Digital governance | 1
The growing importance of
digital in government
– are you ready for the
challenge?
Yvonne Gallagher...
Digital governance | 2
Our role
The National Audit Office (NAO) scrutinises
public spending for Parliament
We help to hold...
Digital governance | 3
Background
• Government published its digital strategy in November 2012
• It established 11 princip...
Digital governance | 4
Source: McKinsey
Definition of Digital Enterprise
Digital governance | 5
Source: McKinsey
The next 10 industries set to ‘go digital’
Digital governance | 6
Companies are focusing on digital at the highest levels focusing on
how to :
• Increase pace and fr...
Digital governance | 7
Government is starting the journey, but there are other challenges:
• Budget pressures and investme...
Digital governance | 8
Operational
performance
Resourcing and
Investment
commitment
Expectations of
Digital Services
Gover...
Digital governance | 9
Using an agile approach for digital transformation
Four principles of governance for Agile delivery...
Digital governance | 10
• Digital transformation has huge implications for value-for-
money in delivering public services;...
Digital governance | 11
• We have reviewed leading industry frameworks and brought
together current thinking to develop an...
Digital governance | 12
To fully identify and describe the
components of the organisation
under examination and define the...
Digital governance | 13
Benefits of the framework approach
• It aids engagement, many departments already adopt this persp...
Digital governance | 14
We reviewed five major
Central Government
Shared
Services, representing
c.50% of central
governmen...
Digital governance | 15
Our studies this year will include…
• Reviews of how well departments are positioned to increase t...
Digital governance | 16
And we will deliver a range of outputs in 2013-14
• A series of presentations outlining the organi...
Digital governance | 17
How to find out more
• Visit our stands
• NAO website www.nao.org.uk
• Follow the NAO on Twitter @...
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The growing importance of digital in government - Yvonne Gallagher for Civil Service Live 2013

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The growing importance of digital in government – are you ready for the challenge?

Yvonne Gallagher | Information and Digital Team | July 2013

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  • Using a variant of our Business Analysis Framework
  • Using a variant of our Business Analysis Framework
  • The growing importance of digital in government - Yvonne Gallagher for Civil Service Live 2013

    1. 1. Digital governance | 1 The growing importance of digital in government – are you ready for the challenge? Yvonne Gallagher | Information and Digital Team | July 2013
    2. 2. Digital governance | 2 Our role The National Audit Office (NAO) scrutinises public spending for Parliament We help to hold government departments and the bodies we audit to account for how they use public money Our work helps public service managers to improve performance and service delivery, nationally and locally
    3. 3. Digital governance | 3 Background • Government published its digital strategy in November 2012 • It established 11 principles for departments to conform to as they transform their services to digital by default • The main objective is to provide user-focused, cost effective and maintainable digital services that enable central government to maintain quality of public services whilst reducing their cost and reducing manpower • The move to digital channels is a fundamental shift for many departments
    4. 4. Digital governance | 4 Source: McKinsey Definition of Digital Enterprise
    5. 5. Digital governance | 5 Source: McKinsey The next 10 industries set to ‘go digital’
    6. 6. Digital governance | 6 Companies are focusing on digital at the highest levels focusing on how to : • Increase pace and frequency of key decision making, setting specific digital targets, use of agile • Reshape business portfolios, re-evaluating business and assets in digital context • Investment at scale – alignment of investment quantum and focus to value, build of platforms not point solutions • Upgrade digital capabilities across the entire value chain to deliver seamless experience that customers now expect, transform processes end-to-end • Nurture digital talent; establish digital leader; infuse fresh talent and mindset; protect scarce skills set (IT architects) • Address Cyber threats growing within the digital landscape Digital trends occurring outside of Whitehall
    7. 7. Digital governance | 7 Government is starting the journey, but there are other challenges: • Budget pressures and investment constraints • Civil Service reform • An extensive legacy ICT installed base • A vast range of services and customers • Cultural challenges • An increasing cyber risk • Government making changes to the way it manages ICT: • Strategies published in the core areas of ICT including digital strategy; use of SMEs and agile developments prioritised; quicker more centralised procurement; stronger central governance Government’s changes in line with changes in wider context
    8. 8. Digital governance | 8 Operational performance Resourcing and Investment commitment Expectations of Digital Services Governance, acco untability, ownershi p Change management Risk management Business structure Culture Digital Services Key business factors identified as having potential impact on the effectiveness of digital services
    9. 9. Digital governance | 9 Using an agile approach for digital transformation Four principles of governance for Agile delivery National Audit Office, Governance for Agile delivery, July 2012 Assessors have high-end delivery experience Observation is main method of evidence collection External assessment focus on teams’ behaviours not just processes and documentation Light touch and proactive Focused on activity underway and value of products & services Mirror the Agile philosophy – only do it if it brings value and does not introduce delays Senior managers agree quality of service upfront User involvement in assuring value Everyone is a collaborator in delivering quality Fail fast learn quickly Improve certainty team have on quality they will produce Delivery teams select empirical performance metrics and self monitor
    10. 10. Digital governance | 10 • Digital transformation has huge implications for value-for- money in delivering public services; it will be a feature of what we have to assure for many years • Assessing the progress from a governance perspective is an important first step • To maintain the wider perspective in the cyber, digital and ICT arena, it is important that we have good knowledge and understanding of what is happening in this area in departments • It reinforces our commitment to help government with the digital agenda and putting users first Why should the NAO look at digital governance?
    11. 11. Digital governance | 11 • We have reviewed leading industry frameworks and brought together current thinking to develop an analytical framework • We have updated it to include digital features and highlight cyber risk • With clearer paths to evidence to look for regarding emerging digital thinking and action How we will do it: our analytical framework Organisation analysis Financial and performance analysis Enterprise analysis
    12. 12. Digital governance | 12 To fully identify and describe the components of the organisation under examination and define the scope of the study Organisation analysis To fully identify and describe key organisation financial and performance information Financial and performance analysis To assess the ability of the organisation to plan, implement and manage digital services Enterprise analysis Our framework approach Current Planned Evidence 1. Vision and Strategy 5 3 H Current Planned Evidence 2. Governance and Architectures 4 2 M Current Planned Evidence 3. Change and Implementation 3 1 L Current Planned Evidence 4. Service and Performance Management 2 2 H Current Planned Evidence 5. People 1 3 M Current Planned Evidence 6. Process 2 4 L Current Planned Evidence 7. Technology 3 5 H
    13. 13. Digital governance | 13 Benefits of the framework approach • It aids engagement, many departments already adopt this perspective • Helps develop an understanding of organisation perspective • Provides a framework for consistent and comprehensive analysis • Supports repeatable and cross government comparison • Enables a deeper operational view of how services are delivered • Allows an assessment against good practice Organisation analysis Financial and performance analysis Enterprise analysis
    14. 14. Digital governance | 14 We reviewed five major Central Government Shared Services, representing c.50% of central government. We highlighted challenges, and analysed how they have been commissioned, and how well government performed as a customer. Source: NAO report ‘Efficiency and reform in government corporate functions through shared service centres’ 7 March 2012, http://www.nao.org.uk/shared-services-2012 An example of cross-government comparison: Efficiency and reform in government corporate functions through shared service centres
    15. 15. Digital governance | 15 Our studies this year will include… • Reviews of how well departments are positioned to increase the delivery of their services digitally in accordance with the government digital strategy, by examining their digital governance • Consideration of governance, the over-arching management arrangement to support the move to digital services • Reviews of business, ICT and cyber activity, looking at departments’ ability to embrace the digital agenda on a ‘whole business’ basis • Examination of departments’ ability to bring the digital strategy and other strategies together in a cohesive way • A review of the digital exemplars
    16. 16. Digital governance | 16 And we will deliver a range of outputs in 2013-14 • A series of presentations outlining the organisational landscape of selected departments • Detailed organisational analysis • Assessment of capability of organisation to govern digital services and transformation enabling cross government comparative analysis • Highlights of Gaps / Risks / Issues
    17. 17. Digital governance | 17 How to find out more • Visit our stands • NAO website www.nao.org.uk • Follow the NAO on Twitter @NAOorguk • Sign up for email alerts with NAOdirect • NAO videos on YouTube • NAO Annual Report & Accounts 2012-13 • Public Accounts Commission

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