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Microsoft Dynamics NAV vs SAP S/4HANA comparison

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Comparison Buyer's Guide
Executive Summary

We performed a comparison between Microsoft Dynamics NAV and SAP S/4HANA based on real PeerSpot user reviews.

Find out in this report how the two ERP solutions compare in terms of features, pricing, service and support, easy of deployment, and ROI.

To learn more, read our detailed Microsoft Dynamics NAV vs. SAP S/4HANA report (Updated: September 2022).
632,611 professionals have used our research since 2012.
Q&A Highlights
Question: What product would you recommend and why: SAP S/4HANA or Microsoft Dynamics NAV?
Answer: Adding on to other contributors' opinions, if you are spoilt for choice and understand the nuances of good architecture, ease of customization, viable budget to expend on deploying the ERP - Acumatica ERP is soon becoming a force to reckon with for the SMEs. Microsoft D365 BC formerly Microsoft Dynamics NAV has become more robust and integrated and a joy to deploy and use within the acceptable budget one needs for ERP implementation. SAP the old warhorse, engineered with the finest and well thought out design architectures true to all German products if deployed well is a wonderful and seamless experience but if the Systems Integrator doesn't do justice and is unable to tame the warhorse, this can be a disastrous run for all besides the bludgeoning costs incurred for deploying this fine piece of architecture.
Featured Review
Quotes From Members
We asked business professionals to review the solutions they use.
Here are some excerpts of what they said:
"The product is customizable so we can tune it according to our requirements.""All of the features are valuable, depending on where you implement them. I've done implementations in 60 countries, across 86 different companies and groups, and each company has a different reason for why they want to use it. Every single feature that I've implemented has been successful, and for some companies, where they didn't use the functionality, they have moved to external products or they've integrated into other applications.""The solution is easy to use, flexible, and customizable.""The initial setup is easy - because it stands on Microsoft offerings, it's simple and intuitive to use.""I like Microsoft Dynamics' simplicity. The interface is excellent, and it's a highly mature product. You can hardly find any bugs in the product.""NAV covers everything from purchasing and selling items to invoicing. Everything is within NAV, so it's all very neat.""It is easy to use, and it works very well for small-scale companies.""I have found the flexibility to be very valuable. It's highly flexible, and at least for us, it has been effective. It is also highly functional."

More Microsoft Dynamics NAV Pros →

"The most useful features of SAP S4HANA are the consolidation reports. The BI is very strong and the manufacturing and finance sections we like a lot.""I like the user experience and usability of SAP Fiori, which is one of the main features that we are using.""It is more or less a very, very smooth and seamless product. Day by day they are increasing their technology features and they are keen to resolve the issues. India has a complex business scenario and SAP is thinking about that and resolving the issues day by day.""SAP S4HANA is a robust solution.""A robust product with integration between all modules.""I find everything I need in S4/HANA.""SAP S4HANA is a stable solution.""From a technological point of view, the in-memory database is one of the key highlights."

More SAP S/4HANA Pros →

"Microsoft Dynamics NAV will be replaced with Office 365 in the future.""Microsoft Dynamics NAV could improve the reporting.""In Thailand, the support here could be better. The process to get an answer is too long.""I think Microsoft should improve on the process of how the user decides on a business workflow. For example, there may be some kind of drag-and-drop interface that lets us decide for ourselves how to develop the business workflows that fit our purpose.""Customization and costs could be improved.""Any request that had come from the website had to go through an e-form which was then plugged into Microsoft Dynamics NAV. There was no direct data capture. That was the pain point, where clients had to build e-forms, and that caused delays in transactions and getting information.""I would like a more modular and user-friendly interface.""If Microsoft made some of the security setups a little easier to work with, that would be a significant improvement. The warehouse management features could also use some work. We had to buy third-party software to make NAV's warehouse management and security more usable and functional."

More Microsoft Dynamics NAV Cons →

"In a feature release, they could improve by adding budgetary features.""The migration to SAP S/4HANA is hard.""It is simple to implement SAP S4HANA. If you are already in this type of environment, then the transition is not very complex. However, if you do not then it can be difficult.""If S4HANA has more AI and machine learning, it will be better and easier for reporting and dashboarding.""In an upcoming release of SAP S4HANA, chain management should be easier.""The product's use of resources could be improved, as it is quite intensive at the moment.""Thi solution can improve the Bill of Materials (BOM) and production planning.""You will not see convenient user experiences with SAP S4HANA's website or application."

More SAP S/4HANA Cons →

Pricing and Cost Advice
  • "The first time we tried to buy the newest version, it was expensive."
  • "I have some subscription-based customer and a few customers who have perpetual licenses that hosted the application on the cloud."
  • "The price of the solution is reasonable."
  • "The price of the solution is reasonable."
  • "I think the pricing is the best; it's cost effective for sure."
  • "Microsoft Dynamics NAV has a pay-as-you-use payment model."
  • "NAV might be a little pricey for a small or medium-sized company, but all the solutions out there are."
  • "The cost is one of the benefits. If you don't want to go for the full-blown finance and operations, the pricing model is a lot cheaper and has now switched to being based on a per-user subscription. So, if it's on cloud, you now have an expense instead of a large CapEx. If it's on-prem, you obviously still have to continue with the licensing model that they have, but if you compare the features and functionality, in terms of the price that you pay, I find it's better than other products. My answer on the pricing would be slightly different, depending on the country you're in and the return on investment, based on the size of the company. It's well-priced internationally. I think the new model is priced even better because it's now subscription-based and, if you go for cloud, the return on investment is a lot quicker and if it's expense, you can cap it. If you do take the on-prem version, the licensing is still priced as what it used to be, so that would depend on what country you are in."
  • More Microsoft Dynamics NAV Pricing and Cost Advice →

  • "The price of this product is an issue for some customers."
  • "I have found the price of the solution is on the medium to the expensive side of the scale. There is a license for this solution and there are additional maintenance fees."
  • "The solution is expensive."
  • "We're not sure yet. I think it was six figures a year, over 100,000. It has straight-up licensing fees."
  • "Licensing works on a subscription model for the cloud version and it's a one-time fee for the on-premises version."
  • "The price of the solution is reasonable but some modules can be expensive. When comparing SAP S4HANA to other solutions, such as Oracle, it is not expensive."
  • "The price of the solution is expensive."
  • "There is a license required for the use of this solution and we are on a monthly subscription. The cost of the solution is expensive compared to other solutions."
  • More SAP S/4HANA Pricing and Cost Advice →

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    Answers from the Community
    Sunil Saraf
    Mohan-S - PeerSpot reviewerMohan-S
    Real User

    I concur with the other responders here. MS Dynamics 365 and SAP S/4 HANA are not in the same league. Will need more info about your requirements and budget. 

    SAP S/4 HANA on-premise is expensive, but, in good hands will do well, especially on a really solid hardware config.... cloud-based is somewhat less expensive, but you cannot customize... 

    MS Dynamics Business Central is less expensive but has most of what an ERP package should have... and in good hands, the recent versions are fairly stable....but the config has to be accurate and your connectivity must be stable, otherwise, it will be a horrendous experience... I would not suggest MS Dynamics NAV now... it better to look at Business Central...that is improved NAV on the cloud.

    Gene Hammons - PeerSpot reviewerGene Hammons
    Real User

    So Microsoft Dynamics NAV is being replaced, as MS recodes the product for a cloud based deployment called Business Central (BC) - very low priced right now, almost entry level ERP pricing. There's also been some significant problems as not all the functions from NAV were included in Business Central from day one. Many clients found themselves with a 'not-ready-for-prime-time' product. We had a spectacularly failed implementation with a client who did not follow our recommendations and went with BC back in Dec 2019 - and they picked a very inexperienced partner because it was the technology group of the CPA firm that did their taxes (not a good reason for any ERP decision). 

    We only work with proven implementation partners for that exact reason. 

    SAP of course is a proven Tier One leader in ERP - but more costly - you'll need several people on staff to manage it, entry level costs are $3m - $5m with rollouts of more than a year. 

    We have had success with another Microsoft product, the former Dynamics AX, now called Finance & Operation (F&O). In the hands of a good team we've launched some pharma manufacturers with F&O at a $1.2m price point while SAP estimates were in the $3m range. Again, a near Tier One application, they used outside consultants for support for the first couple of years, and brought in someone in-house and they expanded her department to two 18 months later - still far less than supporting SAP, but a big program with a lot of powerful options. 

    The move from AX to cloud based F&O has not been as painful as Business Central and we haven't heard the horror stories - but also, F&O is so complex it's not handled by the average CPA firm or as a simple add on from the same Microsoft reseller that provides Office and Azure. 

    Anyway - your budget may only cover Business Central, but there are cloud based ERP products that have been cloud based for 20 years, not 20 months. Your requirements may demand SAP  - or you may be referring to SAP Business One which is a mid market product (whole new set of issues there). 

    But you're in an area where lots of companies bring in a software selection consultant because we've only scratched the surface here. As Daniel Robus recommends, you might need to look wider - because if you're looking to choose between SAP and Business Central - by definition, one of them doesn't belong in the same discussion. 

    Daniel Robus - PeerSpot reviewerDaniel Robus
    Real User

    Hi - that is such a wide question which requires more information. They are both great products but they need to be implemented in the correct way. If you are working in the mining environment you will never be in trouble if you have SAP behind you. 

    If you are looking at a general organsiation that might be growing and expanding but want to start small then Dynamics is a good option....

    so, it depends. But there are even better options out look wider.

    Sunil Saraf - PeerSpot reviewerSunil Saraf

    Thanks dear friends for responding. The cues forwarded are of immense value. I notice that the crux of all responses mostly relate to cost of acquisition, choosing right implementation partner, resource costs, look for additional alternatives & non comparability of between the two. While these are fantastic fundamentals, succinctly put across and are deeply appreciated, I seek for further knowledge from IT Magi with regards to few specific areas that are important to carry the search further. 

    These are;Suitability for Commodity Oriented Manufacturing Company, with costing & treasury, customised sales Order/contract management, multiple methods of stock valuation, Product & Process costing, Costing & Financial P&Ls, Product Contribution Management, Price parity management, Multiple methods Margin/Realizations calculations, Mark to markets.

    Hope this will help in focusing on suitable option that may be suggested between the two. Thanks in advance for taking out your precious time to respond to the ignorant.



    Questions from the Community
    Top Answer:Microsoft Dynamics NAV is good for smaller-sized companies.
    Top Answer:As our company grew we had to switch from Microsoft Dynamics NAV to a solution that was suited for larger-sized companies.
    Top Answer:SaP Business One is a complete solution for business management. The software applications are broad, ranging from accounting to project management and human resources. It is very versatile and… more »
    Top Answer:SAP Business One vs. SAP S/4HANA Out of a total of 3,539 decision criteria spread across the eight sub-modules that form the comparison matrix, SAP S/4HANA offers noticeably better coverage of ERP… more »
    Top Answer:I cannot recall coming across any areas that were lacking. Starting out on the solution can be a bit complex and difficult. I'd like to see them simplify the process of integration. It's very complex… more »
    out of 58 in ERP
    Average Words per Review
    out of 58 in ERP
    Average Words per Review
    Also Known As
    Dynamics NAV, MS Dynamics NAV
    Learn More
    Microsoft Dynamics NAV is a global enterprise resource planning (ERP) solution that provides small and midsize businesses greater control over their financials and can simplify their supply chain, manufacturing, and operations. It's quick to implement and easy to use, with the power to support your growth ambition.

    SAP S4HANA is an ERP (enterprise resource planning) system that uses sophisticated technologies including machine learning and AI. It is most commonly used to integrate and manage business functions and is an ideal solution for large enterprises. The platform includes supplier relationship management (SRM), customer relationship management (CRM), supply chain management (SCM), and product lifecycle management (PLM) functionality.

    SAP S4HANA offers three different deployment options:

    • On-premises
    • Cloud
    • Hybrid

    SAP S4HANA Features

    SAP S4HANA has many valuable key features, including:

    • Customizable
    • ERP, CRM, SRM, SCM, PLM co-deployed
    • High throughput
    • Fast analytics and reporting
    • Smaller total data footprint
    • SAP HANA multi-tenancy
    • All data: social, text, geo, graph, processing
    • New SAP Fiori UX for any device (mobile, desktop, tablet)
    • Unlimited workload capacity
    • High-volume transaction processing (OLTP)
    • High volume real-time analytical processes (OLAP)
    • Service Management
    • Digital Boardroom Integration

    SAP S4HANA Benefits

    Some of the benefits of using SAP S4HANA include:

    • Speed: S4 HANA applications leverage speed, context, and data accessibility to ensure you can stay up to date with rapidly evolving technology.
    • Improved performance: With SAP S4HANA, you can plan, execute, or generate reports and analytics based on live data to increase performance.
    • Simplicity: SAP S4HANA’s whole infrastructure was designed with simplification in mind — from the management of the solution to the administration of the IT landscape. The solution serves as the digital core for business process simplification and enables the centralizing of hardware and network resources.
    • Cost effective: SAP S4HANA is a cost effective solution. It provides the ability to bring together all the analytical and transactional capabilities of a variety of systems in one location, enabling better decision making.

    Reviews from Real Users

    Below are some reviews and helpful feedback written by SAP S4HANA users.

    A Mechanical Engineer at a construction company says, “It is a very powerful, highly customizable tool. The most valuable feature is that the reporting is fast. We can see the results from that in that our commissions come in fast. That is the main advantage.”

    Another reviewer, a SAP Technology Manager at a financial services firm, mentions, "It is more or less a very, very smooth and seamless product. Day by day they are increasing their technology features and they are keen to resolve the issues. India has a complex business scenario and SAP is thinking about that and resolving the issues day by day. In terms of the features I have found most valuable, I don't think that there is any lack or any gap process-wise. SAP is a very good tool."

    A Project and Service delivery Manager at a tech services company comments, "One of the most valuable features, which we used the most, was the FI module, for finance. It involved controlling, account receivables, account payables, and complete financial steering."

    A Senior Architect at a construction company states, “The POD applications are very useful to us. There are a few POD apps which we are using for different business scenarios. They are quite interesting.” He also adds, “The initial setup is pretty straightforward. The documentation is very good. The solution can scale well. The solution is stable.”

    Learn more about Microsoft Dynamics NAV
    Learn more about SAP S/4HANA
    Sample Customers
    Harris Farm Markets, Mister Spex GmbH, Bounce Foods, Eurofin Services SA, Medica Medizintechnik, Associated Gaskets, Onduline, Sitka Surfboard Corporation, World Animal Protection
    Nestle, O.C. Tanner, Sabre, New York Life Insurance Co., MEMEBOX, Siemens AG.
    Top Industries
    Construction Company20%
    Import And Exporter10%
    Manufacturing Company10%
    Comms Service Provider20%
    Computer Software Company19%
    Educational Organization6%
    Manufacturing Company5%
    Manufacturing Company13%
    Financial Services Firm13%
    Consumer Goods Company9%
    Computer Software Company9%
    Computer Software Company23%
    Comms Service Provider16%
    Energy/Utilities Company6%
    Manufacturing Company6%
    Company Size
    Small Business53%
    Midsize Enterprise21%
    Large Enterprise26%
    Small Business23%
    Midsize Enterprise23%
    Large Enterprise54%
    Small Business36%
    Midsize Enterprise19%
    Large Enterprise45%
    Small Business19%
    Midsize Enterprise17%
    Large Enterprise63%
    Buyer's Guide
    Microsoft Dynamics NAV vs. SAP S/4HANA
    September 2022
    Find out what your peers are saying about Microsoft Dynamics NAV vs. SAP S/4HANA and other solutions. Updated: September 2022.
    632,611 professionals have used our research since 2012.

    Microsoft Dynamics NAV is ranked 7th in ERP with 18 reviews while SAP S/4HANA is ranked 2nd in ERP with 46 reviews. Microsoft Dynamics NAV is rated 8.2, while SAP S/4HANA is rated 8.2. The top reviewer of Microsoft Dynamics NAV writes "Very easy to scale and the new pricing model is a lot cheaper". On the other hand, the top reviewer of SAP S/4HANA writes "Smooth and seamless product with flexible licensing models". Microsoft Dynamics NAV is most compared with SAP ERP, SAP Business One, Oracle E-Business Suite, IFS Applications and Infor M3, whereas SAP S/4HANA is most compared with SAP Business One, Oracle ERP Cloud, SAP ERP, NetSuite ERP and Microsoft Dynamics AX. See our Microsoft Dynamics NAV vs. SAP S/4HANA report.

    See our list of best ERP vendors.

    We monitor all ERP reviews to prevent fraudulent reviews and keep review quality high. We do not post reviews by company employees or direct competitors. We validate each review for authenticity via cross-reference with LinkedIn, and personal follow-up with the reviewer when necessary.