digital government readiness report -...

DIGITAL GOVERNMENT READINESS REPORT

JUNE 2017

INTRODUCTION

Drawn by the promise of reduced costs and improved services to citizens, governments across Australia are making rapid progress in their digital transformation. Around Australia, governments are noting examples of services that have been designed around the needs of the citizen, rather than their organisation’s internal functions.For citizens, this means revolutionary new government services that are available “anytime, anywhere” such as digital licences and embedded ‘tell-us-once’ functionality for online transactions with government. Before governments can fully commit themselves to delivering these citizen-driven services, however, there are a number of key enablers that must be put in place by governments to ready themselves for digital transformation.Intermedium has identified six of these enablers, and scored each jurisdiction according to the degree to which they have made progress towards putting them in place.

Weighted scores in eleven key criteria across six categories have been allocated to each jurisdiction. The six categories are:• ICT strategy;• ICT policy;• ICT governance;• the existence of a nominated whole of government (WofG)

service delivery agency;• procurement policy; and• cross-jurisdictional cooperation.The result of Intermedium’s evaluation is published as Intermedium’s Digital Government Readiness Indicator. This Indicator has now been produced four times – in July 2015, March 2016, July 2016, and June 2017. This report explains Intermedium’s methodology in compiling the Indicator, and explores the reasons for each jurisdiction’s scores in detail.

DIGITAL GOVERNMENT READINESS INDICATOR, JUNE 2017

0 1 2 3 4 5 6 7 8 9 10

7.89.2

7.77.8

7.54.8

6.34.5

5.9

ICT Strategy ICT Policy ICT Governance

Service Delivery Key Agencies Procurement Policy Cross-Jurisdictional Cooperation

FederalNSW

VICQLDWASA

TASACT

NT

Figure 1: Digital Government Readiness Indicator, June 2017

Digital Government Ready

2 | D I G I TA L G O V E R N M E NT R E A D I N E S S R E P O RT | © 2017 www.intermedium.com.au +612 9955 9896

OVERVIEW

Unlike the circumstances that drove the July 2016 Digital Government Readiness Indicator, which showed almost across-the-board advances in digital transformation due to a wave of ICT strategy updates in May 2016, progress has been subdued in the year to June 2017. Instead of the dramatic growth seen in the previous iteration, 2016-17 saw incremental refinements in policy development and on-the-ground implementation of existing policy in most jurisdictions – particularly in the areas of cybersecurity and data analytics. There has also been significant lateral activity with no impact on jurisdictions’ scores, such as personnel changes and MoG reorganisations that do not obviously affect the jurisdiction’s digital readiness for better or for worse.The biggest shake-up in 2016-17 was the October revamping of the Digital Transformation Office to the new Digital Transformation Agency, with a broader remit to centralise ICT coordination and embark on an extensive change management program.The most significant progress was made by the ACT, which increased its score following the release of its long-overdue WofG ICT strategy in September 2016. The Northern Territory and Tasmania are in position to potentially make similar gains once their respective perpetually in-development strategies are published – these having most recently been delayed by a change of government and the recruitment process for a WofG CIO, respectively.NSW remains the clear leader of the field thanks to its consistent focus on best-in-class ICT strategy, its now-mature work in the areas of citizen-centric service delivery and procurement reform, and its strides forward in integrating data analytics and evidence-driven government through the Data Analytics Centre. The May 2017 digital.nsw strategy further developed the state’s exemplary approach to information management ecosystems, and introduced focus areas of innovative technology such as machine learning. NSW’s score has slipped slightly in this Indicator, however, due to a slight lapse in its previously-exemplary reporting practices and concerns raised regarding the weakened role of the Office of the NSW Privacy Commissioner. New South Wales is the only jurisdiction regarded by Intermedium as being “Digital Government Ready”. While some variance can be expected in its score across each Indicator due to incidental factors, the state has put in place the fundamental drivers of digital transformation and is prepared on a structural, institutional and cultural level to deliver its services with a citizen-centric mindset.

© 2017 www.intermedium.com.au +612 9955 9896 | D I G I TA L G O V E R N M E NT R E A D I N E S S R E P O RT | 3

Queensland has historically been a high scorer and still retains a high degree of digital readiness. Progress in 2016-17 has been iterative, however, with the most visible advances being in cybersecurity – which have enabled it to narrowly maintain an equal second-place position.The Federal Government has made significant changes to its approach to digital transformation, internal ICT governance and ICT procurement mechanisms – including a central oversight role – through the re-named and re-scoped Digital Transformation Agency. This clear evidence of strategic direction has also raised its score in the area of ICT strategy. As a result, it is now in equal second place ahead of Victoria and South Australia.At the time of the previous report’s publication, Victoria appeared poised to make significant strides in the areas of service delivery and internal digital transformation. While there have been some advances in these areas (Service Victoria received substantial funding in the 2016-17 Budget, and the Enterprise Solutions branch of the Department of Premier and Cabinet is slowly becoming more prominent as a generator of government policy), the state’s acceleration has been somewhat slower than anticipated and visible activity has been relatively subdued.South Australia is likely to make significant advances in near future following the recent reorganisation and senior personnel changes at the newly re-christened Office for Customer, ICT and Digital Transformation (previously the Office for Digital Government) within the Department of Premier and Cabinet. Actual progress in 2016-17 was lethargic, however, allowing Victoria and the Commonwealth to overtake SA.The ACT has increased its score by over 20 per cent in the last twelve months – the largest improvement in this iteration of the indicator – allowing it to pull ahead of Western Australia by a modest margin. This improvement is primarily due to the publication of its WofG ICT strategy, though there have also been indications of progress towards strengthening the territory’s historically lacklustre internal ICT governance arrangements.

After a flurry of activity that made Western Australia the fastest-growing jurisdiction in terms of digital readiness improvements at the time of the previous report, there has been a deceleration as available low-hanging-fruit reforms are exhausted. Further developments have most likely been hindered by the state’s revenue constraints, state election, and change of government in March 2017.Tasmania’s score remains unchanged since the previous Indicator, as no visible progress has been achieved in the areas of (particularly) ICT Strategy and Policy. As with South Australia, however, it is possible that the island state will make noticeable advances in the upcoming quarter once key ICT staff are in place (including a Government Chief Information Officer and a WofG Chief Information Security Officer, both currently under recruitment) and the long-delayed WofG ICT Strategy is completed and published.The Northern Territory has made only minimal improvements to its score for the second consecutive edition of this report. While there had been some reported progress towards the publication of a WofG strategy, this was presumably put on hold pending the recent territory election (in August 2016) and subsequent change of government. The incoming Labor government has promised to address the territory’s shortcomings in this area, and has already announced an Office for Digital Government to be created within the Department of Corporate and Information Services in their 2017-18 budget.Going forwards, key areas of concern nationwide are the increasingly informal nature of internal ICT governance bodies, a lack of cross-jurisdictional cooperation on ICT matters (with the possible exception of cybersecurity), and a lack of willingness outside of Victoria (and to a lesser extent NSW and the Federal Government) by jurisdictions to promote accountability by publishing warts-and-all updates on the status of public ICT projects and progress towards ICT strategy goals.

LEADERBOARDS:

Rank July 2015 July 2016 June 2017

1 NSW 8.9 NSW 9.4 NSW 9.2

2 QLD 6.8 QLD 7.4 QLD 7.8

3 VIC 6.4 SA 7.4 Federal 7.8

4 SA 6.3 VIC 7.3 VIC 7.7

5 Federal 6.2 Federal 6.9 SA 7.5

6 TAS 4.5 WA 6.1 ACT 6.3

7 NT 4.5 ACT 5.1 WA 5.9

8 ACT 3.8 TAS 4.8 TAS 4.8

9 WA 3.5 NT 4.1 NT 4.5


CATEGORY 1: ICT STRATEGY

use of government information), and delivery capability. Additionally, NSW released a WofG NSW Innovation Strategy in November 2016, which focused on making it easier to pitch innovative ideas to government.Victoria released a new WofG 2016-2020 IT Strategy in May 2016. In part to reverse the state’s well-documented history of failed ICT programs, the Victorian strategy focuses on improving project management and governance, increasing staff ICT skills, and re-using systems across agencies. Victoria also reintroduced a beta release of its public-facing ICT project dashboard in July 2016, allowing citizens to track projects valued at over $1 million on a quarterly basis. This dashboard is currently the most comprehensive of any Australian jurisdiction with regards to cost accountability, including comparisons of original and final cost estimates for projects in the “implementation” or later stages. A “Report Card” update to the ICT strategy, showing that all but three actions scheduled for the year to date have been successfully completed, was also released in March 2017. Queensland released the current update to its ICT Strategy 2013-17 in the form of a May 2016 refresh of its ICT Modernisation Plan. The updated policy calls for a more systematic approach to transitioning to as-a-Service and cloud solutions, as well as procurement reform and ICT skills growth within the Queensland Public Service. Progress reports towards the strategy’s stated goals are provided to the Queensland Cabinet, but not made publicly available. However, all major ICT initiatives are now reported on Queensland’s ICT Dashboard.South Australia released a refresh of its 2013 ICT strategy SA Connected in April 2016, with a focus on digital disruption and growing the public sector ICT skill base. SA also plans to adopt a more collaborative approach to ICT by strengthening bonds with other governments and local councils, as well as not-for-profit organisations, community groups, and tertiary institutions. SA Connected is supported by a Digital Transformation Strategy, which was released in December 2015. While the SA Premier confirmed in August 2016 that a NSW-style innovation strategy continues to be in development, it had not been published at the time of this report’s finalisation.The inaugural Western Australian ICT strategy was launched in May 2016, outlining a series of specific initiatives including a new digital services portal, a solutions marketplace to support innovative ICT sourcing models, an ICT dashboard (currently scheduled to be rolled out in 2018), and enhanced ICT governance structures. ICT Council minutes from March 2017 confirm that a refresh is currently being worked on. WA also released an innovation strategy in November 2016, though it focused primarily on encouraging innovation in the private sector and on optimal distribution of pro-innovation government funding rather than on internal ICT practice or procurement.Tasmania’s ICT strategy was released in 2011 and is long overdue for renewal. A replacement strategy is understood to be in the draft phase, but is presumably awaiting review by the new WofG CIO (once the hiring process is complete) before publication.The Australian Capital Territory released its ACT Government Digital Strategy 2016-20 in September 2016, committing the

Jurisdictions are measured on the: 1. Quality and relevance of their ICT strategy, or the existence of

publicly expressed clear strategic intent with regards to ICT;2. update frequency of their ICT strategy (if applicable); and 3. extent to which progress is reported against the jurisdiction’s

goals – enunciated in the ICT strategy or elsewhere. Most jurisdictions have some form of published ICT strategy, though the quality and relevance of each strategy varies. Of the jurisdictions with formal strategies, some only articulate general principles, and lack clear, definable goals relating to digital transformation. Furthermore, few jurisdictions have fully committed to public transparency by regularly reporting their progress towards the digital transformation goals outlined in their ICT strategies or other documents.Points have been awarded in some instances to jurisdictions where clear, top-down guidance on ICT strategic issues has been provided at the ministerial or agency level in the absence of a formal strategy.After a flurry of new WofG ICT strategy releases in the second quarter of 2016, the subsequent year has been relatively quiet. Only the ACT and NSW issued entirely new strategies while other jurisdictions published minor updates or ancillary strategies.The Federal Government released a Digital Transformation Roadmap in December 2016. The one-page roadmap provides a concrete timeline for progress in certain areas of digital transformation – including significant development work on the long-delayed full WofG ICT strategy in the third quarter of 2017 – but is sparse by the standards of other jurisdictions’ strategies. The roadmap’s vision for WofG digital transformation emphasises the end-user, be they individuals, businesses, service providers, or agencies. Governmental transformation will feature a new modular information architecture, favouring secure public cloud.Despite the delay in the publication of a full strategy, the reformed Digital Transformation Agency will provide a measure of effective strategic guidance through its newly-empowered project review function. The Federal Government’s digital readiness score would benefit from the release of an explicit WofG ICT strategy: with the 2012 APS ICT Strategy now effectively having lapsed, the government has been relying on its party political 2013 pre-election e-Government policy (and a short 2016 Policy for Better and More Accessible Digital Services update) as de facto standards in the interim.The New South Wales government has invested significant resources into its digital agenda, and has scored highly across all categories, and particularly highly in ICT strategy. The new digital.nsw strategy was released in May 2017, and replaces the consistently-updated ICT Strategy 2012-2015. Key elements of the new strategy include a comprehensive data ecosystem that seamlessly links information across agencies and different levels of government, predictive tools, and other areas of artificial intelligence and machine learning, keeping the state in the national lead in the area of focus on innovative technologies. Progress is expected to be made in the areas of technology adoption, cybersecurity, legislative reform (to enable broader


territory to moving towards a consumption-based service model with a focus on cloud adoption to improve security and move away from large-scale bespoke projects. The strategy also promises the development of a “library of common capabilities” that will be made available to all directorates.The Northern Territory is now the only Australian jurisdiction to have never released a WofG ICT strategy. The Department of Corporate and Information Services (DCIS) has stated on more than one occasion that a strategy is in development, but it appears to have been placed on hold due to the disruption caused by the territory election and change of government. As the incoming Labor government has previously committed itself to issuing a strategy – and the 2017-18 Budget includes a renewed focus on digital transformation in the form of a soon-to-be-established Office for Digital Government within DCIS – it is likely that the completion and publication of the strategy will be made a priority. The DCIS Annual Report 2015-16 makes it clear that a degree of strategic direction is being provided by the department, but relevant documents are not available for inspection by the public. These include an internal ICT Governance Framework, ICT Project Management Toolkit, and ICT Industry Engagement Plan.

CATEGORY 2: ICT POLICY

Jurisdictions are measured on the existence and robustness of their: • Open data policy;• digital privacy policy; • data retention policy; • data security policy; and• cybersecurity policy. Intermedium also considered timeliness, relevance, and whether the policies are compulsory and enforced.Open data has been a stated priority for Australian governments, and most jurisdictions received a high score for this digital transformation enabler. However, some jurisdictions have yet to put their open data policies into practice. Jurisdictions that are consistently publishing datasets on dedicated dashboards or web portals, for example, scored higher than those which are not. Jurisdictions lost points for weak digital privacy protections, and for data retention policies that are either non-existent, or remain seemingly unchanged since the pre-digital era.The Federal Government released a brief update to its 2016 Australia’s Cyber Security Strategy in April 2017. While primarily consisting of a progress report on the initiatives listed in the original strategy, it also introduced new areas of focus – primarily developing a more comprehensive view of the government’s cybersecurity ecosystem and governance arrangements, and securing the Internet of Things.Federal initiatives that cover privacy, information security, big data, a cloud-first agenda, and guidance (including the Digital Service Standard) are used as reference points by other jurisdictions. The government’s open data portal, data.gov.au, is currently being upgraded by CSIRO analytics unit Data61 to improve its collaborative spaces and spatial publishing capabilities.Following failed attempts to abolish it legislatively in 2015, the Office of the Australian Information Commissioner has been re-funded in later budgets and has resumed its privacy protection role. In May 2017, Secretary of the Department of Prime Minister and Cabinet Martin Parkinson announced an overhaul of the Australian Public Service’s privacy code – following a number of inadvertent breaches – at the request of Information Commissioner Timothy Pilgrim. The revised code will come into operation in 2018.New South Wales’s refreshed 2016 Open Data Policy kept it among the higher scorers in this category. It was launched in conjunction with a new Open Data Action Plan, which is intended to aggressively drive the release of more data in formats useful to both government and industry. NSW Information Commissioner and CEO of the Information and Privacy Commission Elizabeth Tydd was concurrently given the title of Open Data Advocate. NSW’s 2013 Data and Information Custodian Policy and Digital Information Security Policy are both of a high standard.


Although the 2014 Privacy Governance Framework is up-to-date and well considered, it lacks a mandatory element. Additionally, Acting NSW Privacy Commissioner Elizabeth Coombs has complained of consistent funding shortfalls for her office as well as being given insufficient access to pertinent data in the office’s 2015-16 Annual Report – in a manner that suggests that the Information and Privacy Commission has shifted the balance excessively in favour of the NSW Government’s enthusiastic adoption of open data principles, to the detriment of privacy protections within the state. While NSW has the highest digital readiness score of any Australian jurisdiction in this Indicator, stronger, compulsory internal privacy protections are the area in which it still has the greatest headroom for improvement.Victoria scored the highest of any jurisdiction for ICT Policy, due in part to its rigorous and comprehensive privacy protections. Individual agencies are required to provide their own privacy policies as per the Privacy and Data Protection Act 2014’s ten Information Privacy Principles. However, the state has recently passed controversial legislative changes to the Office of the Commissioner for Privacy and Data Protection that will create an Office of the Information Commissioner, combining privacy and Freedom of Information functions similarly to the NSW model. While this integration could hypothetically lead to a more coordinated approach to data protection, public-interest data release, and privacy protection, its likely real-world impact is uncertain. The move has been criticised extensively by current Commissioner for Privacy and Data Protection David Watts (who has previously indicated that he intends to resign from the role if the reorganisation takes place) on the grounds that it would weaken the independence of his office and Victorian privacy protections more generally.The Victorian Protective Data Security Standards and an Assurance Framework were released in December 2016. These include the strong requirement that ICT safeguards be in line with Australian Signals Directorate standards. A Victorian Public Service ICT Network and Cyber Security Statement of Direction was released in August 2016, with a focus on increasing and securing departmental interconnectivity, and the 2017 ICT strategy update noted that a full cybersecurity strategy is currently in the final approval stage and is expected to begin operation in July 2017.Queensland received moderately high scores for all ICT Policy criteria. The Office of the Information Commissioner has a Privacy Plan (July 2015) outlining its roles and responsibilities. QLD has yet to commit to a WofG open data policy, but the state’s ICT Modernisation Plan calls for measures that will facilitate data sharing across agencies. A $12.5 million Cyber-Security Unit operating through the Office of the GCIO was announced in February 2016, and Bob Gurnett was appointed as the Queensland Government Chief Information Security Officer in early 2017. A Cybersecurity Program Director is currently being recruited.

Released in September 2013, South Australia’s Open Data Declaration is robust and subsequently scored well. The state’s government data website – data.sa.gov.au – also contributed to the high score, as it indicates that the state is taking the policy’s implementation seriously. In terms of digital privacy, SA agencies are bound by the Information Privacy Principles, which are robust but not ICT- focused. A review of the cybersecurity guidelines published by the state’s Office for Digital Government was due for release in August 2016, but appears to have been delayed. David Goodman was appointed as the state’s WofG Chief Information Security Officer in early 2017.Western Australia launched its cybersecurity policy in May 2016, which includes mandatory risk registers and other controls at the agency level but is otherwise limited. Its WofG Open Data Policy was published July 2015 and generated a high score for this criterion – datasets are now published on data.wa.gov.au, showing that the policy is translating into concrete progress. WA does not have an explicit digital privacy policy (though this is understood to be in development within the Office of the Government CIO), and its data retention policy is weak.Tasmania is similarly weak in the areas of privacy, data retention and security, due to a lack of strong WofG policies in these areas – though a more ICT-centric series of data retention guidelines is understood to currently be in development by the Tasmanian Archive and Heritage Office’s Government Information Strategy Unit in collaboration with the Office of eGovernment. The state’s Open Data policy, published in February 2016, is of high quality. Additionally, Tasmania’s Stats Matter Strategy, released in 2015, provides long-term WofG guidance for building statistical assets and capability. Tasmania is currently recruiting a WofG Chief Information Security Officer, which may lead to progress in cybersecurity policy.The Australian Capital Territory released an Open Data policy in December 2015, expanding on the Open Data Initiative that has been in place in the jurisdiction since 2011. The territory’s digital privacy policy is strong and up-to-date. Privacy is governed by the Information Privacy Act 2014, which sets out mandatory Territory Privacy Principles for government agencies. However, the jurisdiction scores poorly in the areas of data retention and security policy, which are generally handled at the agency level (the latter under the guidance of the Protective Security Policy Framework, last updated in 2014 and overdue for a refresh).The Northern Territory’s privacy policy is bound by ten Information Privacy Principles. Data retention standards issued by the Territory Archives Service are generally not digital-centric, thus reducing the NT’s score. The NT does not yet have a central open data policy – some government datasets have been released online, but there is no overarching requirement that agencies do so. DCIS established a cybersecurity committee in June 2016, which is currently working on public sector cybersecurity education materials. Presumably the new Office for Digital Government will be responsible for issuing further cybersecurity policy once it is fully established.


CATEGORY 3: ICT GOVERNANCE

In Queensland, the Business Productivity and Services Division and the Office of the Government CIO (both within the Department of Science, Information Technology and Innovation) have responsibility for WofG initiatives. Directors-General meet once a month as a chief executive-level ICT committee, and CIOs also convene monthly. Leeanne Enoch, Minister for Science and Innovation, is the minister responsible for digital transformation. Appointed in 2014, Andrew Mills is the QLD Government’s CIO.South Australia had previously abolished its CIO position in 2015 in favour of a WofG position – Director, Digital Government – shifting the emphasis of ICT leadership to citizen-facing digital service delivery. Inaugural Director Rick Seaman retired in February 2017 after briefly serving in a policy role as Chief ICT and Digital Strategist. His replacement, Sinéad O’Brien, is now the Executive Director of the newly-rebranded Office for Customer, ICT and Digital Transformation, with an explicit mandate to focus on digital transformation issues from a citizen-centric perspective. However, according to a May 2017 job listing, the state now intends to restore a WofG CIO position and is currently undergoing the recruitment process.SA’s only other ICT governance body is its Digital Leaders Committee, which meets monthly. The South Australian ICT strategy notes that the lack of diffuse governance bodies is an intentional approach to ensure that clear lines of decision-making accountability are maintained. Premier Jay Weatherill is responsible for digital transformation at the ministerial level.Western Australia’s ICT governance structure was refreshed following the creation of the Office of the Government Chief Information Officer (OGCIO) in 2015. Giles Nunis has been WA’s Government CIO since shortly after the office’s inception. The CIO Advisory Group functions as a CIO-level committee, sometimes meeting in conjunction with the Business Impact Group as the “ICT Advisory Committee”. The Directors’ General ICT Council (previously known as the “Steering Committee”) functions as a Secretary-level ICT committee. Recently-elected Minister for Innovation and ICT David Kelly is responsible for WofG ICT (and is the first WA minister to have ICT responsibility explicitly included as part of his title).Tasmania has a well-established ICT governance structure. Tasmania’s Office of eGovernment within the Department of Premier and Cabinet has replaced the Inter Agency Policy and Projects Unit, and is responsible for the development of ICT strategies, policies, and large ICT-related projects. The ICT Policy Board meets three times a year to advise the premier on strategic directions for ICT within government, and consists of agency Secretaries, supported by the Office of eGovernment. The Agency ICT Reference group, consisting of CIOs, meets every six weeks. Premier Will Hodgman and Minister for Information Technology and Innovation Michael Ferguson are the ministers responsible for digital transformation.

High ICT governance scores were assigned to jurisdictions that have strong central guidance and robust consultation with stakeholders that enable them to prioritise WofG digital transformation. Internal government coordination, including cross-agency ICT governance structures such as policy boards and Chief Information Officer councils, also contributed to higher scores in the governance category.Most jurisdictions scored well on these criteria. Some jurisdictions, such as NSW, have incorporated high-level industry engagement into their ICT governance model, and have been rewarded by Intermedium’s scorers as a result.There were minimal changes to ICT governance structures between July 2016 and June 2017. This suggests that there is room for future reform in this area, particularly in the case of jurisdictions that have recently released transformative strategy documents as these strategies begin to have real impact on governments’ business-as-usual practices.Federally, following the abolition of the Secretaries’ ICT Governance Board and Chief Information Officer Committee, ICT issues are now considered either by the full Secretaries’ Board or the cabinet Digital Transformation Committee chaired by the Prime Minister. The DTA convenes a “D8” committee that consists of deputy secretaries or CIOs from the eight largest service delivery-centric agencies, which is used as a de facto cross-government ICT policy and strategy discussion forum.Angus Taylor is Assistant Minister for Cities and Digital Transformation, and newly-appointed CEO of the reformed DTA Gavin Slater has formal responsibility for digital transformation. DTA COO Peter Alexander is now effectively the head of WofG ICT Governance, and the new Digital Investment Management Office also has pertinent oversight. A federal Cyber Security Advisory Office was announced in the 2017-18 budget.New South Wales has a comprehensive structure of executive-level governance committees, including an ICT Board, Digital Council, Digital Government Advisory Panel (featuring industry advisors), and an ICT and Digital Leadership Group consisting of CIOs. Chief Information and Digital Officer Damon Rees has had the WofG responsibility for digital transformation since his appointment in May 2016, and Minister for Finance, Services and Property Victor Dominello is the responsible minister.In 2014, post-election changes within the Victorian Government led to the WofG digital governance role being allocated to the Enterprise Solutions Branch within the Department of Premier and Cabinet. The Victorian Secretaries’ Board serves as a secretary-level ICT committee, and the state also has a CIO leadership group that meets fortnightly (which is more often than equivalent committees in many other jurisdictions). Victoria does not have a leadership group exclusively dedicated to ICT governance, but the CIO group effectively takes on this role. The Premier, Daniel Andrews, is the minister responsible for digital transformation, supported by Special Minister of State Gavin Jennings.


The Australian Capital Territory is one of only two jurisdictions to have a dedicated Chief Digital Officer, appointing Jon Cumming to the role in 2015. The ACT has not historically had ICT-specific governance committees at the senior levels, contributing to its low score in this category, but its September 2016 ICT strategy called for the creation of a Digital Service Governance Committee, chaired by the CDO and reporting to the Strategic Board. It is not clear from publicly available sources whether this committee has begun operating to date. Chief Minister Andrew Barr is responsible for digital transformation.The Northern Territory has a straightforward ICT governance structure that includes an ICT Leadership group, ICT Governance Board, and CIO Forum. The Department of Corporate and Information Services (DCIS) has historically held WofG responsibility for digital transformation, and the 2017-18 NT Budget announced that a dedicated Office for Digital Government would be created within DCIS to focus on this area. Minister for Corporate and Information Services Lauren Moss has the ministerial responsibility.


CATEGORY 4: SERVICE DELIVERY KEY AGENCIES

The past few years have seen the rise of agencies responsible for citizen-facing service delivery across the majority of Australian jurisdictions. Scores in this category reflect the degree of service delivery provided by these agencies, as well as the centrality of their role in government as reflected in budget funding and policy generation.All jurisdictions other than NT have already established a service delivery agency or have plans to introduce one. NSW is the clear frontrunner in this area, and is setting the benchmark for other jurisdictions.At the Federal level, the recently refurbished myGov portal acts as a central redirection point to online services provided by the Departments of Human Services, Health, Veterans’ Affairs, and the ATO – among others. It also acts as a point of contact for tell-us-once updating of personal information, which is then forwarded to the majority of major service delivery agencies. Part of the DTA’s remit is responsibility for unified provision of citizen-centric digital services. Its most prominent task in this area is currently the development and rollout of Govpass, the government’s digital identity platform, which is now in the closed beta stage and expected to be made available to the public in early 2018. An open beta of the DTA’s Performance Dashboard was released in February 2017. However, the ambitious project to make the GOV.AU website a central Federal Government web portal has now been mostly discontinued in favour of a “more distributed” model. The 2017-18 budget included funding to expand WofG government “platform” capabilities supporting tell-us-once reform and a federated data exchange.The New South Wales customer service agency, Service NSW, has a strong commitment to end-user experience. The state’s Digital Licence Platform was expanded to make Recreational Fishing Fee, Responsible Service of Alcohol and Responsible Conduct of Gambling licences available digitally in November 2016, and work to migrate more licences to the platform is currently underway. A key area of focus for Service NSW in 2017-18 will be “person-centric” or personalised services that tailor information based on the individual’s needs. An example is the already-launched responsive system for starting a café, restaurant or small business, which presents users with relevant advice and links based on interactive questioning, and guides them through each step in the process based on the rules and regulations that pertain to their specified location.Victoria’s Service Victoria, closely modelled on Service NSW, received $81.1 million in the 2016-17 state budget for the

next phase of its implementation. However, it did not receive equivalent new funding in the 2017-18 budget, and a significant amount of funding allocated previously to the Department of Premier and Cabinet was carried forwards – Special Minister of State Gavin Jennings noted in May 2017 that procurement of systems integration was “a little bit slower than we anticipated”. Rollout of the development, testing and delivery stages is now expected to accelerate following the signing of a systems integration contract in April 2017.Service Victoria’s customer website is currently being tested, with online transactions expected to be made available to the public in 2017-18.Smart Service Queensland (SSQ) is the “front door to the Queensland Government”, and is a one-stop-shop for all QLD government services. SSQ activity increased by 58 per cent in 2016, to 55 million annual transactions.The South Australian Government has proactively pursued a “digital by default” agenda; and Service SA, launched in 2013, is the earliest example nationally of a modern WofG digital service agency. Minimal progress has been made in this area in the last twelve months, however, with the launch of Service SA’s digital storefront (with a very limited range of products) being the standout.Western Australia’s ICT strategy included the announcement of a Digital Services Portal, a single point of entry to government services. An alpha version of the site was launched to the public in December 2016, with the beta version (focusing on single login functionality) due in 2017-18, pending feedback.The Tasmanian Government’s Service Tasmania portal was established in 1998, making it the oldest centralised citizen-facing service delivery system in the country. In its modern form (dating to 2013-14) the portal provides streamlined online access to payments, registrations, licensing, emergency information, and a range of other government services.Established in December 2014, the Australian Capital Territory’s service delivery agency Access Canberra aims to provide better services to citizens. Access Canberra provides a one-stop-shop for government services through an online portal, contact centre and shop-fronts. The ACT Government is in the process of developing iConnect, an online service delivery portal that will include features such as digital mailboxes, end-to-end transactions and bill payments, service reminders, and automatic payments.The Northern Territory Government has not communicated any formal plans to create a WofG citizen-facing service delivery agency.


CATEGORY 5: PROCUREMENT POLICY

Victoria launched its online directory for ICT services suppliers, the eServices Register, as part of extensive procurement reform in 2013. Use of the directory is mandatory for inner budget departments and agencies subject to the Victorian Government Purchasing Board. Additionally, Victoria’s 2016-20 ICT Strategy introduced a “share first” approach to procurement to reduce the number of bespoke ICT projects, and the May 2017 update noted that the state intends to implement new procurement advisory panels.Queensland identifies ICT procurement as a focus area to further its digital agenda. The Queensland Government has put in place a State Procurement Policy, a Government IT Contracting Framework, an Innovation Portal, and an ICT SME Participation Scheme, and scored highly as a result. As a further part of its effort to make it easier for suppliers to do business with government – particularly SMEs – Queensland rolled out reforms in May 2016 that simplify QAssure and Queensland Government Information Technology Contracting accreditation.South Australia entered an $280 million deal with DXC Technology (formerly CSC) to supply and maintain end-user hardware for South Australian Government departments and agencies in February 2017. The arrangement was the largest transaction made to date under the “Innovate ICT” open EOI first launched in 2015, which was the first major national open call to the ICT industry to pitch productivity enhancing solutions directly to government. Other jurisdictions have followed SA’s example – most recently through the Federal GovPitch procurement channel, announced in May 2017, that will allow start-up tech companies to exhibit solutions to CIOs and other senior officials. The SA government has since separated ongoing procurements into distinct WofG buying schemes, with desktop-as-a-service among the first open to submissions.SA’s eProjects Panel also contributed to the state’s high score in this category. The panel allows agencies to easily procure project-oriented ICT services and cybersecurity services up to a value of $700,000 from pre-qualified suppliers. ICT projects with a value between $700,000 and $4.4 million can also be procured through the eProjects Plus portal.Western Australia, through its GovNext-ICT Program, has “formalised” its change of direction towards an as-a-Service and consumption-based model by contracting Atos, Datacom and NEC Australia to supply ICT Infrastructure-as-a-Service to WA Government agencies as of January 2017. The state has now also instituted a Government Service Broker to facilitate agency transitions to the new procurement philosophy.Tasmania’s Networking Tasmania III project – which would establish the third generation of data network and related ICT service contracts to replace the expiring NT II contracts – was expected to be near completion at this time. However, there has been limited public evidence of progress on this front, and it is possible that a major component of the project – the on-island cloud – has created difficulties in locating a suitable supplier.

This category measures the extent to which the jurisdiction has put in place policies that support ready access to innovative, contemporary solutions for service delivery.Procurement reform has been recognised as one of the key drivers of digital transformation. Providing opportunities for small to medium enterprises (SMEs), simplifying procurement, and using WofG prequalification schemes are all ways governments can increase competition and improve their ability to procure innovative ICT goods and services that will boost progress towards digital transformation.At the Federal level, the DTA has taken on responsibility for both WofG ICT policy and procurement, with considerable authority in ICT project review: as a remedial move following a trend of major project cost blowout and feature inflexibility, the DTA will now review all ICT projects with a value above $10 million. The Digital Investment Management Office (DIMO) within the DTA, created in January 2017, will be responsible for the review and continuing oversight of all significant ICT and digital investments. A number of staff from the Department of Finance’s former Investment, Capability and Assurance Branch have moved to the new agency. The DIMO received additional funding in the 2017-18 budget through the government’s Modernisation Fund, and its procurement taskforce is expected to hand down a review shortly containing identified areas for potential reform.Project data is expected to be released by the DTA through an ICT Investment Dashboard, replacing Finance’s in-development ICT Projects Dashboard.Another recent change in Federal procurement has been a move away from Multi-Use Lists (MULs) as a method of prequalified procurement in order to facilitate a national bid for inclusion under the World Trade Organisation’s Agreement on Government Procurement. Commonwealth Procurement Rules will be updated to remove MULs as a procurement method from July 2017.The DTA’s Digital Marketplace Panel, which replaces the Digital Services Professionals Panel and is open to state and territory as well as Federal Government buyers, has been expanded to include services covering cybersecurity, data science, emerging technologies, content and publishing, support and operations, and marketing, communications and engagement. The marketplace is intended to make it easier for agencies to source specialised expertise from SMEs as well as larger vendors.ICT procurement reform is one of the key strategies highlighted in New South Wales’ past few ICT strategy refreshes, with the NSW Government most recently focusing on the growth of the “collaborative economy”. At the WofG level, the mandatory (Procurement Board Direction 2012-02) ICT Services Scheme is the most significant NSW procurement initiative intended to facilitate the efficient and rapid procurement of ICT goods and services as well as cut red tape for SMEs and streamline tendering processes. A standardised reporting framework for the ICT Assurance Framework has been developed and is currently in testing, as is the NSW Innovation Concierge (“NIC”), a procurement-related automated help system that can be used by industry vendors to ask questions, and to gain access to the right information and individuals.


The Australian Capital Territory’s Smart Modern Strategic Procurement Reform Program has continued to make gradual progress over the past twelve months. A local industry participation program was released in January 2017, and the tender for the Contractor Central business management solution was issued in December 2016. The ACT’s 2016 ICT strategy also raised the possibility of the territory adopting Federal procurement arrangements (where practical). Rolled out in 2014-15, the Northern Territory Government’s ICT Governance Framework encourages WofG procurements. Additionally, procurement rules introduced in 2014 provide extra weighting to local businesses and SMEs. A new ICT Contracting Model is understood to have been approved in late 2016, alongside new ICT-related Treasurer’s Directions – however, the relevant policy documents have not been made available to the public.


CATEGORY 6: CROSS-JURISDICTIONAL COOPERATION

Gauging the level to which jurisdictions cooperate with one another is difficult due to the lack of publicly released information in this area. Cross-jurisdictional cooperation therefore has a low weighting on the Indicator. Scoring is based on whether the jurisdiction has announced its intent to share or work with other Australian jurisdictions on citizen-facing services, and the extent to which this cooperation has produced tangible outcomes for citizens. While cooperating across boundaries is acknowledged theoretically as a way for jurisdictions to reduce duplication of work and effort, Intermedium’s findings suggest that cross-jurisdictional cooperation is still a secondary concern for most jurisdictions.The primary area of cross-jurisdictional cooperation in 2016-17 was cybersecurity, following the release of the Federal Cyber-Security Strategy and the renewed focus on security measures and formation of cybersecurity bodies nation-wide that accompanied it.The Federal Government launched its first Joint Cyber Security Centre in Brisbane in February 2017, with similar centres proposed for Sydney, Melbourne, Adelaide and Perth. The role of the centres is to share sensitive information quickly across state and territory governments, federal agencies, and the business and research communities. Other cybersecurity collaboration initiatives include a cybersecurity centre in Victoria launched by Data61 and co-located with Oxford University’s Oceania Cyber Security Centre, and a program of mock cybersecurity attack exercises carried out between the Australian Cyber Security Centre and the NT Department of Corporate and Information Services. A Western Australian auditor’s report has also recommended that the state increase its level of cybersecurity coordination with the Federal Government due to the limited extent of its own policy development in this area.

In other areas of cross-jurisdictional cooperation, the Queensland and NSW governments have held talks regarding the possibility of adopting the Federal digital identity platform Govpass, which would enable citizens of those states to access both state and Federal services through a single login – although there were reservations presented by the Queensland Privacy Commissioner. Service NSW has already been plugged into the Federal Government’s new centralised Business Registration service, which allows businesses to apply for multiple business and tax registrations without having to contact agencies individually. Federal data agency Data61 has worked with the NSW government in monitoring the structural health of the Sydney Harbour Bridge, and with the Victorian government on quantitative approaches to powerline investment. The ACT has renewed a memorandum of understanding with NSW which, while not primarily concerned with ICT, has implications for the rollout of the National Disability Insurance Scheme, the disposal of student records, and the tracking of domestic violence victims and offenders as well as children at risk. NSW also announced in September 2016 that it will adopt portions of the Federal Digital Marketplace, allowing NSW agencies to make use of the platform when procuring digital services.


ABOUT INTERMEDIUM

Intermedium specialises in Australian public sector use of information and communication technology (ICT). Our dedicated focus on the public sector allows us to generate insight not obtainable from any other source. Many years of government as well as ICT industry experience informs our comprehensive understanding of the public sector’s use and procurement of ICT. We provide online resources, tailored bespoke research services and consulting services. Small to Medium Enterprises through to the largest multinationals as well as government agencies subscribe to Intermedium online resources.Our online Knowledge Base provides up to date information on ICT issues and activity in government including digital transformation, analytics, cloud, cyber security, shared services and emerging hot topics. For a one month free trial of Intermedium’s Knowledge Base register at www.intermedium.com.au

CONTACT US:

Intermedium Suite 202, 160 Pacific Highway, North Sydney NSW 2060 T: 02 9955 9896 F: 02 9955 2995 E: [email protected] W: www.intermedium.com.au

14 | D I G I TA L G O V E R N M E NT R E A D I N E S S R E P O RT | © 2017 www.intermedium.com.au +612 9955 9896© 2017 www.intermedium.com.au +612 9955 9896 | D I G I TA L G O V E R N M E NT R E A D I N E S S R E P O RT | 14

digital government readiness report -...

Documents