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Title page 1

Contents 6

Foreword 4

Acknowledgements 5

Executive summary 9

1. Assessment and recommendations 11

Overall assessment 12

Policy recommendations 16

2. The IOF as a whole-of-government approach to digital investments 18

The OECD approach to managing digital government investments 19

Policy into practice: The Australia Government's Digital and ICT Investment Oversight Framework (IOF) 21

Making digital and ICT investments in Australia's context 23

The Australian Government's approach to investments in the 2023 DGI 25

Strengths of the IOF overall 27

Where to focus next for the IOF overall 30

References 33

3. Strategic planning 35

Overview of the Strategic Planning state 36

Strengths of the Strategic Planning state 37

Where to focus next for the Strategic Planning state 39

References 42

4. Prioritisation 43

Overview of the Prioritisation state 44

Strengths of the Prioritisation state 47

Where to focus next for the Prioritisation state 48

References 49

5. Contestability 50

Overview of the Contestability state 51

Strengths of the Contestability state 53

Where to focus next for Contestability 54

References 59

6. Assurance 61

Overview of the Assurance state 62

Strengths of the Assurance state 65

Where to focus next for Assurance 66

References 69

7. Sourcing 70

Overview of the Sourcing state 71

Strengths of the Sourcing state 73

Where to focus next for the Sourcing state 75

References 80

8. Operations 82

Overview of the Operations state 83

Strengths of the Operations state 84

Where to focus next for Operations 86

References 88

Tables 7

Table 2.1. The IOF Toolkit 27

Figures 7

Figure 2.1. OECD Digital Government Investment Framework 20

Figure 2.2. The Australia Government's Digital and ICT Investment Oversight Framework (IOF) 21

Figure 2.3. Mapping the IOF to the OECD Digital Government Investment Framework 23

Figure 2.4. The Australian Government's annual budget process 24

Figure 2.5. Metrics on digital government investment in the 2023 DGI 26

Figure 2.6. Aligning the Benefits Management Lifecycle with the IOF 28

Figure 3.1. Overview of the AGA 38

Figure 4.1. Overview of DIO Criteria 45

Figure 4.2. Example of the DIO (overview summary) 46

Figure 4.3. Example of the DIO (portfolio summary) 46

Figure 6.1. Minimum Assurance requirements for different tiers of investment under the IOF 63

Figure 6.2. Delivery Confidence Assessments (DCA) for in-flight projects 64

Figure 7.1. Overview of the StartOff process 78

Figure 7.2. The Building Blocks and Enabler of the OECD GovTech Policy Framework 79

Figure 8.1. Overview of the IDP 85

Figure 8.2. The panorama of major digital projects 87

Boxes 8

Box 2.1. IOF Toolkit: Benefits Management Policy (BMP) 29

Box 2.2. Country practice: Dedicated digital funding to foster digital transformation 32

Box 3.1. IOF Toolkit: Data and Digital Government Strategy (DDGS) 37

Box 3.2. IOF Toolkit: Australian Government Architecture (AGA) 38

Box 3.3. IOF Toolkit: Digital Investment Plans 39

Box 3.4. Country practice: Linking investment data into strategic workforce planning in Canada 40

Box 4.1. IOF Toolkit: Criteria and indicators for Prioritisation 45

Box 4.2. IOF Toolkit: The Digital Investment Overview (DIO) 46

Box 5.1. IOF Toolkit: Digital and ICT policy and standards 51

Box 5.2. IOF Toolkit: Digital Capability Assessment Process (DCAP) 52

Box 5.3. IOF Toolkit: First, Second and Combined-Pass Business Cases 53

Box 5.4. IOF Toolkit: Quarantined funding to tie payments to the delivery of milestones 54

Box 5.5. Country practice: The UK's evaluation methods and capabilities 56

Box 5.6. Country practice: Assessing environmental impact of digital investments 58

Box 6.1. IOF Toolkit: Assurance Plans 62

Box 6.2. IOF Toolkit: Assurance Framework for Digital and ICT Investments 64

Box 6.3. Country practice: Escalations for projects at-risk 68

Box 7.1. IOF Toolkit: BuyICT - a digital procurement platform 72

Box 7.2. IOF Toolkit: Procurement guidance with the Digital Sourcing Lifecycle 74

Box 7.3. Country practice: GovTech to source more innovative digital solutions 78

Box 7.4. The OECD GovTech Policy Framework 79

Box 8.1. IOF Toolkit: Wave reporting 84

Box 8.2. IOF Toolkit: Integrated Data Platform (IDP) 85

Box 8.3. Country practice: France's panorama of major digital projects 87