Challenges and Tips for Success During Your Migration
Microsoft Dynamics NAV–formerly Navision–has been in the ERP game since the early 1980s. NAV began as a suite of accounting tools. It was originally developed by a Danish company and acquired by Microsoft in 2002. After two decades and countless upgrades, NAV became a flexible system that can adapt to a variety of industries and use cases. It’s popular among SMBs, as well as distributors and manufacturers for its robust suite of production control tools. It still serves valuable insights, offers plenty of customizations, and acts as a single source of truth for the whole organization. But, users are bumping up against the limitations of its on-prem infrastructure.
Business Central replaces NAV, offering the same core functionality in the cloud and with some major upgrades. In this article, we will take a closer look at what has changed, what has not, and what a successful migration entails.
The Difference Between Microsoft Dynamics NAV and Dynamics 365 Business Central
NAV and Dynamics 365 Business Central allow SMBs to manage all core business operations in one place. Both platforms improve decision making and optimize processes & workflows across the entire business. It includes finance, manufacturing, sales, HR, marketing, and more. The real difference between Microsoft Dynamics NAV and 365 is not what they do but how they do it.
Comparing the two platforms demonstrates the impact that infrastructure has on business performance.
Challenges: Migrating from Dynamics NAV to Business Central
Some organizations may still have trouble wrapping their head around the shift from on-prem to cloud. It is not as common today, as cloud-based everything is now ubiquitous, but it still happens. What is more common is a poor understanding of how infrastructure impacts everything from customizations, reporting, and basic accounting tasks.
Organizations also run into trouble if they have not created an environment that can support the new system. Network capacity plays a crucial role in supporting remote work and maintaining the continuous uptime needed for data streaming and IoT solutions. These are things that your software partner can help address before you deploy to mitigate risks.
Data Migration
The choice between a “lift & shift” or a full reimplementation is a strategic one. It requires that organizations look at several factors. Part of that process involves looking at what migration will entail. As mentioned in another recent post, several factors will determine the best path to the cloud. Think about the age, complexity, data volume, and whether your current solution was implemented properly.
The longer you’ve been using your legacy system, the more time you will spend sorting and cleaning your data before deciding what you will bring with you. This means mapping the data across NAV and its integrations, cleaning it, and eliminating inaccurate, or irrelevant data. You will also need to ensure that the data you plan on keeping doesn’t get corrupted.
In a recent CIODive article, Hava Babay-Adi, software engineer & Google tech lead explained that migrating data from NAV to BC means converting data from one schema to another. In some instances, existing data may include records or variables that are no longer valid and you will need to convert it to a different format.
Beyond that, there are a few different methods and tools you might use to bring your existing data into the new system.
- Replication/Intelligent Cloud. If you are migrating from NAV 2018 R2 or later, you can replicate data in the new environment via the Intelligent Cloud tool. This process syncs NAV data to BC via manual updates or prescheduled replications. And while you can access that data by logging into BC, it’s read only. Still, you can start taking advantage of new functionalities like Power BI and Flow, as you continue with implementation.
- RapidStart. RapidStart is a Microsoft service that allows users to create Configuration Packages that link Excel files to BC tables. The goal is to standardize & streamline implementations–during the initial migration and later, as your company grows.
- Excel. You can transfer vendor, customer, inventory, and transaction data from NAV to Business Central using Edit in Excel. That said, whether your files are compatible with BC depends on what extensions are available. Make sure you’ve filled in all mandatory fields before the import.
Complex Customizations
In most cases, the functionalities from current customizations in your NAV system are now available out of the box in Business Central. If not, there are many third-party solutions that you can deploy. If you are unable to find a pre-built ISV or third party application to meet your needs, you will need to convert your modifications from C/AL to AL Extensions.
How to Prepare for the Migration
It starts with understanding the value Dynamics 365 brings to the table. It is important to learn about the big picture benefits of the cloud before digging deeper. Your solutions partner can help you understand what you will save on hardware, upgrades, and IT spending by moving to the cloud. They can also help you compare functionality of NAV v. Business Central.
Those benefits apply across the board but immediately show the potential of a cloud-based ERP. But, you will want to delve deeper to learn more about how the improved functionality can help you achieve specific business goals. This means learning how users engage with the software and using those insights to determine where you can add new value.
Keep in mind, the needs your end-users have now may be very different from those they had during your initial NAV rollout. To identify opportunities to improve existing processes, we recommend answering the following questions:
- Is there old development that no longer serves current or future business needs?
- Can you summarize the areas of previous development? The goal is to understand if Business Central has new functionality to meet the past development.
- Is there a need to review and/or redefine processes to fit current BC functionality and maximize ROI?
Plan with Business Continuity in Mind
Be sure to plan a rollout process that allows you to scale back new features or even revert to the legacy platform if necessary. You may want to consider a Phase Zero approach. Rather than moving everything into the cloud at once, you take a more gradual approach. This can help you identify friction points early on and communicate the benefits of the migration to resistant employees.
Next Pathway Chief Strategy Officer, Vinay Mathur, told CIO Dive that his team does an initial pilot or Phase Zero program as part of the migration. The process involves taking a small piece of an application (plus its data and codebase) and moving it to the cloud. This helps engage end-users during the process, weigh in with feedback, and feature requests. It also helps them master the system they will use each day.
Because the ERP is the center of all business activities, planning for continuity is crucial. Downtime could have devastating, long-term consequences on your business. You are vulnerable to cyber attacks. You lose productive hours and opportunities to sell. Remember, end-users will be using D365 to perform daily work. That means you’ll need to ensure that the migration won’t prevent them from completing critical tasks.
Test Early and Often
You will want to design a testing strategy that involves end-users in defining business processes, workflows, and use cases. Testing is essential for aligning expectations with the business strategy from the start. Plus, it doubles as an interactive training process that prepares users to get results from new features before go-live.
How Do Clients Achieve the Desired Business Outcome
Executive sponsorship
Leadership teams have a clear vision of what needs to change and why. Customers involved in the migration and testing processes are more successful globally. This level of involvement can not happen without a project sponsor who prioritizes the initiative. They continually focus on key objectives and must-have features first. They avoid spending too much time on “nice to have” features early on. Instead, nail the essentials and use data from all that testing to inform what comes next.
Clear communication of project goals/ criticalities
Regular communication with executive sponsors, partners, and project team ensures on-time delivery. This avoids obstacles that cost money and cause delays. They gain an understanding of all elements that impact the migration, including business needs, raw data/inputs, required outputs, internal and external customers, and their needs. You should be able to articulate this information regardless of the system they are using.
Project Management keeps teams on track and accountable
Strong project management is required on both the client-side and the partner side. You want both teams aligned, working toward the same goal. Process owners and leadership with the ability to make decisions. Make sure you give your teams the authority to push projects through the pipeline. Give teams the tools to “adapt to changes in real-time and be willing to pay for the upgrade. Even if requirements or expenses evolve from what was in the initial plan.” If you’re waiting hours/days/ weeks, for decision-maker approval, you’ll face delays. But also uncertainty and lost momentum–which can prevent teams from completing the project. That’s a lot more waste than going over budget.
Create an environment that supports collaboration
NAV to D365 migration is a collaboration between the client and project delivery team, and any external partners supporting the effort. This is a business project – not an IT project. All end-users must be involved in the process to accept the change.” The working environment should be designed in a way that keeps teams on track and working toward the same set of goals. That means knowledge management and data sharing processes should be a part of the ERP strategy from the get-go. This is critical for preventing teams from veering off-course and developing incompatible strategies.
Key Takeaway
The biggest takeaway from this article is that the difference between Dynamics NAV and 365 is about infrastructure. The cloud unlocks all of the benefits not possible in NAV–with the same features. The businesses that succeed believe in the value of the cloud and have executive support for the initiative.
Working with the right solutions partner makes it easy to gather requirements, select a migration path, and develop a strategy for success. An experienced business applications consultant also allows organizations to get up and running quickly.
Contact us and tell us about your project. Our team is here to help.
In his role as Director of Business Applications, Loren and his team specialize in positioning organizations up for growth by implementing Microsoft centralized platforms like Enterprise Resource Planning (ERP) or Customer Relationship Management (CRM).
If you’re ready to start planning your move from Dynamics NAV to Dynamics 365 Business Central, reach out to our experts.
