Most organisations start thinking about Dynamics 365 licences once implementation is already underway. That is usually when the first questions surface.
- How many licences do we need?
- Which licence does each person need?
- Are we paying for functionality people will never use?
Those decisions often feel like they are driven by Microsoft’s pricing. In reality, they usually come down to something much simpler. Nobody has fully agreed how the business is going to work once Dynamics 365 goes live. That is where a target operating model makes all the difference.
Before you read on: Take our free 5-minute ERP readiness assessment to spot risks early, benchmark your implementation and get practical next steps to improve delivery.
Licence costs start with people
When organisations build licence plans too early, they often make assumptions about how people will use the system. A department manager gets a full licence because it feels like the safest option. Another team all receive the same licence because they sit in the same department. Months later, people use the system very differently from what anyone expected.
Some users only need to approve requests. Others spend all day processing transactions. A few barely log in at all. Without a clear picture of who is responsible for what, it becomes very easy to buy more than you need.
Define roles before you buy licences
A good target operating model answers one simple question. Who does what once Dynamics 365 is live? That sounds obvious, but plenty of projects never stop to answer it properly. Teams focus on system design while roles stay vague. Responsibilities overlap. Old ways of working continue alongside new ones.
Once roles become clear, licence decisions become much easier. You can match access to the work people actually do instead of buying licences based on job titles or assumptions.
Small decisions add up quickly
The cost of one unnecessary licence might not seem significant. Multiply that across hundreds of users and several years, and the numbers change quickly. The opposite happens too. If someone receives a licence that limits the work they need to do, productivity suffers. Colleagues step in to help. Workarounds appear. Processes slow down. Getting licence allocation right is less about spending as little as possible and more about giving people exactly what they need to do their job well.
Your operating model shapes adoption too
There is another benefit that often gets overlooked. When roles are clearly defined, training becomes easier. Managers know what success looks like. Users understand where their responsibilities begin and end. That clarity removes a lot of the uncertainty people often feel during an ERP implementation. Instead of trying to work out which processes belong to them, teams can focus on building confidence with the tasks they actually own.
Independent advice makes better decisions
It is easy to assume licence planning sits with Microsoft or your implementation partner. They will help you understand the available options, but only your business can decide how people should work. That is why taking time to define your target operating model before making licence decisions usually pays off. You buy licences based on how your business operates, rather than trying to fit your business around the licences you have already purchased.
How BR One helps organisations reduce Dynamics 365 licence costs
We help organisations define how work will happen before decisions like licensing are locked in. We work with your teams to understand roles, responsibilities and processes, so Dynamics 365 supports the way your business actually operates. Because we are independent, our advice is based on what makes sense for your organisation, and not on selling additional licences or services. The result is a clearer operating model, better business readiness and licence costs that reflect how your teams will really use Dynamics 365.
If you are planning a Dynamics 365 implementation, or reviewing your current licensing approach, get in touch with our team for personalised advice.