Microsoft Dynamics NAV and AX: Which One Works Best For Your Business?

Endless debates on Microsoft Dynamic’s ERP systems have been floating all around the web for quite some time now. It is a bit confusing for businesses when parent software company, in this case Microsoft, launches four ERP systems under its much renowned brand Microsoft Dynamics, with each single system having their own set of utility factor. As mentioned the ERP systems offered by Microsoft include Dynamics AX, Dynamics GP, Dynamics NAV, and Dynamics SL. Among these four, Microsoft Dynamics NAV and AX are the most difficult to distinguish.

There are certainly many similarities between the two ERP solutions. For instance, both ERP solutions Microsoft Dynamics NAV and AX are customizable and available in many languages. Both the solutions have a pretty impressive and satisfactory installation base too. Both offer industry-specific services to cater to local and regional needs. Microsoft itself describes both their products as comprehensive ERP solutions that are capable enough to manage complex supply chains. And yes, both Dynamics NAV and AX can operate in a single, centralized location or across multiple decentralized locations. With so many similarities in functions and operations, it is not that easy to distinguish the two ERP systems. So, what’s the difference between Dynamics NAV and AX? Let’s dissect the two to find a solution.

Microsoft Dynamics NAV vs. AX:

  • The ‘scaling’ factor: Microsoft Dynamics NAV is more useful for small to mid-sized businesses. The price tag of Dynamics NAV is puny compared to the powerful technology it provides to smaller businesses. With the implementation of Dynamics NAV, small and mid-sized businesses are being able to compete with organizations twice their size. Customizable and the ability to scale make NAV a firm favorite among businesses. On the other hand, Dynamics AX is tailored for enterprises having a strong international presence. Large organizations have to deal with magnanimous challenges including deployments across multiple international locations. Languages are different and so are the currencies, hence the scaling needs to be spot on. So, in comparison Dynamics AX can scale better than Dynamics NAV. But, for small to mid-sized businesses or SMBs, NAV still continues to thrive with aplomb.
  • The cost factor: Dynamics AX is more complex than Dynamics NAV, simply because the former is designed for large organizations. While Dynamics AX requires superior and experienced project management and implementation team, any part-time project manager can manage Dynamics NAV effectively. Dynamics AX implementation is indeed a complex process and hence its maintenance cost exceeds that of Dynamics NAV.
  • Managing end-to-end global processes: Dynamics AX does a better job here although NAV is pretty effective when managing decentralized global operations. But, when it comes to complex enterprise solutions requiring visibility across different locations in different countries Dynamics AX is more effective.

To sum it up, Microsoft Dynamics NAV and AX, both are equally excellent and effective for businesses. It’s just that both the ERPs have been built keeping specific businesses in mind. While Dynamics AX works for larger organizations having a strong international presence, NAV suits businesses which are spreading their wings in the international market. You can always consult software solutions provider s like Accendo Technologies to understand how ERP system works. So, which Microsoft Dynamics ERP works for your business better – the Dynamics NAV or AX?