Let me start with a story…

A few months ago, I was working with a customer who was planning to implement Dynamics 365 ERP. Their approach was structured, predictable, and heavily dependent on LCS (Lifecycle Services). Every environment - DEV, Config, Data migration, SIT, UAT, PROD- was planning to deploy with muscle memory.

Then came the shift.

Microsoft introduced the Power Platform Admin Center (PPAC) as the new control plane for managing environments. And suddenly, the familiar LCS-driven deployment approach started fading away.

The customer asked me a simple question:

“Rakesh, how do we now deploy environments the right way using PPAC with and without demo data?”

Understanding the New World: PPAC-based Deployment

With PPAC, environment provisioning is:

• More unified across Power Platform + ERP

• More governed

• More aligned with low-code/no-code extensibility

• Less dependent on traditional LCS workflows

However, for Dynamics 365 Finance & Operations (F&O), we still need to carefully plan environment topology.

Typical Environment Strategy in D365 ERP Implementation

Before jumping into steps, let’s define the environments and their purpose:

Environment	Purpose	Demo Data Required
DEV	Development & Unit Testing	Yes
Config	Functional configuration	No
Data Migration	Data validation & migration	No
SIT	System Integration Testing	No
UAT	Business validation	No
Production	Live operations	No

Step-by-Step Guide to Deploy Environments via PPAC

Step 1: Access Power Platform Admin Center

Navigate to:
https://admin.powerplatform.microsoft.com

• Login using admin credentials

• Ensure you have Environment Admin or Global Admin role

  

Step 2: Create a New Environment

• Navigate to Left side menu pane and click on “Manage”

• Go to Environments → + New

• Provide:

1. Name

2. Make this a Managed Environment -> Yes (optional)

3. Group -> None

4. Region

5. Type (Sandbox / Production)

6. Enable “Add a Dataverse data store?” (Yes - required)

7. Pay-as-you-go with Azure? (In case Azure subscription is being) Optional

8. Click on Next

Tip:

• Use Sandbox for DEV, SIT, UAT, Config, Data migration etc.

• Use Production only for PROD

Step 3: Add Dataverse

• Provide:

1. Security group - > None (This setting varies based on Customer Security guidelines)

2. Enable Dynamics 365 apps? - > Yes

3. Automatically deploy these apps -> None

4. Click on Save

After environment creation:

• Select the newly created environment

• Navigate to Resources → Dynamics 365 apps

• Click Install App

• Select “Dynamics 365 Finance and Operations Platform Tools” & click Next

• Click Install

Step 4: Install “Dynamics 365 Finance and Operations Provisioning Ap” (With or Without Demo Data)

This is a critical decision point.

Option 1: Deploy WITH Demo Data (Contoso)

Used for:

• DEV

Benefits:

• Pre-configured legal entities

• Sample business processes

• Faster onboarding for developers & testers

After Platform tools installation:

• Navigate to Resources → Dynamics 365 apps

• Click Install App

• Select “Dynamics 365 Finance and Operations Provisioning App” and click Next

• Click Ok

It will redirect to another page:

• Select “Enable Developer tools for Finance and Operations” ( In case of Developer Environment)

• Select “Enable Demo Data for Finance and Operations”

• Select the version of the product

• Select “I agree to the terms of service”

• Click on Install

  

Option 2: Deploy WITHOUT Demo Data

Used for:

• Config

• Data Migration

• SIT

• UAT

• Production

Benefits:

• Clean environment

• Real business data setup

• Avoids contamination from sample data

It will redirect to another page:

• Select “Enable Developer tools for Finance and Operations” (In case of Developer Environment)

• Deselect “Enable Demo Data for Finance and Operations”

• Select the version of the product

• Select “I agree to the terms of service”

• Click on Install

Key Considerations (Lessons Learned) From real implementations:

1. Avoid Overusing Demo Data Demo data is helpful-but: • Can confuse business users • Adds unnecessary cleanup effort

2. Separate Config & Data Migration Many projects combine them-this is risky. 👉 Keep them separate for: • Better control • Easier rollback

3. Governance via Security Groups Always:

   • Assign environments to security groups

   • Control access centrally

4. Naming Convention Matters Example: • D365-DEV • D365-CONFIG • D365-UAT • D365-PROD

Final Thoughts

The move from LCS to PPAC is not just a tool change- it’s a mindset shift.

As Solution Architects, we must:

• Rethink environment strategy

• Align with Power Platform governance

• Design environments for scalability and clarity

Because in the end…

A well-planned environment strategy is the backbone of a successful Dynamics 365 ERP implementation!

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