Create a new subscription in SCOM to use the auto credentials option

NOTE New subscription may take 5-10 minutes to populate health data

From SCOM console

Click on Administration

Click on the Office 365 wizard

Click Add Subscription

 

Add Subscription Name

Click Next

SCOM UI will prompt for Azure login

Enter ID and password

Click Sign in to authenticate

 

Click on Monitoring Tab

Click on Office 365 folder

Click on Office 365 Monitoring Dashboard

Verify state on the subscription in question