ERP migration: from Navision to Microsoft Dynamics 365 Business Central

Companies that want to stay at the cutting edge of technology have to decide on the right time to upgrade or introduce new software systems.

For users of Microsoft Dynamics NAV who are considering an upgrade to Dynamics 365 Business Central, it is crucial to know when the switch is appropriate and what the risks of hesitation are. This blog offers a concise insight into the technical and business arguments in favor of a timely migration.

Evolution of Business Central as ERP

Dynamics 365 Business Central has undergone 22 version updates from when it started as Navision up to its latest release this year. However, this latest development also marks a turning point, as Dynamics NAV reached a stage where it was no longer scalable and could no longer meet the demands of today’s business environment, which requires more advanced and flexible processes.

To meet this demand, Microsoft has equipped Dynamics 365 Business Central with AI, integrations, and user-friendly design and tools, and has set a date for the discontinuation of NAV.

Comparison between Business Central and Navision

Navision and Business Central differ considerably, not only in terms of design and user-friendliness.

Navision was run locally (on company premises) and allowed complete control, but required significant infrastructure. In contrast, Business Central has been moved to the cloud, making it accessible without incurring hosting fees.

Business Central’s licensing model, a software-as-a-service approach where the software is rented, offers the advantage of regular updates and support without the need for high initial investment and ongoing maintenance costs, as was the case with Navision.

In addition, Business Central promotes the use of extensions, which considerably simplifies the adaptation processes compared to the extensive customizing requirements of Navision.

The need to migrate from Dynamics NAV to Business Central

Microsoft has discontinued the sale of Dynamics NAV. Only organizations that already have a license can continue using the system. Even these licensed companies must regularly update the system. Without quality-of-life (QoL) updates or support, the software will be obsolete on January 11, 2028. This is the main reason why companies should migrate.

Here are some key reasons why an early changeover is recommended:

Reason 1: Upgrading from NAV to Microsoft Dynamics 365 Business Central provides significant annual savings on hosting, infrastructure, customization, and technical support.

Reason 2: Your employees can work more easily from home and access data from any location with a high level of security.

Reason 3: Your business is ready for the future as new features are regularly added in the cloud and AI workflows improve overall efficiency.

Reason 4: Delaying the migration increases costs over time and increases the risk of problems.

Costs and duration: Switching from NAV to Business Central

The conversion to Business Central usually takes between 4 and 6 months, whereby an upgrade can usually be performed faster than a complete new implementation. There are both once-off and recurring expenses to consider when converting from NAV to Business Central. The once-off costs include data transfer, basic configuration, project management and any necessary adjustments. In addition, ongoing costs include licensing, maintenance, and support.

Dynamics 365 Business Central is based on a monthly licensing model, the price of which depends on the selected user licenses. Licenses in Business Central are only issued on a “named user” basis, i.e. each user requires their own user license. There are three license types: Essential (CHF 62.70), Premium (CHF 89.60) and Team Member (CHF 7.20), which includes Azure hosting and therefore no additional hosting fees are incurred.

The total migration costs vary greatly and can range from CHF 10,000 to over CHF 150,000.

At Nexova AG, you benefit from our expertise in accounting and our in-depth ERP knowledge, making us a cost-effective alternative to traditional ERP providers.

As specialized fiduciaries with in-depth knowledge of Business Central, Nexova AG offers a unique combination of accounting expertise and ERP know-how. This synergy enables us to make your migration from NAV to Business Central cost-effective and efficient by tailoring specific financial processes precisely to your needs.

We aim to keep the total cost of your switch at the lower end of the stated price range to help you maximize cost-effectiveness.

Is it worth investing in Dynamics 365 Business Central?

The outstanding advantage of Business Central is that it allows you to manage your entire company with a single, integrated solution. If your business has outgrown your current accounting software, Business Central is the ideal choice. It provides greater insight into your business processes, helps you make more informed decisions and supports the growth of your business.

Some of the other exciting benefits that Business Central can bring to your company include:

1. Integration with other Microsoft products such as Microsoft Dynamics 365 Sales and communication applications such as Microsoft Teams, PowerApps, Power BI, etc.
2. Business Central retains familiar function designations and terms which reduces the training effort.
3. The use of artificial intelligence enables you to gain deep insights into your data. For example, it can help you discover emerging opportunities or trends, allowing you to make informed decisions.
4. Adjustments have been replaced by an extensive list of extensions.
5. Purchasing a server is a thing of the past: Business Central’s cloud-based design means server costs are completely eliminated.

What does integration with Office 365 mean?

Business Central is seamlessly integrated into Office 365, enabling a smooth transition between Office 365 applications and Business Central via the App Launcher.

This integration, complemented by direct access to the Microsoft Power Platform (such as Power Automate), allows you to create advanced workflows and integrations without the need for in-depth programming skills.

Key features for Switzerland

An upgrade from NAV 2018 to Microsoft Dynamics 365 Business Central opens up a wide range of functions that have been specially designed for the Swiss market.

This upgrade not only improves VAT management, but also meets specific Swiss requirements relating to the creation and processing of QR-bills and ensures smoother bank transactions.

Each of these features is precisely tailored to the requirements of the Swiss market to effectively promote and develop your business.

Signals that speak in favor of an upgrade from Dynamics NAV to Business Central

Switching to Microsoft Dynamics 365 Business Central may be a significant change, especially if you have been using Dynamics NAV for years. However, continuing to operate your business with an outdated ERP system is an even bigger challenge. Take note of the following signs that signal the time has come to migrate:

1. You find that business processes are evolving faster than your NAV customizations can keep pace.
2. New data types or workflows are suddenly no longer adequately supported.
3. Working from home is challenging and the system is prone to breakdowns.
4. It isn’t possible to integrate NAV with essential productivity tools or new data sources.
5. The need for continuous maintenance and IT support is a perpetual burden.

Outdated ERP systems: Direct effects on your company

Sticking with Dynamics NAV can significantly hinder your competitiveness and potential for growth. Within a short period of just two years, more agile competitors that rely on modern cloud ERP systems could take over your market share.

In addition, by using NAV, you are missing out on valuable insights that would be possible through real-time analysis. Delays in process optimization can continue to lead to inefficiencies, as your employees are forced to work with outdated tools and limited platforms.

Ultimately, this results in a gradual loss of your competitive position and the opportunity costs of maintaining an outdated ERP system.

Roadmap for process migration: How does the conversion from Navision to Business Central work?

The strategy for your upgrade is determined by the software version you are currently using. There are basically two options for switching from Dynamics NAV to Dynamics 365 Business Central: a direct upgrade or a complete reimplementation.

Upgrade for Dynamics 365 Business Central

As part of the upgrade process, your Dynamics NAV data is transformed using special development tools to seamlessly integrate it into Business Central. It should be noted that individual customizations will not be adopted and will instead be replaced by flexible extensions. Microsoft offers a direct upgrade to Microsoft Dynamics 365 Business Central from NAV 2018.

Advantages of the “Upgrade” option:

• Seamless transfer of historical data to the new system.
• Accelerated migration process.

Disadvantages of the “Upgrade” option:

• Potential missed opportunities for data optimization and cleansing.
• Possible dependence on outdated practices, which is reinforced by adherence to the existing data and system structure.
• Higher risk of compatibility problems with existing, individual adaptations that have to be replaced by standard extensions.

New implementation of Dynamics 365 Business Central

Re-implementing allows you to make a fresh start with Business Central. You can transfer important data records such as master data, balances, and unpaid invoices. However, your user-defined individual adjustments will not be transferred.

Advantages of choosing “new implementation”:

• Opportunity to optimize and redesign your business processes.
• Fast access to the latest functions and technologies.
• Possibility to start with a clearer and more accurate data set.

Disadvantages of the “Reimplementation” option:

• Requires a longer timeframe for implementation.
• Existing data is not automatically transferred.

Which is the best way to get to Business Central? Upgrade or new implementation?

If you have omitted important updates, it could be that you are now working with an outdated solution. In such a case, a complete re-implementation could be the superior option, especially as a direct upgrade requires the latest version of NAV 2018.

Anticipating challenges: The switch to Business Central

Moving from Microsoft Dynamics NAV to Business Central presents a crucial and demanding challenge: the careful transfer of your data. As the lifeline of your business, it is of paramount importance to ensure a seamless transfer of both historical and current data. This transition involves numerous challenges, including managing the volume of data, data cleansing, mapping, transformation, validation and much more.

Data migration is a complex and resource-intensive task. It is essential to allow sufficient time and resources for the careful planning, implementation and review of the migration process. If you realize that your company lacks the necessary capacity, we offer the ideal solution. Contact us today.