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DRAFT - Commercial in Confidence

Top five takeaways

By lifting and shifting a broken model into an outsourced structure the issues within ServiceFirst have been compounded. If these issues are to be addressed, and the potential future opportunities available through advanced automation technology realised, a significant investment in harmonisation of process and a move to contemporary systems is required.There is broad consensus around the Service Integrator model representing the best way to avoid regressing back to the days of ServiceFirst. The Service Integrator model represents the following:

1. Clear and agreed accountability for the Lead Agency to manage the relationships and drive outcomes2. A genuine ‘front door’ for ensuring platform integrity and shared benefits3. Reinforcement of harmonisation principles and enablement of process ownership to drive transformation (in

the absence of this we will simply be applying technology onto the old process)It is important to note though that this requires a capability and competence investment e to support the transformation

The growth of the model may be limited if it is too DFSI centric. However, in the short term this needs to be balanced with the need to exert control to drive standardisation. Once stable, the model needs to be open and scalable in order to realise benefits from volume increase. Government need to create an environment that incentivises the commercial providers to do the right thing – growth provides this opportunityChicken and egg – agencies need to trust GovConnect 2.0 to delegate authority to them, but if performance uplift is to be realised they need to subsume their control and operate within the ‘rules’. The model as designed allows for them to hold the SI accountable for performance – ultimately if client agencies want to remain in the club they will need to sign up to the new rules.Government need to face the reality that they are working with commercial providers. All parties are invested in making GovConnect work, but the relationship with government and between the vendors themselves needs to be worked on if a mutually beneficial commercial renegotiation can occur next June 2018.

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4© 2017 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

DRAFT - Commercial in Confidence

A Service Integrator model is recommended to improve customer and client experience, and drive harmonisation

Implications of the recommended SI Model Within a Service Integrator (SI) model, the SI

becomes the service organisation and is the primary interaction point for clients and customers

Customers therefore engage with ‘GovConnect’, not multiple vendors

The SI (GovConnect 2.0) needs to be funded to operate and develop the ‘platform’, i.e. the systems, processes and services which provide the in-scope service catalogue

Client agencies will no longer pay vendor invoices directly. This will be managed via the SI.

End to end service performance becomes the responsibility of the SI, and they therefore require the means to manage this

Client agencies will need to transfer their decision rights within the COA’s to the SI under a Memorandum of Understanding (MOU) or equivalent

For client agencies to access the benefits of the arrangement they are required to abide by the ‘club rules’, i.e. standard platform, defined service catalogue, negotiated pricing

The SI model provides a more clear cut route to harmonised processes

VMO replaced with a Service Integrator who is responsible for service performance. Clients will (via an MOU) delegate their rights under the COAs to the Service Integrator who will commission services on their behalf, manage /

drive vendor performance and continuous improvement

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DRAFT - Commercial in Confidence

Commercial renegotiation should be triggered at the expiry of the COAs provided certain pre-requisites have been achieved

• The NSW Government and Infosys are both invested in making GovConnect a success. The next phase of harmonisation activity to streamline and standardise process, and move to a more contemporary technology platform, is critical in positioning GovConnect to take advantage of the innovation potential offered by new advanced automation solutions.

• The existing commercial model is not fit for purpose to enable both parties to move into the optimisation phase. The end of the 3 year COA term presents GovConnect with an inflexion point at which the existence of certain pre-requisites (defined opposite) will enable a commercial re-negotiation to position the adoption of new technologies which could significantly lift performance and drive increased benefits.

Platform• Standardised and stable

processes• A contemporary suite of

standard technology applications

• Robust understanding of performance drivers and outcomes

• Clear roles and accountabilities• Effective governance

Relationship between vendors and Government• A clear and shared vision for

the outcomes that GovConnect is aiming to achieve

• An appreciation of what all parties are seeking to achieve

• An acknowledgement that vendors need to make a commercial return

• Clear guiding principles for how the relationship should operate

• A level of trust between all parties (both organisational and individual)

Pre-Requisites