Microsoft Dynamics 365 is among the most popular CRM/ERP solutions on the market today. Many businesses enjoy the platform’s industry-leading reporting capabilities and its easy adaptability to multiple use cases.
Most organizations employ one of two tactics to make the MS Dynamics 365 platform work specifically for them: either configure MS Dynamics via the platform’s built-in settings and tools or customize it with the help of a professional developer. The question of Dynamics 365 customization vs. configuration requires brands to consider significant differences in needs, investments, and outcomes.
To help organizations decide which software adjustment option will work best for your teams, our comprehensive guide will cover:
- What Dynamics 365 configuration is.
- What Dynamics 365 customization is.
- How to determine which one best suits your needs.
- The optimal deployment strategy for each.
Let’s examine the differences between these two processes before breaking down exactly how they should be deployed.
What Is Dynamics 365 Configuration?
Dynamics 365 configuration involves assigning in-house teams to use built-in tools and settings to adapt the platform to your business’s needs. This option requires no programming and works best for organizations whose needs are largely met by the platform’s features.
While configuration is a much cheaper and simpler strategy for upgrading operations, it doesn’t offer firms the same degree of improvement as customization, even if they leverage the codeless toolset Microsoft created for the platform.
Is Configuration Right For My Business?
Need | Investment | Outcome |
---|---|---|
Configuration is best for firms that can use the platform to meet 95% of their needs. | Easily handled by an in-house team member with training on the platform. | Minimal improvements in feature parameters and interface. |
Configuration allows for more basic modifications, including:
- Altering user permissions to determine which employees see certain information.
- Creating reports and customizing dashboards to present your most valuable data in clear, readable formats for decision-makers.
- Configuring security settings to reinforce data security and maintain regulatory compliance.
- Creating custom workflows to improve efficiency and clarify employee responsibilities.
This isn’t a comprehensive list of Dynamics 365’s configuration and codeless toolset functions, however, it represents the most common business applications for brands that opt for configuration over customization.
If configuration provides enough of an upgrade to meet your goals, identify existing IT staff with training in Dynamics 365 to optimize your CRM/ERP operations and save money and time.
What Is Dynamics 365 Customization?
Dynamics 365 customization involves hiring a programmer to add functionality to the platform with integrations, custom apps, and custom UI changes to provide more in-depth transformations. This is the best option for businesses that need to add more comprehensive features to the platform. It requires hiring expert programmers and strategists who are familiar with MS Dynamics 365’s capabilities as well as its limitations.
Is Customization Right For My Business?
Need | Investment | Outcome |
---|---|---|
Customization is best for firms that can use the platform to meet 80-95% of their needs. | Most likely, businesses will need to pay a programmer or outsource to a custom software company to modify Dynamics 365 properly. | Substantive feature additions and integrations with apps in your current software stack can make or break Dynamics 365’s compatibility with your use case. |
Businesses should consider Dynamics 365 customization if the platform only provides between 80-95% of the features outlined in your company’s business requirements document (BRD). For more details on creating a BRD, check out our out-of-the-box vs custom development software guide. Within this range, configuration won’t be enough to create a truly effective CRM or ERP solution for your company, but customization can still provide valuable results.
Dynamics 365 Customization Options
Option | Details |
---|---|
Integrations | Custom software experts are well-versed in integrating MS Dynamics 365 with third-party apps to add features that aren’t available OOTB to make it a better fit for your business. |
Custom Apps | Dynamics 365 customization partners can create purpose-built apps for your business’s use case, providing the most custom experience possible. |
Built-in Feature Improvements | Hiring a software expert to customize Dynamics 365 allows companies to improve built-in features and add functionality via outside apps and integrations. Programmers can look under the proverbial hood of different features and apps to change parameters and simple functions that make them better suited to a given business use case. |
UI Customization | Regardless of how you extend Dynamics 365’s features, expert programmers can transform the user interface to ensure that it’s as easy as possible for your staff to use. |
Dynamics 365 Customization vs. Configuration: Which Do You Need?
If Dynamics 365 only provides 80-95% of the features your company needs, customization with a professional programmer is likely necessary to solve your problem comprehensively.
If Dynamics 365 falls below the 80% mark for essential features, however, you may be best served by considering a full custom software development, as it’s typically the most valuable and cost-effective option over time. This is because adding enough custom functionality to bridge such a large gap can cost as much as fully custom software, and then companies would still have to pay for Dynamics 365 software licenses in perpetuity, however, minus the value of your own software IP.

The Best Dynamics 365 CRM/ERP Deployment Strategy
Having an on-site staff member who understands the platform is usually sufficient for configuring MS Dynamics 365 to your specifications. When hiring IT talent, look for candidates with certifications in the most popular CRM/ERP platforms or consider asking your staff to upskill.
For customizing the MS Dynamics platform, hiring a custom software developer is your best option. Developers who only specialize in Microsoft CRM and ERP tools may not have the background necessary to create new custom apps.
Dev teams also need broader skills to tackle integrations if the function your company needs offers no easy third-party options. This is one reason many businesses end up overpaying for out-of-the-box ERP software that doesn’t perform well for their use case.
Custom software developers create purpose-built solutions so brands don’t need to rely on the marketplace. Not only will you acquire a 100% custom CRM/ERP platform built solely for your business, you’ll also have the option to change course if necessary when you partner with an expert software developer. Investing in custom CRM/ERP software means that you’ll own the tool outright, and the value of the IP will contribute to the value of your company. More importantly, it means you’ll have a purpose-driven tool built for your exact use case.
Microsoft incentivizes their Dynamics-only customization partners to keep companies committed to using 365 – even if it’s not the best fit for their needs. A custom software dev like 7T– with multiple certifications from the most popular CRM/ERP platforms – offers clients a more fully informed opinion on whether OOTB software will work for you, or if you need a custom tool.
Dynamics 365 Customization With 7T
At 7T, we use a “Business First, Technology Follows” approach to create CRM/ERP solutions for our clients across countless industries. Our custom-built platforms leverage machine learning and AI technology to deliver significant operational advantages with a robust ROI. Our team will audit your organization’s challenges, often showing up on-location to embed ourselves in your workflow to understand your needs from a first-person perspective. Then, we’ll architect a value-generating solution to transform your vital processes and meet your goals.
7T is based in Dallas, Houston, and Charlotte, NC, but our clientele spans the globe. If you’re ready to learn more about Dynamics 365 customization vs configuration, contact 7T today.