Microsoft is one of the biggest names around when it comes to business software solutions. If you’re in the market for an enterprise resource planning (ERP) or customer relationship management (CRM) platform, your research should have turned up information on Microsoft Dynamics. With so many versions available, you may be wondering what makes them distinct from each other. That’s why we’ve set up this guide to help you understand critical differences between some of the most popular Microsoft Dynamics solutions.
What’s the Difference Between Microsoft Dynamics and Dynamics 365?
Microsoft Dynamics started as on-premises software used to help small businesses manage their operational processes. As the company moved toward making its products available via the cloud, many of the functions performed in old Microsoft Dynamics versions got moved to Microsoft Dynamics 365, a software-as-a-service platform.
Microsoft Dynamics GP
Microsoft Dynamics Great Plains (GP) accounting software is popular among small and medium-sized businesses (SMBs) that need a robust platform for handling their financial processes. The solution also provides organizations with workflows to manage human resources, supply chain, and project management functions.
Microsoft Dynamics SL
Microsoft’s Solomon (SL) ERP business management platform is used by more project-focused organizations. The available features allow companies to increase workflow efficiency and provide better experiences to clients. Like most Dynamics solutions, Microsoft Dynamics SL comes equipped with automation capabilities.
As a result, businesses can use them to streamline business functions, manage employees, and locate new revenue-generation opportunities. Unlike Dynamics GP, companies can integrate SL with other Microsoft cloud products like Power. However, SL is an on-premises solution, so companies need infrastructure to support the product.
Microsoft Dynamics AX
You can still find versions of Dynamics AX at work in many small companies. AX is one of Microsoft’s oldest ERP platforms. It quickly became popular among business users because of AX’s user-friendly interface, making workers comfortable using it to complete tasks.
AX is typically used to manage supply chain and financial processes. Logistics companies often use the platform to optimize goods and material flows. You can also leverage Microsoft Dynamics AX to collect data to help them better understand what’s happening up and down the supply chain.
Microsoft Dynamics NAV
Dynamics NAV is another legacy ERP platform targeted at small businesses to gain control over functions tied to operations, procurement, project management, supply chain management, and accounting. One of the things that set NAV apart from other legacy Microsoft ERP products is the modular design.
Businesses could start working with a few modules to see how well Dynamics NAV fit into their work environment. After that, an organization could sign up for additional modules depending on their business needs. Microsoft Dynamics NAV instances can only be purchased from a licensed dealer.
Microsoft Dynamics CRM
Dynamics CRM is a legacy product businesses use to set up a centralized database for managing customer interactions. For example, you can pull in information from customer touchpoints like emails and phone calls, then use the data to create individual customer profiles. Businesses also use the CRM to help sales teams locate promising new leads and deal with customer service disputes.
Microsoft Dynamics 365
The evolution of cloud technology led to the development of Microsoft Dynamics 365. The suite of cloud-based business applications is similar to NAV in that organizations can subscribe to individual modules containing the required functionality.
Business users can access Dynamics 365 via a web browser, which benefits companies with remote workers. In addition, the platform integrates seamlessly with other Microsoft cloud products. It also has third-party integrations that let businesses work with other products like SAP Concur.
What’s the Difference Between Microsoft Dynamics 365 and Business Central?
Microsoft Dynamics 365 covers an umbrella of SaaS business modules, including Business Central. It’s an ERP solution designed to help SMBS manage functions related to financials, project management, and manufacturing. Below is an overview of some of the capabilities businesses receive when they subscribe to Microsoft Dynamics Business Central.
- General ledger — Companies can use the general ledger for essential accounting functions like posting general ledger entries and managing sales tax.
- Budgeting — Allows organizations to track budgets and share information through Power BI.
- Contact management — Provides sales teams with a way to organize contacts and establish more personal interactions.
- Invoicing — Companies can generate, post, and send customer invoices and credit memos.
- Inventory control — Allows organizations to create stock items and related attributes like cost and price. In addition, users can post item transactions and group items to help track inventory held in various locations.
- Planning and forecasting — Gives business users tools for planning material requirements based on market demand. In addition, companies can automate orders and manage demand forecasting.
What’s the Difference Between Microsoft 365 and Dynamics 365?
Microsoft 365 is a productivity cloud product containing essential business applications relied upon by business users worldwide. The SaaS platform includes all the applications previously available in Office 365, including PowerPoint, Excel, and Word. In addition, users can also take advantage of new capabilities like cloud services, advanced security protections, and device management.
Teams can remain on the same page even if they don’t all work in the same office. Microsoft 365 facilitates collaboration by allowing users to share, store, and access files if they have an internet connection. In addition, users can download the software onto a PC or mobile device if needed.
Microsoft Dynamics 365 are an umbrella of cloud productivity applications that include CRM and ERP solutions. Companies with a Microsoft Dynamics 365 subscription can work directly with Microsoft 365 business applications. The benefit of having subscriptions to both is that Microsoft assumes responsibility for security maintenance and software upgrades.
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