When considering ERP solutions, Microsoft Dynamics NAV (commonly called Navision) and its successor, Dynamics 365 Business Central, are two standout options. Both have helped countless businesses streamline operations and improve efficiency. While Business Central builds on the strong foundation of NAV, each has its unique strengths.
This article explores the evolution from Navision to Business Central, their differences, and why both remain valuable choices for businesses, depending on their needs.
A Brief History of Navision and Business Central
Navision began its journey in Denmark in the 1980s as a financial software solution. After Microsoft acquired Navision in 2002, it became Microsoft Dynamics NAV, growing into a comprehensive ERP solution tailored for small and medium-sized businesses (SMBs). It became well-known for its simplicity, customisation options, and robust functionality.
In 2018, Microsoft introduced Dynamics 365 Business Central as a modern ERP system to address the growing need for cloud-based, flexible, and scalable business solutions. While Business Central shares NAV's core features, it expands capabilities to meet the demands of a digitally connected world.
Key Differences Between Business Central and Navision
1. Deployment Options
Navision: Dynamics NAV was designed for on-premises deployment, offering businesses full control over their data and infrastructure. In later years, hosting NAV in the cloud was made possible through third-party providers, but it wasn’t inherently a cloud-first system.
Business Central: Business Central is designed with cloud-first capabilities, hosted on Microsoft's Azure platform. It also supports on-premises and hybrid deployments, giving businesses flexibility based on their needs.
Why It Matters: Businesses with robust in-house IT capabilities might prefer NAV’s on-premises deployment. For organisations prioritising remote access and minimal infrastructure maintenance, Business Central is a better fit.
2. User Experience and Accessibility
Navision: NAV features a desktop-oriented interface that’s straightforward and functional. However, accessing the system outside the office often required extra configuration or third-party tools.
Business Central: Business Central offers a modern, web-based interface accessible from desktops, tablets, and smartphones. Users can securely access data from anywhere, enhancing collaboration and flexibility.
Why It Matters: If your business operates primarily on-site, NAV’s traditional interface might be sufficient. However, Business Central’s mobility and remote access capabilities are key for modern, distributed teams.
Navision: NAV integrates with Microsoft tools like Excel and Outlook but lacks the seamless connectivity seen in newer solutions.
Business Central: As part of the Dynamics 365 suite, Business Central offers native integration with tools such as Microsoft Teams, Power BI, and Power Automate. These integrations simplify workflows, enhance collaboration, and deliver real-time insights.
Example Use Case: With Business Central, users can directly view financial dashboards in Power BI or automate approval processes with Power Automate. While possible in NAV, achieving this often required custom configurations.
4. Updates and Scalability
Navision: Updates to NAV are manual and require careful planning, especially for highly customised systems. These updates often involve downtime and consulting resources.
Business Central: Business Central provides automatic updates twice a year, ensuring businesses always have access to the latest features and security enhancements with minimal disruption.
Why It Matters: For businesses that want to minimise downtime and future-proof their systems, Business Central’s automatic updates are a major advantage. NAV, on the other hand, offers stability for organisations not needing frequent updates.
5. Cost Structure
Navision: NAV typically involves a larger upfront investment due to perpetual licensing and IT infrastructure costs. While predictable, these costs may not offer the flexibility businesses need as they scale.
Business Central: Business Central operates on a subscription-based model, aligning costs with usage. This model eliminates significant upfront expenses, making it more accessible for SMBs.
Why It Matters: Businesses with a preference for one-time investments might favor NAV, while those seeking lower initial costs and scalability may prefer Business Central’s subscription model.
Why Did Microsoft Transition to Business Central?
Microsoft launched Business Central as a natural evolution of NAV to address the modern needs of businesses. The shift to cloud computing, mobile accessibility, and integrated workflows required a platform that could seamlessly adapt to these trends.
While NAV remains a dependable choice for businesses with specific on-premises needs, Business Central provides:
Enhanced scalability: Perfect for businesses that are growing or expanding globally.
Seamless integrations: Leveraging the Microsoft 365 ecosystem and third-party apps.
Lower maintenance costs: Automatic updates and reduced dependency on IT resources.
AI-driven insights: Built-in analytics and machine learning for informed decision-making.
NAV or Business Central: Which Is Right for Your Business?
Choosing between NAV and Business Central depends on your specific needs. Here’s a quick guide to help:
Stick with NAV if:
You already use NAV, and it meets your business needs.
You prioritise control over deployment and data.
Your business operates within a stable IT environment where updates are less frequent.
Choose Business Central if:
You’re looking for a modern, cloud-based solution.
Your business values mobility, scalability, and remote access.
You want seamless integration with Microsoft’s ecosystem and automated updates.
Final Thoughts
Both Dynamics NAV and Business Central are exceptional ERP solutions tailored for SMBs. NAV’s legacy as a reliable and customisable ERP system is well-earned, and it continues to serve many businesses effectively. However, as businesses embrace digital transformation, Business Central offers the tools and flexibility to stay ahead.
If you’re considering a move from NAV to Business Central or exploring ERP options for the first time, understanding your business needs is key. Both solutions have their strengths, and the right choice depends on where you are today and where you want to be tomorrow.
Need Guidance? Our team specialises in helping businesses navigate the ERP landscape. Whether you’re planning an upgrade or exploring ERP options, we’re here to help. Contact us today for expert advice!