ERP systems play a vital role in accelerating the operations of a business. The solutions integrate components of your organization, automate internal tasks, and help make intuitive decisions in a company’s processes. As a result, ERP software enables you to achieve your goals faster by effectively managing data and allowing streamlined processes.
Microsoft Dynamics 365 and SAP are leaders in this field. They help users operating in retail and provide them with product development functions to order processing and quality control functionalities. However, Microsoft Dynamics 365 has proved to be much more efficient than SAP in multiple attributes, some of which are listed below.
Understanding each of the strengths and weaknesses is crucial for making an informed decision. To help you make a truly informed decision, this blog explores the Microsoft Dynamics 365 vs SAP debate.
Comparison Table: MICROSOFT DYNAMICS 365 vs SAP
| S.No |
SPECIFICATIONS |
SAP |
MICROSOFT DYNAMICS 365 |
| 1
|
Annual Maintenance (On-prem) |
22% |
16% |
| 2 |
ROI and Total Cost of Ownership (TCO) |
High |
Low. According to research, ROI per dollar spent on Microsoft Dynamics 365 is approx 17 dollars |
| 3 |
Average Time to Implement |
Approx 15 months |
8-12 months |
| 4 |
Time to stabilize and sync with business processes |
Upto 6 months |
Maximum of 2 months |
| 5 |
Cost of Implementation |
High |
Low |
| 6 |
Suitability |
Large Organizations |
Organizations of all types, especially SMEs (Small & medium-sized Enterprises) |
| 7 |
Ease of customization |
Low |
High |
| 8 |
Ease of usability |
Low – Research shows that about half of the SAP users use only 40% (approx) of SAP functionalities |
High – Research indicates that Dynamics 365 users rate it up to 25% more user-friendly and 10% more credible than SAP to achieve the same advantages of the software |
| 9 |
Ease of integration with 3rd party apps |
Low |
High |
| 10 |
Built-in Strengths |
Huge market shares and resource diversities, strong partner network |
Huge market shares and resource diversities, strong partner network, native integration to Office 365, Power BI, and Dynamics CRM |
| 11 |
Industry customer base |
Manufacturing, Big Pharma, Chemical, Distribution |
Chemical, Pharmaceutical, BioTech, Retail, Consumer goods, Distribution, Manufacturing, Financial and government. |
| 12 |
Customer Relationship Management (CRM) |
Yes |
Comes with built-in native CRM functionality (Microsoft Dynamics 365 CRM) |
| 13 |
Supply Chain Management (SCM) |
Yes |
Yes |
| 14 |
Embedded reporting and BI |
Yes |
Built-in reporting and integration capabilities with Power BI |
Microsoft Dynamics 365–A user-friendly ERP solution
Dynamics 365 stands out for its user-friendly interface. Even non-technical users can navigate its intuitive design, facilitating quick adoption and improved productivity. This scalability makes it a perfect fit for small and medium-sized enterprises (SMEs) looking for a user-friendly ERP solution that grows alongside their business. Additionally, its cloud-based nature eliminates the need for hefty upfront investments in hardware and IT infrastructure, making it a cost-effective option.
SAP–The powerhouse for complex needs
Though SAP offered tools for cash management and accurately maps goods in transit, they turned out to be less intuitive and less customizable than Microsoft Dynamics AX. The implementation time for SAP is relatively faster than that of Microsoft Dynamics 365, but it comes with disruptions during the process that affect functionalities for an extended period. As a result, features become less user-friendly and non-flexible, a hurdle for large enterprises needing robust and standardized functionalities. In addition, the lack of flexibility in customization makes SAP a costlier ERP solution. Furthermore, the company does not provide any dedicated training for the customer. Understanding SAP and all its functions can take time, and the complicated UI only makes it more difficult.
LevelShift – On-Demand expertise
Remember, the ideal ERP system should smoothly integrate with your existing infrastructure and workflows. Your business deserves an implementation partner with experience and expertise who is willing to take the time to understand your needs, goals, and system environment.
LevelShift is a trusted Microsoft Solutions partner with many years of Microsoft expertise, providing clients with best-in-class services. Our team works “on demand.” The costs don’t revolve around a subscription model; you pay only for the hours used and the services used.
We have been home to successful Dynamics 365 CRM implementations for years. Perhaps it is time for a quick phone call with one of our experts who can help you decide your next important steps.
FAQs
- What is the difference between SAP and Microsoft Dynamics?
One of the primary differences between Microsoft Dynamics and SAP is that Dynamics 365 is ideal for SMEs (Small and Medium-sized enterprises). At the same time, SAP is suitable for large enterprises, and understanding the SAP system can take time as it has a complicated UI that is not user-friendly and comes with features that are not flexible. In comparison, Microsoft Dynamics 365 is relatively more flexible and easier to use. In addition, Microsoft Dynamics easily integrates with other Microsoft apps but only a few third-party apps, whereas SAP integrates with most third-party and SAP applications.
- Which is better? SAP or Microsoft Dynamics?
Microsoft Dynamics 365 vs SAP is a common debate. Still, Dynamics 365 outshines SAP Business One as it comes equipped with several features that provide scalability, flexibility, and lower implementation and ownership costs, and it significantly benefits both start-ups and the largest enterprises.
- Is Microsoft Dynamics similar to SAP?
Microsoft Dynamics 365 is a suite of cloud-based business applications that integrates customer relationship management (CRM) and enterprise resource planning (ERP), productivity applications, and artificial intelligence tools. In contrast, SAP is enterprise software that improves customer relations and manages business operations. There are several differences in the features of both that vary greatly.
- Can Microsoft Dynamics 365 replace SAP?
Understanding the SAP system can take time as it has a complicated UI that is not user-friendly and comes with features that are not flexible. On the other hand, dynamics 365 Business Central offers several advantages to SMEs and large-sized enterprises. It ensures flexibility, scalability, a browser-based UI, and mainly lower implementation and ownership costs, so Business Central is several steps ahead and can potentially replace SAP.
