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Microsoft Dynamics 365 Solutions Gain Retailer Traction

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Microsoft’s (MSFT - Free Report) latest Dynamics 365 Commerce offering has been recently selected by Ste. Michelle Wine Estates — one of the notable premium wine companies in the United States.

Dynamics 365 Commerce will enable Ste. Michelle Wine Estates to provide consumers with an engaging shopping experience. Moreover, by leveraging Dynamics 365, the wine company will be able to digitally transform its business with a comprehensive omnichannel solution.

Retailers are increasingly adopting digital tools to address consumers’ evolving preferences. Moreover, retail businesses operating across different levels that include conventional brick and mortar, e-commerce as well as loyalty programs, are making management more complex.

Notably, Microsoft’s Dynamics 365 Commerce aids retailers to seamlessly manage business processes. The offering provides robust personalized strategies to enhance consumer engagement and boost sales across all operating channels. Further, the solution takes care of fulfillment processes for digital and off-line modes.

Additionally, Dynamics 365 Commerce provides robust data-driven insights, collaboration and productivity solutions to enable retail employees to deliver fulfilling customer service.

By utilizing Dynamics 365 Commerce, retailers can develop brand loyalty, improve supply-chain operations and realize robust business potential.

These factors are driving the adoption of Dynamics 365 offerings among retailers, which instills optimism in the stock. Notably, shares of Microsoft have returned 38.6% year to date compared with the industry’s rally of 31.3%.

New Updates to Dynamics 365 Favors Adoption

Microsoft is leaving no stone unturned to empower its Dynamics 365 platform with AI and ML driven capabilities to aid industries automate business processes and drive innovation.

Recently, the company unveiled new intelligent capabilities based on Azure AI and IoT expertise to its Dynamics 365 Customer Insights, Dynamics 365 Virtual Agent for Customer Service as well as Dynamics 365 Supply Chain Management solutions.

The company rolled out Dynamics 365 Connected Store to empower retail outlets to improve in-store experience with data-driven predictive insights from IoT sensors and video cameras. This will enable store managers to improve sales. Notably, Marks & Spencer (M&S) is implementing Connected Store at its flagship store in London.

Moreover, Microsoft announced general availability of Dynamics 365 Fraud Protection solution on Oct 1 to aid banks, merchants and e-commerce vendors in digitally securing payments and boost online shopping.

Microsoft’s strategy to ramp up Dynamics 365 portfolio with retail omnichannel services is expected to strengthen its presence in the digital commerce market. Per “Global Unified Commerce Forecast” research report from 451 Research, digital commerce transactions are envisioned to reach $5.8 trillion in 2022, globally. The growth projection favors Microsoft’s initiatives in this domain.

Further, companies like TruGreen, Ecolab, Majans, are utilizing Dynamics 365 that is expected to boost top-line growth. Also, the company is expected to strengthen its competitive position against peers like, SAP, Oracle (ORCL - Free Report) and Adobe (especially after Magento acquisition) in the digital commerce space.

Zacks Rank & Stocks to Consider

Microsoft carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Perficient (PRFT - Free Report) and Chegg (CHGG - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Perficient and Chegg is currently pegged at 10.75% and 30%, respectively.

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