TechTalk: General guidance for integrating Dynamics 365 apps
Integrating Dynamics 365 apps with external platforms is now essential for many businesses aiming to enhance their processes, ensure data consistency, and streamline operations. As Dynamics 365 and Dataverse continue to evolve, Microsoft provides multiple options for integration, each suited to different business needs and technical needs. This TechTalk outlines general guidance on integrating Dynamics 365 apps, including fundamental principles, tools, and patterns that can help organizations effectively approach their integration strategy.
We based this article on a TechTalk that you can find online in the Dynamics 365 channel on YouTube.
Tip
The TechTalk session was about finance and operations apps, but this article reflects that the general guidance applies to all solutions with Dynamics 365 apps.
Overview of integration options
Dynamics 365 and Dataverse offer a wide range of integration capabilities, and understanding the available options is crucial to developing a comprehensive strategy. Integration can occur between Dynamics 365 apps, external systems, or even within different Dynamics 365 apps themselves. Dataverse is one of the major platforms that facilitate integration and provides a seamless connection between applications across Power Platform and external services. Additionally, tools like Azure provide extensive support for external integrations.
The following illustration shows the architecture for integrating Dynamics 365 finance and operations apps with Dataverse. It shows various components such as Event Grid, Service Bus, Azure Function, and Power Automate that facilitate integration. The diagram highlights data flow between finance and operations apps and Dataverse using tools such as Dual Write, OData/Web API, and business events. Different integration types, including near real-time, asynchronous, and synchronous, are indicated, along with their associated processes like electronic reporting and invoice capture. This overview illustrates the comprehensive integration setup between systems, ensuring seamless data exchange and process synchronization.
When you design an integration strategy, you must consider several fundamental elements. First, understand that you can categorize integration based on whether the data flow is inbound or outbound. Inbound means that external systems send data to Dynamics 365. Outbound means Dynamics 365 sends data to external systems. Integrations can also be synchronous, occurring in real-time, or asynchronous, where data is exchanged with a delay.
Common integration patterns
One popular approach to integration in Dynamics 365 is using predefined patterns, which streamline how data is transferred between systems. These patterns include:
Dual-write
This feature enables real-time data synchronization between Dynamics 365 finance and operations apps and Dataverse. It provides a bidirectional connection that allows data changes in one system to automatically reflect in the other, ensuring consistency across platforms.
Data Management Framework (DMF)
For finance and operations apps, DMF facilitates bulk data imports and exports, allowing for integration with external systems at scale.
OData and Web API
OData protocols enable RESTful API integrations, allowing for CRUD (Create, Read, Update, Delete) operations on data stored within Dynamics 365 and Dataverse. Web APIs enable this communication and are crucial for real-time integration scenarios.
The following image illustrates the fundamental principles of integration of five key elements that guide effective system integration strategy.
These are just a few examples of the many patterns available, each of which can be adapted to specific needs, whether it's high-volume data transfers or maintaining data consistency in real-time.
Key considerations in integration strategy
Business and technical requirements
When planning any integration, it's crucial to start by clearly defining both the business and technical requirements. The business requirements dictate what the integration aims to achieve, such as financial data consolidation or maintaining real-time inventory levels. On the technical side, you must consider any limitations posed by external systems, such as supported data formats (for example, XML, JSON) or transfer protocols.
Performance and security requirements
Another critical element to consider is the expected performance of the integration, including the volume and frequency of data transfers. High-frequency data flows, such as those in e-commerce scenarios, might require more robust real-time integration, while batch processing is suitable for lower-frequency, large-volume tasks like financial reporting.
In addition, security must be a core part of the strategy. Microsoft offers several tools to ensure secure data exchanges, such as Microsoft Entra ID for identity management and OAuth for secure API communications. Managing secrets and certificates through Azure Key Vault can also add a layer of security, especially in hybrid cloud environments.
Scalability and simplification
One of the common challenges with system integration is maintaining scalability as business needs evolve. Designing an integration solution that can handle increasing data volumes and more complex workflows is critical. In this context, using middleware such as Azure Logic Apps or Service Bus can simplify communication between systems and improve scalability by handling message routing and error notifications centrally.
The following image illustrates the key considerations for scaling in system integration.
The first area focuses on the need for scalability and expansion with an emphasis on the importance of designing systems that can grow. The second box advises building for long-term growth by considering the impact of other requirements and the effort needed for future extensibility. The third box highlights the importance of assessing the effects and timing of updates to maintain system relevance and efficiency. The fourth box suggests that you choose components that support Application Lifecycle Management (ALM) with tools such as Azure DevOps. ALM helps you ensure integration compatibility and operational continuity. The fifth and final box recommends that you apply parallelism to address latency issues and maximize service limits optimizing performance and resource utilization across integrated systems.
We also recommend that you use low-code/no-code solutions where possible. Power Platform, including Power Automate, provides numerous out-of-the-box connectors and capabilities that allow organizations to build integrations without extensive custom development. This approach simplifies both the implementation and long-term maintenance of the system.
Azure tools for Dynamics 365 integration
Azure plays a vital role in expanding the integration capabilities of Dynamics 365. Some of the most commonly used Azure services for integration include:
Azure Logic Apps
These allow businesses to automate workflows and integrate services using prebuilt connectors for common applications and systems.
Azure Service Bus
This ensures reliable communication between systems by enabling message queues, making it a powerful tool for asynchronous integrations.
Azure Functions
This serverless compute service helps organizations trigger custom actions when events occur in Dynamics 365 or external systems, providing flexibility for complex workflows.
Azure Synapse Link
For large-scale analytics and data management, Azure Synapse Link connects Dynamics 365 with Azure Synapse Analytics and Microsoft Fabric, enabling continuous data synchronization with low latency.
These tools, combined with Dynamics 365's native integration capabilities, provide a comprehensive suite for building scalable, secure, and efficient integrations.
Security and compliance
Security is a paramount concern in any integration scenario, particularly when dealing with sensitive business data. Microsoft's ecosystem provides several mechanisms for ensuring that data is transferred securely between systems. Microsoft Entra ID offers secure identity management, while OAuth is the standard protocol for authenticating API requests.
Additionally, encryption during data transfer (HTTPS, TLS 1.2) ensures that information remains secure while in transit. Organizations should also adhere to relevant data protection regulations, such as for personally identifiable information, to ensure compliance.
For environments involving hybrid cloud setups, it's important to use appropriate tools such as the on-premises data gateway, which securely connects on-premises data sources with cloud services without compromising security.
Monitoring and error handling
Effective monitoring and error handling are essential to maintaining the health and reliability of an integrated system. Dynamics 365, Azure, and Dataverse all offer extensive monitoring tools that can help detect issues before they become critical. For example, Azure Application Insights provides real-time data monitoring, while centralized logging and error handling systems ensure that any integration issues are promptly addressed.
Conclusion
Integrating Dynamics 365 and Dataverse with external systems offers many benefits, from real-time data synchronization to enhanced business process automation. By understanding the available tools, patterns, and principles guiding integration strategy, organizations can build efficient, scalable, and secure solutions tailored to their specific needs.
For further information and detailed guidance, Microsoft offers a wide range of resources, including technical documentation and webinars that deep-dive into specific integration patterns and tools. By taking advantage of these resources, you can ensure that your Dynamics 365 integration strategy aligns with the latest best practices and technological advancements.
Related resources
You can use the following resources to learn more about Dynamics 365.