DigiGov reinvigorated the energy and focus of those of us who see the transformative potential of technology for the public sector. Digital-driven innovation is more than a productivity or cost efficiency play – it’s a chance to reconsider the processes, services and capabilities we run and build to serve customers better. To find ways to be more seamless, intuitive and secure in the citizen experience. And to showcase the strength of the UK as a digital innovator on the world stage.
The first step for the public sector’s digital decision-makers is to work out their plan for their legacy IT and the critical processes it supports. How do they build and navigate a roadmap that increases value for money alongside momentum? How should they consider the cost of fresh investment against the true cost of standing still? And what does that mean for IT leaders, the finance function, the taxpayer and the service user?
Too often immediate operational challenges can obscure our vision of an optimised future state and that is understandable. But resolution of operational challenges is also the root of solving for the future: to understand what you have and where you need to go. And experience, a clear mindset, and the ability to draw on technology implementation lessons from others, suggest some guiding principles that can help move the dial while keeping the machine running.
Avoid the false economy of inaction
Strained budgets and competing priorities can leave IT upgrades at the back of the line for investment – this is made no easier by the focus on demonstrating cost savings. The truth is we as digital leaders need to make sure that budget holders understand the ‘true’ total cost of ownership. Maintenance fees need to be considered alongside hidden costs or those whose budget is handled elsewhere: vendor lock-in, increasing support charges from older vendors, operational inefficiencies, the ‘cost’ of not being able to service user or citizen needs, and, notably, the growing risk and cost associated with downtime or cyber incidents.
There are also the intangible costs of standing still. A stagnant IT estate restricts innovation, slows service delivery, increases employee frustration, and limits the ability to respond to emerging citizen needs. These issues can all be less visible to decision-makers when weighing up budgets, so it’s vital for IT and digital leaders to be proactive and clear on the case for investment and what ‘cost saving’ measures may not factor in.
The secret to maximising value is simplicity
Simplification is a far more reliable principle than ‘cost saving’ when seeking to both maximise the value of existing IT environments as well as reach the right investment decisions. The first step to avoid ballooning budgets is to strip out complexity wherever feasible. This means building a clear understanding of the relationships and interdependencies between platforms old and new and the critical business services they enable, to reduce unnecessary layers, standardise where possible and find modular, interoperable solutions.
The idea is to not build ‘net new’ over legacy architecture, but to have a plan to decouple services in a way that reduces operational risk while boosting confidence in recovery protocols and disaster response. If this feels like an impossible task, then it’s worth a look to the banking and energy and utility sectors for examples of how functionality has been gradually moved off legacy platforms. Key to success were phased approaches to decouple services, reduce complexity of legacy platforms, and modernise. This all took into consideration how to maintain the right workforce and human capabilities, for example with a focus on retaining key legacy support skills. Any sourcing arrangements need clear lines of accountability across systems and, most importantly, an end-to-end plan for the recoverability of systems in the event of failure.
The processes that drive change
Technology should always be viewed as an enabler to what your department or team are looking to achieve. If you optimise the process, the tech will follow. Track down the areas where your current technology or infrastructure has become a barrier to take swift action. Because when tech is allowed to form dysfunctional processes, users become disenfranchised and overheads can increase.
Automation and generative AI (GenAI) provide some genuinely exciting opportunities to overcome such barriers. And we’ve seen it used to powerful effect in a number of areas to generate cost savings while improving service delivery and the citizen experience. But critical to the success of these projects was everything that sat around the tech. Innovation needs the right culture and headspace to make people feel empowered and excited for the prospect of doing things differently – while supported by processes that are robust, transparent and recoverable.
Be bold in setting your direction of travel
Overall, this is the time for decision-makers and digital leaders to set a clear vision for what the future looks like. Work back to pin down what this means for what you want to achieve and why. Then look at what this means for the tech dependencies. This is about bold ambitions, honest assessment, strategic simplicity, supportive culture, ecosystem thinking, and committed leadership. The public sector’s future ability to innovate hinges on these fundamentals - remaking legacy IT, and shaping a springboard for transformation. Senior decision makers have a unique opportunity to lead this pivotal change, and guiding technology to serve as an enabler, not an obstacle, to public value.
Karen Penman
Partner and CTO, Cyber and Forensics PwC UK
