Microsoft Dynamics NAV or Microsoft Dynamics AX: Which One is Right for You?

Microsoft Dynamics, a leader in the ERP (Enterprise Resource Planning) software industry, has several powerful solutions to choose from. Clients often wonder, which would be best for my business, Dynamics NAV or Dynamics AX.

Both of these solutions are highly customizable and can handle multiple languages and currencies. Both are being used internationally. Both are equipped to operate from a central location or across multiple locations and both are end to end comprehensive ERP solutions with the ability to manage complex supply chains and inventory.  Both solutions are built for industry specific demands and can be implemented to meet any business processes you may throw at them. So what is the difference?

The difference may not be readily apparent if you are comparing features or user capacity. The real determining factors are at a higher level, and are based on how well the two solutions align with the goals and growth plans of your particular organization.

Consider the size of your organization

Dynamics NAV is geared toward the small to midsize market, generally speaking those companies that have an annual revenue of $5M to $500M and have some international presence. NAV can provide some powerful features that might otherwise be out of the price reach for smaller businesses, thus allowing them to keep up with much larger competitors. As a small or midsize business, or a startup, grows and realizes its potential, its ERP solution must be able to grow with it. NAV makes this growth very straightforward with easy customization and scalability. It may be just the right fit for you now and in your future.

Dynamics AX is geared for larger, enterprise class organizations having a broad international presence. Large multi-national companies have unique challenges of handling diverse languages and currencies. As these organizations extend their reach, Dynamics AX is equipped to handle their specific size and scale challenges.

Consider complexity and maintenance costs

AX is much more complicated than NAV so it follows that the implementation is more complex, takes more time, necessitates more decisions, and requires excellent project management. By contrast, many NAV implementations require only a part-time project manager and a small implementation team. While AX often requires dedicated technical resources to manage the solution once it’s up and running, NAV does not.  Due to such complexities, Ax costs more to implement as well as to run than does NAV. Again, AX is more suited to organizations who can bear the overhead costs.

Consider your field of operations

Both solutions support multiple languages and currencies, and can transact across borders.  Dynamics NAV can handle a certain amount of international operations, but Dynamics AX is better at managing end to end global processes. This could be important for a large manufacturing business that needs to view inventory across multiple locations and have clear visibility into each area of operations for multiple branches or sites in various countries around the globe. Growing international companies that don’t have complicated organizational structures might prefer Dynamics NAV.


Consider the flexibility of the Cloud

It is essential that businesses be able to adapt to changes in market demand and remain cost-effective. You will achieve business agility and superior business intelligence and analytics with either Dynamics NAV or Dynamics AX. Both NAV and AX are available as on premise or hosted in the cloud solutions, or a hybrid of the two. Choosing to host your ERP solution in the Cloud will increase your business agility and help you get the most out of your chosen solution.

Investing in an ERP solution is a big decision and your Microsoft partner wants you to be satisfied and productive. Though Dynamics NAV and Dynamics AX are similar, they are not the same. A qualified Microsoft Dynamics partner such as our members here at the ERP Cloud Blog, can help you make a good decision based on your company’s current and future goals, strategies and structure.

Find an expert Microsoft Dynamics Partner and ask for a consultation.

By ERP Cloud Blog editors


Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.