Microsoft Dynamics 365 vs SAP | ERP Comparison
Choosing the one system between Dynamics 365 vs SAP can be overwhelming for business. Because such businesses need to consider various factors, such as ease of use, industry-specific solutions, and customization before opting for a solution.
However, both systems are leading ERP solutions in the market, but if you choose an inappropriate system without analyzing diverse factors, it can lead to poor decisions and inefficient operation.
On the other hand, ideal ERP solutions allow you to streamline your operations, simplify complex processes, and automate internal tasks.
To help you choose the ideal solution for your organization, we are going to compare these solutions based on different factors and modules. Before getting started with the comparison, lets know a little about Dynamics 365 and SAP.
What is Microsoft Dynamics 365?
Microsoft Dynamics 365 is an ecosystem encompassing a wide range of ERP and CRM solutions to help businesses according to their specific requirements.
It offers solutions for small, medium, and large enterprises so they can leverage the intended functionality without any hassle.
For example, SMBs can leverage Microsoft Dynamics 365 Business Central to streamline their business operations, while medium and large enterprises can simplify their complex business processes with Dynamics 365 Operations and Finance.
Dynamics 365 solutions offer a user-friendly interface that reduces the steep learning curve.
Even non-technical users can use this solution to eliminate their operational challenges. In addition to this, its quick deployment and multiple licensing options are a plus, improving overall ROI.
This makes Microsoft Dynamics 365 a leading technology partner in the ERP segment with 24.48% market share globally.
What is SAP?
SAP has been in the market for a very long time and holds 10.75% market share in the ERP landscape.
It helps businesses simplify their complex operations and can be tailored to specific business needs.
However, it focuses on simplifying complex structures, which make it less user-friendly and intuitive compared to Microsoft Dynamics 365.
It might be expensive for businesses due to fewer customization options and complex navigation.
SAP vs Microsoft Dynamics 365
Our technical expert has analyzed Microsoft Dynamics 365 vs SAP and made things simpler for you. We have compared the functionalities, such as integration capability, ease of use, customization capability, and more. Here is a detailed table:
| Features | Microsoft Dynamics 365 | SAP |
|---|---|---|
| Ease of Use | Provides familiar interface for easy navigation. | Complex UI and steep learning curve. |
| Integration Options | Seamless integration with a wide range of applications. | Requires a unique integration path for integration |
| Total Cost of Ownership | Low | High |
| Ease of customization | High | Low |
| Embedded reporting and BI | Yes, extend with Power BI integration. | Yes |
| Implementation time | Quick implementation time | Longer implementation time |
| Licensing Option | Multiple offerings for numerous requirements (subscription-based model) | Complex licensing structure based on quote |
| Pricing | Starts with CAD 10.90/user/month | Starts with $9.6/capacity unit/year |
| Customer Service | 24/7 support with training | Full support without training |
| Industry Focus | Small, mid, and large | Large companies |
Choosing an ERP System
Every business has different requirements. For example, a business uses Dynamics 365 Business Central, and they require advanced sales functionality to simplify the complex requirement.They need to go with the integration option. While choosing a solution between Microsoft Dynamics 365 vs SAP S4 Hana, check the functionality of both the solutions as per your need.
Ease of Use
A solution that is easy to use helps users to utilize it in the best possible way. Microsoft Dynamics 365 provides an intuitive and familiar interface, empowering employees to quick adoption and higher productivity.
The Microsoft Dynamics solutions interface is consistent across the applications that focus on usability and intuitive navigation.
It also offers seamless integration with the Microsoft ecosystem to simplify the business process.
For example, you can seamlessly integrate Power BI with Dynamics 365 Business Central and create reports with ease with an easy-to-understand interface.
Comparatively, the SAP user interface is unfamiliar to customers, leading to a steep learning curve. Its functionality is available for complex business operations that often require more training for users to become proficient.
Integration
An ERP system should be easy to integrate with other systems or software, like CRM within the organization.
Microsoft Dynamics 365 offers seamless integration with the Microsoft ecosystem and third-party apps. Usually, these solutions come with in-built connectors that enable seamless connections between D365 solutions and other applications.
In addition to this, it seamlessly connects with Power Automate, which has 300+ in-built connectors, allowing to connect with most of the application in minutes.
On the other hand, SAP offers robust integration capabilities with their own application but requires complex set-up and customization for integration with modern apps.
Implementation Time
Longer implementation time can often lead to increased costs and disrupted business operations. You should be careful about this while choosing an ERP system.
Dynamics 365 implementation time is usually shorter due to its modular approach and the availability of pre-built templates and configurations.
Conversely, SAP implementations are often more complex and time-consuming, especially for large enterprises. The comprehensive nature of SAP's solutions requires detailed planning, customization, and thorough testing.
Total Cost of Ownership
Total cost of ownership includes the cost associated with license purchasing, implementation, maintenance, support, and upgrade costs.
Dynamics 365 offers numerous licensing options for businesses, with Business Central being the most affordable solution with 10.8 CAD/user/month entry point.
Its subscription-based pricing model allows for scalability without significant upfront costs. While SAP can be more expensive initially, it provides a high return on investment for large enterprises due to its extensive capabilities and scalability.
Customer Support
The ERP vendor's customer support and caliber are vital. When it comes to addressing any problems or queries, the supplier should provide prompt and efficient assistance.
Microsoft Dynamics 365 provides 24/7 support through various channels, including online resources, community forums, and direct support services.
You can also connect with Microsoft Solutions Partner, like Dynamics Square, for the support. In addition to this, Dynamics 365 provides training for better user adoption.
SAP also offers robust support that also includes a well-established ecosystem of partners and consultants. Their support services are known for their depth and expertise, though they can come at a higher cost.
Additionally, SAP doesn’t offer training that makes the learning curve tough.
Dynamics 365 and SAP Capabilities & Modules
The modules capability of the solution announces the clear winner between SAP vs Dynamics 365. Their capability can vary on advance or basic offering, such as general ledger, inventory control, and more. Let’s navigate the offering:
| Modules | Microsoft Dynamics 365 | SAP |
|---|---|---|
| Financial Management | Advance | Limited |
| Supply Chain Management | Progressive | Basic |
| Manufacturing | Advance | Advance |
| Business Intelligence and Reporting | High | Low |
1. Financial Management
Dynamics 365 delivers a complete financial management module with features including fixed assets, cash flow management, accounts payable and receivable, and general ledger.
Also, it enables integration with Power BI to improve analytics and financial reporting. SAP's financial management capabilities include advanced tools for risk management, Treasury management, and financial planning.
2. Supply Chain Management
Dynamics 365 provides end-to-end supply chain management features, such as demand forecasting, purchasing, inventory control, and logistics.
The goal of the solution is to improve efficiency and visibility throughout the supply chain.
SAP provides comprehensive supply chain management solutions with advanced features for supplier cooperation, transportation management, warehouse management, and supply chain planning.
3. Manufacturing
Dynamics 365 offers capabilities including production planning, shop floor control, and quality management to assist both discrete and process manufacturing. The integration with IoT and AI helps optimize manufacturing operations and reduce downtime.
SAP's manufacturing module is highly advanced, catering to various manufacturing industries. It supports Industry 4.0 objectives and smart manufacturing in addition to having features like production planning, execution, and monitoring.
4. Business Intelligence and Reporting
Dynamics 365 uses Power BI to provide sophisticated reporting and business intelligence features.
Users can create interactive dashboards and reports, gaining insights from real-time data across the organization.
SAP has strong BI and reporting capabilities with SAP BW/4HANA and SAP Analytics Cloud.
Data-driven decision-making is made possible by these tools, which offer real-time reporting, predictive analytics, and sophisticated data visualization.
Which Software is Best for Your Business?
Choosing a system between Dynamics 365 vs SAP depends on various factors, including the size and complexity of your organization, budget, specific business needs, and existing technology stack.
If you don’t want to scale your business soon, SAP can be a good option with limited functionality for your business.
But if you require advance capability, such as sales pipelines management, customer interactions tracking, analyzing campaign performance, and monitor service level agreements, Dynamics 365 can be a good option for you.
Still, if you are struggling to decide which option is best for you, please reach out to Dynamics Square.
We have a team of 135+ consultants who have in-depth knowledge of products. At Dynamics Square, we offer a free consultation call to resolve your query regarding choosing the suitable option.
Schedule a call at +1 778 381 5388 or write us an email at info@dynamicssquare.ca to choose the best solution as per your business requirements.
People Also Ask:
What is Dynamics 365?
Dynamics 365 is a suite of applications that encompasses ERP and CRM systems to deliver superior operational efficiency and increased customer experience.
This solution helps you create impact faster by delivering more value in less time, eliminating data silo, tailoring the solution, and integrating it to fulfill your business requirements.
Which is better, SAP or Dynamics 365?
If we compare SAP vs Dynamics 365 market share, D365 hold 24.48% market while SAP capture 10.75% of the market worldwide. Both are the leading ERP systems.
But a business looking for a user-friendly, low cost of ownership, seamless integration options, and a cost-effective solution should go for Microsoft ERP.
Is Dynamics 365 an ERP?
Yes, Microsoft Dynamics 365 is a suite of solutions that encompasses 7 ERP solutions.
Dynamics 365 Business Central and Dynamics 365 Finance and Operations are the two most famous solutions for businesses that cater to SMBs and large enterprises, respectively.
Vivek is a Digital marketing expert at Dynamics Square, specializing in crafting compelling content on advanced tech topics such as ERP, CRM, cloud computing, AI, ML, BI and more. His profound passion for the digital landscape has led him to explore and master diverse fields including SEO, SEM, content strategy, and data-driven marketing.
