Government, technology and the language of business change - How government can position itself to achieve real transformation through IT
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Government, technology and the language of business change How government can position itself to achieve real transformation through IT A research report by Eduserv
Introduction When the Government Cloud Strategy was launched in 2011 it promised a step change in the economics and sustainability of public ICT enabled services. The ambition was to deliver IT that was not only more cost effective but also more responsive, focused on customers, and agile enough to support new policies and strategies. Four years on, it’s important to take stock of where we are – not just in terms of how many people are buying cloud services, but how people really perceive the potential of technology to drive real change in the way the Cloud Strategy promised. This executive report contributes to that conversation by investigating what senior professionals working in central government think about progress so far. We also look at how well IT and business teams are working together to achieve common transformational goals. Our analysis of the survey results shows there is still a way to go, especially in terms of establishing genuine belief in the ability of IT to deliver real transformation. What’s also clear to me is that this is as much to do with problems with perception and understanding as anything else. Indeed, few would doubt there are areas where central government has made substantial progress with technology – especially the delivery of digital public services. But what’s also evident from our findings is that the new government still faces a big task in persuading civil servants of the deep transformational opportunities that new IT delivery models can offer. The following pages identify the biggest gaps in understanding and offer ideas for how they can be filled. Ivan Harris Chief Strategy Officer for Managed Cloud Services Eduserv
Research findings We partnered with iGov Survey Government is to find out how well current IT systems and cloud adoption making progress: are stacking up against business needs and objectives At a glance: in central government. ●● Encouragingly, many of the government professionals we surveyed believe The research captured the that the top priority for IT is improving views of 100 senior government service delivery. professionals that manage or influence decisions on ●● They also said the most appealing IT and was carried out from opportunities arising from cloud are to improve services and get more flexibility January-February 2015 – ahead of cost reduction. ●● Evidently people believe in the potential of cloud to drive service transformation. ●● They are adopting cloud services, albeit gradually. Where barriers to adoption remain they are practical – issues with legacy contract lock in, for example – rather than theoretical. www.eduserv.org.uk 3
Government is There’s still room making progress: for improvement: Senior decision makers want more At a glance: from IT than ways to reduce costs – they want a business enabler ●● There’s a mismatch between the areas where our respondents say they want IT What government wants most from to support them (such as improving IT in 2015: service delivery) and the ones which Improved service delivery 87% are getting investment. Reduced costs 68% ●● The areas where respondents are least Increased collaboration with confident around the capability for IT 49% to deliver and attract investment are external agencies among the top priorities for business Remote working 47% change (e.g. better procurement, better Increased security for data sharing 44% collaboration, improved service delivery). ●● Most decision makers point the finger at budget rather than lack of skills and are The most appealing aspect of cloud convinced that lack of investment will is its ability to improve services prevent them from achieving their goals. The cloud benefits government ●● Overall there is poor understanding at all find most appealing: levels of how current IT strategy aligns to Improvement of services 49% future business needs. IT and business teams need to work together effectively Ability to scale up/down 47% to work out what can be achieved. Reduced cost of IT infrastructure 43% Support for remote working 43% More time to focus on core functions 38% Support for BYOD 20% Barriers to cloud adoption that remain are largely practical and solvable The main barriers to the use of cloud: 1 Security concerns 25% 2 Legacy IT contract lock in 24% 3 Other 12% 4 No barriers 9% 5 Internal resistance 7% 4 www.eduserv.org.uk
Decision makers are lacking Budget is perceived to the big confidence in IT blocker to progress The big priorities for 2015, such as improving Main barriers to driving business change: service delivery and increasing collaboration, 1 Budget 37% are areas where the majority of decision makers are not yet confident IT can deliver: 2 Lack of skills 15% 3 Security concerns 12% Confident IT Not confident will deliver IT will deliver 4 Business objectives not aligned to IT 10% 1 Increase collaboration 33% 67% Other 18% 2 Improve service delivery 35% 65% 3 Better procurement 41% 59% IT is not working closely enough 4 Reduce costs 41% 59% with the rest of the organisation 5 Remote working 51% 49% Percentage of people who agree 6 Reduce buildings 52% 48% with the statement: 7 Increase security for Senior managers support IT in current / 59% 41% future service delivery 31% data sharing Employees at all levels understand the importance of IT 27% Most decision makers also My organisation has an IT strategy lack confidence that their key aligned to future business needs 22% priorities for IT will be supported by sufficient investment IT works effectively with department 10% leads to identify/meet needs Confident Not confident of investment of investment 1 Better procurement 29% 71% 2 Increase collaboration 35% 65% 3 Improve service delivery 47% 53% 4 Reduce buildings 47% 53% 5 Remote working 48% 52% 6 Reduce costs 49% 51% 7 Increase security for 52% 48% data sharing www.eduserv.org.uk 5
How IT can drive change: 1 2 The results of our survey Creating more innovative Getting everyone show that many senior procurement models speaking the same government decision makers alongside G-Cloud language currently fail to see how cloud services and IT in According to our research Our survey highlights poor general are positioned to there is currently little understanding at all levels deliver on their needs. confidence in the capability of of how current IT strategy is IT to deliver on a number of aligned to future business What’s clear is that there key objectives set out by the needs and supports now needs to be as much Government Cloud Strategy, initiatives such as Digital by attention directed towards including procurement Default and Cloud First. education and change of services (only 41% are management as there is confident IT will deliver on this This problem needs to be on the way technology is point, while 59% are not). solved by the introduction of managed and procured. multi-level skills accreditation As cited by many, G-Cloud programmes – covering To move forward, and the Digital Marketplace technical, operational and we propose focusing need to continuously commercial functions – that on 5 key areas: improve to address this get everyone speaking the perception, particularly in same language and that are the areas of search, more sharply focused on helping flexible contract lengths cross functional teams to work and supplier showcases. together more effectively. However, we believe a further step change improvement Ideally the programmes can be achieved by creating should also work across more innovative procurement government, enabling models that align the interests easier transfer of skills of suppliers, government and knowledge between and citizens more closely. departments without causing further breakdowns Such models should embrace in understanding. the idea of shared risk and reward (proportionate to the supplier’s balance sheet, of course). It’s all very well having a great online shop front, but the real key to better government contracts is a spirit of true buyer/ supplier partnership that delivers public benefit. 6 www.eduserv.org.uk
3 4 5 Investing more Limiting investment Getting the seriously in employee in legacy systems implementation of engagement Government as a Freeing up resources Platform (GaaP) right Alongside the need to skill- and finances for digital up staff in the language of transformation will of GaaP has the potential to solve IT strategy, there is also now course be a challenge. many of the investment issues a pressing need for better But there are ways and we’ve seen in this report. It can employee engagement means of getting there. do so by creating a common programmes that are designed core infrastructure of shared to get everyone on board with We often see the private digital systems, technology and the transformation agenda. sector find innovative processes that makes it easier new ways to invest in the to build better and more user- Only one in ten say IT future, even during the centric government services currently works effectively sharpest of downturns, and faster and at lower cost. with department leads to the public sector should identify and meet needs - really be no different. It’s not yet clear how GaaP that’s clearly not adequate. will be delivered, but in our In both the private and public One way government view the way to get this right sectors, we see time and departments can get started is to not make the mistake of again that any change brought straight away is to limit doing it DIY, or handing the about by IT will only be investment in existing legacy build task over to a few big effective if the implementation systems unless there is a suppliers, but to publish the pays as much attention to clear roadmap to new digital, standards and processes that the impact on people, trust cloud-based systems. suppliers must meet and let and relationships as it does the open market compete to to the impact on systems. This means stopping adding build best-in-class solutions. new features and functionality, If budget is an issue in funding pausing hardware and A great example of how this such programmes, then software refresh programmes has happened in the private budget has to be re-adjusted and whenever an opportunity sector is the eTOM business and found, because genuinely exists, terminating contracts process framework that has impactful transformation is early or renegotiating hard. helped define standards not going to happen without it. There can be a lot of fear and interoperability in around stopping legacy the telecoms industry. systems, but explaining the benefits is all part of Only by following this kind the change management of example will we see a employee engagement government platform that is process that needs to happen. innovative and fleet-of-foot enough to drive up genuine belief and trust in what technology can deliver. www.eduserv.org.uk 7
About Eduserv Helping the public sector and charities make better use of their IT. Our customers include Department for Education, Information Commissioner’s Office, Higher Education Funding Council for England, Bristol City Council and the British Red Cross. Get in touch If you would like to find out how Eduserv can help transform your IT please contact: Tel: +44 (0)1225 470 597 Email: sales@eduserv.org.uk WEB-149 www.eduserv.org.uk
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