Dynamics 365 F&O: spot financial opportunities others miss

Yes, and no. While Dynamics AX and Microsoft Dynamics 365 for Finance & Operations are basically versions of the same Dynamics ERP product, there are some key differences:

Infrastructure: Dynamics AX 2012 can still be run on-premise, on your own physical, onsite servers. All Microsoft Dynamics 365 products are hosted on Microsoft Azure (although you can run on-premise if you really want to).

Upgrading: Depending on your version of AX, upgrading can require a new implementation. (Moving from AX 2009 to D365 also requires a new implementation, but going from AX 2012 to D365 usually doesn’t!). By comparison, changes to Microsoft Dynamics 365 are pushed out on an automatic basis every month to 6 weeks, and turning on major feature changes is optional.

Customisation: Dynamics AX 2012 can be customised using the over-layering method within the system, but when the layers of code are merged, you can experience compatibility issues. D365 uses the extensibility model, which locks down the core code of the ERP, so you can’t customise at all. Instead, developers use built-in extension points to add code, so at upgrade time you’ll experience significantly fewer compatibility issues.

Navigation: With most ERP systems, some screens can be launched from several different places in the system. But in Microsoft Dynamics AX, a user must know the menu path to a specific screen, making it difficult and time-consuming to get to their destination. In D365, the search capability allows users to type in the name of the screen they are looking for and click on the result they wish to open.

User Interface: With Dynamics AX, users launch the application from a desktop and perform their work within the program. But with D365, users can open a web browser and enter a URL from desktop and mobile devices alike. And the look and feel of D365 is more aligned with other Microsoft products, like the Office 365 suite.

Yes, Microsoft’s strategic platform that underpins Dynamics 365 includes a Common Data Service that connects the most important data from Finance & Operations, CRM and even Office 365. This provides a data foundation and tools that connect the most important data while preserving agility in each tool. Standard integration can be expanded, and even bolstered with inbuilt connectors for many other software systems you might use.

First — what’s the same? Both solutions are D365 ERPs. But they have differing capabilities, and suit different businesses and organisations. Here’s the lowdown:

Who’s it for? Dynamics 365 Business Central is basically the latest version of Microsoft Dynamics NAV. It is a comprehensive business management solution designed for small to medium-sized businesses who have outgrown their entry-level accounting package. Microsoft Dynamics ERP is an integrated enterprise-class business platform for mature, growing, ERP-savvy multinational medium-large organisations.

What industries? While Business Central is aimed at distribution, manufacturing and professional services verticals, additional service management and manufacturing capabilities are add-ons. For D365, think distribution, manufacturing and professional services, retail and the public sector. Plus it supports around 95% of manufacturing functionalities and is ideal for discrete, lean and process manufacturing. Other core functions like ATP, advanced warehousing with mobile solutions, are inclusive.

Will it scale? Microsoft Business Central is great if you’re only processing thousands of transactions, but D365 handles hundreds of thousands!

Core capabilities? Business Central connects financials, sales, purchase, inventory, projects, service and operations. But D365 components all work together — out-of-the-box. It has deep integrations with CE (CRM), HR, Talent, Customer Service, Marketing and more as well as covering all traditional back-office processes.

Business analytics? Microsoft Business Central comes with BI tools including reporting, dashboards, and ad-hoc analysis. Whereas Microsoft Dynamics 365 has embedded Power BI to deliver rich analytical and reporting functionality.

No, updates are automatically pushed through, so there’s no need to do anything!

The look and feel of Dynamics 365 is very similar to Office 365. The familiarity drives a high uptake and level of user acceptance when accompanied by training.