After re-branding, Microsoft has brought all its business applications under the umbrella term Dynamics 365. By enhancing capabilities and functionalities Microsoft is taking its on-premise solutions to the cloud. Two different flavors of ERP within the Dynamics 365 family have created much of the confusion about the products:
- Dynamics 365 Business Central
- Dynamics 365 Finance & Operations
In this comprehensive guide, we are letting our readers to understand how these two products are different when it comes to use-cases.
Dynamics 365 Business Central
Dynamics 365 Business Central is all-in-one business platform that brings full capabilities of Microsoft Dynamics NAV to the cloud. Build for mid-sized enterprises, Dynamics 365 Business eliminates data silos by connecting financials, sales, purchase, inventory, projects, service and operations. Dynamics 365 has brought the full NAV functionality to a SaaS environment with on-premises and hybrid deployment options also supported. With Dynamics 365 Business Central, Microsoft is providing an opportunity of organizations with tight budget to leverage digital transformation through Subscription based licensing.
Dynamics 365 Business Central runs on the same application code as Dynamics NAV, enabling companies to manage, automate and improve the overall business operations. Business Central is a comprehensive business management solution for growing companies that need more than the simple financial and accounting tools they started with, but aren’t yet ready to make a big investment in a customized enterprise resource planning (ERP) system. As pure-cloud SaaS model application, Dynamics 365 Business Central enables organizations to start their digital transformation journey with reduced upfront cost. In nutshell, we can say that Dynamics 365 Business Central is strongly positioned towards SMEs, offering a wide range of capability at a compelling price.
Main Benefits of Dynamics 365 Business Central
- Eliminates inefficiencies associated with disparate systems by connecting data across accounting, sales, purchasing, stock, and customer interactions.
- Enables you to chart financial performance in real-time and make informed decisions
- Use built-in intelligence to predict when and which SKUs to replenish
- Improve sales and customer service by prioritizing sales leads based on revenue potential
- Deliver projects on time and under budget by easily creating and tracking customer projects using detailed timesheets
Dynamics 365 Finance & Operations
As a replacement for Dynamics AX, Microsoft has brought D365 Finance & Operations as complete enterprise resource planning solution for medium to large enterprises. As a truly integrated solution, Dynamics 365 Finance & Operations handles traditional back office processes as well as you can link it to CRM and other apps such as HR or Talent, Customer Service, Marketing and more. The modular approach in D365 F&O enables you to pick only the apps, features or modules that you need now – and you can add on as you grow. With extensive production capabilities, Dynamics 365 F&O is a great option for discrete, lean, and process manufacturing businesses, regardless of size.
Main benefits of Dynamics 365 Finance & Operations
- Dynamics 365 F&O enables manufacturing operation automation while offering visibility across production planning and cost management helping you to adapt quickly to changing market demands.
- Sales people will get real-time information they need to provide immediate and personalized service — across multiple touch points.
- At-a-glance dashboard reporting and data analytics
- Seamless integration to Office 365 applications and other Microsoft productivity tools such as PowerApps and Flow for better productivity.
| Features | D365 Business Central | D365 F&O |
|---|---|---|
| Targeted Segment | Small to Medium Business | Large Organizations |
| Minimum License Req. | 1 User | 20 users |
| Capabilities | Core capabilities across finance, operations, supply chain, CRM and project management. Additional capability is available across service management and manufacturing via the Premium package. | The application has advanced capability across finance, operations, manufacturing and supply chain. Additional capability is available across HR, sales, projects, customer service through the wider Dynamics 365 range with the full Dynamics 365 plan. |
| Analytics | Embedded Power BI for rich analytics and reporting. | BI tool for reporting, dashboards and ad-hoc analysis. |
| CRM | Inbuilt CRM capability, offering Outlook integration with opportunity management and customer service capability. Integration with Dynamics 365 for Sales is available. | Limited CRM capability, raise a sales order and create contacts. Integration with Dynamics 365 for Customer Engagement is available. |
Both Dynamics 365 Business Central & Finance & Operations enable you to manage multiple currencies and tax regions. However, D365 Finance and Operations offers more advanced financial functionality. D365 Business Central suits good for organizations that want solution better that legacy accounting software. Business Central offers accuracy needed to manage and report thousands of transactions. However, as the number of transactions reaches more than that Dynamics 365 Finance & Operations is a more effective solution. For manufacturers that require a high level of traceability, Dynamics 365 Finance & Operations offers additional functionality in the form of pallet number and ‘licence plate’ tracking functionality. D365 BC currently, only provides serial number and lot number tracking. So, we can infer that Dynamics 365 Finance & Operations has slight edge over Business Central in terms of functionality. However, it also costs more. Dynamics 365 is better than legacy accounting software, highly scalable and can be extended as you grow. Business Central is cost-effective and organizations can start with Subscription based model (SaaS).
How can we help you?
Navision India is leading Microsoft Dynamics 365 Implementation partner. If you’re still confused about which solution better serve your business, then we can help you with that. You should consult your requirements with our Microsoft Certified Consultants to get the solution catering to your unique business needs.