Last updated: October 2026 Β· 3 min read
Microsoft Dynamics 365 is a family of cloud business applications covering both ERP (finance, supply chain, operations) and CRM (sales, service, marketing). Its tight connection with Microsoft 365, Teams and the Power Platform makes it popular with mid-size and large companies.
Main Dynamics 365 apps
| App | Type | Best for |
|---|---|---|
| Business Central | ERP | Small and mid-size businesses: finance, sales, purchasing, inventory |
| Finance | ERP | Large-company accounting, budgeting, global finance |
| Supply Chain Management | ERP | Manufacturing, warehousing, logistics |
| Project Operations | ERP/PSA | Project-based services companies |
| Human Resources | HCM | Employee management |
| Sales | CRM | Leads, opportunities, forecasting |
| Customer Service and Field Service | CRM | Support cases and on-site technicians |
| Customer Insights | CRM | Marketing and customer data |
Copilot and AI
Microsoft has built Copilot AI assistants into Dynamics 365 to draft emails, summarise customer records, suggest collections actions, forecast demand and answer questions in natural language. AI agents are increasingly used for tasks such as supplier communication and order processing.
Power Platform advantage
Dynamics 365 runs on Microsoft Dataverse and connects with Power BI for analytics, Power Apps for low-code apps and Power Automate for workflows, letting companies extend the system without heavy coding.
Dynamics 365 vs SAP S/4HANA
| Dynamics 365 | SAP S/4HANA | |
|---|---|---|
| Typical customer | Mid-size to large | Large and very large enterprises |
| Strength | Microsoft ecosystem, CRM + ERP, ease of use | Depth in manufacturing, finance and global processes |
| Deployment | Cloud on Azure | Cloud (public/private) or on-premise |
| AI assistant | Copilot | Joule |
Careers
Dynamics 365 roles include functional consultants (Finance, Supply Chain, CE), technical developers (X++, Power Platform) and solution architects. Microsoft certifications such as MB-310 (Finance) and MB-800 (Business Central) are widely recognised.
Frequently asked questions
Is Dynamics 365 ERP or CRM?
Both. It is a suite of ERP and CRM applications that share a common data platform.
What was Dynamics 365 Business Central earlier called?
Dynamics NAV (Navision).
Is Dynamics 365 only cloud-based?
It is primarily cloud-based on Microsoft Azure; some older Dynamics products ran on-premise.
Keep exploring
Facts are based on widely accepted official, scientific and historical sources at the time of writing. Spotted something that needs updating? Let us know.
