Are you small, medium, large or enterprise? When it comes to selecting the best ERP system, does your size matter? Microsoft Dynamics NAV is used by all sizes, from single user to 8,000 +. However, Microsoft has four ERP solutions and aligns them to different size businesses.

Microsoft uses two terms: SMB (Small to Medium Businesses) and Enterprise. What should this mean to you? A medium business in the US can be up to 1,500 employees although more typically accepted to be up to 500; twice the size that someone in the UK may be thinking when considering size brackets.

Business Size definitions

Business_Size_definitions

Source: Small Business Size Definitions

Dynamics NAV is clearly positioned by Microsoft for small and medium businesses. Microsoft is a US company. Therefore, if you employ less than 500 people, Microsoft guidance suggests that you should be considering NAV.

Dynamics AX is clearly positioned by Microsoft for Enterprise businesses. Therefore, if you employ more than 1,000 employees, Microsoft guidance suggests that you should be considering AX.

In reality it’s the process requirements more than the size that should determine the best solution for you. In Europe, the two main Dynamics ERP solutions are Dynamics AX and Dynamics NAV. Dynamics AX will typically cost a good 40% more than NAV in all aspects (licence, services, maintenance and time to deploy); so you want to be sure that it delivers 40% more benefit!

Our view is that simple is always best and so you ought to look at NAV first then move onto AX only if NAV is not a good fit. That way you can be confident that whatever size your business, your ERP solution adds value.