Microsoft will today launch its Dynamics 365 Business Central service in Australia and New Zealand, targeting small and medium businesses with the cloud-based package designed specifically to help them manage finances, operations, sales and customer service.

“Business Central also serves as an easy upgrade opportunity for businesses which have outgrown their entry level accounting systems and legacy ERP,” said Microsoft, which cited new research revealing that although many local SMBs are facing challenging business conditions, almost half are expecting to grow in the coming 1-2 years and recognise the impact that intelligent business software can have on operations.

The survey of 300 Australian SMBs found that 74 per cent believed increasing the customer base is the best way to grow the business, with 60 per cent also listing maintaining and growing existing customer segments as a priority.

“They also recognised that meeting customer expectations is a key driver for digital transformation,” said Microsoft. “However, fewer than half of Australia’s SMBs are making use of business application software – signalling an opportunity gap. SMBs that exploit the efficiency and insight dividend that comes from well-designed business solutions which help them respond to shifting customer needs and expectations will be best placed for success.”

The firm said forward thinking SMBs are now making a move, noting that a third of survey respondents are already or are planning to evaluate their business software options over the next 12 months.

Early adopters will have a clear advantage, according to Michael O’Keefe, Business Applications Group Lead for Microsoft Australia.

“Australian SMBs are looking to grow. They recognise the value that business software can have in terms of making them more efficient and responsive to customer needs. business Central has been designed specifically for these organisations,” he said.