Dynamics 365 is Microsoft’s comprehensive suite of business applications, offering unmatched flexibility and scalability. With over 120,000 successful ERP implementations worldwide, the Dynamics 365 family includes two powerful solutions: Dynamics 365 Business Central and Dynamics 365 Finance and Operations. Given their similarities, it’s easy to be confused about which solution is the right fit for your organization. In this post, we’ll explore the key differences between these solutions and how to choose the best one for your international business.
Dynamics 365 Business Central
Ideal for established international SMBs (Small to Medium Businesses), Dynamics 365 Business Central allows you to start small and scale up as your needs grow. It can efficiently process thousands of daily transactions, unifying your business across finance, operations, supply chain, and project management. The full Dynamics 365 suite includes Dynamics 365 Sales and built-in CRM capabilities, optimizing sales cycles with prioritized leads based on revenue potential.
Dynamics 365 Finance and Operations
Dynamics 365 Finance and Operations is designed for multinational organizations, especially those with complex manufacturing needs, multi-currency operations, or international trade. This complete enterprise solution leverages PowerApps and Flow to optimize productivity and simplify integration with other Microsoft apps. With real-time information and intuitive dashboards, it enhances customer service and supports data-driven sales strategies.
Your Unique Requirements
Despite their differences, both systems can be successfully implemented in various situations. For example, Dynamics 365 Finance and Operations has been used by SMBs, while Dynamics 365 Business Central has been adopted by larger organizations. Therefore, the size of your organization and the number of users shouldn’t be the sole factors in your decision. Instead, consider your budget and specific business requirements. Look ahead to the future by asking questions such as: Are new acquisitions planned? Will you be increasing personnel numbers, implementing new processes, or expanding into new regions? The answers to these questions will play a crucial role in your decision.
Budget Considerations
There’s a noticeable difference in cost between Dynamics 365 Business Central and Dynamics 365 Finance and Operations, with the most significant expenses arising from services and internal resources. Here are some key factors to consider:
Licensing: Dynamics 365 Finance and Operations offers a cost-efficient middle license option for users performing operational tasks, such as receiving and picking products. In contrast, Dynamics 365 Business Central doesn’t provide this type of license, requiring customers to license each solution individually if they wish to use Dynamics 365 Business Central alongside any D365 CRM applications.
Localizations: Both ERP solutions are available globally with localization packages for specific countries. You can explore the available localizations for Dynamics 365 Business Central and Dynamics 365 Finance and Operations.
International Trading: If your organization primarily operates within one country but engages in some international sales and purchases, Dynamics 365 Business Central might be the best option. However, if you are an international trading organization with intercompany trading, stock transfers, and consolidation needs, Dynamics 365 Finance and Operations is likely the better fit. Additionally, if wireless warehousing is critical for your manufacturing operations, Dynamics 365 Finance and Operations offers an advanced warehousing management module, while Dynamics 365 Business Central would require custom integration or third-party add-ons to achieve similar functionality.
Implementation Costs: Implementing Dynamics 365 Business Central generally costs about 30% of what it would take to implement Dynamics 365 Finance and Operations. For example, if a Microsoft Partner estimates 250 man-days for a Dynamics 365 Business Central implementation, you can expect a similar Dynamics 365 Finance and Operations project to require around 750 man-days. Additionally, internal resources needed are typically 3-5 times greater for Dynamics 365 Finance and Operations. Thus, if a Microsoft Partner allocates 250 days, you should plan for 750 man-days from internal resources as well.
Given these factors, your short-term budget and resource availability should be key considerations when choosing a solution.
Choosing a Global ERP Solution That Meets Your Needs
Selecting the right technology is challenging. Whether you’re an established global enterprise or an SMB planning to expand into multiple countries, you need an ERP solution that supports your current business needs while also accommodating future growth, evolution, and market demands.
It’s not just about choosing the right solution; finding the right partner is equally important to ensure that your ERP solution aligns with your unique requirements. At Pipol, we specialize in helping organizations select the appropriate Dynamics 365 ERP product. We understand that each organization is unique, and with our expert guidance, local resources, best practices-based implementations, and tight project management, we have the functional competencies and global presence needed to support you, no matter where you’re located.
Contact us today to learn how we can assist you in selecting the global Dynamics 365 ERP solution that’s the perfect fit for your organization.
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