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
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.

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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%

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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

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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
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