Whole-of-government digital transformation has undeniably reached a turning point. An almost unprecedented level of consultation papers, policy developments, frameworks, pilots, inquiries, committees and legislation proposals have been completed or commenced recently to support all levels of government in their navigation of a new landscape governed by artificial intelligence (AI). The focus is heavily centred on how these new and rapidly changing technologies can be integrated in a safe, responsible and privacy-protecting way, and agencies remain rightfully cautious of their path to adoption. However, this is one of several moving parts in advancing the government’s digital transformation efforts.
As anticipation builds for the 10th Annual Future of Federal Government Summit 2024, we are excited to announce that Judy Hurditch, a prominent researcher of digital transformation, will be presenting a keynote on the findings of the 2024 ANZ Digital Government Readiness and Maturity report.
The summit will take place on 6 November 2024 at the National Convention Centre in Canberra, and Judy’s insights will provide crucial context for understanding the evolving landscape of digital government readiness in Australia and New Zealand.
The Digital Government Readiness and Maturity Indicator (DGRMI) report
At the summit, Judy will delve into the findings of the 2024 ANZ DGRMI report, which measures what each jurisdiction has accomplished at a whole-of-government (WofG) level to progress the digital transformation of client services. Each year since 2016 the report has evaluated the degree to which each jurisdiction has established WofG enablers (such as strategies, funding, policies, governance, legislative frameworks, and procedural enhancements) to support its agencies in their digital transformation efforts. The resultant jurisdictional leaderboard is widely referenced, including in state parliaments.
Surprising Trends in 2024
The results of the 2024 ANZ DGRMI will take centre stage at the summit. Hurditch hints at significant trends, particularly in collaboration among jurisdictions.
While she previously thought that all jurisdictions would eventually adopt a ServiceNSW-like service delivery model, she no longer believes this will occur. Instead, three different models of digital service delivery seem to be emerging.
“The cost of establishing such an agency is a huge factor”, she says. “And it takes years to become fully effective. Some governments just don’t have the time or money to do such a significant machinery of government change, and in some instances, the politicians don’t understand the value that the new service delivery model will bring”.
Challenges to digital readiness
One of the main challenges government agencies face in working towards digital services is funding. Many jurisdictions have significant debt servicing costs post-Covid-19 and are curtailing agency operational expenditure allocations accordingly.
According to Hurditch, “many agencies are squeezed for operational expenditure (OpEx) and can’t fund digital transformation out of their business-as-usual funds”.
She cites the NSW Digital Restart Fund as a powerful transformation initiative, allowing agencies to apply for project funding according to rigorous criteria, but notes that this fund is not receiving the budgetary top-ups it enjoyed when it was first created.
Shifting funding priorities post-pandemic
The ICT market in Australia and New Zealand is undergoing a shift in funding priorities. Hurditch notes that not only did jurisdictions spend substantial amounts responding to COVID-19, but some (particularly NSW and Victoria) made heavy investments in infrastructure at a time when interest rates were extremely low. They are now experiencing high debt service costs at the same time as they are seeking to bring their budgets back into surplus.
“The budget pot is smaller, so fewer transformation projects, particularly multi-year ones, are coming through the pipeline,” Hurditch remarked, highlighting a new reality for public sector ICT funding that she thinks will remain in place for some time.
The impact of emerging technologies
Emerging technologies such as AI, and enterprise integration technologies such as workflows, APIs and robotic process automation, are reshaping public sector service delivery.
Like many, Hurditch is certain that AI will be the most significant game changer in government operations in decades – if not ever. But while there is a keenness to use AI, agencies remain cautious in their adoption, awaiting the finalisation of clear policy guidance.
“Agencies are waiting for regulatory frameworks to be established before diving deeper into AI applications,” she explained, noting that some are currently exploring low-risk implementations of generative AI models, such as EduChat in NSW or QChat in Queensland.
The future of digital government
Looking ahead, Hurditch believes that there is now sufficient digital transformation momentum to ensure that client services will continue to be digitised across Australia and New Zealand into the foreseeable future – despite the current funding issues.
The fundamental building blocks of digital maturity, such as digital identity and citizen accounts are now widespread across jurisdictions, leading Hurditch to believe that large strides will be made in digital maturity by all jurisdictions in the next three to five years.
Further insights
Judy Hurditch’s insights underscore the complexities and opportunities within the public sector’s digital transformation journey. As she prepares to speak at the 10th Annual Future of Federal Government Summit 2024, her reflections serve as a compelling invitation to engage in meaningful discussions about the future of digital government.
Don’t miss the opportunity to hear from Judy and other leading experts at the summit. Register now to gain deeper insights into the trends shaping the future of public service delivery in Australia and New Zealand. Join us on 6 November 2024 for an enlightening and engaging experience that promises to inform and inspire!
Judy Hurditch is Founder and Principal Analyst at Intermedium, an independent advisory firm renowned for its focus on public sector ICT and digital emerging trends.
With over four decades of experience, including senior roles in the Australian Public Service, Judy has developed an extensive understanding of the challenges and opportunities facing government agencies as they navigate their digital transformation journey.
Before founding Intermedium in 2004, Judy worked in management consulting and for a NSW government corporation. Prior to that, Judy served as a Deputy Commissioner of Taxation, where she led major ICT-dependent projects, including the implementation of the Tax File Number System. Her unique blend of public sector experience and industry insight gives her a broad lens on the digital evolution of public services.