Business processes across industries are going digital. That is why choosing the best CRM (customer relationship management) and ERP (enterprise resource planning) platforms is vital to stay ahead. However, the decision can be challenging with several software offering overlapping features.

One such comparison is between Microsoft’s two stand-out SaaS (software as a service) products. These are Dynamics 365 and Business Central. 

If you are looking for some insights into Microsoft Dynamics 365 vs Business Central, we are here to help. Read this blog to learn about the functions, usage, and benefits of both these solutions.

What is Dynamics 365 Business Central?

Microsoft Dynamics 365 Business Central is one of the cloud-based all-in-one ERP systems. It streamlines business processes and manages your

• finances
• operations
• sales
• supply chain management
• customer service

The software’s versatility makes it ideal for businesses trying to centralize their processes.

Business Central evolved from Microsoft Dynamics NAV. It now comes under the extensive umbrella of the Microsoft Dynamics 365 family. Business Central offers cloud-based deployment options. You can integrate it with other Microsoft products like Office 365. So, all the operations can be consolidated in a single unified system.

These features provide immense potential for scalability, especially for small and medium-sized businesses. With Microsoft Dynamic 365 Business Central, businesses can-

• Adjust their processes whenever their business requirements change.
• Access valuable insights collected through intelligent technologies.
• Automate workflows.
• Boost efficiency with familiar Microsoft interfaces like Word, Excel, or Outlook.

Additionally, you get two updates in a year from Microsoft. So, your system is always on the latest version.

What is Microsoft Dynamics 365 Used for?

Microsoft Dynamics 365 presents cloud-based SaaS services focusing on CRM and ERP capabilities. It offers customized solutions that address the evolving operational requirements of various businesses. 

Combining Enterprise Resource Planning ERP and Customer Relationship Management CRM helps companies simplify communication for better business outcomes. It empowers organizations and improves their customer relationships for more business opportunities. 

The different modules offered by Microsoft Dynamics 365 are- 

• Sales and marketing

Offers every customer’s information in one place to help you understand the market.
You can use new strategies to boost customer engagements.

• Customer support

Helps optimize customer service and deliver personalized support.

• Finance

Offers more visibility into company finances with real time data.

• Supply chain management

Creates a digital supply chain to predict and avoid disruptions for higher profitability.

Businesses can use these modules to-

• Bring all their teams together. They can connect people, processes, and data across several applications, like:
  • Office 365
  • LinkedIn
  • Azure
• Make informed business decisions with
• built-in AI (artificial intelligence)
• business analytics
• guided suggestions
• Adapt the application to their evolving needs rather than modifying their operations.
• Modernize processes by incorporating AI, social, and mobile capabilities.

Microsoft Dynamics 365 vs Business Central: Key Features and Functionalities

When exploring Microsoft Business Central vs Dynamics 365, users do not observe many differences. Both tools have similar features and functionalities. This often confuses decision-makers when choosing the best for their business.  

Let’s take a look at the unique strengths and capabilities of both these platforms:

Microsoft Dynamics 365	Business Central
Combination of advanced CRM and ERP solution.	Comprehensive ERP suite
Core functionalities include- Sales and marketing automationCustomer service management	Core functionalities include- Sales and service managementFinance managementSupply chain management
Ideal for businesses of all sizes	Suitable for small and medium-sized businesses
Scalable and customizable solution	Easy to implement and offers scalability for a growing business

Microsoft Dynamics 365 offers robust cloud based CRM capability and ERP solution for all businesses. At the same time, Business Central is an extensive ERP system. It is ideal for managing operations in small to medium-sized ventures.

When Should Businesses Use Microsoft Dynamics 365?

Microsoft Dynamics 365 is ideal if your business needs advanced CRM solutions like-

• Lead distribution
• Marketing automation
• Customer service
• Project operation management
• Field service management

It is also helpful if your team requires seamless access to vital customer data. They can access this data through CRM features leveraged across many devices. Microsoft Dynamics 365 can also help you empower your field service executives. It equips them with advanced tools and applications to ease their tasks. 

When to Choose Business Central

Choose Business Central if your requirement is related to finance management tasks like-

• Finance reporting
• Finance closings
• Attaining financial visibility

The software is useful if you want valuable business insights beyond customer management. It will also offer more visibility on project status, resources, operations, etc.

You must choose Business Central if you aim to-

• Optimize and control resource use
• Manage capacity planning
• Track invoices
• Manage and enhance your supply chain capabilities
• Assess inventory status
• Create bills or record output for each

Summing Up

Both Dynamics 365 and Business Central offer effective solutions to enhance business efficiency. Yet, choosing between Microsoft Dynamics 365 vs Business Central depends on your primary requirement.

Dynamics 365 should be your option if customer relationships management is the focus. Business Central is ideal for managing and tackling daily ERP challenges.

But, with Microsoft’s seamless integration, you can combine both solutions. It will help you refine your processes for ultimate business growth.

FAQs

Is Dynamics 365 a CRM or ERP?

Dynamics 365 is a cloud-based software solution combining both CRM and ERP capabilities.

Is Business Central a good ERP system?

Yes, organizations prefer Business Central for its advanced ERP capabilities. It is also known for its easy-to-use interface. It has over 20000 customers, and Forbes Advisor recognized it as the best ERP system of 2023.

Why Microsoft Dynamics 365 Business Central?

Businesses should choose Microsoft Dynamics Business Central because:

• It ensures business continuity
• Offers quick and easy deployment
• Connects the sales, services, finance, and operations teams
• It is secure and adaptable