Discover how your small business can maximise the benefits of Microsoft Dynamics 365 Business Central without breaking the budget. This guide offers practical tips, cost-effective strategies, and real-world examples specifically tailored for UK businesses aiming to optimise their ERP investment.
Introduction
Implementing an Enterprise Resource Planning (ERP) system like Microsoft Dynamics 365 Business Central can transform your small business, bringing efficiencies, improved insights, and streamlined operations. However, for many SMEs, there’s a concern about ERP projects spiralling into significant costs.
This blog provides practical, actionable advice for UK businesses on achieving maximum value from Business Central without overspending. It covers strategic approaches, cost-saving tactics, and helpful examples to guide you along the way.
Clearly Define Your Objectives from the Start
One of the most common reasons ERP implementations become costly is the lack of clear objectives. If your business doesn’t precisely outline what you want to achieve with Business Central, you may end up paying for unnecessary customisations or modules that add minimal value.
Start by identifying specific business challenges and objectives. Are you trying to streamline financial reporting? Improve inventory control? Or perhaps enhance sales forecasting?
For example, a UK-based wholesale distributor focusing on accurate stock levels and streamlined order processing might prioritise inventory management modules initially, reducing upfront investment by avoiding unnecessary CRM customisations until needed.
Prioritise Standard Functionality First
Business Central comes packed with extensive out-of-the-box capabilities. A common mistake businesses make is prematurely diving into costly customisations without exploring what’s available within the standard software.
Before requesting bespoke development, spend time learning the core features. Microsoft frequently updates Business Central, adding new functionalities that could eliminate the need for expensive custom work.
For instance, a small manufacturing company in Manchester initially requested custom reporting features, unaware of the in-built capabilities and Power BI integration already present.
By exploring standard options, they significantly reduced their initial implementation costs.
Leverage Cloud-Based Deployment
Opting for Business Central’s cloud-based SaaS deployment model typically offers substantial cost advantages over on-premise implementations. With cloud deployment, your business saves on significant upfront infrastructure and ongoing IT maintenance expenses.
A SaaS approach provides predictable monthly subscription costs, enabling better budgeting. It also ensures automatic software updates from Microsoft, including regulatory compliance tailored specifically for UK-based businesses.
A practical example: A financial services firm in London recently transitioned from on-premise ERP to cloud-hosted Business Central, immediately reducing their hardware, software licensing, and IT support costs by approximately 40% annually.
Adopt a Phased Implementation Strategy
Implementing Business Central all at once can overwhelm small businesses both operationally and financially. A phased approach allows you to start small, manage costs effectively, and progressively extend your ERP’s capabilities as your business grows.
Begin with core financial management functionality using, for instance, a low-cost entry point like our “Finance Starter Pack”. Once you’re comfortable and have achieved a return on your initial investment, gradually introduce additional modules, such as sales, customer service, or advanced inventory management.
A practical scenario: An online retailer in Leeds implemented basic financial management and sales modules first. After realising operational benefits and increased profitability within six months, they confidently expanded into warehousing and service modules.
Related Article: Finance Starter Pack
Invest in User Training Early On
Inadequate user training frequently results in low adoption rates and poor return on investment. Employees unfamiliar with the system will either revert to old methods or underutilise the ERP’s potential.
Training might seem like an added cost initially, but it significantly reduces future inefficiencies. Regularly updated training courses, workshops, or digital resources from accredited UK Business Central partners provide significant long-term benefits.
For example, a Cambridge-based professional services company initially overlooked comprehensive training, resulting in low adoption. After investing in structured user training sessions, productivity and user satisfaction dramatically improved, justifying the modest upfront investment.
Use Role-Based Licensing Strategically
Business Central offers various licensing options, including Essentials, Premium, Team Member, and Device Licenses. Understanding and strategically choosing licenses based on roles can lead to significant savings.
Team Member licenses are perfect for employees needing limited access, while Essentials or Premium licenses suit core users. Carefully reviewing your licensing needs can ensure you’re not overspending on unnecessary full-access licenses.
An example: A food manufacturing company in Yorkshire saved approximately 25% on annual subscription costs by aligning licenses more accurately with user roles and requirements.
Related Article: License Prices
Make Effective Use of Integrations and Microsoft Ecosystem
A significant advantage of Business Central is its integration capabilities within the broader Microsoft ecosystem—Office 365, Teams, Power BI, and Azure. Leveraging these integrations enhances productivity without incurring additional software costs.
A business in Brighton effectively utilised Microsoft Teams and SharePoint integrations, enabling efficient collaboration and streamlined document management. This significantly reduced their reliance on costly third-party tools.
Regularly Review and Optimise Your ERP Usage
Maximising value from your ERP solution doesn’t end after the initial implementation. Periodic review and optimisation ensure you’re continuously gaining the most from your investment without unnecessary additional costs.
Regularly assess your ERP performance against your initial objectives. Ask critical questions: Are there modules not being utilised fully? Are there unnecessary customisations driving up maintenance costs? Adjusting your ERP setup based on these assessments can lead to significant ongoing savings.
A practical case: A retail chain with outlets across Scotland regularly reviewed their ERP usage and found redundant modules and integrations. After optimising these aspects, they saved considerable subscription and support fees annually.
Benefit from Continuous Improvement and Updates
Business Central receives regular updates from Microsoft, including new features, security improvements, and regulatory compliance updates. Proactively keeping up-to-date ensures your business benefits from ongoing improvements at no extra cost.
For instance, recent updates include AI-driven features like Copilot, providing automation and improved forecasting capabilities. A small tech consultancy in Bristol utilised these enhancements at no additional cost, significantly boosting operational efficiency and decision-making.
Other Practical Money-Saving Tips for Business Central:
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Regularly archive or clean unnecessary historical data to reduce storage and operational costs.
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Avoid unnecessary and overly complex customisations to minimise long-term maintenance costs.
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Utilise online support resources from Microsoft to complement paid support services.
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Negotiate service agreements upfront with partners to prevent unexpected future costs.
Achieving Maximum ERP Value Within Your Budget
Achieving the most value from Microsoft Dynamics 365 Business Central without overspending requires strategic planning, realistic budgeting, and practical decision-making.
By clearly defining objectives, leveraging standard features, opting for cloud deployment, adopting phased implementations, prioritising user training, choosing the right implementation partner, continuously optimising usage, effectively leveraging Microsoft integrations, keeping your system updated, and strategically managing licenses, UK SMEs can maximise their ERP investment and gain sustainable competitive advantages.
Next Steps:
If you’re looking to start small yet think big, consider beginning your ERP journey with an affordable, well-defined solution like our Finance Starter Pack, an ideal entry point designed specifically to fit small business budgets, ensuring maximum value at minimal risk.
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