Difference Between Dynamics NAV and Dynamics 365 Business Central
Learn the difference between Microsoft Dynamics NAV and 365. Discover what’s changed, what hasn’t, and how to migrate from NAV to D365.
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Microsoft Dynamics NAV–formerly Navision–has been in the ERP game since the early 1980s. NAV began as a suite of accounting tools, originally developed by a Danish company and acquired by Microsoft in 2002.
After two decades and countless upgrades, NAV is a flexible system that can adapt to a variety of industries and use cases. It’s popular among SMBs, as well as distributors and manufacturers for its robust suite of production control tools.
It still serves up valuable insights, offers plenty of customizations, and acts as a single source of truth for the whole organization. But, users are bumping up against the limitations of its on-prem infrastructure.
Business Central replaces NAV, offering the same core functionality in the cloud and with some major upgrades. Below, we’ll take a closer look at what’s changed, what hasn’t, and what a successful migration entails.
NAV and Dynamics 365 Business Central both allow SMBs to manage all core business operations in one place. Both platforms improve decision-making and optimize processes & workflows across the entire business. We’re talking finance, manufacturing, sales, HR, marketing, and so on.
But the real difference between Microsoft Dynamics NAV and Dynamics 365 isn’t what they do, it’s how they do it. Comparing the two platforms demonstrates the impact that infrastructure has on business performance.
Account Executive Sam Miller says, “BC is the same solution as NAV but with different infrastructure.”
Sam’s right, it is the same solution. But the difference in infrastructure has a significant impact on everything. Sure, you’re still using D365 for things like forecasting, purchasing, warehousing.
But implementing old systems, processes, and data flows in the cloud is more complex than it sounds.
Below, Velosio experts share common challenges they’ve encountered on the job.
Some organizations may still have trouble wrapping their head around the shift from on-prem to cloud. It’s not as common today, as cloud-based everything is now ubiquitous, but it still happens.
What’s more common is a poor understanding of how infrastructure impacts everything — customizations, reporting, basic accounting tasks.
“Many clients already understand the concept of on-prem ERPs. The cloud is something they’re just not comfortable with. They no longer have their own data on their own servers–and that can be scary without the right partner to ensure their environment is optimized.” – Kim Bateson, Senior Product Owner
Organizations also run into trouble if they haven’t created an environment that can support the new system. Network capacity plays a crucial role in supporting remote work and maintaining the continuous uptime needed for data streaming and IoT solutions. These are things that Velosio helps clients to address before they deploy to mitigate risks.
The choice between a “lift & shift” or a full reimplementation is a strategic one–requiring organizations to look at several factors.
“Identifying if there should be a technical upgrade, or an actual reimplementation alone is a big challenge for organizations.” – Carrie Gabris, BC Enterprise Consulting Manager
Part of that process involves looking at what migration will actually entail.
As mentioned in another recent post, there are several factors that will determine the best path to the cloud. Think–age, complexity, data volume, and whether your current solution was implemented properly.
The longer you’ve been using your legacy system, the more time you’ll spend sorting and cleaning your data before deciding what you’ll bring with you when you move. That means, mapping the data across NAV and its integrations, cleaning it, and weeding out old, inaccurate, or irrelevant data.
You’ll also need to ensure that the data you plan on keeping doesn’t get corrupted.
In a recent CIODive article, Hava Babay-Adi, software engineer & Google tech lead explained that migrating data from NAV to BC means you’re converting data from one schema to another.
In some instances, existing data may include records or variables that are no longer valid and you’ll need to convert it to a different format.
Beyond that, there are a few different methods and tools you might use to bring your existing data into the new system.
Kim Bateson says she often sees clients with NAV customizations they need to convert BC. This adds an extra layer of complexity to the migration process.
“Clients often struggle with customizations they’ve built themselves. You don’t want to recreate too many processes/apps/workflows in the new system, as it can get complicated fast.” – Jeff Smith, Pre-Sales Solution Engineer
Senior Consultant, Nick DiAngelo says, “if you’re using an older version, modifications in C/AL must be converted into AL Extensions. Sometimes, ISV solutions are not available for BC SaaS. This can have an impact on if they stay on-prem, find another solution, or make changes to the functionality of the ISV.”
We’ve already looked at some of the key challenges businesses face when moving from NAV to Business Central.
Below, we’ve shared some best practices for getting ahead of those challenges before they cause bigger problems.
It starts with understanding what value Dynamics 365 brings to the table.
Jeff Smith recommends learning about the big-picture benefits of the cloud before digging deeper. He says, “I like showing clients what they’ll save on hardware, upgrades, and IT spending by moving to the cloud, while also maintaining the core functionality of NAV.”
“The integration with the Microsoft ecosystem is so much more available with Business Central than NAV. On top of that, mobile apps make the system even more available, no matter how and where users work.” – Jeff Smith, Pre Sales Solution Engineer
Those benefits apply across the board but immediately show the potential of a cloud-based ERP. But, you’ll want to dig deeper to learn more about how the improved functionality can help you achieve specific business goals.
That means learning how users engage with the software, then using those insights to determine where you can add new value.
Keep in mind, the needs your end-users have right now may be very different from the needs they had during your initial NAV rollout.
To identify opportunities to improve existing processes, Carrie Gabris recommends answering the following questions:
Be sure to plan a rollout process that allows you to scale back new features—or even revert back to the legacy platform—if necessary.
You may want to consider a Phase Zero approach. So, rather than moving everything into the cloud at the same time, you take a more gradual approach.
This can help you identify friction points early on and communicate the benefits of the migration to resistant employees.
Next Pathway Chief Strategy Officer, Vinay Mathur, told CIO Dive that his team does an initial pilot or Phase Zero program as part of the migration. The process involves taking a small piece of an application (plus its data and codebase) and moving it to the cloud.
This helps engage end-users in the process and weigh in with feedback and feature requests.
It also helps them master the system they’ll use each day.
Because the ERP is the center of all business activities, planning for continuity is crucial. Downtime could have devastating, long-term consequences on your business. You’re vulnerable to cyber attacks. You lose productive hours and opportunities to sell.
Remember, end-users will be using D365 to perform daily work. That means you’ll need to ensure that the migration won’t prevent them from completing critical tasks.
You’ll also want to design a testing strategy that gets end-users involved in defining business processes, workflows, and use cases.
“Success requires engagement at every level and all phases. That includes project planning, but also testing, testing, and more testing.” – Carrie Gabris, Business Central Consulting Manager
Testing is essential for aligning expectations with the business strategy from the start. Plus–it doubles as an interactive training process that prepares users to get results from new features before they go live.
Melissa Herbst says, “if you look at successful ERP implementations, you’ll notice they have characteristics in common.” Here’s a quick rundown of the ones with the biggest impact on project success:
The key takeaway here is, the difference between Dynamics NAV and 365 is about infrastructure. The cloud unlocks all these benefits not possible in NAV–with the same features.
Jeffrey Smith sums it up with an important point. “The businesses that succeed believe in the value of the cloud and have executive support for the initiative.”
Working with the right partner makes it easy to gather requirements, select a migration path, and develop a strategy for success.
Velosio offers on-prem ERP services that help NAV users ease into the cloud at their own pace. We can also help you navigate a full implementation, migrate existing processes, and get the most from your new investment.