Microsoft’s Dynamics 365 is a mix of ERP software, Dynamics CRM, and BI solution all merged together into one sophisticated software.
Many businesses have touted that Microsoft Dynamics 365 is the single most effective game-changer that their business has seen. And that’s just the facts, have a look at the reviews.
But first, What’s an ERP?
ERP (Enterprise Resource Planning) is a system that helps businesses streamline important business processes and generates invaluable insights. A huge part of successful growth, as an organization, is having the ability to make good decisions. An ERP does just that. A successfully implemented ERP will enable decision-makers to make more informed decisions quicker, and with more confidence. That’s why ERPs are regarded as an essential tool for growing business.
Microsoft offers two primary ERPs:
- Microsoft Dynamics 365 for Finance & Operations (D365 FO) – formerly Dynamics AX
- Microsoft Dynamics 365 Business Central (D365 BC) – formerly Dynamics NAV
In April of 2019, Microsoft re-branded its all-in-one business platform, Dynamics NAV to Dynamics 365 Business Central. This new dynamics product offers enhanced capability and a single, end-to-end solution for managing finances, sales and customer service. It has also transitioned the powerful Dynamics AX product from a legacy on-premise solution to the pure cloud-based Dynamics 365 Finance & Operations model. Both solutions seamlessly integrate with Microsoft Cloud.
Let’s take a deeper look at both ERP offerings from Microsoft to determine which path is right for you.
Microsoft Dynamics 365 for Finance & Operations
Dynamics 365 Finance & Operations is designed to increase and transform efforts across all your market segments and is typically considered an enterprise edition ERP. D365 is widely regarded as Microsoft’s most advanced ERP solution, and competes with industry leaders SAP Business 1 and Oracle.
- Smarter and more connected operations
- Intuitive dashboard reporting and data analytics
- Optimized employee productivity with Office 365 integrated applications
- Additional Microsoft integrations such as PowerApps and Flow
- Automated and streamlined supply chains
- Increased Customer Relationship Management
Microsoft Dynamics 365 Business Central
Dynamics 365 Business Central, now available as either an on-premise or online pure-cloud SaaS model application, helps companies manage, automate and improve the overall business operations of their business. When comparing solutions, this would be an option should be thought of as a small to mid-sized business edition ERP.
Existing Dynamics NAV users will notice that Business Central includes all the essential features they are used to seeing but with added functionality and capabilities, topped off with a new user-interface.
- Improved sales and customer engagement structure that prioritizes leads based on revenue potential
- User-friendly time sheets that enable proficiency when creating and tracking customer projects
- Data Protection and support that is GDPR compliant
- Managed Financials and connected data across accounting, sales, purchasing, stock, and customer interactions
- Real-time charts and graphs that enable easy and informed decision-making
How much does Dynamics 365 ERP cost?
The cost can vary depending on the number of users and different features your business needs, but we can provide a bit of a breakdown:
For D365 FO, a solution designed for medium to large organizations, costs start at $190/user per month on the Unified Operations plan and go up to $210/user per month for the full Dynamics 365 plan.
For D365 BC, costs start at $70 per user/month for the Essentials plan and $100 per user/month for the Premium plan.
Which ERP is best for you?
While both ERP packages have a number of functional similarities, they also have key differences. When determining which of these business applications is right for your business, you must understand the pros and cons of each system, and each vary depending on what kind of business you are running.
Making this decision is not as straight-forward as some might hope, which is why even Microsoft recommends partnering with an ERP solutions expert. There are plenty of partners to choose from when considering a digital transformation. Just be sure to do thorough research before choosing an ERP partner. And just a small bit of advice, your partner should — at the very least — be recognized as a Microsoft Gold Standard Partner. If you need help finding a partner please check out our guide.