The financial impact of Dynamics 365 Business Central on your organization

Posted May 30, 2024

Microsoft recently commissioned Forrester Consulting to examine the economic impact and potential return on investment that comes when an organization implements Dynamics 365 Business Central.

The move to Business Central or a modern-day ERP system can be a significant undertaking. Evidence of the bottom-line benefits of a move to Business Central can be difficult to see before you make the transition. That’s where this research study comes in.

The study interviewed and examined five organizations that were using Dynamics 365 Business Central, and built a composite organization based on their organizations and Business Central experience. The summary organization had on average $15 million in revenue, 150 employees, and 15 daily users of Business Central.

Joesoftware wanted to summarize the high level findings as we think this information will be helpful to organizations contemplating a move to Business Central:

• Finance and operations employee productivity improved 9% to 18% with Business Central. Time spent on manual reporting and reconciliation decreased with Business Central, while access to key information and tools through Business Central improved the quality of decision-making.
  
• Costs associated with legacy ERP solutions and support and third-party fees are avoided. Before Business Central, many organizations paid for quarterly external reporting because their Finance team was working at capacity. There were also ongoing costs related to their on-premise ERP solutions, versus the cloud-based approach Business Central provides.
  
• There is net profit from Business Central-enabled revenue, alongside improved business outcomes and an improved employee experience. These were just some of the unquantifiable benefits that provide value to organizations running Business Central.
  
• A move to Business Central averaged a 172% return on investment over three years, with a net present value of $306,000. Savings were found through a reduction in new hires, productivity improvements, and avoided costs.
  
• The payback on an investment in Business Central was approximately 7 months. Organizations found that moving from individual systems for bookkeeping, inventory management, analytics and more, to one system for everything, saved time and money and delivered results in a relatively short period of time.
  

Depending on the size and structure of your organization, your results and experience may vary. However, it is clear that Business Central brings heightened efficiencies and productivity which can only lead to bottom line returns. Click here to read the full study, or if you’d like to discuss if Business Central is right for your organization, we are ready to talk with you and learn more about your business.