Modernising finance and unlocking insights with Microsoft Dynamics 365 for Finance in government

February 26, 2025

The demand for trusted and actionable insights to make informed decisions has never been greater within the public sector. CFOs often struggle to transform the finance function into a proactive capability that anticipates challenges, aligns financial strategies with the agency’s agenda, and ensures confident leadership in data compliance.

Many government agencies are burdened by legacy systems and technical debt, obstructing efficient, transparent, and citizen-focused services. These legacy systems are crucial to government operations; however, decades of customisation have made them cumbersome to maintain and integrate with modern technologies. This accumulation of technical debt limits scalability and stifles innovation, making system overhauls feel overwhelming, especially for agencies with tight budgets. 

This is compounded by risks ranging from operational disruptions to cost overruns and staff resistance. Government agencies are risk-averse by nature, so they must approach their modernisation cautiously, ensuring investments deliver tangible results without compromising service delivery.

Microsoft Dynamics 365 for Finance is a secure, scalable platform tailored to meet the complex demands of government operations. It offers a pathway to modernisation by prioritising data accessibility and compliance, enabling predictive insights, real-time decision-making, and intelligent automation driven by AI and machine learning.

Imagery courtesy of Microsoft.

Simplifying the change to Dynamics 365

Resistance to change is a major barrier to automation. Dynamics 365 simplifies this process by embedding tools and frameworks for seamless adoption. Change management begins with people, and the platform’s intuitive interfaces help staff adapt. Dynamics 365 integrates with familiar tools like Excel and Teams for effective stakeholder collaboration from the outset.

A phased implementation approach is critical for success. Instead of introducing all changes simultaneously, government agencies can roll out Dynamics 365 in stages, starting with pilot programs. This lets teams test and refine workflows, gather insights, and make adjustments before a full-scale rollout, reducing disruption while building staff confidence.

Built-in training and support also ease the transition. Dynamics 365 includes walkthroughs, in-app guidance, and a knowledge base for staff to learn at their own pace. Government agencies can also access Microsoft’s support network for additional resources and expertise. 

Why Microsoft Dynamics 365 for Finance is the right choice

The shift in financial capabilities is about moving beyond historical reporting, compliance, and cost control to strategic financial planning, predictive analytics, and digital transformation.

Manual processes and siloed reports often hinder data access, but automation and integration support real-time, unified financial and operational insights for all stakeholders. Microsoft Dynamics 365 for Finance provides a secure, integrated platform for government modernisation, embedding security at every layer with role-based access controls, encryption, and compliance tools.

Its low-code/no-code features empower agencies to customise workflows without heavy reliance on technical resources, accelerating implementation and reducing technical debt. Seamless integration with Microsoft Power BI, the Power Platform, Co-Pilot, Office 365, and Teams ensures a connected ecosystem, breaking down data silos and enhancing collaboration for risk-averse agencies.

Imagery courtesy of Microsoft.

Practical steps for success

Government agencies should follow these best practices to achieve successful Dynamics 365 automation:

1. Define clear goals
Start with a clear understanding of your goals. What are the ways of working you want to see within the finance team based on these new possibilities? Determine the desired outcomes—like reducing manual processing, improving compliance, or enhancing service delivery—make sure they align with your agency’s mission, and then communicate them to stakeholders.

2. Engage stakeholders early and determine the Target Operating Model
Involve key stakeholders from the outset, including finance, IT, and security teams. Early collaboration makes sure the system meets cross-departmental needs and builds consensus for the changes ahead. 

3. Adopt a phased approach
Break the project into manageable phases. To avoid a big bang approach, start with a sequential approach like making an informed choice between core financials, budgeting, or procurement, which is blended with business unit needs and a master data management approach. This reduces risks and builds confidence in the new system.

4. Prioritise data governance
Data hygiene and governance are critical for successful automation. Establish a single source of truth, clean outdated records, and implement access controls to achieve accuracy, security, and compliance.

5. Invest in training and support
Equip staff with the knowledge and tools to succeed. Offer training sessions, create accessible resources, and establish a support network to address concerns and support a smooth transition. With the right tools and skills, finance teams can shift from reactive to proactive behaviours.

6. Monitor and adjust
Use Dynamics 365’s analytics tools to track adoption rates, identify bottlenecks, and gather user feedback. Regularly review performance metrics and refine workflows to help the system continue to deliver value.

Building confidence in transformation with DXC Technology

Change management is crucial for automation project success. The stakes are higher for government agencies as failed implementations can disrupt essential services and erode public trust. DXC Technology is a trusted partner in helping government agencies modernise their operations with Microsoft Dynamics 365. With a deep understanding of the public sector’s unique challenges, DXC provides tailored solutions that prioritise secure, scalable, and efficient transformations.

  • Proven expertise: DXC has a track record of successful implementations in government environments, delivering seamless transitions from legacy systems to modern platforms.
  • End-to-end support: DXC offers a full suite of services from initial planning to post-implementation support. This includes change management, training, and ongoing optimisation to maximise the value of Dynamics 365.
  • Risk mitigation: decades of experience managing complex IT environments guarantees DXC understands how to address the risks inherent in public sector transformations. Its methodologies are designed to reduce operational disruption and achieve compliance with regulatory requirements.
  • Customised solutions: DXC leverages the low-code capabilities of Dynamics 365 to create tailored workflows that meet each government agency’s specific needs, avoiding unnecessary customisation and reducing technical debt.
  • Future-ready insights: DXC’s integrated AI and analytics tools lets agencies harness the full potential of Dynamics 365 for predictive insights and smarter decision-making.
  • Scalable partnership: DXC provides scalable solutions that grow government agencies needs whether they are embarking on their first digital transformation project or refining existing systems.

Partnering with DXC Technology lets government agencies confidently modernise their systems, reduce technical debt, and deliver enhanced services to citizens, all while maintaining the highest standards of security and efficiency.

To find out more about Dynamics 365 for public sector, please read our whitepaper or contact us at microsoft.apac@dxc.com.

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