöhen können
Ein gut gemachter Firmenblog ist Werbung ohne Werbeausgaben.
QBS Pack – Verbessern Sie Ihr strategisches NAV Verkaufsgespräch
GDPR … and what now ?
Starting from 25 May 2018 there is going to be a […]
Die ABILITY GmbH ist einer der führenden Microsoft Partner […]
Wie steht es bei Ihnen um die ERP Integration?
Weshalb der alljährliche Weihnachtskarten Versand die Qualität der Integration […]
Position NAV as stepping stone for more Dynamics 365 ‘Tenerife’ deals
Since the introduction of the Dynamics 365 Business Edition in the US and Canada late 2016, the position of Dynamics NAV is under pressure! Competitors took the chance to position NAV as an old-fashioned solution and that’s a direct threat to your NAV business!
NAV als Sprungbrett für Ihren Erfolg mit Dynamics 365 „Tenerife“
In diesem QBS Talk in deutscher Sprache erfahren Sie, wie Ihnen schon heute über NAV der Einstieg in das Geschäft mit Dynamics 365 gelingen kann.
Nachlese: QBShare – MOVE
Auch diesmal möchten wir uns wieder bei allen Besuchern […]
Dynamics Upgrade Service
Ready to Start – Microsoft Dynamics 365 Customer Engagement
Take the Lead
Als ISV liegt ihr erster Schwerpunkt auf der Entwicklung […]
Als Microsoft Reseller sollten Sie eine Zusammenarbeit mit einem […]
Our Build or Buy Agenda
When I joined QBS group a year back, it […]
Directions EMEA 2017 Madrid
Find here all the information you as Microsoft Reseller […]
Strategische Partnerschaft mit 1ClickFactory
QBS group und 1ClickFactory kündigten kürzlich ihre künftige Zusammenarbeit […]
The CSP Direct model is like an iceberg
We noticed that the market is changing, our clients are, more and more, requesting a subscription based approach. This allows them to not have their own services nor the hassle.
QBS group erhält erneut die renommierte Microsoft Auszeichnung „2017/2018 Inner Circle Award“
QBS group wird zum vierten Mal in Folge Mitglied […]
What is the Microsoft Cloud Solution Provider Program (Microsoft CSP)
The Microsoft Cloud Solution Provider Program (CSP) enables partners to directly manage their entire Microsoft cloud customer lifecycle.
Nachlese: QBShare – Sicher in die Zukunft!
Herzlichen Dank für Ihren Besuch bei unserem QBShare Partnertreffen […]
Dynamics 365 Business Edition: Opportunity or Threat
Microsoft will be launching Dynamics 365 Business Edition in […]
QBS group helps you to really understand CSP!
The new Cloud Solution Provider (CSP) program is going […]
Making winners out of users
Do you want to bring more value to your […]
The fact that we belong to a larger organisation gives our customers security.
Verito delivers Microsoft Dynamics NAV to charity organisations and […]
Was andere über QBS group sagen
Owner en Co-founder at MKB365
Since the start of our company 4 months ago, we have already completed 12 Dynamics 365 for Sales implementations.