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How did Cloud ERP increase efficiency and streamline business processes?

PMC Hydraulics Group upgraded from on-premises to cloud ERP, achieving operational and cost benefits.

Heikki Alho

Head of Microsoft Dynamics

The challenge

PMC Hydraulics Group needed to update its old Microsoft Dynamics AX R2 environment, which was at the end of its lifecycle.  At the same time, Microsoft planned to end updates of on-premises AX R2 Dynamics solutions by 10/2021. Another strong driver was a need to harmonize PMC Hydraulics Group’s numerous business-critical processes and unify its operation model across its operating countries. To achieve more efficient ERP operations and cost-efficiency, the company implemented a cloud-based ERP for more future-proof development, support and simplified maintenance.

Microsoft Dynamics Products ending support in 2021 Microsoft Dynamics Products ending support 2023

The solution

TietoEVRY’s multi-national expert team delivered a turnkey project to update on-premises ERP to Microsoft Dynamics 365 F&O cloud-based ERP. The positive results demonstrate that cloud transformation can be achieved rapidly with a standard approach through minimal changes and without great disruption to ongoing business operations.

Microsoft Dynamics 365 services

About the customer

PMC Hydraulics Group is a Nordic leader of innovative hydraulic systems and components for the industrial, energy, mobile and marine sectors. With operations in the Nordics, Baltic countries, Poland, China and India, PMC Hydraulics offers the world’s leading solutions for high-end systems and a full line of hydraulic components from leading manufacturers.

PMC Hydraulics
Cloud-based solution that supports full ERP functionality covering production, warehousing, logistics, sales, purchasing and financial operations.

Fully functional cloud-based ERP

Cloud-based solution that supports full ERP functionality covering production, warehousing, logistics, sales, purchasing and financial operations.

A global, cloud-based ERP enables the unification of business-critical processes across multi-country operations.

Unifying critical processes

A global, cloud-based ERP enables the unification of business-critical processes across multi-country operations.

Cloud-based D365 F&O and the Microsoft update processes ensure that the ERP is always up to date with the latest features. The possibility of automated testing streamlines operations further.

Always the latest features

Cloud-based D365 F&O and the Microsoft update processes ensure that the ERP is always up to date with the latest features. The possibility of automated testing streamlines operations further.

A shared operating model powered by cloud-based ERP

It was the strategic decision of PMC Hydraulics Group to use a planned update project as a chance to move from a country-specific ERP (Enterprise Resource Planning) setup to a more unified group-wide ERP solution. Thus, the ERP renewal was devised to harmonize the operating model and use ERP features the same way throughout PMC operations.

The cloud-based ERP has enabled us to move to a common operating model in several of our operating countries.

Anders Bäckman

CIO at PMC Hydraulics Group

Furthermore, PMC’s current on-premises Microsoft Dynamics ERP was nearing the end of its lifecycle, with improvements and updates to the solution requiring cost increases. Thus, this was a great opportunity for a full ERP renewal and cloud transformation at the same time.

PMC embraced the challenge, embarking on a cloud transformation by transitioning their on-site Microsoft Dynamics-based ERP to cloud-based ERP. After successful co-operation in Denmark, PMC chose TietoEVRY as its ERP delivery partner for the planned cloud transformation journey.

“In choosing the right partner for us, we also highly valued TietoEVRY’s capability to understand our situation and starting point, as well as factoring in the level of our internal competence. Without a mutual understanding, there is a high risk of differing expectations hampering the project and end-result quality”, says Anders Bäckman, CIO at PMC Hydraulics Group.

Cloud-transformation is now more relevant than ever for Microsoft Dynamics on-premises users, as Microsoft will stop updating and eventually supporting the old on-premises version during the transition period between 2021 and 2023, with some updates stopping after October 2021 altogether.

I have never before seen such a well-working multi-national expert team on an ERP project.

Anders Bäckman

CIO at PMC Hydraulics

Delivering full cloud-based ERP

TietoEVRY advised on and ultimately delivered the cloud-based Microsoft Dynamics 365 ERP solution. The project covered cloud transformation assessment, project delivery and implementation in four of PMC Hydraulics’ operating countries.

This total ERP delivery enhanced functionalities covering the broad spectrum of PMC’s operations in production, warehousing, logistics, sales, purchasing, finance and even project management to some extent.

The 7-month project was not just an implementation of a new cloud-based ERP, but also an opportunity for PMC to harmonize its operation model. Previously, different operating models and ERP solutions were used in different countries, but the project ushered in a common operating model for the whole PMC Group.

The cloud solution was implemented with a focus on using standard functionality to ensure easier automatic updatability. By making fewer than 20 changes in the entire delivery scope, TietoEVRY complemented PMC’s needs, assuring cost-efficient development, support and maintenance going forward.

TietoEVRY’s multi-national expert team combined both deep cloud expertise and a broad understanding of PMC’s business needs. This project is a “best practices” example of using DevOps to deliver a standard cloud solution smoothly and promptly, all the way across the analysis, design, development and implementation phases.

The cloud version of D365 is upgraded numerous times each year, with little to no disruption to on-going operations. This means that cloud customers always have the latest features at their disposal. While these updates still require testing, in PMC’s case, automated testing will further simplify this process.

Cloud D365 has proven to be a great choice for us in harmonizing our processes and reaching cost and operational benefits.

Anders Bäckman

CIO at PMC Hydraulics

Improving business speed and agility

This successful project showcases that transformation from on-premises ERP to cloud-based ERP is achievable with great results and little to no interference with on-going business operations. After the renewal project, the co-operation continued, with TietoEVRY offering continuous support for PMC. Overall, PMC has been very satisfied with the co-operation.

For PMC Hydraulics, the move to cloud-based Microsoft Dynamics 365 ERP has offered greater stability and reliability. Also, the user experience has improved thanks to the easy, browser-based user interface.

“The cloud ensures that we do not get left behind in development. We always have the latest features at our disposal. Many business-critical features were available out-of-the-box in the cloud. Our old on-premises ERP generally required separate add-on programs to fulfil the needs”, Bäckman continues.

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