Enhancing Dynamics 365 Finance and Operations with Copilot - PART 2 - Install Copilot and connect to an Dynamics 365 ERP

DYNAMICS 365 FINANCE AND OPERATIONS & MICROSOFT'S AI COPILOT

This article series provides an overview of Copilot usage in Dynamics 365 Finance and Operations apps.

Copilot will be explained in 3 posts:

PART 1: Introduction to Copilot

PART 2: Install Copilot and connect to an Dynamics 365 ERP

PART 3: Copilot applications in Dynamics 365 ERP

Let's get started with PART 2

CONTENTS Introduction Finance and operations apps and Dataverse connection Copilot installation and deployment in Power Platform (Dataverse) AI security role assignment Summary

INSTALL COPILOT AND CONNECT TO AN DYNAMICS 365 ERP

Introduction

Copilot is powered by the Azure OpenAI Service, which combines the capabilities of large language models (LLMs) with the business data residing in Dynamics 365 ERP. Copilot leverages the data in your Power Platform environment, as well as the data in Dynamics 365, Microsoft 365, and other sources, to provide relevant and accurate suggestions.

Finance and operations apps and Dataverse connection

In the fast-paced world of ERP, the integration of artificial intelligence through Copilot is not just an innovation, it's a game changer. Dynamics 365 ERP stands at the heart of business operations, managing everything from supply chain logistics to financial transactions. This guide provides an overview to implementing Copilot within your Dynamics 365 environment, empowering your business with AI capabilities.

As a prerequisite, your environment must be a cloud-deployed environment.

Second prerequisite, you must have enabled the Power Platform integration in Microsoft Dynamics Lifecycle Services. If you have any power apps in your system then this integration would be already in place.

Copilot installation and deployment in Power Platform (Dataverse)

Step 1: Enable the SQL row version change tracking license key

• Put the environment on Maintenance mode on LCS
• Navigate to the License Configuration form to activate Sql row version change tracking: System administration >> Setup >> License configuration

Activating the "SQL row version change tracking" license key in Dynamics 365 before setting up Co-pilot is needed because it helps keep track of every little change in your data. Think of it like setting up a system that notes down every edit, addition, or deletion in your information files. Co-pilot uses this info to work correctly, ensuring it always has the latest updates to help you better. Without this setup, Co-pilot will miss out on recent changes, making it not possible in assisting you.

STEP 2: Enable Power Platform to publish bots with AI features

Note: The copilot for app users in model-driven apps feature isn't enabled by default. Administrators must manually enable this feature for their environments in Power Platform admin center. 

The next step is to enable our power platform environment to publish bots with AI Features:

• Access Power Platform Admin Center https://admin.powerplatform.microsoft.com/
• Click on Environment on the navigation pane
• Select your environment and click on Settings at the top
• Select the Product, then Features
• In Features section, activate the set the value for Allow users to analyze data using an AI-powered chat experience in canvas and model-driven apps to On in the dropdown control and Save your changes

STEP 3: Install the Copilot application in finance and operations apps environment

The last part is the actual copilot installation in the environment.

• Open the Copilot in Microsoft Dynamics 365 Supply Chain Management page in the Microsoft commercial marketplace.

• Select Get it now
• System automatically opens Power platform admin center
• Select your environment, agree to all of terms and conditions, click on Install

AI security role assignment

The next step is to assign security roles that are one of the copilot installation components.

Users who should have access to the functionality must be assigned the AIB Roles and Finance and Operations AI security roles in Dataverse.

• Sign in to Power platform admin center
• Select your environment
• In the Access field, select Users or Teams

• Select the users or teams that should have access, and assign the AIB Roles and Finance and Operations AI security roles to them

Summary

Integrating Copilot into Dynamics 365 ERP through the outlined steps equips your business with AI-driven insights and efficiencies. By enabling SQL tracking, activating AI features in Power Platform, and installing Copilot followed by security role assignments, your organization can leverage artificial intelligence to optimize operations, decision-making, and customer engagement.

In Part 3, we’ll dive into how Copilot really works in the day-to-day of Dynamics 365 ERP. You'll see real examples of how this tool changes the game, making tasks easier and insights sharper. It’s about seeing the real impact of AI in action, from streamlining operations to sparking new ideas. Get ready to explore a world where technology and practicality meet to make your work smarter.

Enhancing Dynamics 365 Finance and Operations with Copilot - PART 1 - Introduction

DYNAMICS 365 FINANCE AND OPERATIONS & MICROSOFT'S AI COPILOT

This article series provides an overview of Copilot usage in Dynamics 365 Finance and Operations apps.

Copilot will be explained in 3 posts:

PART 1: Introduction to Copilot

PART 2: Install Copilot and connect to an Dynamics 365 ERP

PART 3: Copilot applications in Dynamics 365 ERP

Let's get started with PART 1

INTRODUCTION TO COPILOT

Microsoft Copilot in Dynamics 365 Finance and Operations uses AI to enhance ERP functionality, providing a blend of conversational AI, embedded insights, and integration across applications. This innovative approach aims to streamline operations, boost productivity, and facilitate smarter decision-making. 

Before going further, let's talk about the some of new terminologies:

• Sidecar – Copilot sits alongside the application as a sidecar and provides conversational support to the user. The sidecar is the primary Copilot interface in finance and operations apps. It provides a natural language chat experience that helps users work with application functionality and data.

• Embedded – These Copilot features add intelligent capabilities to the application itself. In this way, they bring AI to the center of the application experience. For example, in the Confirmed purchase orders with changes workspace, AI capabilities that are built into the page help users understand and react to changes in confirmed purchase orders.

• Outside – External agents help orchestrate across different apps and tasks. For example, users can use Copilot to ask questions about finance and operations data.

• Responsible AI – An AI system includes not only the technology but also the people who use it, the people who are affected by it, and the environment where it's deployed. Microsoft's Responsible AI FAQs are intended to help you understand how AI technology works, the choices that system owners and users can make that influence system performance and behavior, and the importance of thinking about the whole system, including the technology, the people, and the environment. You can use Responsible AI FAQs to better understand specific AI systems and features that Microsoft develops. Responsible AI FAQs are part of a broader effort to put Microsoft's AI principles into practice. To learn more, see Microsoft AI principles.

Next is the application areas. Copilot features include:

• Conversational AI Support: A sidecar where Copilot provides natural language interactions to help users navigate and perform tasks within the finance and operations applications, simplifying complex processes.

• Embedded Intelligence: AI can be directly integrated into Dynamics 365 business processes. Application example: Copilot helps users manage changes in confirmed purchase orders and other critical financial operations, embedding insights where they're most needed​​. More to come in the near future.

• Cross-Application Orchestration: Copilot extends beyond Dynamics 365, leveraging AI to interact with data across Microsoft's ecosystem, enhancing efficiency and providing seamless access to information​​. Application example: Microsoft Dynamics 365 Supply Chain Center is an enterprise-grade solution that integrates data from ERPs and supply chain systems into Microsoft Dataverse to enhance supply chain resiliency. It provides actionable insights, end-to-end visibility, and potential disruption prediction.

Bringing Microsoft Copilot into the Dynamics 365 Finance and Operations mix is pretty much a game changer for how businesses manage their financial and operational processes. It’s like having a super smart assistant that not only talks back but also gets what you’re trying to do, making your life a lot easier. The integration of conversational AI, embedded intelligence, and cross-application orchestration within Dynamics 365 offers a comprehensive, user-friendly solution that enhances efficiency, productivity, and decision-making capabilities.

The introduction of terminologies such as Sidecar, Embedded, Outside, and Responsible AI highlights Microsoft's commitment to developing AI technologies that are accessible, intuitive, and ethically responsible. These features not only streamline user interactions but also ensure that AI implementations are transparent, understandable, and considerate of their impact on individuals and the environment.

As Microsoft continues to expand the capabilities of Copilot, users can anticipate further innovations that integrate AI more deeply into finance and operations workflows. These advancements are likely to open up new possibilities for automating complex processes, predicting market trends, and providing actionable insights that drive strategic decision-making.

To sum it up, Microsoft Copilot is shaking up the traditional ERP scene in a big way. It’s about making technology not just work harder, but smarter and in a way that’s way more user-friendly. With its focus on making things easier for us humans, predicting our needs, and keeping the ethical side of tech in check, Copilot is paving the way for a new chapter in how businesses operate. As we all start getting on board with this tech, we’re in for a smoother, smarter, and more efficient ride. Pretty exciting times ahead!

The next article (PART 2) will address the initial steps necessary for integrating Copilot into Dynamics 365 ERP systems. It will detail the prerequisites required for installation and the activation of Copilot capabilities within finance and operations applications. This guide is intended as an overview resource for professionals looking for leveraging AI capabilities to enhance their ERP systems.

Planning Optimization Fit Analysis

PLANNING OPTIMIZATION FIT ANALYSIS

CONTENT Introduction Why Run a Fit Analysis? Key Results and Unsupported Features Parameters Not Considered by Planning Optimization Preparing for Migration Summary

Introduction

As organizations transition from the deprecated master planning engine in Dynamics 365 Finance and Operations to the modern Planning Optimization service, it is crucial to assess how well your current setup aligns with the new planning capabilities. Planning Optimization offers significant performance improvements and real-time insights, but there are differences in scope and functionality that need careful evaluation. The Planning Optimization Fit Analysis tool helps bridge this gap by identifying potential discrepancies, allowing businesses to make informed adjustments during the migration process.

In this article, we will explore:

• The purpose and benefits of running the Planning Optimization Fit Analysis
• How to execute the fit analysis in Dynamics 365
• Key differences identified between the legacy master planning engine and Planning Optimization
• Unsupported features and how to handle them

Why Run a Fit Analysis?

Fit analysis can be run by going to Master planning >> Setup >> Planning Optimization fit analysis. Migrating to Planning Optimization is not merely a system upgrade; it involves a fundamental shift in how master planning is executed. While Planning Optimization offers enhanced speed and scalability, it currently does not support all the features of the legacy master planning engine. The Fit Analysis helps identify where the results might differ, providing a clear picture of features or parameters that may require adjustments.

By running this analysis, you can:

• Detect unsupported features and plan accordingly
• Understand differences in parameter handling and planning logic
• Reduce the risk of unexpected planning results after migration

Streamline the migration process by making data-driven adjustments.

Running the Fit Analysis

To run the Planning Optimization Fit Analysis and review its findings, follow these steps:

1. Select the Company: From the navigation bar, choose the legal entity (company) for which you want to conduct the analysis.
2. Access Fit Analysis: Navigate to Master Planning > Setup > Planning Optimization Fit Analysis.
3. Run the Analysis: On the Action Pane, click Run Analysis. The system will execute the analysis and display the results.
4. Review the Results: If no discrepancies are detected, you will see a "No issues found" message. Otherwise, a list of unsupported features or parameters will be presented for review.

You should repeat this procedure for each company in your organization to ensure comprehensive coverage.

Key Results and Unsupported Features

The fit analysis results highlight features that Planning Optimization does not yet support. Below are some of the most notable unsupported features:

• Kanban Planning: Item coverage records with planned order type set to Kanban are not currently supported. Instead, the system will generate planned purchase orders, leading to potential discrepancies if Kanban is a critical component of your planning process.
• Sales Line Reservation Using Explosion: Planning Optimization does not automatically reserve sales lines during an explosion process. Manual reservations may be required to meet demand accurately.
• BOM/Formula Lines with Step Consumption: Step consumption in Bills of Materials (BOM) and formulas is not considered by Planning Optimization, which could impact production planning accuracy.

Microsoft continuously updates its roadmap, and these features may become supported in future releases. Regularly consulting the official documentation and working with your Dynamics partner can help you stay informed about upcoming changes.

Parameters Not Considered by Planning Optimization

During the fit analysis, you may also notice that certain parameters from the master planning engine are no longer used by Planning Optimization. Here are some key parameters that have been deprecated or modified:

• Forecast Plan Time Fence: Instead of using a forecast plan time fence, Planning Optimization requires creating a master plan that specifies a forecast model.
• Use Dynamic Negative Days: Planning Optimization always uses the dynamic negative days approach, making this parameter obsolete.
• Number of Threads: Planning Optimization manages performance and scaling automatically, eliminating the need for manual thread configuration.

Preparing for Migration

Based on the results of the fit analysis, you can take steps to adjust your setup and data for a smoother migration to Planning Optimization:

• Update Unsupported Parameters: Revise your master plan configurations, replacing deprecated parameters with supported alternatives.
• Review Feature Dependencies: Identify any processes heavily dependent on unsupported features, such as Kanban planning or sales line reservation, and plan for workarounds.
• Collaborate with Your Partner: Engage with your Dynamics partner to get expert guidance on feature gaps and configuration adjustments.

Conclusion

The Planning Optimization Fit Analysis is a vital tool for assessing the compatibility of your current master planning setup with the new Planning Optimization service. By proactively identifying and addressing potential issues, you can ensure a successful transition, unlock improved performance, and take full advantage of the enhanced planning capabilities in Dynamics 365 Finance and Operations.

Planning Optimization is an evolving service, and Microsoft continues to expand its functionality based on customer feedback and its product roadmap. Regularly running fit analyses and staying informed about feature updates will help you maintain a robust and efficient planning process as your organization grows.

Next Steps: Run the fit analysis for your environment, review the results, and start planning your transition today. When you activate planning optimization, fit analysis form will no longer be visible.