View
5
Download
0
Category
Preview:
Citation preview
NEW SOUTH WALESICT STATE OF PLAY
DIGITAL TRANSFORMATION
NOVEMBER 2016
22
Budget impacts & ICT initiatives
Budget impacts & ICT initiatives
NSW ICT contractingNSW ICT contracting
Transformation journey to date Transformation journey to date
3
Operating Surplus & Deficit
expectations
-$3
-$2
-$1
$0
$1
$2
$3
$4
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Bill
ion
s
2012-13 Budget 2013-14 Budget 2014-15 Budget
2015-16 Budget 2016-17 Budget
ICT Investment Shaping Forces
4
9.8
-0.1
5.4
4.2
0.6
3.9
-2
0
2
4
6
8
10
12
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Revenue Growth
Expenses Growth 2016-17NSW CPI 1.8AU CPI 1.3
Pe
rce
nta
ge (
%)
Mar-11 Mar-15Mar-19
Spending Appetite Set to Shrink
5
TAS
4.2
ACT
5.2
FTE/population ratio June 2015FTE/population ratio June 2015
Median 4.3
1.8%
1.3%
0.7%
1.8%
0.7%
-1.0% -1%-0.4%
2012 2013 2014 2015
FTE growth rates
Nurses, teachers and police Overall FTE growth
NSW Workforce Profile Reports, 2012-2015
*Nurses, teachers and police represent the majority of frontline FTE
*
Back Office Bears Brunt of FTE Reductions
6
2012-1329
2013-1440
2014-1551
2015-1634
2016-1726
Number of new ICT initiatives
*New ICT initiativesNewly announced in this budget. Are usually additional to ‘business as usual’ operating expenses allocated to agency. Often is multi-year
$359m
$160m
$277.4m
$264.3m
$561.5m
Total value of new
ICT initiatives* ($m)
Pre-election budget
New Initiatives as the Bellwether of Govt Attitude to ICT
7
<$5M $5M-$9.9M $10M-$49.9M $50M-$99.9M $100M+
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Mill
ion
s
2016-17 New
2015-16 New
2014-15 New
2013-14 New
2012-13 New
Light shaded bars represent existing initiatives
>$100m Projects Extinct in NSW?
E-ticketing System - Delivery $124 MSydney Water Corp IT Projects $61 M
Opal Card System $125 MDigital Train Radio $101 M
Sydney Water Corp IT Projects $57 MOpal Card System $133 M
Sydney Water CorpIT Projects $ 82 MNext Gen Info Systems $104 M
Sydney Water Corp IT Projects $21MNext Gen Info Sys $61M
8
2016-172015-162014-152013-142012-13$0
$20$40$60$80
$100$120$140$160$180
New ICT Initiatives Priorities By Sector
Transport for NSW –Business System Improvements $151.3M
Service NSW –Customer Service System Integration $33.9MNetwork Technology $21.1MDigital Channel Enhancements $19.0M
NSW Police –COPS Phase 3 Technical Migration $44.9MVoice Infrastructure Migration and Data Network Upgrade $20.5M
NSW Police – Technology Asset Replacement Program $45.0MDept. Justice – Justice Audio Visual Link Consolidation $40.0M
NSW Police –Greater Metro Area Radio Terminal/Network Refresh $56.7M
9Pareto Principle applies to New Initiative Allocations
$208.75m of total $264.3m is allocated to spend in 2016-17
10
Budget impacts & ICT initiatives
Budget impacts & ICT initiatives
NSW ICT contractingNSW ICT contracting
Transformation journey to date Transformation journey to date
11Key Points
Total contract value (TCV) for 2015-16 is $1.08B
The published value of a contract is allocated to the year in which the contract commences
Dataset understates the NSW ICT TCV because:
1. It excludes contracts under $150,000; and
2. NSW agencies may be failing to report relevant contracts in a timely manner.
Contracts often difficult to categorise because of very poor descriptions
122015-16: the Year Vapourware Became Cloud
$25.6 M
$146.0 M
$ K
$20 M
$40 M
$60 M
$80 M
$100 M
$120 M
$140 M
$160 M
2014-15 2015-16
2015-16 Cloud market YOY increase: 470%
FaCS: $53.6m• Accenture - SAP as a Service Solution
Justice: $35.3m• Accenture - ERP System/SAP As a Service
Solution
Transport for NSW: $19.7M• SAP - SAP ARIBA Cloud Services for S2C
13
$1.1 Billion
$120.4 M
1081
2522
0
500
1000
1500
2000
2500
3000
$ K
$200 M
$400 M
$600 M
$800 M
$1 Billion
$1 Billion
Over 150k Under 150k
Nu
mb
er
of
Co
ntr
acts
Tota
l Co
ntr
act
Val
ue
Total Contract Value
Intermedium Estimate
Real market is in contracts worth more than $150,000
TCV of reported contracts
142015-16 decrease in TCV correlates to budget investment
$59.1 M
$163.1 M
$153.1 M
$318.3 M
$621.4 M
$78.9 M
$125.4 M
$137.4 M
$216.6 M
$529.7 M
Labour Hire
Hardware
Telecommunications
Software
IT Services
2015-16 2014-15
2014-15 new initiatives = $561m
2015-16 new initiatives = $160m
15
SI Services50.38%
IT Managed Services38.55%
Business Consulting7.73%
Unspecified2.31%
Training1.02%
SI Services50.18%
IT Managed Services38.22%
Business Consulting6.75%
Unspecified4.59%
Training0.25%
$0.5B NSW IT services 2015-16
Federal IT Services 2011-16 - average
IT Services contracting
16
Transport and Infrastructure $391.6 M 299 36.1%
Health $298.9 M 528 27.6%
Family and Community Services $141.1 M 41 13.0%
Finance, Services & Innovation $80.0 M 113 7.4%
Justice $49.3 M 20 4.5%
Education $44.3 M 28 4.1%
Treasury $35.7 M 4 3.3%
Industry, Skills & Regional Development $28.6 M 27 2.6%
Planning and Environment $10.5 M 10 1.0%
Premier and Cabinet $3.2 M 11 0.3%
Contract Value Contract Number Market ShareAgency cluster
2015-16 NSW contracts by cluster
172015-16 Supplier Leaderboard
1 UXC LIMITED 113.30 M 1 10.46%
2 TELSTRA 102.14 M 31 9.43%
3 ACCENTURE 90.05 M 4 8.31%
4 CERNER CORP 38.76 M 13 3.58%
5 DIMENSION DATA 36.96 M 33 3.41%
6 SALESFORCE.COM 31.37 M 3 2.90%
7 PWC 30.04 M 4 2.77%
8 ORACLE 29.48 M 31 2.72%
9 IBM 26.55 M 8 2.45%
10 DELOITTE 25.09 M 12 2.32%
11 SAP 21.00 M 5 1.94%
12 METRONODE 18.80 M 1 1.74%
Contract Value Contract Number Market ShareSupplier Rank
182015-16 Supplier Leaderboard
13 DATA#3 GROUP 15.73 M 36 1.45%
14 HEWLETT-PACKARD 15.10 M 19 1.39%
15 NEC AUSTRALIA 13.37 M 13 1.23%
16 DE LAGE LANDEN 12.93 M 2 1.19%
17 LENOVO 12.21 M 4 1.13%
18 UXC RED ROCK 11.99 M 13 1.11%
19 UXC CONNECT 11.13 M 14 1.03%
20 PAXUS 10.45 M 43 0.96%
21 FUJITSU 10.19 M 22 0.94%
22 SQUIZ 10.15 M 3 0.94%
23 RISKMAN INTERNATIONAL 8.69 M 2 0.80%
24 HEALTH COMMUNICATION NETWORK 8.42 M 1 0.78%
25 ROUTEMATCH SOFTWARE 8.37 M 1 0.77%
Contract Value Contract Number Market ShareSupplier Rank
19
Supplier Rank ValueAgency Contract Title
1 UXC LIMITED Transport for NSW NGIS Managed Network Services Agreement (RFP2014/052) $113.30 M
2 ACCENTURE Family & Community Services SAP as a Service Solution Agreement $53.61 M
3 TELSTRA Transport for NSWNext Generation Infrastructure Services (NGIS) Fixed Voice & Mobile Services $41.27 M
4 ACCENTURE Department of Justice ERP System/SAP As a Service Solution Agreement $35.34 M
5 PWC NSW Treasury Prime Implementation $25.50 M
6 CERNER CORP HealthShare NSW Operational Management Services (OMS) $23.92 M
7 IBM Transport for NSW TfNSW NGIS Hardware Purchase $20.92 M
8 SAP Transport for NSW SAP ARIBA Cloud Services for S2C $19.66 M
9 SALESFORCE.COM Family & Community Services ChildStory Deployment Phase - Salesforce Professional Services $19.22 M
10 METRONODE Finance, Services & Innovation GovDC Monthly Provisioning Payments $18.80 M
11 DELOITTE Transport for NSW RMS Systems Integration $18.03 M
12 TELSTRA Department of Education Telecoms - Voice and Mobile $17.81 M
13 TELSTRA Family & Community Services Fixed Voice & Mobile Services $13.00 M
2015-16 Top 25 Contracts
20
14 DIMENSION DATA Transport for NSWMicrosoft Enterprise Agreement (Desktop O365 Services) 2015-18 $12.40 M
15 LENOVO Roads & Maritime Lenovo Contract Variation: Execution of option to extend $10.72 M
16 DE LAGE LANDEN HealthShare NSW Server and Cloud Agreement 062014 $9.64 M
17 TELSTRA Service NSW Telecommunications Data Services Contract $8.67 M
18HEALTH COMMUNICATION NETWORK HealthShare NSW Standing Order - Not Applicable $8.42 M
19 ROUTEMATCH SOFTWARE Transport for NSW Centralised Trip Allocation and Booking System $8.37 M
20 SICE Roads & MaritimeDesign, Supply, Installation and Maintenance if the Trip Reconstruction and Rating Module (TRARM) $8.23 M
21 C3 BUSINESS SOLUTIONS Family & Community Services ChildStory Deployment Phase - EYC3 Professional Services $8.20 M
22 SALESFORCE.COM Service NSW Customer Service Systems Technology $7.35 M
23 SQUIZ Family & Community Services ChildStory Deployment Phase - Squiz Subscription Services $7.25 M
24 MULESOFT Family & Community Services ChildStory Deployment Phase - Mulesoft Subscription Services $7.07 M
25 NEC AUSTRALIA Family & Community Services Consolidated Call Centre Platform $6.71 M
2015-16 Top 25 Contracts (Cont.)
Supplier Rank ValueAgency Contract Title
212015-16 IT Services TCV - top 10 agencies’ market share
27%
22%18%
7%
6%
5%
4%
2%2%
4%Transport for NSW
Department of Family and Community Services
HealthShare NSW
Department of Justice
Department of Finance, Services and Innovation
NSW Treasury
Roads and Maritime Services
Department of Education
Sydney Trains
Service NSW
Other Agencies
Total ITS market $0.5 B
22
21%
16%
6%6%5%
4%3%
2%2%
33%
UXC LIMITED
ACCENTURE
SALESFORCE.COM
PWC
CERNER CORPORATION
DELOITTE
METRONODE
DE LAGE LANDEN
SQUIZ
HEALTH COMMUNICATION NETWORK
Other Suppliers
2015-16 IT Services TCV - top 10 suppliers’ market share
Total top 10 market value $0.3 B
Total ITS market $0.5 B
23
Budget impacts & ICT initiatives
Budget impacts & ICT initiatives
NSW ICT contractingNSW ICT contracting
Transformation journey to date Transformation journey to date
24
Four scenarios for the year 2025
Adapted from Figure 1 of Queensland’s Digital Marketplace for Public Services: Four Scenarios in the Year 2025 (DSITI, Data61)
Digital Transformation means institutional and technological changeScenario 1 –
Heritage
Scenario 2 –New Order
Scenario 4 –Stargate
Scenario 3 –Turbocharge
Substantial
Shallow Deep
Limited
25
Digital Government Maturity
Automation
Digitising current procedures ‘as is’
Hybrid
Simplifying & redesigning current processes before digitising
Institutional Change
Rethinking & redesigning entire administrative systems
26
$51.2MTechnology for Learning & ICT Department of
Education
$56.7M Greater Metro Area
Radio Network & Terminal Refresh
NSW Police
$31.8M Building Digital Capability &
Transition of Agency Transactions Service NSW
$20M Ambulance Radio
Network Replacement Ministry of Health
$45.03MCritical Communications Enhancement Program
NSW Government Telecommunications Authority
Transformation Initiatives Institutional Change
Hybrid
Business as Usual
Business as Usual
Business as Usual
$10M Whole-of-System
Digital Reform Ministry of Health
Institutional Change
27Digital Government Readiness
Rate of Change: July 2015 – July 2016
28NSW – The National Leader
0 1 2 3 4 5 6 7 8 9 10
Jul-16
Mar-16
Jul-15
NSW DGRI Score: July 2015, March 2016, July 2016
ICT Strategy ICT Policy
ICT Governance Service Delivery Key Agencies
Procurement Policy Cross-Jurisdictional Cooperation
8.9
9.4
9.1
29Leaderboard
1 NSW 8.9 NSW 9.1 NSW 9.4
2 QLD 6.8 QLD 7.0 QLD 7.4
3 VIC 6.4 Federal 6.6 SA 7.4
4 SA 6.3 SA 6.5 VIC 7.3
5 Federal 6.2 VIC 5.9 Federal 6.9
6 TAS 4.5 ACT 5.2 WA 6.1
7 NT 4.5 TAS 4.5 ACT 5.1
8 ACT 3.8 NT 4.5 TAS 4.8
9 WA 3.5 WA 4.4 NT 4.1
ScoreRank ScoreJuly 2016Score March 2016July 2015
30Drill Down: ICT Strategy
ICT Strategy Score (as a %)
40%
100% +
55%
94%
26%
0% 20% 40% 60% 80% 100%
NT
ACT
TAS
Federal
WA
SA
VIC
QLD
NSW
Common strategy elements across Australia
• Frameworks to promote coordinated aaS adoption • WofG data analytics integration• WofG digital platforms• Emergence of WofG “Chief Digital Officer”
(with variances)
31Drill down: ICT policies
Privacy Data Retention
Open Data
Cyber Security
VIC
NSW
Federal
SA
QLD
ACT
WA
NT
TAS
ICT Policy Score (as a %)
50%
14%
100% +
8%
7%
0% 20% 40% 60% 80% 100%
TAS
NT
WA
ACT
QLD
SA
Federal
NSW
VIC
Go to www.intermedium.com.au
1. Log In / register for an account2. Download a copy of the report3. New users – receive one month’s
complimentary access to Intermedium’s Knowledge Base
Access the full report
33Contact us
T: (02) 9955 9896
F: (02) 9955 2995
W: www.intermedium.com.au
Suite 202, 160 Pacific Highway, North Sydney NSW 2060
Judy HurditchPrincipal Analyst
Recommended