The Total Economic Impact of Dynamics 365 Business Central
Following the release of Forrester’s Total Economic Impact Report for Microsoft D365 Business Central, we break down some of the key findings.
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Growth creates opportunity, but it also introduces complexity. As organisations scale, finance and operations teams often find themselves constrained by disconnected systems, manual processes and limited visibility. What once supported the business can quickly become a barrier to profitability, insight and agility. Modern enterprise resource planning (ERP) systems like Business Central can help organisations combat these problems with confidence. However, it can often be difficult for small and medium-sized organisations considering a new solution to build a strong business case for such a significant technology investment. To help SMBs better understand the benefits, costs and risks associated with this investment, Microsoft commissioned Forrester to conduct a Total Economic Impact (TEI) study. This reported on the financial and operational value organisations can achieve by modernising with Dynamics 365 Business Central. Below we cover some of the key findings.
Quantifying the Business Value of Business Central
Forrester’s Total Economic Impact of Microsoft Dynamics 365 Business Central Report evaluated Business Central through interviews with decision-makers that had experience with Business Central and then modelled the results into a single composite organisation.
The outcomes clearly demonstrate the measurable impact of ERP modernisation. The study projects that organisations using D365 Business Central can achieve:
More than 200% return on investment over 3 years
Net present value of approximately $460,000
Payback in as little as six months
The Forrester study highlighted several areas where Business Central delivers financial value across finance, operations and decision making.
Faster and More Productive Finance Operations
Manual and spreadsheet driven processes often slow down growing organisations. Forrester found that moving to Business Central significantly improved efficiency across core finance activities by eliminating manual legacy processes.
By year three, the composite organisation experienced:
Up to a 30% reduction in month-end close time
Up to 50% productivity gains across accounts payable, accounts receivable and billing
More than $215,000 in value from finance productivity improvements alone
By automating routine tasks and standardising data, finance teams were able to shift focus from reconciliation to higher value analysis and strategic support.
Reduced Complexity and Lower Costs
Legacy ERP environments often become costly and difficult to manage as businesses grow. Business Central enables organisations to consolidate multiple tools and systems into a single modern cloud ERP that can scale along with them.
The TEI report found that organisations were able to:
Reduce total cost of ownership by around 14%
Retire legacy systems and third-party point solutions
Eliminate ongoing maintenance and infrastructure costs associated with on-premises ERP system
These changes contributed to more than $170,000 in cost savings over the 3 year period.
Improved Visibility and Stronger Profitability
Access to real-time, reliable data is critical for confident decision making. Forrester found that Business Central provided greater visibility across financial and operational performance, enabling leaders to respond faster and manage costs more effectively.
As a result, the composite organisation achieved:
Up to a 3% improvement in net profit margins
Greater accuracy in cost tracking across projects and operations
Reduced waste and improved financial control
Improved insight and decision making delivered approximately $245,000 in value from increased profitability.
Building a Foundation for Future Growth and AI
Beyond immediate financial returns, the study also highlights the strategic value of Business Central as a foundation for future innovation. By standardising processes and data within the Microsoft cloud ecosystem, organisations are better positioned to take advantage of AI powered capabilities such as Copilot and intelligent automation.
This means organisations are not just improving how they operate today, but also preparing their ERP platform to evolve as data volumes, automation and AI adoption increase.
Turning Insight into Impact
For growing organisations, ERP modernisation is a business investment with clear and measurable outcomes. The Forrester Total Economic Impact study reinforces that D365 Business Central can deliver rapid payback, long-term ROI and the operational agility required to scale with confidence.
If you are exploring ERP solutions or want to understand what the economic impact of Business Central could look like for your organisation, get in touch with one of our solution specialists today.
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