Microsoft Dynamics 365 Business Central: The ERP Revolutionizing the SMB Market
Microsoft Dynamics 365 | Simplify your IT footprint and make decisions faster.
- September 19, 2024
The small and mid-sized business (SMB) sector has long been underserved when it comes to comprehensive enterprise resource planning (ERP) systems. SMBs often find themselves trapped between outgrowing basic accounting tools like QuickBooks and not needing – or affording – the complexity of systems designed for global enterprises. This gap in the market created an opportunity for a solution that offers scalability, affordability, and deep integration with commonly used tools. Understanding the need for a robust solution in the small to mid-level market Microsoft created Dynamics 365 Business Central, which has quickly become the premier ERP solution for SMBs across industries such as retail, manufacturing, distribution, and eCommerce.
- Related: Is QuickBooks Killing Your Small Business?
- Related: Business Central vs QuickBooks
In 2023 and 2024, Forbes Advisor named Microsoft Dynamics 365 Business Central as the #1 ERP for small to mid-sized businesses, an accolade that highlights the platform’s increasing dominance in the SMB space. As of 2024, Business Central surpassed its key competitor, NetSuite, in terms of total SMB customers, now serving over 40,000 companies globally – compared to NetSuite’s 38,000. The reasons for this success are clear: Business Central provides SMBs with the scalability they need to grow, a competitive pricing structure, and seamless integration with the Microsoft ecosystem, all while automating the mundane tasks that businesses are eager to eliminate.
This blog explores these factors in detail, offering insights into why Microsoft Dynamics 365 Business Central is revolutionizing the ERP landscape for organizations of all sizes and why it’s the top choice for businesses looking to streamline and future-proof their operations, while continuing to drive growth.
Table of Contents
SMB Market Overview: Why ERP is Critical for Growth
Before diving into the specifics of Business Central, it’s essential to understand why SMBs are increasingly turning to ERP systems in the first place. The ERP market, once dominated by solutions designed for large enterprises, has evolved significantly in the past decade to cater to the needs of smaller businesses.
As SMBs grow, so do their operational complexities. Inventory management, supply chain optimization, order processing, financial reporting, and customer relationship management (CRM) all become more challenging as companies scale. Many SMBs start out using disconnected systems or spreadsheets to manage these processes, but eventually, the lack of integration and inefficiency begins to hinder growth.
This is where ERP systems come in. An ERP consolidates all core business processes into a single, unified system, providing businesses with the visibility and control they need to operate efficiently and make data-driven decisions. For SMBs, the ability to scale without overwhelming their teams or losing sight of their business metrics is critical. And this is where Business Central truly separates itself from its competitors.
The Three Pillars of Microsoft Dynamics 365 Business Central’s Success
Scalability: The ERP That Grows with Your Business
One of the most significant advantages of Microsoft Dynamics 365 Business Central is its scalability. Unlike many traditional ERPs that require extensive customization or re-implementation as businesses grow, Business Central is designed to evolve with your company, supporting increased transactional volumes, additional users, and more complex business processes as needed.
Handling Increased Transaction Volumes
As a cloud-based solution, Business Central allows businesses to scale up their operations without worrying about performance bottlenecks. Whether it’s managing an influx of orders during peak seasons or expanding into new product lines, Business Central’s infrastructure ensures that even high-transaction workloads are handled efficiently. Microsoft’s commitment to enhancing the performance of Business Central over the past several years has paid off, allowing SMBs to grow without being constrained by their ERP’s capabilities.
For instance, a fast-growing eCommerce business might experience sudden spikes in order volume during holiday or summer seasons. Business Central’s cloud infrastructure can handle these surges in activity seamlessly, allowing companies to continue operating smoothly without system crashes or slowdowns.
Multi-Tenancy and Global Accessibility
In today’s globalized business environment, companies often need to manage operations across multiple locations or time zones. Business Central supports multi-tenancy, allowing businesses to manage multiple subsidiaries or branches from a single platform. Moreover, because it’s a cloud-based ERP, it offers global accessibility – employees can access the system from anywhere, making it easier to support remote work, cross-border operations, and real-time collaboration across teams.
This feature is especially useful for companies in the manufacturing or distribution industries, where supply chains span multiple countries, and teams need real-time visibility into inventory levels, order status, and shipment tracking.
Related: Maximize Your Supply Chain Efficiency with Microsoft Dynamics 365 Business Central
Adaptability to Various Industries
Whether your company is in manufacturing, retail, wholesale, or distribution, Business Central’s adaptability ensures that the platform can be configured to meet the specific needs of your industry. Unlike other ERPs, which may require complex customization to handle different verticals, Business Central offers industry-specific functionality out-of-the-box. This includes modules for inventory management, manufacturing operations, supply chain optimization, and CRM, all of which can be tailored to your business’s needs as it scales.
Competitive Pricing: Affordable Without Compromising on Features
For many SMBs, the cost of implementing and maintaining an ERP system is one of the biggest barriers to adoption. Traditional ERPs like SAP and Oracle are known for their high price points, both in terms of licensing and ongoing maintenance. Microsoft Dynamics 365 Business Central, on the other hand, offers a pricing model specifically designed for SMBs, making it far more accessible while still delivering enterprise-grade functionality.
Transparent and Flexible Pricing
Business Central offers two primary pricing tiers:
- Essentials License: $70 per user per month, covering most core ERP functionalities, including financial management, sales, purchasing, inventory, and customer service.
- Premium License: $100 per user per month, adding functionality for manufacturing and service management – ideal for companies with more complex operational needs.
In contrast, competitors like NetSuite and SAP often charge significantly more for similar capabilities. For example, NetSuite can start at $999 per month for the base package, and SAP’s solutions are often cost-prohibitive for SMBs due to the extensive customization required.
| Feature | Essentials | Premium | Team Members |
| Finance Management | Yes | Yes | Limited |
| Sales and Marketing | Yes | Yes | Limited |
| Purchasing and Payables | Yes | Yes | Limited |
| Inventory Management | Yes | Yes | Read Only |
| Supply Chain Management | Yes | Yes | No |
| Project Management | Yes | Yes | Read Only |
| Warehouse Management | Yes | Yes | No |
| Service Management | No | Yes | No |
| Manufacturing | No | Yes | No |
Related: Dynamics 365 Business Central Licensing Guide 2024
No Hidden Fees or Complex Customization Costs
One of the standout advantages of Business Central is its transparent pricing model. Unlike many ERP vendors that charge extra for updates, maintenance, or customizations, Business Central’s costs are straightforward. Updates and new features are rolled out regularly as part of the cloud subscription, so businesses are always using the latest version without needing to invest in costly upgrades.
Affordability Without Compromising on Value
Even at its affordable price point, Business Central doesn’t cut corners when it comes to functionality. SMBs using the Essentials license still gain access to advanced features like reporting, budgeting, multi-currency capabilities, and CRM integration, making it a comprehensive solution for businesses looking to scale without sacrificing features.
Seamless Integration with the Microsoft Ecosystem: A Unified Business Solution
In today’s digital-first world, businesses rely on a wide array of tools to manage day-to-day operations, from spreadsheets and email to collaboration platforms and analytics software. One of Business Central’s most compelling advantages is its seamless integration with the broader Microsoft ecosystem, which includes popular tools like Excel, Teams, Power BI, and Outlook.
Streamlined Collaboration with Microsoft Teams
Microsoft Teams has become the go-to collaboration tool for businesses of all sizes, and Business Central integrates directly with it, making it easy for employees to share data, reports, and insights without switching between platforms. Whether it’s real-time inventory updates, financial performance reports, or sales data, Teams integration ensures that everyone is working with the same information in real-time.
Familiar Tools, Minimal Learning Curve
For businesses that are already using Microsoft products, implementing Business Central comes with a distinct advantage: the learning curve is minimal. Employees are already familiar with tools like Excel, Word, and Outlook, and Business Central’s interface feels like an extension of these applications. This familiarity reduces the amount of training required during the ERP implementation process, helping teams adopt the new system quickly and effectively.
Power BI: Unlocking Actionable Insights
One of the most powerful integrations Business Central offers is with Power BI, Microsoft’s advanced analytics platform. Power BI allows businesses to generate detailed reports and dashboards with real-time data from Business Central, providing deep insights into financial performance, inventory levels, customer behavior, and more. With Power BI, SMBs can move beyond basic reporting and start leveraging data for predictive insights and smarter decision-making.
Microsoft Copilot: AI for the SMB Market
Perhaps one of the most exciting developments in the Microsoft ecosystem is the integration of Microsoft Copilot with Business Central. Copilot leverages AI to help businesses automate routine tasks, freeing up employees to focus on more strategic activities. From automating invoice processing to generating detailed reports with a single click, Copilot is designed to help SMBs streamline operations and boost productivity without needing to hire additional staff.
For example, a distribution company might use Copilot to automatically generate sales forecasts based on historical data, allowing the business to optimize its inventory levels without manual intervention. This type of automation not only saves time but also helps SMBs make better, data-driven decisions.
Related: AI’s Future Impact on Business Applications
Related: The Future of Business Central with Microsoft Copilot
Related: Everything you need to know about Microsoft Copilot
Why SMBs Should Choose Business Central for Digital Transformation
In a world where digital transformation is no longer optional but essential, Microsoft Dynamics 365 Business Central stands out as the top ERP for SMBs. Its ability to scale with a growing business, combined with its competitive pricing and seamless integration with Microsoft’s suite of tools, makes it the perfect solution for companies looking to modernize their operations and drive growth.
Whether you’re facing challenges with inventory management, struggling to automate repetitive tasks, or looking for better insights into your business’s performance, Business Central offers the tools and support you need to succeed. With more than 40,000 businesses already using Business Central, it’s clear that this ERP is not only here to stay but also set to continue dominating the SMB market.
Ready to Take Your Business to the Next Level?
Volt Technologies differentiates itself from other ERP Implementation Partners, Business Central Partners, and Microsoft Partners through our holistic approach to ERP implementations, our deep industry expertise, the critical role of our Solution Leads, and our unwavering commitment to client success. We go beyond just delivering a technically sound ERP system; we work with our clients to transform their businesses and achieve their strategic goals.
Our team’s experience working with Fortune 500 companies allows us to bring big-business knowledge and best practices to the mid-market, while our industry-specific expertise ensures that we deliver solutions tailored to the unique challenges of your industry. The Solution Lead plays a pivotal role in ensuring the success of every project, taking a holistic view of the technology ecosystem, facilitating stakeholder engagement, and championing what’s best for the client.
If you’re looking for an ERP implementation partner that truly understands your business and is committed to your success, contact us today to learn more about how Volt Technologies can help you achieve your goals with Microsoft Dynamics 365 Business Central. Reach out to discuss how Volt Technologies can help you with your next ERP implementation project. We look forward to partnering with you on your digital transformation journey, as we help you leverage the #1 ERP for the SMB market.
