How to transition a business to a modern platform?

 The story of Tallinna Kaubamaja

Tallinna Kaubamaja is renowned for its innovative solutions and a dedicated team. Specializing in retail and wholesale trade, the companies within this group represent nearly a tenth of Estonia’s entire retail market and employ over 4,700 people nationwide. 

For over a decade, OIXIO has collaborated with Tallinna Kaubamaja, building numerous success stories together. Back in 2011, we implemented the AX 2009 solution for Kaubamaja. Over the years, we have developed various interfaces – the online shop, Omniva solution, Inforegister, etc.  

As technology evolves, even robust systems have a limited lifespan. At one point, Kaubamaja faced a pivotal question: How could they transition their business to a modern platform?  

No more support for AX 2009 – moving to the cloud 

While Microsoft Dynamics AX 2009 has served Kaubamaja well, older systems inevitably reach their end-of-life.   

This has also happened with AX 2009, which is no longer supported or updated with security patches by Microsoft. So, Kaubamaja had to look for alternatives to move forward in order to transition its business to modern software that could meet all needs and be scalable and secure, so that the risks would be mitigated.  

Following an in-depth analysis, Kaubamaja decided to implement Microsoft Dynamics 365 Finance and Operations 

We started the preliminary analysis with Kaubamaja in 2020. From September 2022 to April 2023, we carried out a more in-depth analysis, based on which we selected MS Dynamics 365 Finance and Operations, one of Microsoft’s flagships and essentially the successor to AX 2009, as the new ERP solution.  

In the preliminary analysis carried out by OIXIO, we went through various alternatives, the new functions of D365 F&O and the current AX 2009 developments and analysed them with regard to D365 F&O. Also, the POS, the scanner solution and the financial solution were in focus.   

Ultimately, MS Dynamics 365 Finance and Operations was chosen, which is very similar to AX 2009 and significantly reduces the risks and costs of transitioning.   

  • Existing developments can be transferred more conveniently and employees need less training. When transferring the work already done in AX 2009, not all developments need to be rewritten from scratch.  
  • D365 F&O is a cloud-based solution that offers several advantages compared to traditional on-premise systems. IT workloads and costs will also be reduced, as Microsoft will be maintaining and managing the servers.  
  • Dynamics 365 F&O comes with the capabilities of Microsoft Azure, providing access to artificial intelligence, machine learning, data analytics, and many other tools. This opens up new opportunities to automate business processes, improve efficiency, and provide a better experience to customers.  

Transition from on-premise solution to the cloud  

One of the most significant changes for Kaubamaja was moving from an on-premise solution to a cloud-based platform. Today, most software is moving to the cloud. This is also the case with MS Dynamics 365 Finance and Operations, which also creates new capabilities, such as using Azure.  

On-premise solutions require constant maintenance and administration, and are technically more complex to implement. Also, in such a case, customers will not be able to fully benefit from all modern capabilities.  

The Dynamics 365 Finance and Operations cloud version includes regular software updates and fixes by Microsoft 8–10 times a year, which means that the solution is always up-to-date and fresh. Cloud solution licenses include server licenses, backup, ensuring the security of the solution, and scalability of computing power according to the changing needs.    

This shift also brings significant changes in equipment needs and workforce planning — no longer requiring separate servers, server software, or dedicated IT management experts. By moving to the cloud, these responsibilities are handled by Microsoft, helping to reduce IT costs across the company. 

What is the current status of the implementation process?  

We started implementing Dynamics 365 Finance and Operations in Kaubamaja Grupp at the end of 2023. Today, our collaboration is in a stage where the development phase will be over in the summer and then, we will start implementing the new solution. The transition to the new solution is planned for the beginning of 2025, and right now, we are on schedule.  

We are glad to be part of this exciting journey and provide Kaubamaja with our support every step of the way.  

The benefits of MS Dynamics 365 Finance and Operations  

Dynamics 365 Finance and Operations is an ERP solution for large companies, supporting complex manufacturing, logistics and trade processes, allowing employees to make quick and informed decisions.  

With D365 F&O, Kaubamaja gains access to the entire Microsoft cloud platform, including Azure and the Power Platform, along with AI, machine learning, data analytics, PowerApps, and more.  

Dynamics 365 Finance and Operations will also bring the following benefits:  

  • Real-time data insights 
  • Faster decision-making  
  • Intelligent integrations   
  • Built-in analytics   
  • Scalability   
  • Flexibility to adapt to business needs 

If you want to hear more about the benefits and capabilities of MS Dynamics 365 Finance and Operations, feel free to contact us.  

OIXIO Group