When it comes to enterprise resource planning (ERP) software, Microsoft offers two modern cloud-based options: Microsoft Dynamics 365 Finance & Operations (F&O)* and Dynamics 365 Business Central. Both platforms provide businesses with comprehensive tools to manage their financials, supply chain and operations.
If you are an organization already on a hosted, on-premises Microsoft ERP solution, there is a ‘default’ solution to migrate to; however, that solution may not be the best one for you. Why? If you think about it, your ERP investment is a long-term one. Taking account of your current state of business, processes and operations is a given; more importantly, you need to take into consideration where you will be three, five and even seven years from now.
Dynamics 365 Business Central vs Finance and Operations
Choosing the right ERP for your organization can be daunting, especially with two powerful options available. Let’s take a closer look at just a few of the differences between ERP solutions.
Microsoft Dynamics 365 Business Central offers easier implementation, user-friendliness and affordability for small to medium-sized businesses. Here are some unique advantages and applications of Dynamics 365 Business Central ERP that differentiate it from Dynamics 365 Finance and Operations:
- Designed for small to medium-sized businesses: Business Central is designed to cater to the needs of small- to medium-sized businesses, making it an affordable and streamlined option for organizations that do not require the advanced functionalities offered by Finance and Operations.
- Faster implementation: Due to its simplified features, Business Central can be implemented more quickly than Finance and Operations, allowing businesses to get up and running with their ERP solution faster.
- Customizable: Business Central is highly customizable, allowing businesses to tailor the software to their specific needs without requiring extensive programming knowledge. This flexibility is particularly useful for organizations that require industry-specific features.
- Integration with Office 365: Business Central integrates seamlessly with Office 365, allowing users to access and work with their data from a familiar interface.
- Easier to use: Business Central has a user-friendly interface that is easy to navigate, making it accessible for users with limited ERP experience.
- Project management functionalities: Business Central includes project management functionalities that allow businesses to manage tasks, resources and budgets for their projects, making it a useful tool for service-based organizations.
Overall, Dynamics 365 Business Central is a highly customizable, affordable and user-friendly ERP solution that is well-suited for small to medium-sized businesses that require basic functionalities. Its integration with Office 365 and project management features makes it a powerful tool for organizations in service-based industries.
How to Choose the Best ERP System for Your Business
Selecting the right enterprise resource planning (ERP) platform is one of the most important technology decisions an organization can make – learn how to choose the best ERP system for your business.
Finance & Operations
Finance & Operations on the other hand, is a more scalable, modular and feature-rich solution designed for larger organizations with more complex structures and needs. Here are some unique advantages and applications of Dynamics 365 Finance and Operations that differentiate it from Dynamics 365 Business Central:
- Designed for large enterprises: Finance and Operations is designed for large enterprises and organizations with complex structures, making it a comprehensive solution for businesses that require advanced functionalities and scalability.
- Supply chain management: Finance and Operations includes advanced supply chain management functionalities, such as warehouse management, transportation management and demand planning, making it an ideal solution for organizations that have complex supply chains.
- Financial management: Finance and Operations offers advanced financial management features, including budgeting, financial planning and forecasting, making it a powerful tool for organizations that require complex financial management capabilities.
- Global capabilities: Finance and Operations offers global capabilities, such as multi-language and multi-currency support, enabling businesses to manage their operations across different countries and regions.
- Manufacturing capabilities: Finance and Operations includes manufacturing functionalities that enable businesses to manage production processes, including planning, scheduling and inventory management.
- Business intelligence: Finance and Operations offers robust business intelligence and analytics capabilities, allowing businesses to gain insights into their operations, identify trends and make data-driven decisions.
Overall, Dynamics 365 Finance and Operations is a comprehensive, scalable and powerful ERP solution that is well-suited for large enterprises and organizations with complex structures and operations. Its advanced functionalities, supply chain management capabilities, financial management features, global capabilities, manufacturing functionalities and business intelligence make it a robust tool for businesses that require advanced ERP functionalities.
Regarding cost, Business Central is generally considered more affordable than F&O, especially for SMBs. The overall financial investment should consider not just the number of users and licensing, but also the extent of any customizations that are needed, additional features/modules to extend capabilities and costs to integrate and support third-party solutions.
Choosing the Right ERP System
Choosing between Microsoft Dynamics 365 ERP solutions – Business Central or Microsoft Dynamics 365 F&O – isn’t always cut and dry. Teaming up with a partner like enVista can help you in the decision-making process, implement the solution that is best for your specific business needs and ensure that you are getting everything you can out of the platform.
We have completed several ‘F&O or Business Central’ assessments recently for customers to help them through this process; we can help you too! Contact us for more information on our ERP Comparison Assessment.
*Dynamics 365 Finance and Operations (D365 F&O) officially changed its name to Dynamics 365 Finance and Dynamics 365 Supply Chain Management, D365 F&SCM).