The Rise of Shadow IT in D365 (and beyond)

“Lately I’ve been dressing for revenge…” - Taylor Swift

Look, I don’t know what kind of spreadsheet did Taylor dirty, but that lyric hits different when your business users start building Power BI dashboards without asking permission.

I call it vigilante behavior. Microsoft calls it Shadow IT. But let’s be real — it’s what happens when good users get tired of waiting for Phase 2.

Every ERP Implementation Has a Vigilante Origin Story

It starts the same way every time. Your D365 project goes live. Celebrations are had. Go-Live t-shirts are printed. Everyone’s smiling… for about 2 weeks.

Then the "what abouts" creep in:

“What about the freight charge calculation we didn’t get to?”
“What about automating approvals for expenses under $500?”
“What about the report I asked for three times and stopped asking about?”

You know how this goes.It’s not long before someone in Accounts Payable, probably wearing a cardigan and holding a vengeance-fueled pumpkin spice latte, starts saying things like:

“So I built something myself.”

And that, friends, is your vigilante.

Shadow IT Is Born When Support Gets... Quiet

Let me say it louder for the PMO in the back: Most vigilante users don’t want to break the rules. They just want to get their job done.

Here’s what shadow IT looks like in the wild:

Someone discovers Excel Add-In and never looks back.
Power Automate becomes a substitute for your forgotten workflow backlog.
A user builds a “temporary” workaround that’s still running 14 months later.
You find three conflicting versions of a report called “Inventory Accuracy_Final_FINAL_v3.”

This isn’t rebellion. It’s resourcefulness with a side of “I guess I’ll do it myself.”

If You’re a CIO or Digital Leader, Pay Attention

I know it’s tempting to shut it all down. Revoke access. Re-lock the sandboxes. Put Power Platform behind six layers of approvals.

But here’s the thing: they’re not mad. They’re motivated.

And motivated users are the exact kind of people who:

Help drive adoption,
Spot real-world friction early,
Build the exact kind of creative workarounds that make great features later.

Shadow IT is a mirror. It shows you where the process is slow, where governance is too tight, and where support is spread too thin.

What You Can Do (Besides Panic)

1. Create a “Fast Track” for Fixes

Not every issue needs a full change request. Have a mechanism for 1-2 hour fixes. A little agility goes a long way in keeping people from going rogue.

2. Empower Your Builders

That user who made a Power BI dashboard in their spare time? Give them a license, a lunch invite, and a little structure. They just saved you 3 sprints.

3. Make Governance Less Scary

Instead of “submit a ticket and wait for a quarterly review,” think, “Here’s a safe zone where you can build, test, and share ideas.” Think citizen developer, not cybercriminal.

4. Listen First, Then Design

If a user went around the system, find out why. What pain drove them there? What did they need that your project didn’t deliver?

When It Goes Too Far (Because Sometimes It Does)

Let’s not pretend all vigilante behavior is helpful.

Sometimes it results in:

14 conflicting versions of the truth
Duplicate automations breaking things silently
Or worse… a user connecting Power BI directly to PROD

Which is why guidance without governance doesn’t work either. You need guardrails, not just good intentions.

Dad Takeaway

When your kid builds a blanket fort that violates every HOA policy in your living room… you don’t yell. You admire the creativity, then show them how to use couch cushions safely next time.

Same thing here.

Vigilante users are a sign your people care. That they’re invested. They just want tools that move at the speed of real life and not the speed of steering committees.

DynamicsDad