Talk by Dr Sally Howes, NAO Director ICT and systems analysis, to the ICAEW 21 November 2012

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

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

6. The potential for savings
GDS Digital efficiency report, Nov 2012
gov.uk • £36 million pa savings compared to Directgov &
businesslink.gov.uk
• £25 – 45 million pa saving from department costs
Digitising public-facing • £1.7 – 1.8 billion savings pa in central government
(£1.1 – 1.3 billion by government – rest passed through lower prices)
services 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
• £67 – 128 million pa savings estimated from next
Digitising gov2gov & back generation shared services (Cabinet Office, July
office services yet to be 2011)
• £354 million savings in 2011-12 reported by Cabinet
estimated 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
Civil service reform plan
Digital strategy Nov 2012
Redesign services by skilled people
Strong digital culture
All services have a service manager
Transition to gov.uk Cyber security
Common technology platforms Open Data
Savings from Remove legislative barriers strategy Dec
2011 strategy Jun
successfully Improve policy making & communication
2012
Cross-govt assisted digital
digitising public
Risk decision about
facing services New role for Digital Leader
the service by the Capture & release
business of big data
ICT strategy Apr 2011 Reclassification of Gathering
78% Reduced staff time
12% Estates information customer insight
7% Print, post & teleco New ID management Creating dynamic
Shared networks, data centres, EUDs
4% IT & equipment service information
Rent s/w services from the CloudStore
Shared intelligence markets
Open source
with industry Improving quality
SIAM framework
of data published
Centralised procurement
Agile approaches Reinforce role of
Critical challenge on ICT solutions from SIROs
the Cabinet Office
Reinforced role of CIO

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

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

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

12. We analyse VFM of public services – not just ICT
Enterprise analysis
Service architecture analysis
Key AHVLA Users Wider BRP Stakeholders
AH Local Environment Port Health
Departmen
Users FSA OV’s Defra EU FERA RPA
Agency Authorities Agency Authorities
tA
Internal Paper Document Online Offline Internet
Channels Web User
Email Phone
Documents Imaging Forms Forms Portal
Disease Endemic Exotic Protecting Reportable
Border
AHVLA Business Areas/Services Risk Notifiable Notifiable the Food and Other Welfare
Control
Reduction Disease Disease Chain Zoonotic
Departmen
Cleanse
Registration Work 3rd Party
Sampling Trace Compen-sation & Vaccinate
Management Management Liaison
Disinfect
Business Processes
Slaughter/ Movement Premises
Risk Visit
Surveillance Valuation Cull/ Controls/ Restock Licence/
Management Management
tB
Disposal Restrictions Approvals
ODRM Activity Commander Management Forms Library
Technology (Sam) Information (Bus
Obj) Operational Data Capture
Business Process & Rules Engine (Pega)
(eForms)
Data Services Support (ESB) Data Feeds Support (Data Stage) External Systems I
Departmen
Data Integration
Operational Bus
Customer Data Document Store Activity Data Historical Bus Data
Data
tC
Financial & services performance analysis
Departmen
tD
Departmen
tE
Implementation
Service mgmt
Governance
Technology
Processes
Strategy
People

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

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