Adopt New Business Models with Microsoft Business Central ERP
Microsoft Cloud Software for ERP, CRM, & Custom Apps
Dynamics 365 Business Central ERP & CRM
Business Transformation requires significant process changes that can have significant implications to back-end systems. Rather than re-implementing an older system, which may still have you handcuffed with limited or restricted functions, we recommend moving to the cloud-based Microsoft Business Central.
Business Central and its predecessor Dynamics NAV, has been a proven and stable system for a number of years. Building upon a strong foundation (good to great), Microsoft has made significant investments (2020 to present, and ongoing) in Dynamics 365 including Business Central for the SMB and Mid-markets resulting in massive leaps in new features and functions for even greater flexibility, resilience and productivity of finance teams, operations and line of business.
It is estimated that 80% of all B2B buyer transactions will occur in digital channels by 2025 (Gartner)
New online transactions, new revenue streams, new business models, new customer-centric offerings are all possible when working with our talented team at Endeavour Solutions to custom configure your Dynamics 365 Business Central ERP. Our clients seek out Endeavour for our core values of Integrity, Trust, and Accountability, as a means to increase the success of their projects and corporate goals of Growth, Resilience, and Adoption of new business models. Many of Endeavour’s consultants have a strong background in Accounting and Finance, while others are operations experts in Supply Chain, Distribution, and Manufacturing.
New Business Models along with a new ERP (Microsoft Business Central) can help you:
- Gain the visibility to identify threats, reduce risks, and adjust business models as market dynamics change.
- Drive operational efficiency with guided workflows, AI-enhanced processes, and interoperability with Microsoft Teams and Office apps.
- Improve financial dexterity by connecting all your data and automating manual tasks.
Examples of new business models include:
- Adding post-sale warranty and managed services. Requiring field-service capabilities
- Adding in trial periods / free returns / freemium versions of your core services
- Adding subscriptions/rentals as a means for customers to try before they buy, or turning capital acquisitions into operating expenses.
- Adding in consumption-based billing and other usage metrics.
- Adding in creative financing mechanisms or delayed billing options
- Adding in IoT (Internet of Things) sensors to track usage or trigger response services
- Adding product sales to a service-based organization
- Adding additional 3PL third-party logistics, warehousing, 3rd party product sales, and direct-to-consumer (D2C)
- Adding a new B2B portal for online ordering, price adjustments and customer self-service
A common theme within many of the above business models is the addition of recurring revenue streams. Ones that help to tighten customer relationships either by adding complementary (upsell/cross sell) services and support that augment previous one-off sales, or by more aggressively changing business models and contractual arrangements from an acquisition to a subscription.
Rather than a big-bang approach, there is often a longer transition period (ask Business Transformation) where both old and new business models need to coexist. This is where Endeavour’s partnership with you and your team becomes paramount to your short term and long term success with a phased approach to implementation of your Business Central ERP system as well as adjustments to complementary analytics and automated process such as CRM, PowerApps, RPA (Robotic Process Automation), Financial reports, KPI dashboards, along with quarterly financial planning / budgeting. Further more Recurring Revenue models have additional Tax, GAAP and IFRS accounting standards that need to be put in place from a financial (regulatory) compliance perspective with a specific focus on revenue recognition and expense deferrals matching the deferred revenue.
Key Metrics for Recurring Revenue Models
(as captured and reported on by Business Central)
- Customer Acquisition Cost (CAC) - looking at Total Sales and Marketing costs attributed new customers or specific customer segments
- Customer Lifetime Value (LTV) - looking at the long-term subscription value of specific customers or customer segments
- Customer Churn Rate - A key input into calculating the long-term value of a customer
- Revenue Churn Rate - A similar metric to customer churn, but weighting towards revenue rather than the number of subscribers
- Average Revenue Per Account (ARPA) - looks at Monthly revenue divided by total customers
- Months to Recover Customer Acquisition Cost (MCAC) – a break-even point for the Recurring Revenue to cover the Customer Acquisition Cost
Learn more at Mircosoft.com https://docs.microsoft.com/en-ca/dynamics365/business-central/finance-recurring-invoicing
So, how can we help YOU to succeed? Learn more about each work-stream.
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