A new Total Economic Impact ™ (TEI) from Forrester Consulting outlines the cost savings and business benefits resulting from a migration from Microsoft Dynamics NAV to the Microsoft Dynamics 365 Business Central cloud.
Cloud-based business management solutions have helped countless small and medium-sized businesses (SMEs) achieve cost savings, secure access to data, increase productivity, and improve customer experiences. As the pandemic disrupts normality, many SMEs want to accelerate cloud adoption to ensure business continuity, adapt to change, and support remote working. This is an important decision that requires recent investment return (ROI) data for specific solutions.
Streamline business operations with the cloud
To help customers on-site with Dynamics 365 NAV and Dynamics 365 GP investigate the potential ROI they can achieve by deploying Dynamics 365 Business Central, Microsoft has commissioned Forrester Consulting to conduct a TEI survey.
Forrester interviewed five current Dynamics 365 Business Central customers to understand the benefits, costs, and risks of migration to the cloud. Following the example of these five interviews, the analysis was conducted on a compound organization of $15 million with 250 employees. This analysis showed benefits of $466,000 over three years versus costs of $178,000, which equates to a net present value (NPT) of $288,000 and an ROI of 162 percent.
“The move to Business Central was especially useful during the pandemic, as our users have remote access to key business functions.” – Controller, customer interview specialized production
Dynamics 365 Business Central enabled these five customers to strengthen operational efficiency, reduce costs, and grow their deployments comfortably with growth, while benefiting from the flexibility inherent in the cloud. Customers reported improved business flow, more detailed insight into business performance, better employee experiences, and higher productivity, along with lower licensing costs and IT costs.
” We were looking for an improved ERP solution that was suitable for our complicated operations, in the cloud. Business Central is that solution. We have everything we need in one tool. “- CEO, interview with customer in specialized production
Specific cost savings and ROI benefits that have improved productivity and operational efficiency include:
- Avoiding a full-time equivalent (FTE) and a part-time equivalent share for finance and operations – by enabling organisations to keep growth on track while reducing the need for staff by an average of 10 per cent.
- Improved operations flow at an average of 8 percent – thanks to better tools to complete and efficient workflows , allowing employees to focus on valuable tasks .
- Elimination of $44,000 in third-party reporting expenses over three years – using Dynamics 365 Business Central and other Microsoft solutions , such as Microsoft Power BI – organizations reduced the need for externally generated reports while gaining a more detailed understanding of their business.
- An additional $40,000 cost savings by switching to Dynamics 365 Business Central — attributed to the migration of on-premise Microsoft and non-Microsoft Enterprise Resource Planning (ERP) tools.
We believe that the Forrester TEI study validates the results of SME customers in various sectors, from professional services to banking, consumer goods and retailers. By migrating to a single cloud solution, Dynamics 365 Business Central provides a connected cloud business management solution that brings sales, services, and operations teams together. Click here to arrange a call with one of our friendly team or call our UK office directly on 0161 705 6000.