Verify that a supported version of Windows PowerShell is installed. For more information about the versions of PowerShell ...

Verify that a supported version of Windows PowerShell is installed.  For more information about the versions of PowerShell supported with Microsoft Dynamics 365 for Operations, go to http://go.microsoft.com/fwlink/?LinkID=165377. 

If PowerShell is already installed, start PowerShell by clicking Start > All Programs > Accessories > Windows PowerShell and type Get-Host to verify the version. 

If you are using Windows Server 2008 or Windows Vista, you can install the supported version of Windows PowerShell 2.0 from http://go.microsoft.com/fwlink/?LinkID=198565. If you are using Windows Server 2008 R2  you can enable PowerShell from
Server Manager.  Click Features > Add Features and select the "Windows PowerShell Integrated Scripting Environment (ISE)" feature.  If you are using Windows 7, Windows PowerShell is included by default.