May 22, 2024

The Total Economic Impact™ Of Microsoft Dynamics 365 Business Central

Download The Total Economic Impact™ Of Microsoft Dynamics 365 Business Central

TEI Framework And Methodology

From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Microsoft Dynamics 365 Business Central.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Dynamics 365 Business Central can have on an organization.

Total Economic Impact Approach

Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization.

Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution

Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.

Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution

Executive Summary

Forrester’s analysis of five current Microsoft customers found that Dynamics 365 Business Central enabled these organizations to bolster operational efficiency, avoid costs, and comfortably scale their deployments with growth while benefitting from the flexibility inherent in the cloud. An analysis based on a $15-million, 250-employee composite organization modeled after the five interviewees demonstrates benefits of $466K over three years versus costs of $178K, adding up to a net present value (NPV) of $288K and an ROI of 162%.

Download The Total Economic Impact™ Of Microsoft Dynamics 365 Supply Chain Management

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