Does Microsoft's Latest Human Capital Management Positioning for Dynamics ERP Indicate a Real Change in Strategy?

Managing human resources used to be a pretty simple process:  companies either used an automated or manual system to provision employees as they came onboard, track them, and ensure that they received their paychecks and benefits. Today, that process has evolved to the point where it has its own title and acronym. Using human capital management (HCM), today's firms view employees as capital assets and treat them as such, often using technology to handle some or all of the management itself.


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About Bridget McCrea

Bridget McCrea covers business and technology topics for various publications. She can be reached at

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Catch up

Microsoft is certainly playing catch up however I am skeptical they are truly investing in this area. They have ignored this market for many years and excellent products like Workday have come along. Workday's ecosystem of partners including Cornerstone emphasize how far behind Microsoft is.

One word of advice to the AX product team. HCM users are not traditional ERP users. If you try to give HR departments and ERP system they will rebel. Think of the 'User First'.

Why Dynamics AX HCM will Prevail

I have tremendous respect for Naomi Bloom—she’s one of the gurus in the HCM technology space and has been an important force in its growth. She observes that Microsoft doesn’t have any “visible inroads” into HCM, but from where I sit, Microsoft is making definite progress into HCM. The reason why Microsoft will succeed with HCM has to do with its philosophy of Dynamics AX as a “platform.” The ISV model motivates experts in HCM to enrich the suite, which in turn will drive broader adoption, and will in turn push even more depth into HCM. As a practitioner in Microsoft Dynamics AX HCM, I’ve watched it—and in fact have helped it—grow. Let’s get a dialogue going about HCM at If a company has Dynamics AX, there is no reason to turn to another platform for HCM. It can do what you need.