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Midsized businesses have two options for ERP solutions from Microsoft: Microsoft Dynamics 365 Business Central (BC) and Microsoft Dynamics 365 Finance and Supply Chain Management (F&SC, formerly known as Finance and Operations or F&O).
Generally, F&SC is best suited to larger enterprises, like public and international companies, and BC is best suited to smaller organizations.
Choosing the right ERP involves more factors than company size. But it’s not as challenging as it may seem. The truth is, there isn’t much of a gray area between these solutions. A provider that understands the complexities of your industry and business needs can often make a determination based on a few criteria.
“It’s really like Lamborghini versus Ford,” Perry Prescott, Pre-Sales Consultant, says. “F&SC is much more expensive; it does more, there are so many features. Much is included in the core that is not in Business Central. Business Central is like a less expensive vehicle you have to bolt a bunch of stuff onto to make it as cool as the Lamborghini.”
As a business leader, it might not be immediately clear which ERP solution is the best fit. But D365 Business Central and F&SC are in different categories regarding their functionality, complexity, timing and pricing.
“They’re in a different league basically,” Dennis Chiu, Sales Solutions Leader, says. “If you’re looking at both products, one of the products is not for you.”
The right ERP solution for your business will depend on:
You might be wondering: “What about revenue as a factor?” According to Chiu, revenue can be misleading and isn’t a reliable indicator.
“I would be careful not to use revenue as a key indicator,” he says. “Revenue could be quite misleading depending on the dollar value of what you sell. You could be selling low transaction volume of a high-dollar value item.”
Companies adopt Cloud ERPs mainly because they’ve outgrown their current systems or are about to outgrow them. Their current solution and provider may not offer the level of functionality and support they need to achieve their goals, perform at peak levels and compete. Worst case, they experienced a failed implementation, or their legacy software is about to sunset.
Whatever their reason for stepping toward Cloud-based business solutions, many businesses are on the verge of leaping miles ahead in their capabilities and realizing tremendous benefits.
“If you're coming out of legacy software into one of these new environments and systems, everything is radically improved,” Prescott says. “The technology has changed, the strategies have changed, the way data is access has changed, reporting; everything is different. The only thing I can equate it to is an old car versus a new car. There's just much more technology and strategy employed now than there was 50 years ago.”
Three of the most significant benefits for businesses are data visibility, remote enablement and cost savings.
Are you unsure where you fit in terms of Business Central versus F&SC? When you work with a provider like Enavate, we always right-size the solution to fit the organization. And between these two options, the choice is often quite apparent.
“Usually very quickly you understand what their business is, what their legal entity structures look like, how much revenue,” Prescott says. “It does help you start to hone in on what product might fit them best, but really it’s about functionality more than anything.”
Take advantage of our free assessment tool to determine which solution to consider, whether you need a full re-implementation, and how to streamline the process. Or contact one of our experts today to learn more.