Getting buy in for a new technology solution can be a big challenge for some organisations looking to transform. It is sometimes difficult to articulate the various ways in which new technology will benefit your organisation and convince your stakeholders of the value of the investment. A balanced business case considers the quantifiable and qualitative benefits a new solution brings and provides a complete picture of the advantages and returns available.
In this article we discuss how to build the business case for Dynamics 365 Business Central.
Nucleus study on ROI for Dynamics 365 Business Central
An independent study by Nucleus found that for every £1 spent on Dynamics 365 (including implementation costs) organisations yield, on average, a £17 return in the first 3 years after deployment. This is twice the average return typically seen in the industry for ERP projects.
If you assume an investment of £50,000 for Business Central (including implementation licences and support), then you create a £850,000 return in the first 3 years after deployment. This is compared to an industry average of £400,000.
How is the ROI for Dynamics 365 Business Central achieved?
- Automation/integrations – Business Central is shaped around your processes to automate tasks. Seamless integration with Office 365 saves time for users and further process automation can be achieved with Microsoft Power Automate.
- User adoption – familiarity with solutions like Microsoft Office drives user adoption as Microsoft products share common design and user experience. High user adoption drives more efficient use of the system and less time spent on training or support.
- Reduced IT costs – cloud implementation streamlines your ongoing IT costs by removing the need for servers, maintenance and system updates. All of this is managed by Microsoft as part of your subscription.
- Data and AI – built-in reports, AI and dashboards support better decision making and provide insight at the touch of a button.
- Customer management – Business Central provides your team with the ability to manage customers and build deeper relationships, improving customer service and retention.
Practical examples of Dynamics 365 Business Central improvements
We have included practical examples of areas that are improved when moving to Dynamics 365 Business Central. Business Central generates growth and frees up resources that can be used to drive your organisation forward.
- Month end close and reporting – Business Central removes the reliance on manual processing typically involved in month end close, by providing up to date data in one system. Reducing the time for month end close by 50% saves your Finance Director and finance team a number of days every month.
- Supplier management – Business Central provides Outlook integration and AI powered insights to help minimise shipping costs, manage suppliers and order stock when needed. See our article on inventory management with Dynamics 365 Business Central.
- Finance administration – improve processing of purchase orders, invoice, sales order and bank reconciliation. The automation and integrations available allow you to generate and process purchase orders, invoices and sales orders all within Outlook and create them in Dynamics 365 Business Central.
- Operational efficiency – reduce overtime, improve planning and utilisation by managing warehouses, production and projects better. Built-in capability provides intelligent insights and forecasting tools to better predict your future resource requirements ensuring you have the right level of people and inventory available.
- Data driven insights – Business Central helps you make better decisions through embedded dashboards that provide actionable insights across your organisation. Business Central provides the ability to export to Power BI and do deeper analysis.
This is based on our experience of delivering successful Dynamics 365 Business Central projects and the data provided by Nucleus as part of their study. From working with customers on Dynamics 365 Business Central projects, the combination of user experience, automation and intelligence is helping organisations drive a huge amount of value from the system.
Find out more about Dynamics 365 Business Central.