ERP Showdown: SAP Business One vs Microsoft Dynamics NAV

This article is part of our blog series comparing SAP Business One vs. Microsoft Dynamics. Check out the main article to see how SAP B1 fares against the full slate of MS Dynamics products.

ERP solutions are make or break. Choose the right one, and you’ll be well on your way towards scalability and efficiency; choose the wrong one, and you may find yourself several thousand dollars shorter struggling to keep your business processes intact.

This article will compare two ERP leaders for small and medium businesses: SAP Business One vs. Microsoft Dynamics NAV in a head-to-head analysis. We’ll go through each of their features and functions in detail so that you can better understand which solution best fits your business needs.

Background Overview

SAP Business One is an ERP solution developed by SAP SE and designed to serve small to medium enterprises. SAP acquired the system when it bought out Israeli firm TopManage Financial Systems in 2002. SAP B1 has strong functionality and an excellent fit for select industries.  B1 has a large customer base of over 60,000 customers and a large network of SAP VAR's and ISV's.  

Microsoft Dynamics NAV (formerly NavisionDamgard) was acquired by Microsoft in 2002 and rebranded as Dynamics NAV in 2005. The system is offered both on-premise and in a hosted model since 2012.  Important note, after October 2018, any on-premise or hosted NAV customer’s upgrade path will be to on-premise hosted D365 Business Central. 

SAP SE vs. Microsoft: Company Comparison


 

SAP

Microsoft

Overview
SAP is the global leader for ERP software, currently at the top of the list in terms of market share.

They offer a staggering number of products and services ranging from cloud ERP software and CRM solutions to IoT and machine learning applications.
Microsoft is a tech giant known by most for its flagship products such as Microsoft Windows, Microsoft Office, and its Xbox gaming devices.

Their Dynamics product line covers their entire contribution to the market for ERP software, and is an umbrella for a range of products including NAV.
Years in Business
47 Years
44 Years
Customers
~60,000
~47,000
Target Industries
Manufacturing Distribution
Retail Services
Manufacturing Nonprofit
Government Services

SAP Business One vs. Microsoft Dynamics NAV: Features and Functionality


 

SAP B1

MS Dynamics NAV

Product Brochure (Download) SAP Brochure Cover Image-1 MS NAV Brochure Cover Image

Financial
Management

AR / AP
General Ledger
Fixed Asset Management
Cash Flow Management
Invoicing Prepayments
Banking & Reconciliation Processing Currency Management
Financial Reporting & Analysis Intercompany Transactions*
Cost Accounting

Dynamics NAV is offered as either a Starter or Extended Pack
AR / AP
General Ledger
Fixed Asset Management
Cash Flow Management
Invoicing Prepayments
Banking & Reconciliation Processing
Currency Management
Intercompany Transactions*
Cost Accounting*
Responsibility Centers*
*Extended Pack Only

Sales and CRM

Sales Cycle Tracking
Drop Shipping & Special Orders
Marketing Campaign Management
Marketing Campaign Analysis
Customer Data Management
Contract Administration
Service Call
Sales Forecasting
Pipeline Tracking
Returns & Cancellations
Service Order Management
Multi-Tier Price List Management (including periodic and volume management)

Sales Cycle Tracking
Drop Shipping & Special Orders
Assemble to Order
Customer Data Management
Contract Administration*
Service Call
Sales Forecasting
Pipeline Tracking
Returns & Cancellations
Service Order Management*
Planning and Dispatching*
*Extended Pack Only

Supply Chain Management  
Procurement Process Tracking
Purchase Schedule Management
Inventory Tracking & Reporting
Warehouse & Accounting Data Synchronization
Real-Time Production Reporting
Stock Location & Transfer Tracking
Distribution Management
Production Planning
Bin Management
Warehouse Management*
Automated Data Capture / Scanning*
 

Inventory Tracking & Reporting
Assembly Management
Location Transfers
Real-Time Production Reporting
Order & Shipping Management
Campaign Pricing*
Warehouse Management* 
Automated Data Capture*
Bin Management*
*Extended Pack Only

Business Intelligence

Report Creation & Customization
Predefined & Custom Metric Tracking
Data Visualizations
Workflow-based Alerts
Report Creation & Customization
Integration with Microsoft BI Tools

* Indicates SAP Add-On functionality 

SAP Business One vs Microsoft Dynamics NAV: Customer Support


 

SAP B1

MS Dynamics NAV

Tech Support

24/hr toll-free phone support.
24/hr toll-free phone support.

End-User Training

Instructor-led training and virtual training (via openSAP) available.
Some online support via online channels; with outside support from Microsoft Partners.

Online Support

Full suite of diverse online support options available to all subscribers.
Round the clock support comes w/ basic subscription; advanced professional support upsold

User Groups

Local user groups exist in multiple locations across the US.
Local user groups exist in multiple locations across the US.

Primary Strengths of Microsoft Dynamics NAV:

Microsoft Stack Integration:  Dynamics NAV provides tight integration with other Microsoft Office productivity tools:
• Import/export data from/to Excel worksheets. This will be attractive to Excel power users or organizations that have built extensive workarounds in Excel.
• For companies already using Dynamics CRM, NAV provides easy integration
• Users can set up workflows to be integrated with Office for email notifications
Microsoft Stack:
NAV relies heavily on the Microsoft stack for complementary solutions such as SQL, SQL Server, Office, & Power BI.
A lot of IT organization are comfortable using the Microsoft tech stack.
Multiple deployment options:
NAV can be deployed as either on premise, or hosted software. Provides the customer with flexibility to move to the cloud at their own pace.
Deep Vertical Specific Functionality:
Microsoft has done a solid job of partnering with software developers to build deep industry specific solutions on top of NAV. Examples include JustFood, Serenic, and LS Retail.

Primary Strengths of SAP Business One:

SAP Integration
• Within SAP Tier 2 deployments situation, SAP Business One tightly integrates with other leading SAP ERP and business applications. 
• SAP B1 provides a robust suite of applications, including standalone analytics (SAP Analytics Cloud), in-depth travel & expense management (Concur), and end-to end procurement (Leonardo & Ariba). 
Manufacturing Capabilities
• SAP Business One provides deep functionality in the manufacturing space, especially around Engineer to Order (ETO), Demand Planning and MRP.
Deployment Options
• SAP’s Business One can be hosted on a partners cloud, SAP's private cloud or deployed on-premises. Lots of deployment options available.  

Conclusion

Both Business One and Dynamics NAV can be a great choice for small- and mid-size businesses looking to migrate from QuickBooks to a leading ERP solution. However, the right choice will depend substantially on many factors (e.g. current technology investments, industry, budget, etc.)  Curious if SAP Business One is a good fit for your particular industry and budget?  Check out our B1 readiness quiz below for real-time insights.

SAP Business One Readiness Quiz