Microsoft Dynamics 365 Business Central: Cost Savings & Benefits

Based on this Forrester study, commissioned by Microsoft, five 250-employee companies using Dynamics 365 Business Central demonstrated benefits of $466K over three years versus costs of $178K or a 162% ROI.

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Executive Summary

Forrester’s analysis of five current Microsoft customers found that Dynamics 365 Business Central enabled these organizations to bolster operational efficiency, avoid costs, and comfortably scale their deployments with growth while benefitting from the flexibility inherent in the cloud. An analysis based on a $15-million, 250-employee composite organization modeled after the five interviewees demonstrates benefits of $466K over three years versus costs of $178K, adding up to a net present value (NPV) of $288K and an ROI of 162%.

ROI

162%

Benefits PV

466K

NPV

288K

Payback

<1 YEAR

Reduction in required finance and operations staff hires.
$231.5K
Improvement to flow of operations
$147.0K
Avoided costs of third-party reporting
$44.8K
Avoided costs of previous solutions and support
$42.7K

Key Challenges​

Before migration to Dynamics 365 Business Central, the interviewed organizations struggled with common challenges.

A disparate set of on-premises ERP functionality for finance and operations staff.

Some organizations struggled with customizing their deployments for their industries while others needed to multisource ERP tools or pay other organizations for additional reporting not available with their current tools.

Difficulty scaling current ERP tools.

Growing with their legacy setup tools seemed daunting. Expanding current, on-premises solutions would only go so far from a functionality standpoint and would be costly, and other platforms represented too large a leap for a small to medium-size organization.

A constant flow of manual updates.

Interviewees’ firms struggled to manually keep on-premises deployments up to date. Interviewees noted that their IT staff lacked the capacity to always keep their ERP tools on the most current versions, leaving additional functionality and security on the table.

Key Results

tiny-people-saving-money-piggy-bank-isolated-flat-illustration_74855-11124
  • Reduction in required Finance and Operations staff hires
  • Improvement to flow of operations
  • Avoided costs of third-party reporting
  • Avoided costs of previous solutions and support
  • Unquantified benefits
  • Flexibility
CEO
CEOManufacturing industry
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"We were looking for an upgraded ERP solution capable enough for our complicated operations, in the cloud. Business Central is that solution. We have everything we need in one tool."
CEO
CEOTravel industry
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“We can scale up or scale down in 10 minutes. Business Central has given us a more resilient cost structure.”
Controller
ControllerManufacturing industry
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"The move to Business Central has been especially helpful during the pandemic, as our users can access key business functions remotely."
Director of IT and Operations
Director of IT and OperationsDirect Marketing
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“We recently completed our migration to Business Central a few months before COVID hit. If we had not, it would have been very bad. People in accounting would have to come into the office, or we would have to set up VPN connections. It would have been a lot of money in a time when we don’t have as much money. A financial hardship for our business, a mental hardship for our employees.”
Managing Director
Managing DirectorManufacturing Industry
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“We needed a solution we could grow with quickly; Dynamics 365 Business Central was perfect for a smaller organization like us experiencing healthy growth given the easy interface and scalability. If we had kept the status quo, we’d be looking for a new solution every two to two and a half years.”
CEO
CEOTravel Industry
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“Our salespeople are spending less time in the [ERP] system and more time selling.”
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