Dynamics 365 Consulting: Technical and Functional. What is the Difference?

We will explain the main differences between Technical and Functional Dynamics 365 Consultants, describe how they collaborate on Dynamics 365 projects, and outline their responsibilities, related Microsoft certifications, and the reasons to address these specialists.

Roman is an experienced, Microsoft-certified Dynamics 365 Architect delivering projects across multiple industries and business domains. His background allows him to design scalable, secure, and future-ready solutions.

These days, implementing Microsoft technologies is no longer just an IT initiative, but a full-scale business transformation effort. Businesses operate under tighter budgets, stricter security and compliance requirements, faster delivery expectations, and deeper reliance on the Microsoft cloud ecosystem.

In recent years, Dynamics 365 has evolved significantly, including:

• Deep integration with Microsoft Power Platform
• Native Copilot and AI capabilities
• Stronger alignment with Microsoft Azure, Microsoft Fabric, and Microsoft Dataverse
• Increased governance and security expectations

As a result, legacy approaches based on heavy custom code, isolated implementations, or weak governance models now carry significant risk.

That is why we offer a specialized Dynamics 365 audit service to help businesses adapt quickly and confidently to modern requirements.

Dynamics 365 consulting goes beyond configuration and customization.

Dynamics 365 Consultants are expected to:

• Design cloud-native scalable architecture
• Understand and correctly set up such Dynamics 365 modules as Sales, Customer Service, Field Service, Marketing, etc.
• Balance out-of-the-box functionality with customization
• Align Dynamics 365 with business processes and data strategy
• Establish security, compliance, and governance from the start
• Integrate the solution with the Microsoft ecosystem (Power Platform, Azure, Dataverse, etc.)
• Prepare solutions for automation, AI, and advanced analytics
• Migrate from the old legacy system to Dynamics 365
• Set up advanced reporting and data analytics

Dynamics 365 may not be a good fit when:

• Heavy custom CRM or ERP logic is required outside the Microsoft ecosystem
• Cloud governance and security standards are not accepted
• The company resists process change
• There are less then 15 users
• Implementation and licensing costs may outweigh value
• Company’s needs are basic, “too easy” and don’t require advanced logic, customization and reporting

Most projects involve two core roles:

• Functional Consultants
• Technical Consultants

Functional Consultants focus on aligning business processes with standard Dynamics 365 and Power Platform capabilities.

They have strong expertise in business operations, industry standards, and the features of Dynamics 365. They serve as the link between organizational requirements and technical implementation. Functional Dynamics 365 consulting centers on business processes, ensuring that Dynamics 365 is configured and utilized to maximize efficiency and improve productivity.

Their main responsibilities are the following:

• Business process analysis (AS-IS / TO-BE)
• Requirements prioritization
• Process optimization and further automation
• Solution design
• User adoption and training
• Change management
• Acceptance testing and rollout support

Common client requests may look like these:

• Replicating their legacy system one-to-one
• Process optimization
• Basic Dynamics 365 CRM and ERP setting up and configuration
• AI features implementation
• Aligning KPIs with their specific business goals

They collaborate with stakeholders from various departments to gather requirements, pinpoint improvement opportunities, and develop solutions that support overall business goals.

! Note. Strong Functional Consultants protect solutions from unnecessary complexity and cost.

Book a consultation call with our expert Functional Dynamics 365 Consultant.

Technical Consultants focus on architecture, integrations, extensibility, automation, and operational stability, using a low-code-first approach.

Technical Dynamics 365 consulting concentrates on the platform’s technical components and tailoring it to address specific business requirements. Their primary objectives are to ensure seamless system performance, enable data integration with other applications, and build custom features when out-of-the-box solutions are insufficient.

Their typical responsibilities include the following:

• Dynamics 365 system architecture design and implementation 
• Dynamics 365 applications configuration and customization 
• Custom features and system enhancements development 
• Building and maintaining plugins, workflows, Power Automate flows, and APIs 
• Dynamics 365 with Microsoft and third-party systems integration 
• Data migration, transformation, and upgrades management 
• Issues troubleshooting 
• System support providing 
• Code reviews conducting 
• The best practices application 
• Performance optimization 
• Improvement recommending 
• Microsoft updates monitoring 
• Technical documentation preparation 

Popular customer requests may look like these:

• Setting up numerous integrations 
• Performance optimization 
• Business logic automation 
• Data cleaning and migration 

Technical Consultants collaborate closely with decision-makers and managers, IT teams, and developers to configure and adapt Dynamics 365 to meet a company's distinct needs.

Besides, they collaborate with Functional Consultants to translate business requirements into technical solutions.

Consult with our expert Technical Dynamics 365 Consultant.

Successful projects rely on strong collaboration and clear communication between Dynamics 365 Technical and Functional Consultants. By combining their specialized expertise, they deliver a complete, well-integrated solution. Taking a balanced approach that addresses both technical and functional dimensions is essential for businesses seeking the best possible outcomes.

However, every project has its own characteristics. Depending on the project’s scale, scope, and specific business requirements, each company may require only one type of Consultant: a Technical, Functional, or Functional-Technical Consultant.

The key difference lies in what each role optimizes:

• Functional Consultants optimize business processes, user experience, and adoption.
• Technical Consultants optimize reliability, security, scalability, and integration.

An individual may have both technical and functional consulting expertise, enabling them to serve as a hybrid professional capable of managing all aspects of a Dynamics 365 project. These professionals are commonly referred to as Technical-functional Consultants or Solution Architects. They possess comprehensive knowledge of both the technical framework of the Dynamics 365 platform, and the business processes it is designed to support. So, they focus on overall solution design.

Such Consultants can engage effectively with stakeholders, collect and analyze business requirements, design appropriate solutions, configure the system, and implement technical customizations and integrations. This blended skill set allows them to deliver end-to-end consulting services and provide a well-rounded perspective on Dynamics 365 initiatives.

By connecting technical decisions with strategic objectives, they contribute to efficient deployments, improved workflows, and optimized use of Dynamics 365.

However, since expertise levels differ among professionals, it is important to assess their qualifications and experience to confirm proficiency in both functional and technical areas.

Solution Architects are the most effective in the following:

• On large-sized projects with 500+ system users   
• On multi-module, multi-country and multi-entity global rollouts 
• When a company redesigns its core processes and implements numerous integrations 
• During early discovery and architecture phases 
• When long-term and strategic, end-to-end decisions are required 

Microsoft certifications help validate a Consultant’s ability to implement and scale Microsoft software effectively.

Functional Consultant certifications

The key certifications that focus on configuring, implementing, and optimizing Dynamics 365 applications to support business processes include the following:

• Dynamics 365 Customer Experience Analyst Associate (replaced Dynamics 365 Sales Functional Consultant, Dynamics 365 Marketing, and CRM Fundamentals certifications) 
• Dynamics 365 Customer Service Functional Consultant Associate 
• Dynamics 365 Field Service Functional Consultant Associate 
• Dynamics 365 Business Central Functional Consultant Associate 
• Dynamics 365 Finance Functional Consultant Associate 
• Dynamics 365 Supply Chain Management Functional Consultant Associate 
• Power Platform Functional Consultant (PL-200) 
• Power BI Data Analyst Associate 
• Azure Fundamentals 
• AI Business Professional 

Functional certifications validate skills in gathering, process analysis, solution configuration, and user training.

Technical Consultant and Developer certifications

These certifications are designed for professionals who customize, extend, and integrate Dynamics 365 solutions:

• Dynamics 365 Developer Associate 
• Dynamics 365 Customer Experience Analyst Associate 
• Dynamics 365 Business Central Developer Associate 
• Power Platform Developer Associate 
• Power Platform Solution Architect Expert 
• Power Automate RPA Developer Associate 
• Azure Developer Associate 
• Azure DevOps Engineer Expert 
• Data Analyst Associate 

They confirm expertise in development, integrations, system architecture, APIs, and performance optimization.

Solution Architect Certification

• Dynamics 365 Solution Architect Expert 
• Power Platform Solution Architect Expert 
• Azure Solutions Architect Expert 
• Agentic AI Business Solutions Architect

These certifications are intended for professionals who design end-to-end solutions, align technical architecture with business requirements, and perform complex implementations.

Microsoft certifications:

• Demonstrate verified expertise 
• Increase professional credibility 
• Ensure best practices in implementation 

For Dynamics 365 Consultants, certifications not only validate technical or functional skills but also show a commitment to staying current with evolving Microsoft technologies.

! Note. Certifications alone are not sufficient, but they indicate structured knowledge and commitment to staying current as the platform evolves.

Choosing the right Dynamics 365 Consultant is vital to achieving successful results. It is important to engage a professional whose expertise aligns with the project's specific needs. While evaluating potential consulting partners, companies should consider the Consultant’s knowledge and experience, successful implementations, and ability to collaborate effectively with internal teams.

Dynamics 365 consulting today is about making deliberate trade-offs rather than building everything that is technically possible.

Successful implementations rely on the following:

• Standard-first design 
• Clear separation and collaboration between functional and technical roles 
• Modern cloud architecture 
• Strong governance, security, and scalability 

When approached correctly, Dynamics 365 becomes a long-term business platform rather than a short-term system replacement.

Explore our Dynamics 365 Consulting Services to learn more about consulting opportunities.

Contact us and send your request to get professional assistance from our UDS Systems specialists.

1. What do Dynamics 365 consulting services actually cover in today’s projects?

   Modern Dynamics 365 consulting services go far beyond basic setup or simple customization. Today’s Dynamics 365 consulting engagements typically include solution design, advanced Dynamics 365 architecture, system integrations with Azure and Power Platform, security and governance frameworks, DevOps and ALM strategy, and long-term scalability planning.

   Whether companies hire a Technical Dynamics 365 Consultant for integration and customization or hire a Functional Dynamics 365 Consultant to structure business processes, the goals remain the same: ensure the platform drives measurable business transformation rather than just technical deployment.

2. How do Microsoft Dynamics 365 Consultants support successful implementation?

   Experienced Microsoft Dynamics 365 Consultants guide companies through the full Dynamics 365 implementation lifecycle, from discovery and requirements analysis to solution design, deployment, and user adoption.

   Strong Dynamics 365 architecture is the foundation of a scalable, secure, and maintainable system. Poor architectural decisions during Dynamics 365 implementation often result in performance bottlenecks, expensive rework, and limited flexibility for future enhancements.

   Ultimately, engaging experienced Microsoft Dynamics 365 Consultants early in the project lifecycle ensures your implementation remains future-ready and aligned with evolving business needs.

   For customer engagement projects, a Dynamics 365 CRM implementation Consultant plays a crucial role in configuring sales, marketing, and customer service modules to maximize ROI and adoption.

3. What are the most important Dynamics 365 best practices in 2026?

   Leading Dynamics 365 consulting services providers recommend the following Dynamics 365 best practices:

   • Establishing governance and security frameworks early
   • Investing in scalable Dynamics 365 architecture
   • Leveraging Azure and Power Platform integrations
   • Automating release
   • Patch management
   • Prioritizing data quality

• Dynamics 365 Field Service: a Complete Guide 2026 | UDS Blog
• Dynamics 365 Sales: a Complete Guide 2025 | UDS Blog
• Dynamics 365 Customer Service: a Complete Guide 2025 | UDS Blog