Which ERP to choose?

There are two very good and popular in Estonia ERP solutions in the Microsoft business software family, which OIXIO Digital implements and advises:

Dynamics 365 Business Central (D365BC, formerly NAV or Navision)
Dynamics 365 Finance & Supply Chain Management (D365F&SCM, sometimes referred to simply as FO, formerly AX or Axapta).

which one to choose

There are bound to be questions about the differences between the two and how to decide which one is right for your business.

We are the only Microsoft partner in Estonia that implements both ERP solutions, and we can help you make a choice here. If you wish, you can find information from the manufacturer about both solutions on the Microsoft website: Microsoft Dynamics 365 Business Central and Microsoft Dynamics 365 Finance & Supply Chain Management.

At first glance, you could say that there is nothing in Dynamics 365 BC that Dynamics 365 F&SCM cannot do as well or better. And the opposite statement is also true – Dynamics 365 BC is generally not inferior to Dynamics 365 F&SCM.So what would be the selection criteria? Based on our more than 25 years of experience, we can point out two main ones: functionality and investment.

About functionality

If the following keywords are important for the company, Dynamics 365 F&SCM is probably a more suitable solution:

1) Cross-border business activities, subsidiaries or business units in several countries
2) Rapid development and variability of business requirements (flexible system configuration options are required)
3) Demanding supply chain processes:

  • Intercompany transactions
  • Large product nomenclature
  • High volume of transactions
  • Retail trade
  • Demanding origin tracking
  • Process production, formulas, recipes, co-product and by-product (co-product & by-product)
  • Project production

If the above keywords are not important in the company’s work processes, then it is worth considering Dynamics 365 BC.


There are things to consider when investing

  • the cost of software licenses
  • the cost of software implementation, including the cost of company-based adjustments
  • the contribution of the company’s own employees in the software implementation project and the adoption of the software – if the company historically has, for example, a long experience with NAV, then when updating the software, it may be reasonable to continue with its newer version on Dynamics 365 BC, although other criteria speak in favor of F&SCM and vice versa.

Although Dynamics 365 BC license prices are often somewhat cheaper compared to Dynamics 365 F&SCM licenses, licensing principles vary from product to product and we at OIXIO Digital have come across several cases where Dynamics 365 F&SCM licenses turn out to be cheaper. Therefore, it is reasonable to think about your needs, consult with your partner, consider, etc

Remember that choosing the right accounting software is certainly very important for a business, but you shouldn’t just focus on technology. The new solution affects all areas of the organization, so success requires that everyone is aware of the scope and reasons for the changes. The consulting team of OIXIO Advisory can be of help here, helping to create a road map for digitization, compiling software requirements for software selection, and advising on change management during the implementation process. See OIXIO Advisory services here!

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