New study quantifies the ROI of moving to Business Central
Microsoft has published a new independent study from Forrester Consulting that quantifies the financial impact of deploying Dynamics 365 Business Central. The Forrester Total Economic Impact™ (TEI) study, commissioned by Microsoft and released on March 31, 2026, projects significant returns for small and midsize businesses that consolidate onto the cloud ERP platform.
The findings are based on interviews with four business decision makers, which Forrester aggregated into a modeled composite organization — a company with $50 million in annual revenue, 300 employees, and 15 core finance users on a cloud deployment of Business Central. While the results reflect a modeled scenario rather than direct customer outcomes, the methodology follows Forrester’s established TEI framework for risk-adjusted financial projection.
What the study found
The composite organization modeled by Forrester was projected to realize the following over a three-year period:
These figures represent present value benefits across four primary benefit areas, each of which carries implications for how organizations evaluate the business case for ERP modernization.
Breaking down the benefits
The Forrester study breaks the projected $680,000 in three-year, risk-adjusted benefits into four distinct categories. Each area reflects a common pain point for growing SMBs operating on disconnected or outdated systems.
Finance productivity gains
The largest single driver of value in the study was improved finance team efficiency. Customers interviewed reported significant time savings in accounts payable, accounts receivable, billing, and financial close. By the third year, the composite organization was projected to reduce monthly close time by up to 30% and achieve up to 50% time savings across core finance activities. Forrester valued these gains at more than $215,000 in three-year present value for the composite organization.
For organizations still running manual reconciliation processes or managing close cycles that span multiple weeks, these projections reflect outcomes that many Business Central customers report anecdotally — though actual results will vary based on starting conditions and implementation quality.
ERP consolidation and lower TCO
Interviewees in the study reported operating aging on-premises ERP systems alongside spreadsheets and disconnected tools. Migrating to Business Central allowed them to retire those systems and reduce IT overhead. Forrester projected this consolidation could reduce total cost of ownership by more than 10%, representing over $170,000 in present value savings over three years for the composite organization.
This is a relevant data point for organizations currently running Dynamics GP, Dynamics NAV, or other legacy ERP systems. The Business Central licensing and pricing structure makes cloud subscription costs predictable, and eliminating server infrastructure and maintenance contracts can meaningfully reduce the total cost of the technology environment.
Improved profitability through better visibility
Unified data across finance and operations creates the conditions for faster, more informed decision-making — and the study attempted to quantify the downstream profit impact. By year three, the composite organization was modeled to experience up to a 3% improvement in net profit margins, valued at more than $245,000 in three-year present value.
The logic here is straightforward: organizations with better visibility into costs, project performance, and inventory levels can course-correct faster. The study acknowledges that Business Central’s native integration with Power BI supports this by enabling real-time operational reporting without requiring significant additional tooling.
Reporting and audit readiness
Rounding out the quantified benefits, the study projected that Business Central’s integrated data model would reduce audit preparation time by up to 30% and cut time spent on internal and executive reporting — with a combined present value of nearly $50,000 over three years. While smaller in dollar terms than other benefit categories, this is a meaningful productivity gain for finance teams that currently manage reporting through manual data exports and spreadsheet consolidation.
The AI-readiness angle
One area the study explores qualitatively rather than quantitatively is Business Central’s role as an AI-ready ERP platform. Interviewees noted that standardizing data and workflows on a single, integrated system creates the foundation needed to adopt Copilot-assisted capabilities — including automated approvals, variance analysis, and exception handling.
Microsoft has been investing heavily in Copilot features for Business Central across recent release waves, and Business Central’s 2025 release wave 2 expanded AI capabilities including instruction-based agents and Copilot-assisted workflows. The Forrester study acknowledges that AI-driven outcomes were not independently measured, but reinforces the principle that clean, unified data is a prerequisite for realizing AI value at scale.
For organizations evaluating AI enablement as part of a broader ERP strategy, this positions Business Central implementation not only as a finance modernization project, but as foundational infrastructure for future automation.
Context and caveats
The study’s methodology warrants some perspective. As with all Forrester TEI studies, the composite organization is a modeled construct, not a direct case study. Results are risk-adjusted and represent projected outcomes — actual ROI will vary based on the size of the organization, the complexity of the implementation, the state of existing systems, and the quality of the implementation partner.
Organizations with simpler starting environments may see faster payback, while those with more complex data migration, integration, or customization requirements may take longer to realize full value. The $50 million revenue / 300-employee composite also represents a fairly typical Business Central target customer, so the findings are more directly applicable to SMBs than to larger enterprise deployments.
That said, having a structured, independently conducted financial model available is useful for finance and operations leaders building an internal business case for ERP modernization. The Forrester TEI framework provides a methodology that organizations can adapt to their own circumstances.
What this means for Business Central prospects
The study arrives at a useful moment for organizations actively evaluating ERP modernization. A structured, independently conducted financial model that projects more than a 2x return and a sub-12-month payback provides meaningful support for building an internal business case for Business Central.
For organizations currently running on legacy platforms — particularly Dynamics GP customers navigating that product’s end-of-life timeline — the study adds a financial dimension to an already compelling migration argument.
Conclusion
The Forrester TEI study is not a substitute for an organization-specific ROI analysis, but it provides a credible, independently conducted benchmark for what Business Central deployments can deliver in measurable financial terms. The projections — 200%+ ROI, $460K NPV, and a six-month payback — are meaningful reference points for SMB leaders building the case for ERP modernization.
For organizations evaluating Business Central, the practical next steps include reviewing the full Forrester TEI study to understand the methodology and benefit assumptions, and then engaging a certified Microsoft partner to model those outcomes against your organization’s specific environment. Working with an experienced Business Central implementation partner can help ensure that implementation decisions — around scope, customization, and data migration — are made with the goal of realizing the platform’s full potential value.
