Microsoft Dynamics 365 Fundamentals Practice Exam

What is the purpose of the Common Data Model (CDM) in Dynamics 365?

1. To facilitate backup and recovery

2. To provide a set of standards and data schemas

3. To manage user access and roles

4. To automate business processes

The correct answer is: To provide a set of standards and data schemas

The Common Data Model (CDM) serves a vital role in Microsoft Dynamics 365 by providing a standardized framework that defines a set of data schemas. This structure ensures that different applications and services within Dynamics 365 can easily share and understand data. By having these common definitions, organizations can improve interoperability and data consistency across various systems, simplifying the integration of applications and enabling easier data analysis and reporting. This standardization aspect is particularly important for businesses that operate with multiple software solutions, as it allows for a unified view of data, enhancing data governance and reducing potential discrepancies that might arise from differing data models. The CDM is crucial for the development and deployment of applications, allowing developers to create applications that easily leverage shared data, thus fostering collaboration across departments and functions.