Microsoft Dynamics 365 Business Central is one of the most popular ERP systems for small and medium-sized businesses today. It is successfully used by companies worldwide. However, the systems it replaced – Navision and Microsoft Dynamics NAV – had a significant influence on its current form. Let's take a closer look at the solutions that form the foundation for today's ERP systems.
A Brief History of Navision
Let's go back to the mid-1980s, specifically to 1986. That's when the first version of accounting and financial software named Navigator appeared on the market. It was created by the Danish company Navision Software. Initially offered mainly in the Danish, German, and Icelandic markets, after five years, it was renamed Navision. This change coincided with its broader entry into the international market. Another milestone in the tool's development was the introduction of the first version with a user-friendly graphical interface tailored to Windows 95.
Microsoft Enters the Scene and Introduces Dynamics NAV
In 2002, Microsoft, the IT giant, acquired Navision Software. The Danish company was renamed Microsoft Business Solutions. Another significant event was the comprehensive rebranding of the ERP system offered in 2005. That's when the name Navision became history, and Microsoft Dynamics NAV entered the market. For the next twelve years, the system underwent frequent updates to best meet market expectations and rapid technological advancements.
The Rapid Development of Microsoft Dynamics NAV
What were the changes in successive versions of Microsoft Dynamics NAV? In the 2009 version, the Role Center was recognized as one of the most important features. It allowed for organizing the work environment of each user so that the most frequently used options were always at hand, while those not used by a particular employee remained hidden. In 2012 (Dynamics NAV 2013), there was development in the reporting environment and a wide selection of various data presentation types. The Web Client also appeared, enabling access to Microsoft Dynamics NAV data through a web browser. The Dynamics NAV 2015 version marked the beginning of the era of mobility, introducing tablet solutions. Microsoft Dynamics NAV 2016 brought integration with the CRM system, and a year later, solutions like Cortana Intelligence, Microsoft Flow, and PowerApps emerged. These are just selected functionalities, but the frequency of changes introduced clearly shows that Microsoft took the development of its ERP-class system very seriously.
Who Were Navision and Microsoft Dynamics NAV Intended For?
The discussed ERP systems are solutions aimed at small and medium-sized enterprises (SMEs). What does this mean exactly? According to EU guidelines, small companies are organizations employing between 10 and 50 people (below 10 employees are micro-enterprises) and having turnover or a balance sheet total of less than 10 million euros. Medium-sized companies are those with employment below 250 people and turnover not exceeding 50 million euros or a balance sheet total of 43 million euros. According to the "Report on the State of Small and Medium Enterprises in Poland" from 2021, there were about 2.2 million companies in the country. The vast majority, 99.8%, were SMEs. Therefore, there is no shortage of potential users of ERP systems.
What Was the Licensing of Dynamics NAV Like?
The software was available under various licenses, differing in functionality and, of course, price. Customers interested in Microsoft software had the following options:
- Perpetual license (for the server). It provided indefinite access to the system. One license allowed one user to use the system at a given time.
- Monthly subscription. The licensing fee was calculated monthly for each named user. Customers could choose between two types of users: Limited User and Full User.
What Did Navision and Microsoft Dynamics NAV Offer?
Both Navision and the later Microsoft Dynamics NAV offered a range of functionalities in finance, accounting, warehouse management, and production. They allowed for better procurement and distribution planning, machine fleet management, smoother and faster settlements with contractors, streamlined warehouse operations, and real-time supplier control. This made them comprehensive solutions suitable for companies in various industries. Among the key features of Microsoft Dynamics NAV are:
- Financial management
- Supply chain management
- Human resource management
- Warehouse management
- Production management
As mentioned above, Microsoft Dynamics NAV was continuously developed, and each new version was enriched with new features, expanding the system's capabilities. Notably, Dynamics NAV was part of the Microsoft family. Emphasis was placed on the system's integration with other Microsoft solutions, such as Office 365 (now Microsoft 365), Azure SQL, Power BI, or the CRM system. The fact that Dynamics NAV was part of the Microsoft family significantly facilitated system usage for users familiar with other products from this manufacturer, such as Outlook or Excel. It's also worth noting that Microsoft Dynamics NAV allowed for customizations, making it an ideal choice for companies seeking a system that could be quickly adapted to their specific needs. In short, this involved making changes to the ERP system to better match the requirements of specific companies. Clients looking for flexible software quickly appreciated the ability to tailor the system to their own needs.
In summary, Dynamics NAV was an ERP-class system offering all the necessary functionalities for managing SMEs. The key features of Microsoft Dynamics NAV were:
- Continuous adaptation to dynamic changes in the business world
- The ability to use a single system for virtually all company departments thanks to various modules
- Integration with other Microsoft solutions, e.g., Office 365
- Browser-based and mobile versions available
- A fast and easy system implementation process
However, in 2018, Microsoft introduced another change – the Microsoft Dynamics NAV system was replaced by Dynamics 365 Business Central.
Dynamics 365 Business Central Replaces Microsoft Dynamics NAV
Currently, Dynamics 365 Business Central is the fastest-growing ERP system in the world. It's chosen by companies looking for user-friendly, quickly implementable tools that have a real impact on business development. The system enables efficient utilization of new business opportunities. But how did it come to replace Dynamics NAV? The precursor to Business Central was the introduction of a new Microsoft strategy for solutions that operate only online. Work began on a version of Dynamics NAV that was given the code names Madera and later Tenerife. Finally, in 2018, a new version of the system was launched: Dynamics 365 Business Central. Initially, this name covered only the cloud solution, but eventually, it encompassed all solutions in the Microsoft Dynamics family. This meant that Microsoft Dynamics NAV shared the fate of Navision and became a part of history.
Is your company using Dynamics NAV and looking for a partner to help you transition to the latest version of Business Central? Or are you preparing for an ERP implementation for the first time? See how a professional approach to the implementation process should look like: https://nav24.eu/services/implementation-services/
