The industry is currently at a crossroads. One of the big decision points today is to move from Dynamics NAV to Dynamics 365 Business Central.
Based on our report, we saw that a lot of the respondents were clients who were still at NAV (66%), With around 70% of them planning to move to Business Central within the next two years.
Due to the fact that Business Central is available for both on-premises and cloud environments, this results in 2second abbreviation Decision point, what is the preferred environment.
Microsoft has been very aggressive with its promotions for moving customers to the cloud. However, Dynamics NAV customers who currently use ERP on their premises seem reluctant to change. Our data showed that 68% of respondents are still on-premises, and 61% of them are not at all interested in moving to the cloud in the future.
Why and How Manufacturing Customers Use Enterprise Resource Planning (ERP) Systems
Starting an ERP journey is not the easiest process. It takes a lot of time, planning and resources to get it right in the end.
In my experience, there is usually no set goal, but it is an ongoing process. Thus, we thought it would be interesting to know why and how clients enter the world of ERP.
The most common answers we found about why manufacturing customers use ERP were the following:
- Achieving more coherence in business operations and finance
- Gaining overall business transparency
- Enhancing the efficiency of administrative and basic production processes
From there, we zoomed in and wanted to understand how customers started their journey with Microsoft Dynamics NAV or Business Central.
What were they using previously, and why did they need to switch?
We found out that NAV/BC is often not an entry-level ERP system.
The majority of respondents (59%) said they previously came from ERP and moved to NAV/BC. Either they were using an old ERP that was no longer supported, or a lightweight program like QuickBooks, or an ERP vendor like SAP or Dynamics AX that was too heavy.
Basically, their ERP system wasn’t a good match for their requirements, as they needed something mid-level.
As we began to dig deeper and understand the ERP journey of our respondents, we found a consensus that although NAV/BC can cover a lot of the general functionality required by a customer, there are still customers who need more.
Our data showed that approximately 73% of respondents found Standard Business Central unable to meet all of their requirements. Thus, they require customizations made by the partner and/or use third party applications.
Why and how manufacturing customers improve Business Central with third-party applications
To give you a better idea of these customizations / 3research and development Party Apps We also asked customers what kind of tasks they need specific apps. This tells us what kinds of jobs the Standard Business Center lacks. The best answer to this question was as follows:
Finally, we looked closely at Microsoft NAV and Business Central Manufacturing and wanted to see how respondents perceive this specific unit.
Overall, customers interviewed gave the NAV/BC Standard Manufacturing an average rating of 6.6/10 and an average rating of 7/10 (10 being the highest). The most important issues they encountered while working solely with standard manufacturing included the following:
- Too many tables, hard to find data – 44%
- Waste of time – 28%
Even if I slowly get used to the business-centric world, I still sometimes feel lost in understanding the industry as a whole.
These tidbits of information you shared, could certainly have helped me early in my career. This report definitely helped me understand some of the basic questions I had about the industry, such as
- Where is the industry now?
- What drives customers to move towards ERP
- And what difficulties do customers face with business central manufacturing?
If you want to understand the Microsoft Dynamics 365 Business Central and manufacturing landscape and enjoy the very useful data presented above,