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A Guide on Dynamics 365 Business Central Implementation

Updated: November 20th, 2024 by Ivan Farafonov

Running a business is almost always about a large number of documents, papers and transactions. We know it is the most common but at the same time the most difficult way to manage your company. And now it can be easily improved with a guide on Microsoft Dynamics 365 Business Central implementation.

Dynamics 365 Business Central holds a market share of about 1.13% in the Enterprise Resource Planning (ERP) category, ranking it 15th among its competitors. The leading competitors in this segment are Microsoft Dynamics with 26.44%, Workday with 11.58%, and SAP ERP with 11.11% market share.

The main reason and goal of this implementation guide is to provide an extended overview of Microsoft Dynamics 365 Business Central and walk you through all implementation steps. From understanding its value to finalization of the full deployment process, ensuring empowerment of business and maximization of its profits.

This full implementation guide will describe improvement of processes and integration into the types of businesses that can benefit from Business Central implementation. Provide an overview of the implementation process steps, outline the personnel roles involved in the implementation, and offer best practices to ensure a fast and successful deployment with minimization of spendings and costs.

Implementing Microsoft Dynamics 365 Business Central is not just about deploying software; it’s about aligning technology with business goals. A successful implementation ensures seamless integration, streamlined operations, and a scalable foundation for growth.

Artem A.

D365 Solution Developer & Business Central Developer

Dynamics 365 Business Central Implementation Key Features

Dynamics 365 Business Central is a platform that can be set up in a cloud to help you track and manage all your business processes. It acts like a conversation with your business, helping to discuss and solve common everyday problems you may face. The main feature is that all the necessary information is in one place, forming a holistic image of your business’s current position. This allows you to make informed decisions based on comprehensive data.

If you want to keep in touch with your business and its current state Dynamics 365 marketing consulting will be a good solution for you. Besides ERM, Dynamics 365 Business Central CRM integration can be provided by the specialists. It is a Customer Relationship Management app that can tell you more about your audience and help to build better communication with it.

Due to all its undeniably delectable features Microsoft Dynamics 365 Business Central integration can improve your business a lot, optimize and automate it and lead to a significantly new level of communication with the clients.

Discover its main features:

Data Integration and Visualization

All data is performed in an understandable and demonstrative way.
Helps avoid spending hours comparing data for analysis.
Allows you to build future strategies based on comprehensive information.

Office 365 Integration

Works with the whole context of your business.
Integrates all elements and parts, including suppliers and customers.

Time-Saving and Efficiency

Automates data management and analysis.
Enables focus on core business activities rather than data management.

Improved Accessibility

When you migrate on premise application to cloud, you can receive as a benefit higher accessibility of the data. Now all modern cloud data storage ensures the constant accessibility to the data that is feasible due to the high level of server maintenance that guarantees the constant work of the server. And even if there is some failure, you can be sure that all your data will be recovered as there is a disaster recovery function and several backup plans. Due to it you can be sure of continuous access to your data and its safety.

Continuous Development and Improvement

Originally known as the Microsoft Dynamics Nav integration, it has been rebranded and continuously improved.
Provides automated processes, strong protection, and easy accessibility.
Enterprise Resource Planning (ERP)

Tracks and manages all your business resources.

Part of the D365 marketing implementation.
Keeps you in touch with your business’s current state.
Customer Relationship Management (CRM)

Types of Businesses that will Benefit From Business Central Implementation

Microsoft Dynamics 365 Business Central is a universal solution that can be adapted to meet the requirements and needs of a variety of companies in different industries. While it is designed to make benefits for small and medium-sized enterprises, its flexibility and scalability also make it suitable for larger enterprises that require a more specific, yet affordable, ERP system. Let’s check the examples of the types of businesses that can benefit from Business Central implementation:

1. Small and Medium-sized Business Companies

Dynamics 365 Business Central implementation suits best particularly for companies that require a small unified, cost-effective solution to manage multiple business functions in one simple platform. The software’s scalability and flexibility allow businesses to start small and expand as needed, making it a perfect fit for growing companies, as it can be customized for almost any needs.

Example: A small company with less than 100 employees may use Business Central ERP to manage basic inventory operations, sales orders, and finances in one system, reducing the need for separate tools.

2. Professional services companies

Companies that provide services, such as consulting, marketing or legal practices, can receive advantages of Dynamics 365 for Business Central implementation to manage project-based processes, client documentation creation, and financial reporting. The platform helps service businesses to track resources, timelines, and financials for each client and project to ensure profitability and cost reduction.

Example: A project management consultancy may use Microsoft Dynamics 365 Business Central implementation to track billable hours, project costs, and client invoicing, all within one platform.

3. Distributors and Retailers

For businesses dealing with basic inventory management, sales, and procurement, Microsoft Business Central implementation offers a range of features for tracking inventory, managing sales and purchase orders, and improving customer relationships. The solution’s integration with supply chain management tools helps distributors and retailers streamline operations.

Example: A wholesale distributor (such as health and wellness supplements, home office equipment, fitness and sports equipment, adventure and outdoor gear, etc.) can track inventory levels in real time, manage multiple warehouses, generate sales orders and invoices for customers.

4. Small manufacturing companies

Small manufacturers can benefit from Business Central solutions for production planning according to actual inventory tracking, purchasing, and financial tracking. The system helps businesses optimize production schedules, manage raw material inventory, and track manufacturing costs through purchase and sales transactions.

Example: A small-to-medium-sized manufacturer (such as brewery production, food and beverage production, furniture manufacturer, pharmaceutical manufacturer, etc.) can use Dynamics 365 Business Central to plan and track production cycles, ensure that materials are available for production, and monitor cost efficiency.

5. Financial services and real estate companies

With its strong financial management capabilities, Microsoft Dynamics Business Central implementation can benefit industries like finance, insurance, and real estate. Businesses in these sectors can track and manage transactions, provide operations according to the straight rules, and provide reporting insights, all of which Business Central ERP can offer.

Example: A real estate company could use Microsoft Dynamics 365 Business Central implementation to track property sales and provide detailed financial reports for property management.

Simplify implementation with Business Central experts!

Business Central Implementation Steps

Implementing Microsoft Dynamics 365 Business Central requires careful planning, precise information gathering and a structured approach to ensure the system will align with business objectives and requirements and deliver maximum value to business. In almost any case, the implementation process consists of several key stages and steps, each critical to the overall success of the project. Below are the essential stages with the minimal time spendings for a small company without customizations in a Business Central implementation:

Planning and Requirements Gathering

2-4 weeks

The planning and requirement analysis phase is essential for understanding the business goals, identifying pain points, and setting clear expectations. During this stage, the project team works closely with stakeholders to outline the scope, timeline, and resources required for the project.

Activities:

Define business requirements
Identify key performance indicators (KPIs)
Set project goals and scope
Establish budget and timeline

Planning and Requirements Gathering

4-6 weeks

Once the business requirements are defined, the next stage involves installing and configuring the system to meet the needs of the business. This includes setting up workflows, user roles, and security permissions, as well as customizing the system based on the organization’s unique processes.

Activities:

Configure chart of accounts, workflows, and processes
Design custom dashboards and reports
Define data migration strategy
Identify necessary integrations with other systems

Data Migration and Testing

4-6 weeks

In this stage, data from existing systems (e.g., customers, orders, vendors, inventory) is migrated into Business Central. Data quality is crucial, so businesses must thoroughly test the migration process to ensure data accuracy.

Activities:

Data cleansing and validation
Import historical data into Business Central(e.g. configuration packages)
Perform system testing and user acceptance testing (UAT)
Conduct performance and load testing

Training and Change Management

2-3 weeks

A successful Microsoft Dynamics 365 Business Central implementation requires proper user training, preparations and change management in personnel. This stage ensures that employees understand how to use the new system for each department and are comfortable with the changes in their workflows.

Activities:

Conduct role-based training sessions
Provide support materials (guides, videos, FAQs)
Establish a feedback loop for ongoing improvements
Communicate changes to the broader organization

Go-Live and Post-Implementation Support

2-4 weeks

Once the system is configured, filled with data and users are trained to conduct usual processes, the system goes live. During this phase, users begin interacting with the system in real-time, and the implementation team provides support and gathers feedback to address any issues that might appear.

Activities:

Monitor system performance and resolve issues
Provide on-site or remote support for users
Evaluate the success of the implementation against KPIs
Tune-up configurations based on user feedback

Engaged Implementation Team

The success of a Business Central implementation depends heavily on the expertise of the implementation team. The composition of the team will vary depending on the specific needs of the business, including its size, industry, and complexity of workflows. Here is a table of key specialists involved in a typical Business Central implementation:

Specialist	Responsibilities	Why They're Needed
Team lead / Project manager	Oversees the entire implementation process, manages resources, ensures milestones are met, and reports progress to stakeholders.	Ensures that the implementation runs smoothly, on schedule, and within budget.
Business analyst	Gathers business requirements, defines project scope, maps out workflows, and identifies pain points, creates development documentation.	Create connections between business needs and the technical team. Essential for aligning the system with business goals.
BC Consultant	Provides in-depth knowledge of Business Central solutions, advises on best practices, and configures the system accordingly.	Experts in Microsoft Dynamics 365 Business Central implementation. Key to translating business needs into system configuration.
BC Developer	Customizes and develops new functionalities, modules, and integrations within Business Central.	Necessary for creating custom features and ensuring that Business Central ERP integrates well with other business systems.
Data migration expert (Optional)	Ensures accurate and efficient data migration from legacy systems to Business Central.	Ensures that historical data is correctly imported and available for use in Business Central.
Change management lead (Optional)	Manages the transition to Business Central, including training, communication, and addressing user concerns.	Critical for ensuring smooth adoption and minimizing resistance to change.
Support and IT Admin	Provides ongoing support and maintenance post-implementation, troubleshooting and resolving technical issues.	Ensures that the system continues to function optimally after go-live and supports users with technical issues.

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Dynamics 365 Business Central Best Practices for Implementation

To ensure a fast and successful Microsoft Dynamics 365 Business Central implementation without any issues, it’s crucial to follow implementation best practices throughout the whole deployment process. Below are some commonly used recommended best practices, to help businesses make the most out of their Business Central implementation:

1. Set Clear Objectives

Before starting, establish clear business objectives and pain points. This will help the project team stay focused and aligned on what the system is intended to achieve. For example, if your goal is to improve financial reporting, ensure that Microsoft Dynamics 365 Business Central implementation includes specific features for financial analysis and reporting.

2. Invest Time in Data Preparation

Data is the base of any ERP system. Invest time in cleansing, validating, and formatting your data before migrating it to Business Central. For example, ensure customer and vendor records are up-to-date and standardized according to the system mapping to avoid issues during the migration.

3. Conduct Thorough Testing

Before going live, thoroughly test the system. This includes user acceptance testing (UAT), integration testing, and performance testing. For example, a retail business may test the integration between Business Central ERP and their point-of-sale system to ensure accurate sales order processing.

4. Provide Adequate Training and Support

Offer comprehensive training and create a user guide to help employees understand the new system. Provide ongoing support to ensure users feel confident and empowered to use Business Central solutions effectively. Testing usually involves consultants and users. For example, create a series of video tutorials for employees covering everything from basic navigation to advanced features like financial reporting.

5. Monitor and Optimize Post-Go-Live

Once the system is live, continue to monitor its performance, gather feedback from users, and make adjustments as needed. For example, use Power BI to track how users are adopting the system and identify any inefficiencies in workflows and amounts.

Conclusion

By following these implementation guidelines, businesses can achieve a fast, painless and successful Dynamics 365 Business Central implementation that drives efficiency, gathers strict decisions, and enhances overall business performance. Microsoft Dynamics 365 Business Central offers the flexibility, scalability, and functionality needed to optimize business operations, making it a powerful tool for companies of all sizes and ease all work processes.

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By Ivan Farafonov

I'm passionate about sharing my extensive experience in Microsoft and Dynamics 365 technologies. Beyond the technical realm, I excel in recruiting and building high-performing teams, ensuring every project is executed with precision and collaboration. As a contributor to HireDynamicsDevelopers, I share my insights on maximizing Dynamics 365’s potential, blending technical expertise with strategic team development. My passion lies in both technology and fostering talented professionals to achieve outstanding results.

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A Guide on Dynamics 365 Business Central Implementation