1. Government’s digital journey & NAO’s changing approach Sally Howes Director ICT and systems analysis November 2012

2. Contents A clear message on digital The challenge in delivering the digital transformation A changing approach from NAO Following the digital transformation

3. The message from the GDS is loud and clear Sources: Digital Strategy, Digital Efficiency Report, Digital Landscape Research - GDS Nov 2012 Public service delivery is digital by default Digital services empower the public but will only be used if they are straightforward and convenient This is the only way to maintain quality of public services as the civil service reduces headcount and its costs Digital services are a core element of the design of future service models Big potential for savings by digitising public-facing services 650 services (excluding NHS, police and local) 2011-12 annual cost – estimated £6-9 billion 300 have no digital channel For 350 - % using digital channel is low

4. The digital journey User needs, not government needs 1.Do less 2.Design with data 3.Do the hard work to make it simple 4.Iterate. Then iterate again 5.Build for inclusion 6.Understand context 7.Build digital services, not websites 8.Be consistent, not uniform 9.Make things open: it makes things better “…design process must start with identifying and thinking about real user needs. We should design around those — not around the way the ‘official process’ is at the moment. We must understand those needs thoroughly — interrogating data, not just making assumptions — and we should remember that what users ask for is not always what they need.” June 2012 Civil Service Reform Plan published September 2011 GDS - transforming digital services October 2012 gov.uk went live ` November 2012 Digital strategy ` “People will only choose to use government services digitally if they are far more straightforward and convenient. The vast majority (82%) of the UK population is online but most people rarely use online government services” “central government wherever possible must become a digital organisation. These days the best service organisations deliver online everything that can be delivered online. This cuts their costs dramatically and allows access to information and services at times and in ways convenient to the users rather than the providers” “GDS is here to build digital services that are so good that people choose to use them”

5. The objective for digital…. Policy Process Service User Policy Process Service User From: To: “ Policy will not get in the way of good service design” “The Civil Service must educate itself as to what the public wants and adapt to the needs of the citizen” “..need to win back the generation not engaging with government” “No department can redesign their services on their own – because many things the citizen is interested in go across department boundaries and the whole point is to deliver what citizens need – not what departments have been set up to do”

6. The potential for savings GDS Digital efficiency report, Nov 2012 Digitising public-facing services £1.7 – 1.8 billion savings pa in central government (£1.1 – 1.3 billion by government – rest passed through lower prices ) 18 – 28% annual cost of 650 services £1.2 billion this CSR period £2.9 billion savings pa NHS £134 – 421 million savings pa local government gov.uk £36 million pa savings compared to Directgov & businesslink.gov.uk £25 – 45 million pa saving from department costs Digitising gov2gov & back office services yet to be estimated £67 – 128 million pa savings estimated from next generation shared services (Cabinet Office, July 2011) £354 million savings in 2011-12 reported by Cabinet Office due to ICT strategy (one year on) £362 million savings in 2011-12 reported by Cabinet Office due to renegotiations with ICT suppliers

7. Strategies for delivering these savings Savings from successfully digitising public facing services 78% Reduced staff time 12% Estates 7% Print, post & teleco 4% IT & equipment Open Data strategy Jun 2012 Capture & release of big data Gathering customer insight Creating dynamic information markets Improving quality of data published Digital strategy Nov 2012 Redesign services by skilled people Strong digital culture All services have a service manager Transition to gov.uk Common technology platforms Remove legislative barriers Improve policy making & communication Cross-govt assisted digital New role for Digital Leader Cyber security strategy Dec 2011 Risk decision about the service by the business Reclassification of information New ID management service Shared intelligence with industry Reinforce role of SIROs ICT strategy Apr 2011 Shared networks, data centres, EUDs Rent s/w services from the CloudStore Open source SIAM framework Centralised procurement Agile approaches Critical challenge on ICT solutions from the Cabinet Office Reinforced role of CIO Civil service reform plan

8. The Head of the Civil Service says the civil service “must look radically different” A more unified civil service “Corporate and consistent where there are benefits” “Challenging what we mean by a department” A more open way of working “More exchange with the private sector” “Less focus on grade…hierarchy, more on ability” Sharper accountability “A sense of personal responsibility” “Clearer roles for ministers and officials” The right skills for the job “The old idea of a civil service “generalist” is dead”

9. Public sector challenge Rising expectations from citizens & businesses Cost reductions & IT spend controls Connecting all of governments strategies in the operating environment and at increased pace Maintaining public service quality & shifting to digital Civil service reform Changing skill requirements Applying digital leaders, CIOs and SIROs to positive change Those not engaging with government Getting digital services into the civil service DNA

10. A changing approach also for NAO Objectives Innovative products & new channels Increased influence Improvement Thought leadership Approach Look earlier & deeper Evaluate current situation & trajectory Overall service performance - avoid “ICT projects” Stronger business analytic methods Deeper operational experience Landscape report on government ICT, Feb 2011 Online services Business intelligence systems Business systems Back office systems Infrastructure Use of ICT across the enterprise Governance People delivering & operating ICT Policies & strategies Citizen Business Civil Society International Civil Service Private Sector ICT Landscape, Feb 2011

11. Building a deeper base of investigations ICT in government: landscape review, Feb 2011 Implementing the Government ICT strategy; 6 month review, Dec 2011 UK cyber security strategy: landscape review, to be published 2013 Impact of government’s ICT savings, to be published 2013 Implementing transparency, Apr 2012 MOD: the use of information to manage the logistics supply chain, Mar 2011 DEFRA: geographic information systems, Jul 2012 Digital Britain 2: what the public thinks, to be published 2013 Digital Britain 1: shared infrastructure and services, Dec 2011 HMRC: expansion of tax filing, Nov 2011 Research: the ICT profession, Aug 2011 Research: government projects using Agile, Sep 2012 HO: mobile technology in policing, Jan 2012 Efficiency and reform in corporate services through shared service centre, Mar 2012 BIS: shared services in Research Council UK, Nov 2011 DEFRA: transformation of animal health & welfare services, Jul 2012 Public services dependent on legacy, to be published 2013 Research : governance of Agile projects in the private sector, Aug 2012

12. We analyse VFM of public services – not just ICT Departmen t A Departmen t B Departmen t C Departmen t D Departmen t E Enterprise analysis Financial & services performance analysis Strategy Governance Implementation Service mgmt People Processes Technology Service architecture analysis

13. Skills & experience Team dynamics & culture Timing & nature of quality control by delivery team Order that team tackles the tasks How team responds How teams measure and demonstrate value Monitor value from the activity not amount of activity Visual management – transparency to all in the business Evaluate current situation not the past Smaller number of artefacts to examine Invest in communication for all involved in project assurance so they understand how Agile methods are different Assure that project staff have the right skills Business owners integrated into delivery team Organisation of working environment is key Light touch and proactive Focused on activity underway and value of products & services Fail fast and learn quickly Improve certainty team have on quality they will produce Senior manage ment agrees quality of service upfront User involvement in assuring value Assessors have high-end delivery experience Observation is main method of evidence collection ICT and systems analysis team Food for thought: four principles of governance for Agile delivery From NAO case studies on 8 private sector companies NAO report: Governance for Agile delivery Everyone is a collaborator in delivering quality Delivery teams decide empirical performance metrics and self monitor Mirror the Agile philosophy – only do it if it brings value and does not introduce delays External assessment focus on teams’ behaviours not just processes and documentation Four principles Key lines of assessment

14. IT audit refresh for financial audit also Comprehensive understanding of technology risk Intelligent use of IT to support financial audit Application controls / audit integration General IT controls Future: Improve general auditor understanding of technology and associated risks Enhance specialist capability to consider significant risks or complex environments Strong relationship with IT management, IT risk assurance and IT audit functions at clients. Understand how we can use both our skills and client technology to intelligently improve the depth and efficiency of our work Use this understanding to add value through our range of interventions

15. Summary The clear message from GDS is digital by default There are challenges in delivering fundamental digital transformation beyond ICT but this is governments selected route to maintain quality of public services as costs are reduced and it is a central part of Civil Service Reform The NAO is also changing to respond to how government is delivering digital services We are following the digital transformation right through the enterprise

16. Thank you Sally Howes sally.howes@nao.gsi.gov.uk