Modernising Public Sector IT with Microsoft 365 & Dynamics 365

Public sector organisations face increasing pressure to modernise their IT infrastructure to enhance efficiency, security, and compliance while optimising costs. Recognising these challenges, the Council embarked on a digital transformation initiative to overhaul its legacy systems. By leveraging Microsoft 365 (M365) and Dynamics 365 (D365), the Council aimed to drive operational efficiency, improve collaboration, and enforce standardised IT governance across departments.

The Challenge

The Council’s existing IT environment presented several key challenges in transitioning to a cloud-based solution:

• Outdated IT Infrastructure: Legacy on-premises systems hindered productivity, scalability, and interoperability.

• Security Risks: Ineffective authentication methods and inconsistent security policies left critical data vulnerable.

• Lack of Unified Policies: Siloed departments operated with disparate IT policies, creating inefficiencies and compliance risks.

• Workforce Readiness: Employees required extensive training to adopt modern cloud-based applications and workflows.

• Regulatory and Compliance Constraints: Transitioning to the cloud necessitated adherence to strict public sector regulations and data governance policies.

For over a year, the Council attempted to execute this transition using fragmented freelance and contracting resources. However, this approach failed to deliver the required pace, consistency, and strategic alignment.

Our team was engaged to provide a structured, outcome-driven approach using Microsoft 365 and Dynamics 365 as the foundation of the transformation.

Our Approach

To ensure a seamless transition, we deployed a team of Microsoft-certified Subject Matter Experts (SMEs) who collaborated closely with the Council’s executive leadership, IT department, and service managers. The engagement was executed in the following phases:

1. Strategic Assessment & Roadmap Development

A comprehensive assessment of the Council’s IT landscape was conducted to define a structured migration plan:

• Conducted a gap analysis of existing IT infrastructure versus M365 and D365 capabilities.

• Engaged stakeholders to align business and IT objectives with modernisation goals.

• Developed a risk mitigation strategy to ensure compliance with government data policies.

• Established a three-phase migration roadmap ensuring minimal disruption.

2. Microsoft 365 & Dynamics 365 Architectural Design

To establish a scalable, secure, and compliant cloud environment, we designed an integrated M365 and D365 architecture. Key deliverables included:

• Enterprise-Grade M365 & D365 Architecture: A cloud-native framework optimised for scalability, automation, and interoperability.

• Zero Trust Security Model Implementation: Enforced identity-based security using Microsoft Entra ID, Privileged Identity Management (PIM), and Azure Active Directory Conditional Access.

• Data Governance & Compliance Framework: Implemented Microsoft Purview to enforce data protection policies, regulatory compliance, and automated retention rules.

• Endpoint Security with Microsoft Defender for Endpoint: Ensured comprehensive threat protection for all Council devices.

3. Deployment & Integration of Core Microsoft Applications

To improve collaboration and streamline operations, we deployed and integrated core M365 and D365 applications, including:

• Microsoft Exchange Online: Migrated all email services to a secure, cloud-based Exchange environment with automated compliance and anti-phishing protections.

• Microsoft Teams & SharePoint Online: Established a unified collaboration platform with automated lifecycle management for Teams workspaces and SharePoint Online Sensitivity Labels for document classification.

• Dynamics 365 Modules: 

  • Customer Engagement (CE): Enhanced citizen service management through AI-driven case resolution.

  • Finance & Operations (F&O): Automated financial reporting, budgeting, and procurement workflows.

  • Power Platform Integration: Developed Power Automate workflows and Power BI dashboards for real-time analytics and operational intelligence.

4. Business-as-Usual (BAU) Transition & IT Support Framework

A structured BAU transition plan was established to ensure operational continuity:

• Automated Monitoring with Azure Sentinel: AI-powered security analytics to detect and mitigate threats in real time.

• Self-Healing IT Processes: Implemented Azure Automation and Microsoft Endpoint Manager for proactive issue resolution.

• Tiered IT Support Model: Integrated Microsoft 365 Lighthouse for centralised management of policies, users, and devices across departments.

5. Workforce Training & Change Management

To drive adoption and optimise productivity, we implemented a Council-wide training and change management strategy:

• AI-Driven Learning Paths with Microsoft Viva Learning: Personalised training experiences for employees based on role and engagement levels.

• Live Incident Response Simulations: Hands-on security training using Microsoft Defender Attack Simulation Training.

• Custom PowerApps for Onboarding & IT Support Requests: Streamlined user interactions and service requests using D365-powered automation.

• Adoption Analytics Using Microsoft Viva Insights: Continuous monitoring of user engagement and feature utilisation to drive further improvements.

Results & Impact

The Council’s transition to Microsoft 365 & Dynamics 365 was successfully completed within a four-month period, delivered on time and within budget.

Key outcomes included:

• Enhanced Collaboration & Efficiency: Microsoft 365 and Dynamics 365 integration improved inter-departmental workflows and automated data-sharing across teams.

• Robust Security Posture: Adoption of Zero Trust Security Principles, Microsoft Defender Suite, and Azure Sentinel significantly reduced cyber risk exposure.

• Operational Cost Reduction: The transition from legacy infrastructure to Azure-hosted workloads optimised costs through auto-scaling and pay-as-you-go models.

• Regulatory & Data Protection Compliance: Full enforcement of GDPR, UK Public Sector Cyber Security Principles, and ISO 27001-compliant policies.

• Predictive Analytics for Service Improvements: AI-driven insights from D365 Customer Insights allowed proactive citizen service enhancements.

The Council recognised this initiative as a best-practice example of how leveraging Microsoft 365 & Dynamics 365, combined with expert implementation, can drive digital transformation in the public sector.

Conclusion

This deployment underscores the transformative potential of Microsoft 365 & Dynamics 365 in modernising public sector IT. By implementing a structured and secure cloud migration strategy, organisations can enhance productivity, fortify cybersecurity, and drive better citizen engagement.

For public sector entities considering a similar transition, partnering with IVARTY Consulting maybe the answer. info@ivartyconsulting.com