Category: Dynamics 365/AX

Final consultations for e-Invoices (KSeF)

Post author By Maksymilian Śniegocki
Post date November 8, 2024

Spis treści

What solutions does the Ministry propose?
Key Changes in KSeF
New e-Invoice Structures – what and when.

What solutions does the Ministry propose?

The Ministry of Finance has announced the launch of final consultations on implementing the mandatory National e-Invoice System (KSeF). The draft’s work considers the specifics reported by Local Government Units (LGUs) and entrepreneurs’ demands. Comments on the draft law can be submitted until November 19, while business solutions can be submitted until November 22.

Key Changes in KSeF

Phased Implementation of KSeF:

Transition Period:

Support for the “digitally excluded”:

New e-Invoice Structures - what and when.

The proposed changes also apply to the structure of e-invoices. The modifications are expected to streamline the process of marking up TSU invoices, allow the addition of attachments, and introduce a new “employee” role. The latest FA (3) and FA_RR (1) structure will be effective from 2026, with the final version to be implemented before the mandatory KSeF.

This consultation is a crucial step to ensure the quality of solutions before the system is implemented.

Get ready for KSeF!

Check out the solution for KSeF from INLOGICA for Microsoft Dynamics 365/AX systems.

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Microsoft Licenses – Learn about cost differences – which model wins? Subscriptions or perpetual usufruct?

Post author By Maksymilian Śniegocki
Post date October 15, 2024

Table of contents

Business Central license fees
Advantages of subscription
A cost that won’t hit your wallet? See for yourself

In our previous article: Microsoft Licenses – Subscriptions or perpetual usufruct? Which option is better for your business we examined the strengths and weaknesses of both licensing models, providing a comprehensive comparison. Below is a detailed overview of the costs for these options.

Business Central license fees

The example illustrates a 5-year cost projection for a company using Business Central with 20 users. We calculated licensing expenses over this period to provide a clear understanding of the financial aspects associated with each licensing approach.

A comparison of licensing models often shows significant differences in cost structure, especially over the long term. The chart shows how the two models evolve in terms of cost.

The subscription model appears more cost-effective at the outset, with lower start-up costs, making it an attractive solution for companies that want to implement a system quickly without incurring a large one-time outlay.

In the holding model (perpetual license), the company must initially pay a larger sum to purchase the software. However, after a certain period, it no longer incurs regular licensing costs. The chart shows that in the long run, subscription costs start to equal the price of a one-time purchase, and after a certain point, the subscription may become slightly more expensive.

Advantages of subscription

However, it is worth noting that a subscription offers:

The subscription model is undoubtedly a better option for companies needing flexibility and regular updates. Unlike a one-time license, a subscription allows you to adapt the system to your company’s changing needs. The ability to spread the cost over smaller, regular payments makes the subscription model more affordable and flexible, especially for companies with changing needs and limited IT investment budgets.

Choosing the two models ultimately depends on a company’s needs, development plans, and budget. However, for rapidly growing companies, the subscription model offers greater flexibility and the ability to continuously adapt the system to new business conditions, making it a more attractive option.

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Microsoft Licenses – Subscriptions or perpetual usufruct? Which option is better for your business?

Post author By Maksymilian Śniegocki
Post date October 15, 2024

Table of contents

Available licensing models
Read a comparison of the advantages and disadvantages of the available licensing models-shortcut
ADVANTAGES of using subscription licensing- details
DISADVANTAGES of using perpetual licensing- details
Further doubts? See which industries are successfully using the subscription model.

If you’ve ever wondered whether it’s more cost-effective to subscribe to Microsoft products monthly or to purchase a license on a one-time basis, here’s a detailed analysis of both options. We examine the costs associated with acquiring and maintaining a license to help you make an informed decision.

Available licensing models

Perpetual Licensing or On-premises.

We offer perpetual licenses. The cost includes the license price multiplied by the number of users, the cost of dedicated modules, and an annual subscription of 18% of the license value, known as the Enhancement Plan. The customer has the option of using its own infrastructure or an additional paid cloud computing service.
Subscription Licensing

The offer is based on recurring fees depending on the number of users, quickly allowing you to adjust the number of users according to your needs. The infrastructure can be based on customer or cloud resources, with the environment managed by a partner. For example, the Business Central system distinguishes between users: total users and team members, offering free licenses for the system administrator and an external accountant.

Read a comparison of the advantages and disadvantages of the available licensing models-shortcut

ADVANTAGES of using subscription licensing- details

The choice of subscription licensing presents itself as significantly more advantageous for several vital reasons that make this model attractive to modern enterprises. Below are the arguments for choosing a subscription:

Flexibility and scalability: Subscription licensing allows companies to easily adjust the number of licenses to meet current needs. By arbitrarily increasing or decreasing the number of users each month, companies can effectively manage costs to suit the current situation and project requirements.
No significant initial investment: Unlike perpetual licenses, the subscription model does not require a substantial initial investment. Smaller, regular monthly fees are more affordable for a company's budget, making the technology more accessible, especially for smaller companies.
Constant updates and innovation: Subscriptions guarantee access to the latest software versions and updates, which is crucial in a rapidly changing technology environment. Companies using the subscription model are assured that their software is always up to date, which helps maintain high operational efficiency and data security.
Access to support and service: Subscribers are often provided with technical support and access to additional resources and tools that can help maximize software performance. Regular technical support and consultation can significantly reduce the risk of downtime and other operational problems.
Cost predictability: Regular monthly payments make budgeting and controlling expenses easier. Companies can forecast future IT costs more accurately, making it easier to manage finances and avoid unexpected expenses.
Response to changing business needs: The subscription model allows rapid adaptation to changing business and technology requirements. Companies can quickly introduce new technologies and services, promoting innovation and market competitiveness.

In an era of digital transformation, where technology is evolving rapidly, and flexibility and adaptation to change are becoming critical to business success, subscription licensing offers companies significant advantages. Subscriptions are a forward-thinking and strategic investment for any business, providing ease of customization, reduced upfront costs, and ongoing access to the latest technology and support.

DISADVANTAGES of using perpetual licensing- details

While perpetual licensing may seem like an attractive option due to its one-time payment and permanent right to use the software, several disadvantages can make this model less beneficial for today’s businesses:

High upfront costs: perpetual licensing requires a significant one-time investment, which can burden the budget, especially for small and medium-sized enterprises. Significant upfront expenses can limit a company's liquidity in the short term.
Lack of flexibility: This model needs to make adjusting the number of licenses easier to meet changing business needs. Reducing the number of users does not translate into lower costs, making the model less flexible than subscriptions.
Additional maintenance costs: To benefit from software updates and technical support, companies often must pay for additional plans, such as the annual Enhancement Plan, which generates further costs.
Risk of technological obsolescence: software purchased on a perpetual license basis can quickly become obsolete if a company does not continue to buy upgrades. This means that the investment may lose value, and the company may find it challenging to remain competitive.
Complexity of license management: Managing perpetual licenses, especially in large organizations with diverse software, can be complicated and time-consuming. Companies must keep track of which software versions are being used and their support and upgrade dates.
Lack of access to the latest technology: without continuous updates, perpetual license users may not have access to the latest features, tools, and security enhancements, which is standard with the subscription model.
Difficult to budget for the long term: while a one-time cost may seem beneficial in the short term, long-term maintenance, upgrade, and support costs can be challenging to predict and can significantly increase the total cost of software ownership.

These limitations can make perpetual licensing less attractive to companies seeking solutions that enable them to adapt and innovate quickly, given rapid technological change and a dynamic business environment.

Further doubts? See which industries are successfully using the subscription model.

The modern business world is leaning toward payment models based on regular monthly fees. Such a payment model has many benefits, such as continuous product improvements, regular updates, and the ability to customize the product based on customer feedback and experience.

Product subscriptions: Examples include subscriptions for cosmetics (e.g., Birchbox) or food (e.g., HelloFresh), which deliver monthly packages of products directly to the customer.
Amazon Prime: A subscription model that offers faster delivery and access to streaming services.
Allegro Smart!: A subscription service offering free delivery and other benefits to users.
Hebe Drugstore: Subscriptions for packages of cosmetics.

The subscription model provides numerous benefits, including flexibility, scalability, lower upfront costs, predictable monthly payments, constant access to the latest updates, improved customer service, better cash flow management, access to a broader range of features, the ability to cancel or adjust the service at any time, and easy integration with other services.

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What are the types of ERP systems?

Post author By Maksymilian Śniegocki
Post date February 1, 2024
No Comments on What are the types of ERP systems?

Table of contents

What criteria should you consider when choosing an ERP system?
What are user opinions on various ERP systems?
What are the costs of implementing and maintaining an ERP system?

ERP (Enterprise Resource Planning) systems are crucial for effective business management. They allow different business processes and departments to be integrated into one cohesive environment, helping to streamline operations and make better decisions. There are many types of ERP systems, each of which can be tailored to the specific needs and size of the enterprise.

In this article, we will focus mainly on two types of ERP systems from Microsoft: Microsoft Dynamics 365 and Microsoft Dynamics Business Central.

Microsoft Dynamics 365 is an advanced ERP system that offers a comprehensive range of tools and features that can be customized for different industries and business needs. This flexible ERP software allows you to manage many aspects of your business, such as sales, customer service, project management, marketing, finance, and more. With online and cloud access, Microsoft Dynamics 365 allows employees to access data from any location and device, making it much easier to manage your business.

Microsoft Dynamics Business Central is an ERP system for small and medium-sized businesses. It is a financial, sales, purchasing, inventory, and production management solution that integrates with other Microsoft applications such as Microsoft 365 – Word, Excel, Outlook, and Teams. Dynamics Business Central provides tools to streamline business operations and helps make data-driven decisions.

What criteria should you consider when choosing an ERP system?

In the context of Microsoft ERP systems, namely Microsoft Dynamics 365 and Microsoft Dynamics Business Central, several criteria are worth considering when choosing the right solution. Here are the main aspects to pay attention to:

the first criterion in selecting an ERP system is its functional scope. ERP software must meet the unique needs of the company. Microsoft ERP systems offer many functions, including sales, marketing, customer service, finance, and operations management,
it is essential that the ERP system grows with the business. Both Dynamics 365 and Business Central enable scalable solutions, which means they can be adapted to the changing needs of the organization,
the ERP system must be able to connect with other existing systems in the company. In the case of Microsoft Dynamics solutions, they can be easily integrated with other Microsoft products, such as Microsoft 365 or Microsoft Azure,
Microsoft Dynamics offers a cloud-based option, which means you can access the system from anywhere, which is especially important in today's remote working environment,
Microsoft is known for regular updates and technical support. The ERP system is easy to implement but also provides continuity of service and comes with new features,
it is helpful to understand the total cost of implementing and maintaining an ERP system. Microsoft Dynamics 365 and Business Central have different pricing models, so it's essential to choose the model that best fits your business budget,
some industries require specialized ERP modules. Microsoft Dynamics offers several industry-specific applications that can make it easier to customize the system to meet specific needs,
data security and compliance are essential in an increasingly stringent data protection regulation era. Microsoft products are compliant with the latest regulations.
pay attention to reviews of other companies using these systems and check with the vendor to see what references it can provide,
finally, a key factor is the availability of training and technical support. Companies should ensure adequate support when implementing and using the system.

What are user opinions on various ERP systems?

User opinions on available ERP systems vary and depend on industry, company size, and individual needs. However, the differences in user opinions on ERP systems are mainly due to respective companies’ unique needs and expectations. Some users may be satisfied with the features and performance of Microsoft Dynamics Business Central, while others may prefer the features offered by the more extensive Microsoft Dynamics 365 ERP system.

ERP systems are highly valued for their ability to increase productivity and streamline operations. However, choosing the right ERP system depends on a company’s needs, budget, and growth strategy. Therefore, please carefully review the available options before deciding and consulting with ERP experts.

What are the costs of implementing and maintaining an ERP system?

Implementing and maintaining an ERP system is integral to many companies’ business strategy. However, before deciding to implement such a system, you must familiarize yourself with the implementation costs.

Implementation costs

purchasing a license for an ERP system such as Microsoft Dynamics 365 or Business Central is one of the most significant investments. Costs can vary depending on the system and type of license,
ERP system implementation requires advanced knowledge and experience. Hiring a consultant or company specializing in implementing ERP systems is essential. Consulting costs include salaries and possible travel expenses,
companies often need to customize their ERP systems to meet their unique needs. This may require the development of custom modules and incur additional costs for,
employee training.

Maintenance costs

regular payment of ERP software license fees. These fees can be monthly or annual, depending on the option chosen,
technical support from the ERP software vendor,
the ERP system is constantly being developed and updated. Companies should invest in system upgrades and expansions as their business grows,
for on-premises systems, companies incur costs related to servers, hardware, and secure IT infrastructure.

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Letting go of documentation – Mistake 7 – ERP D365 implementations

Post author By Maksymilian Śniegocki
Post date January 4, 2024
No Comments on Letting go of documentation – Mistake 7 – ERP D365 implementations

7
Letting go of documentation

Regardless of the industry or project, you often hear, “Do you have it on email?”

And no wonder. This is essential in any job where we rely on other people’s decisions, especially when money and the time input of an entire team of specialists.

Usually, the obstacle to writing down the arrangements after business, working, and summary meetings is the need for more time. Structures “by word of mouth” prevail. Mutual trust is essential, but there are aspects where you should act according to the principle of limited faith on the road. It is better to be wise before any harm is done and document all project arrangements.

This way, we will avoid misunderstandings, and the work will go according to the previous record. Each time, we can change the record or update the status or scope of tasks.

We know the unwritten rule that a working system is more important than detailed documentation. However, we prefer not to risk “in-your-face” arrangements.

Let’s strive to define acceptance criteria for the task or at least establish a definition of task completion.

Otherwise, we may get something we no longer need, didn’t order in the first place, or not get what we wanted.

An efficient implementation is characterized by design flexibility. However, it is essential to record a common understanding of the purpose and scope of the performance in the contract or other project document. And the so-called “word-of-mouth” arrangements are better documented as a summary in an email or other established communication tool. This will save time and money as a result.

Hiding behind the lack of time to write a summary email is incomprehensible because, in practice, it often does not take more than a quarter of an hour and costs as much as nothing (although de facto, it does cost – and must be part of the recorded work effort in the project).

Thanks to the documentation, we have the assumptions written down in case of a misunderstanding, error, or simply “screwing things up” during implementation. In case of contentious issues, both on the part of the client and the implementation team, there will be something to refer to. Common sense in such a situation often avoids nerves and rising costs. It is worth having everything “in black and white.”

Top tips

Invest time in documenting your assumptions business.
Use process maps, graphics, and diagrams where possible.
Consider the preparation of documentation for end users - it will be helpful when introducing new employees.
Include time and budget for drafting documentation in the work schedule.

This is the last publication. If you want to download them all as a free ebook check out the link.

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Overestimated budget – Mistake 6 – ERP D365 implementations

Post author By Maksymilian Śniegocki
Post date December 28, 2023
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6
Overestimated budget

At this point, it is again worth recalling the framework schedule. Estimating the implementation is one of the primary activities that must be performed before any work begins.

To begin with, you need to verify the need for a particular solution in your company. Do you think it’s necessary? Is there a budget to implement an ERP solution in the organization? This is extremely important for the start of the work and the success of the entire implementation. Budgets and cost estimates have it that they often do not want to “pin down” at the final stage. There are always unforeseen expenses that should be included in the tables. And it’s hardly surprising – that’s why they are unpredictable. Hence the need to set up a budget “on top.”

In our experience, the buffer should be 10 – 20% of the value of the original assumptions.

Therefore, everything must be calculated carefully and then scaled again to the needs of a given company/plant/enterprise.

It is worth asking ourselves a fundamental question: can we afford it, will this investment bring us the expected benefits (not only purely financial ones).

As they say: budget is not made of rubber, and nerves are not made of steel.

Top tips

Stick to the plan or consciously make changes - you will avoid uncontrolled budget expansion
Park - create a list of all exciting improvement ideas and include them in the framework schedule or move them to the end of the implementation work queue - this way, you can maintain the pace of implementation and come back to them when the most critical work is completed.
Read the reports - the contractor should make the information available anytime.
Be proactive - ask questions, involve your team in work, and find time for testing - these activities will reduce costs and improve understanding and control of the budget.

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Confidence shaken – Mistake 5 – ERP D365 implementations

Post author By Maksymilian Śniegocki
Post date December 21, 2023
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5
Confidence shaken

Any cooperation is based on relationships. Often of various types: business, partnership, courteous, social, and collegial. It tends to be, that one of the evoked is involved, and it happens that all of them are together.

Either way, the basis of fruitful cooperation on the customer-implementation company line is “good relations.” “Chemistry” is expected, ideally when “something sparks” between the Customer and the contractor. Because when there is good cooperation, the best results are worked out. This is a truism – a fact. But it still works.

Good relations are built not only on trust but also on mutual respect.

Respect for one’s and others’ work makes it possible to avoid misunderstanding. And if this is accompanied by an elementary knowledge of the scope of work of a programmer, then the job “goes like butter.” Then we will not hear comments like: “adding one column to a table, after all, cannot take a good programmer of more than 15 minutes” etc., etc.

Building friendly relationships is helped by proven and good practices in communication:

it is always worth speaking clearly and directly
it’s not worth “wrap out”; there is no point in diluting the message
it is best to appreciate the whole team’s work to ensure the message is complete
it is necessary to keep the given promises
and, above all, respect each other’s time spent and the job done

Two parties must trust each other. Maybe not boundless, but at a decent level.

Both the client and the implementation contractor know their job, do it professionally, so it is enough to let the specialists quietly work, and sometimes try not to disturb them. Each stage they finish, they will certainly discuss with the client, i.e., with the people appointed to do so.

The partnership allows for free and clear communication of the status of the work. Lack of agreement and understanding affect the time implementation deteriorates the friendly atmosphere cooperation.

It is impossible to implement a program – especially with such a complex system – anything in 15 minutes. The work consists of various activities. In addition to pure programming there are hours of testing, consulting, and documentation…

People and relationships/interactions matter more in the work of implementation teams/companies than processes and systems. This is because people from both business sides implement strategies and techniques.

If there is no agreement between them, problems can arise during implementation.

Cooperation always starts with mutual understanding and trust.

Top tips

Talk and listen. That's all it takes.

We know that your company is probably not in the business of implementing IT systems - which is why you have started or are planning to work with implementation professionals. You can use their experience, tips, and recommendations. They, too, want the implementation to be successful and the path to it to be as safe and easy as possible.

Be bold and ask questions. It would be best if you concluded that you understand each other's expectations and business goals of the cooperation. Every challenge can be discussed frankly so that lessons learned from this conversation can improve collaboration.

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Arbitrary decision making – Mistake 4 – ERP D365 implementations

Post author By Maksymilian Śniegocki
Post date December 14, 2023
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4
Arbitary decision making

The echo of this “error” has already appeared in the points above. And as in the earlier descriptions, it is worth recalling what is at the heart of the implementation, that is a framework schedule.

When we plan the functionalities, we want to implement, we need to define them together with representatives of all departments having contacting and working with the tool in question.

Ideally, this “brainstorming” should involve team/department managers participate. However, before this happens, managers should know the potential expectations and possible problems “their people.”

Before they take part in the brainstorming, it would be good for them to know how they can improve the work in their teams and what they should obtain at the end.

Such an “internal communication path” is critical and essential for another reason. The idea is that everyone on the team has the same state of knowledge about the implementation.

The team leader communicates to the others the key findings. So that there is no uncomfortable situation of someone making an arbitrary decision that no one else knows about. Such an action may result in complications in implementation, additional unnecessary costs, and sometimes nervous movements or even unpleasant consequences.

The internal circulation of information helps keep the course of the performance according to the established schedule without unforeseen deviations.

Top tips

Determine together with the contractor the managers project or decision-making committee composition.
Establish at the schedule level the priorities and the order in which individual work is to be completed.
Empower your team - give your team members the authority to make decisions about the final shape and operation of of individual functionalities affecting on their daily work.
Don't allow poll voting - agree with the contractor on how and who is authorized to make the final decisions.

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Over-creativity – Mistake 3 – ERP D365 implementations

Post author By Maksymilian Śniegocki
Post date December 7, 2023
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3
Over-creativity (so-called whims)

Before starting the implementation process, it is worthwhile – and even necessary – to learn about the capabilities and application of a modern ERP system. Will it be helpful, and to what extent is the company ready for it, is this “the moment” for such an investment?

The answers to the questions posed may bring a pre-implementation analysis or constructive consultation with specialists from implementation company.

If the decision is “yes,” the next step is a discussion of the needed functionalities.

Why? Because one of the main mistakes, and thus, the brakes on implementation are “whims” that arise in the course: – “and it used to work like this…” “and let’s make another such functionality…”

Microsoft has 2 core ERP solutions: Microsoft Dynamics 365 and Microsoft Dynamics Business Central. Each of these solutions is aimed at a different group of customers.

Before starting work, you can verify which groups you find yourself in.

Start, for example, with Business Central for the Department of Finance, instead of immediately “throwing yourself” at Microsoft Dynamics 365.

Sometimes the step-by-step method more quickly will take a company to the finish line than starting a marathon implementation without adequate preparation and “over the top

It is only worth investing in solutions out of the box if we are convinced, they will improve system performance. There is not also make sense in leaving something out of pure sentiment because “it’s always been this way…”.

A new solution should and can be tailored to the specific enterprise. Prior identification of the needed functionalities (this has to do with the prepared framework schedule) will enable effective optimization of costs and implemented solutions.

A helpful but often overlooked step by clients is to examine whether each company area needs a “modernization” of the system. But, whether in every department: finance, production, warehouse, or sales – it will work, and so will need an ERP system, and which of its variants will be optimal.

Top tips

Stay close to the solution standard - Microsoft business software operates in thousands of companies around the world. Modifications should possibly apply only to those unique processes that are at the heart of the basis of your company's success.
Follow the basic plan - sticking to the the original framework schedule you will keep your budget and calendar under control project.
Park - create a list of all the interesting ideas for improvements and incorporate them into the framework schedule or move it to the end of the queue of implementation work - this will maintain the pace of implementation, and you can return to them when the most critical work is completed.

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Insufficient commitments – Mistake 2 – ERP D365 implementations

Post author By Maksymilian Śniegocki
Post date November 30, 2023
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2
Insufficient commitments

Implementation – or colloquially speaking. “proving” the project depends on teamwork. And it’s not just about a dedicated, close-knit team of specialists on the contractor’s side. Success depends on fruitful and effective cooperation between both parties. When one part becomes more involved than the other, an implementation may encounter unnecessary difficulties.

Another issue is the deep involvement in designing the assumed solutions. Unfortunately, this is impossible when no specific people are assigned to the task, and the responsibility is dispersed. The optimal solution would be to give to the project on the client’s side, such persons who can, on behalf of the principal make binding decisions, and approve subsequent stages of the work.

This often involves competence and “substantive and technical” preparation. Questions, doubts, or new ideas often need to be discussed. Then it would be best if you understood the issues and openness in the discussions of persons responsible for the project (at the Client).

For the implementation to proceed by the previously developed framework schedule, the specialists need – provided by the client – all the required data for the project.

These include the chart of accounts, suppliers, customers, product/service directories, and guidelines for VAT

As you can see, knowledge of the solutions to be implemented is essential for testing, technical and organizational arrangements throughout the implementation process.

Pre-implementation training courses can help with this. On the one hand, they will prepare the client’s team to work with the new system; on the other, they will allow us to check the “state of knowledge” of what we are implementing.

Top tips

Be proactive - allow specialists to use their experience and, at the same time where possible, suggest improvements and modifications to facilitate the work in your organization.
Control the process - schedule periodic meetings, during which you will verify the progress of the work, deviations from the original plan, etc.
Empower your team - give your team members the authority to make decisions about the final shape and operation of individual functionalities affecting on their daily work.
Ask - your company is not in the deployment business. If something needs to be clarified, feel free to ask questions.
Test, test, test - check quickly, thoroughly and repeatedly prepare solutions.

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