What Is Dynamics 365?

Microsoft Dynamics 365 is a collection of business apps. It has the potential to turn business process into a competitive advantage for businesses all over the world. But what exactly does that imply?

Dynamics 365 Includes Both ERP and CRM Apps

More than a dozen apps and add-ons are included with Dynamics 365, addressing your ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and other needs.

Customers of Dynamics 365 licence the apps that give them the most bang for their buck. The whole Dynamics 365 family is built to provide you the most flexibility and extensibility possible.

Dynamics 365 (D365) can adapt to practically any business because of its flexibility and rapid innovation. However, it can be difficult to comprehend, especially with all of the acronyms thrown around: D365, CRM, ERP, and so on.

I’ll offer you an overview and several links to more thorough explanations and comparisons in this article.

What are the Dynamics 365 ERP Solutions?

Dynamics 365 ERP solutions are focused on your basic accounting, manufacturing, and distribution needs, but they also cover a wide range of other areas. Their worth to your company comes in the form of increased automation, efficiency, control, and scalability.

There are two main Dynamics 365 ERP systems to choose from at the highest level: Business Central and Finance & Operations.

Dynamics 365 Business Central:

Most small and medium-sized enterprises will benefit from this ERP solution. Allows a business to start small, then expand up and add capabilities as their needs change.

Dynamics 365 Finance & Operations:

Large or varied businesses will benefit from this ERP solution. Companies with several lines of business, worldwide operations, multi-currency requirements, or complicated discrete and process manufacturing requirements should use this software.

Small and medium-sized enterprises should use Business Central, whereas bigger organisations should use Finance & Operations. However, there are numerous distinctions between the two, and the greatest fit for your organisation is determined by your unique business requirements. We created an automated Dynamics suggestion engine that takes 20 criteria into account to help you find the ideal fit.

Now, within Finance & Operations, there’s a little more detail. Even though most customers, commentators, and consultants still call it Finance & Operations, Microsoft now licenses it as 2 different apps:

Dynamics 365 Finance:

For large, worldwide firms, this includes budgeting, project management, financials, and accounting.

Dynamics 365 Supply Chain Management:

Engineering, manufacturing, warehousing, and distribution are all included. Multi-level warehousing and complicated discrete and process manufacturing are strengths.

It’s still a single implementation, but based on your business processes, you may now choose whether your individual users have access to one or both apps. More information about the new Finance & Operations pricing may be found here.

You may be familiar with Microsoft Dynamics GP. Many of Addend Analytic’s own clients use GP, a strong Microsoft ERP solution. Although it isn’t technically a member of the Dynamics 365 family, it is a near cousin with a comparable user interface.

Many businesses that are now using Microsoft Dynamics GP are now completing needs assessments with Dynamics Partners to determine whether they should migrate to Dynamics 365, particularly Business Central. Please see Dynamics GP vs Dynamics 365 Business Central for a comprehensive comparison of the two solutions.

What are the Microsoft Dynamics 365 CRM Apps?

There are 5 different apps within Dynamics 365 that fulfill a business’s CRM needs. These apps help your team make sales, retain customers, dispatch support when needed, and keep track of it all.

Dynamics 365 Sales:

This is the most common of the five. It provides your team with a 360-degree perspective of your interactions with prospects and customers, allowing them to plan and forecast their upcoming engagements with them. It gives your sales, marketing, and account management teams a single source of truth.

Dynamics 365 Marketing:

Create nurturing programmes, calculate lead scores, and provide information for next steps to gain and retain customers to boost your marketing efforts.

Dynamics 365 Customer Service:

By keeping track of client complaints, returns, warranty claims, SLAs & entitlements, and how your team handles each of these transactions, you may give your customer support staff a leg up.

Dynamics 365 Project Service Automation:

Ideal for any business that offers professional services at a fixed price or on a time and materials basis (e.g., engineering, consultative services). Resource scheduling, time entry, and expense submissions are all available. These licences also include the ability to sell.

Dynamics 365 Field Service:

This is ideal for any firm where your team performs services offsite (for example, at a customer’s facility or on your field equipment). Customer service is also included in these licences.

You can use any combination of these apps and integrate them with both your ERP and Office 365. Your Microsoft Dynamics partner can assist you in matching your company processes and strategy with the appropriate licences.

What are the Other Dynamics 365 Offerings?

There are also several offerings within Dynamics 365 that go beyond ERP and CRM:

Dynamics 365 Human Resources:

Compliance, compensation, perks, and more are all made easier with this app. Employees can also use self-service tools to access essential HR information.

Dynamics 365 Commerce:

For omnichannel sales, a digital commerce tool that connects your back-office, in-store, call centre, and digital interactions.

Dynamics 365 Mixed Reality: Includes four different offers for business needs:

  • Dynamics 365 Remote Assist – to collaborate at a distance.
  • Dynamics 365 Layout – to visualize and share floor plans through holograms or VR.
  • Dynamics 365 Guides – to improve training and performance.
  • Dynamics 365 Product Visualize – to let sales reps showcase products within a customer’s own environment.

Dynamics 365 AI: Includes several different Artificial Intelligence add-ons for CRM apps:

  • Dynamics 365 Sales Insights
  • Dynamics 365 Customer Insights
  • Dynamics 365 Customer Service Insights

There are also several other Microsoft AI offers, especially in the Power Platform and Microsoft Azure cloud.

Dynamics 365 is Implemented With a Partner

Because these apps are always growing and relate to your entire organisation, you’ll need expert advice to figure out which apps are best for your goals and plan.

You’ll also need professional assistance to properly configure them for your business processes and to provide ongoing support as your business and technology evolve.

Addend Analytics Business Solutions, a Microsoft Dynamics Partner, can provide such guidance and assistance.

As a result, choose which Dynamics 365 apps to employ is a part of your decision as a business leader. But who you collaborate with is an even more crucial aspect of your decision. Your partner can assist you in determining your business needs and then implementing, training, and supporting the right apps for you.

Are There any 3rd-Party Dynamics 365 Apps?

Yes. On Microsoft AppSource, there are thousands of third-party programmes made by Microsoft Partners (which is different from the Office Store and Azure Marketplace).

Does Dynamics 365 Include Power Apps?

In a technical sense, no. However, many businesses employ both in practise.

The Microsoft Power Platform includes Power Apps, which are low-code/no-code solutions for power users and “citizen developers” from Microsoft. Power Apps are a terrific method to bridge the gap between your business needs, Dynamics 365, and any other solutions you might have.

Does Dynamics 365 Include Power BI?

Although commonly through the same Microsoft Partner, Power BI is acquired in addition to Dynamics 365. Power BI enhances your Dynamics 365 apps with easily accessible visualisations and sophisticated data controls.

The Microsoft Power Platform includes Power BI as well.

Is Dynamics 365 Part of Office 365?

No, but they do blend in beautifully. Microsoft Dynamics 365 Business Central, for example, allows you to invoice directly from Outlook.

Dynamics 365 Has a “Common Data Service”

Enterprise software has always been built on a foundation of complex databases. Consultants would be responsible for establishing, maintaining, and customising databases for specific corporate operations. It’s also tough to integrate and upgrade these specialised databases.

Microsoft has abandoned the siloed data approach of the past.

Instead, Microsoft Dynamics 365 and many other Microsoft solutions make use of a shared data service that allows apps created for one enterprise to be easily transferred to another. This improves consistency, decreases costs, and makes Microsoft a more appealing alternative for commercial software buyers.

The standardisation and consistency of database schema also helps Microsoft’s partners. They may create cutting-edge apps and customizations with the assurance that their work will be deployed and used by Microsoft’s entire client base. These programmes are available in Microsoft AppSource for customers to peruse.

A deeper interaction with other programmes, such as Office 365 or any other business app with a defined API, is also possible thanks to the shared data model. The Microsoft Cloud and Dynamics 365 value package includes Microsoft Office 365, Power BI, Microsoft Power Automate, the Internet of Things, and Cortana Intelligence.

Dynamics 365 is Built for the Cloud

Because of Microsoft’s growing commitment to the cloud, the availability of Dynamics 365 products in the cloud comes as no surprise. Because of the shared data model, the cloud also gives Microsoft additional control and consistency over Dynamics 365 development.

In general, deploying Microsoft Azure in the cloud lowers costs, improves security, and boosts workplace mobility.

On-premise versions of Dynamics 365 apps are available. These may be the best option for businesses coping with unique regulatory contexts or limited Internet access in their warehouses and workshops.

Dynamics Solutions Names and History

Many of today’s Dynamics 365 apps are based on older Microsoft ERP and CRM products, which have gone through multiple rebranding in recent years.

As a result, your firm may be employing Microsoft products with different names.

Here’s a quick list of the most common older terms:

Dynamics NAV:

The predecessor to Dynamics 365 Business Central. Many companies now on NAV will eventually transition to Business Central.


An even older name for NAV.

Dynamics AX:

A predecessor to Dynamics 365 Finance & Operations. Many companies now on AX will eventually transition to Finance & Operations.


An even older name for AX.

Dynamics 365 Customer Engagement:

An older umbrella term for the Dynamics 365 apps that fill CRM needs. This term is still technically correct for on-premise versions of those apps.

Dynamics CRM:

A previous solution that fulfilled the same needs as some of the current CRM apps. However, this is no longer the name of any one app.

Dynamics 365 Business Edition:

An early Dynamics 365 offer that included both ERP and CRM components, intended for small and medium-sized businesses.

Dynamics 365 Enterprise Edition:

An early Dynamics 365 offer that included both ERP and CRM components, intended for (you guessed it) enterprise.

Dynamics 365 Talent:

Predecessor to Dynamics 365 Human Resources.

Dynamics 365 Retail:

Predecessor to Dynamics 365 Commerce.


Microsoft Dynamics 365 has been added to the Microsoft line-up, bringing with it a slew of new features. However, there are so many new possibilities each year that it’s difficult to keep up.

Please don’t hesitate to contact us if you’re a business leader searching for advice on business applications. We’d be delighted to assist.

Addend Analytics is a Microsoft Gold Partner based in Mumbai, India, and a branch office in the U.S.

Addend has successfully implemented 100+ Microsoft Power BI and Business Central projects for 100+ clients across sectors like Financial Services, Banking, Insurance, Retail, Sales, Manufacturing, Real estate, Logistics, and Healthcare in countries like the US, Europe, Switzerland, and Australia.

Get a free consultation now by emailing us or contacting us.