Growth is exciting—but it introduces complexity.
As small and midsize businesses scale, finance and operations become harder to manage. Transactions increase, reporting requirements expand, and disconnected systems start to strain visibility and margins. What once worked becomes a constraint.
A newly published Forrester Total Economic Impact™ (TEI) study helps quantify what many organizations are already experiencing: modernizing on Microsoft Dynamics 365 Business Central delivers measurable financial impact.
Microsoft commissioned Forrester Consulting to evaluate the potential return on investment organizations may realize by deploying Business Central. Based on interviews with four business decision makers, which were aggregated to model a fictitious composite organization1, the study projected that the composite organization could potentially realize:
- More than 200% return on investment (ROI) over three years
- An estimated $460K net present value (NPV) over three years
- Potential payback in six months
Across finance productivity, enterprise resource planning (ERP) consolidation, improved profitability, and reporting efficiency, the composite organization modeled by Forrester realized more than $680K in three‑year, risk‑adjusted present value benefits.
These outcomes reflect the potential impact of modernizing finance and operations on a single, integrated cloud ERP platform—while also establishing the foundation for AI‑powered experiences like Microsoft 365 Copilot and intelligent agents.
Where the value comes from
The Forrester TEI study highlights several areas where organizations can potentially realize tangible, risk‑adjusted benefits when using Business Central.
Support faster, more efficient finance operations
Manual processes often slow growing organizations. Interviewed customers reported meaningful efficiency gains across accounts payable (AP), accounts receivable (AR), billing, and financial close.
By year three, the composite organization was projected to potentially achieve:
- Up to 30% reduction in monthly close time
- Up to 50% time savings for AP, AR, and billing activities
These improvements translated to more than $210K in present value over three years in finance productivity alone for the composite organization—allowing teams to shift focus from reconciliation to higher‑value analysis.
Standardizing data and workflows in Business Central also creates the conditions necessary for AI‑enabled automation. While AI benefits were not independently quantified in this study, interviewees noted that unified processes accelerate the adoption of Copilot‑supported approvals, variance analysis, and exception handling.
Lower total cost of ownership through ERP consolidation
Interviewees reported operating aging on‑premises ERP systems alongside spreadsheets and disconnected point solutions. Consolidating onto Business Central reduced infrastructure complexity and IT overhead.
The study projected the following potential benefits for the composite organization over three years:
- More than 10% reduction in total cost of ownership (TCO)
- More than $170K in present value savings from retired systems and reduced maintenance
Beyond direct savings, simplification can reduce operational risk and improved scalability—allowing organizations to grow without layering on new systems to compensate for gaps.
Enable improved profitability through better visibility
Unified, real‑time visibility across finance and operations enables faster, more informed decisions.
By year three, the composite organization was modeled to potentially experience:
- Up to 3% improvement in net profit margins
- More than $240K in present value from improved profitability
Better insight into costs, projects, and performance enables earlier course correction. AI‑powered experiences such as Copilot can further assist by surfacing cost variances, project overruns, or unbilled work sooner. While AI alone does not drive margin improvement, modern ERP data and standardized processes strengthen an organization’s ability to act with precision.
Fast reporting and audit readiness
Business Central’s integrated data model and native Microsoft Power BI capabilities streamlined reporting and audit preparation.
Based on modeling by Forrester, by year three, the composite organization was projected to potentially reduce:
- Audit preparation time by up to 30%
- Time spent creating internal and executive reports
These projected improvements were valued at nearly $50K in present value, while also enabling increased confidence in data accuracy and consistency.
Beyond the numbers: Building an AI-ready foundation
In addition to quantified financial outcomes, interviewees highlighted broader operational improvements, including enhanced customer experience, reduced days sales outstanding (DSO), better warehouse management, and a more intuitive user experience.
Just as importantly, Business Central provides an AI‑ready ERP foundation.
By unifying finance and operations data and aligning processes to best practices, organizations are better positioned to leverage Copilot, Power BI, and intelligent agents to:
- Help reduce time-to-insight—not just report creation
- Surface anomalies and trends quickly
- Enable more proactive, data‑driven decision‑making
While AI‑driven outcomes were not directly measured in this TEI, the study reinforces a critical principle: realizing AI value at scale depends on clean data, integrated systems, and standardized processes. Business Central delivers that foundation.
Read the full study
For SMB‑focused organizations and partners evaluating ERP modernization, the full Forrester TEI study provides a detailed financial framework to help quantify potential projected value—grounded in customer interviews and risk‑adjusted modeling.
Join us at Directions North America 2026
The Forrester TEI study highlights the potential value organizations may realize with Business Central—from faster financial processes to improved profitability and lower total cost of ownership.
We’ll continue these conversations at Directions North America 2026, where partners, Microsoft engineering, and product leaders come together to discuss what’s next for the Business Central ecosystem and the future of AI-powered ERP.
Join me for the keynote, where I’ll explore how Business Central is evolving into an AI-powered system of action with Copilot and intelligent agents.
Attendees will:
- Gain insight into the Business Central roadmap
- Prepare for upcoming AI-powered capabilities
- Connect directly with Microsoft engineering and product experts
- Engage with partners across the Business Central community
- Composite organization assumption: Results are based on a Forrester modeled composite organization derived from customer interviews, with $50M in annual revenue, 300 employees, 15 core finance and accounting users, and 100 light users, using Dynamics 365 Business Central in a cloud deployment. All quantified benefits represent the three-year, risk-adjusted present value for the composite organization.
