The broad answer to this question is that Microsoft Dynamics 365 is effectively both.
What might help here is two quick definitions as follows:
- CRM applications – are designed to manage the interactions and relationships your business has with prospects and customers. And are focused on generating leads, increasing sales, improving customer service and business growth
- ERP applications – managed and streamline your business processes from end-to-end. So they are designed to cover all aspects of your business from warehouse management and manufacturing operations to project management and finance – and supply chain.
Microsoft Dynamics is a comprehensive platform that offers both CRM and ERP functionality in one business application. Dynamics is also modular that enables you to build out both CRM and ERP functionality as you go with key modules across the full spectrum of business functions.
And because Dynamics has both types of capability it offers significant business benefits in terms of improved data accuracy, comprehensive and efficient business processes, enhanced customer service and improved profitability – due to the singular business insight it provides.