A Digital Blueprint for Funding, Governance, and Assurance
- Digital Team
- Feb 18
- 3 min read
Updated: Jun 3
Executive summary
The Government of New South Wales (NSW) approach to 'Digital Funding, Governance, and Assurance' outlines a strategy to support whole-of-government digital transformation. It identifies key challenges in current funding models, governance structures, and assurance processes that hinder progress. The framework includes a dedicated digital fund, a streamlined governance approach, and an assurance model designed to enable agile and iterative digital investment.
This article summarises the key sections of the blueprint, covering the funding framework, governance mechanisms, assurance processes, and insights from international exemplars. It also highlights key lessons for other nations to consider when designing digital funding and governance models.
Key sections
Context and challenges
Proposed funding model
Governance structure
Assurance mechanisms
Global best practices and recommendations
Context and challenges
The existing digital investment landscape faced several critical challenges that limited the effectiveness of whole-of-government digital transformation. Key issues included:
Limited funding for multi-agency digital initiatives, restricting the ability to create seamless citizen journeys.
A lack of a sustainable funding mechanism for core and common digital services.
High costs and complexity of replacing legacy IT systems.
Governance structures that do not align with the needs of agile digital development.
An assurance model that is slow and does not support iterative digital transformation.
Addressing these challenges required a fundamental shift in the way digital initiatives are funded, governed, and assured to ensure long-term sustainability and effectiveness.
Funding model
To resolve funding constraints, a dedicated digital fund is utilized aiming at accelerating whole-of-government digital transformation. Key aspects of the funding model include:
A separate digital transformation fund to complement existing agency budgets, focusing on priority digital investments.
Incremental funding releases based on iterative development and tangible progress, rather than one-off capital investments.
A focus on common and core digital components to prevent duplication and reduce unnecessary expenditure.
Support for legacy modernisation, prioritising systems that offer the greatest value in improving service delivery.
Flexible allocation criteria, allowing for quick funding adjustments based on evolving digital needs and project performance.
Governance structure
A revised governance model is required to enhance coordination and decision-making for digital investments. Key governance reforms include:
Creation of a central decision-making entity, either through an empowered Customer and Digital Council or a new Digital Transformation Committee.
Portfolio management function to track digital investment priorities and oversee project performance.
Cross-agency collaboration mechanisms to encourage seamless integration of digital initiatives.
Empowerment of delivery teams, reducing unnecessary governance layers while maintaining accountability.
Clear funding oversight processes to ensure transparent and strategic allocation of digital transformation resources.
Assurance mechanisms
Introduce a ‘fast lane’ assurance process to support agile digital investments. This includes:
Early engagement of ICT assurance to reduce project risks and align investments with strategic priorities.
Incremental funding checkpoints, ensuring projects continue receiving funding based on successful milestone achievements.
Outcome-based measurement, linking assurance processes with tangible citizen benefits and digital service improvements.
Simplified reporting structures, minimising bureaucracy while ensuring robust project oversight.
Dedicated assurance for legacy modernisation, focusing on de-risking large-scale digital replacements.
Global best practices and recommendations
Contrasting with international case studies, key lessons emerge:
Establish a centralised digital transformation fund – Countries such as the UK and Singapore have demonstrated the benefits of a dedicated digital investment fund that supports high-priority projects.
Adopt an agile and iterative funding model – Incremental funding releases tied to performance milestones help manage risks and ensure continuous improvement.
Simplify governance structures and empower delivery teams – Reducing bureaucracy and providing clear decision-making authority enhances the speed and efficiency of digital delivery.
Develop a strategic approach to legacy modernisation – Allocating targeted funding for modular and incremental modernisation helps avoid large, high-risk capital expenditures.
Integrate assurance with funding decisions – Tying assurance checkpoints to funding releases ensures that digital initiatives remain accountable and aligned with broader strategic objectives.
Conclusion
The funding, governance, and assurance model aims to accelerate digital transformation by addressing existing structural and financial limitations. By implementing a centralised yet flexible approach to funding, simplifying governance, and integrating assurance within the funding lifecycle, governments can ensure more effective and sustainable digital transformation efforts. Lessons from global exemplars reinforce the importance of iterative, accountable, and strategically aligned digital investment frameworks.
References
The NSW Digital Blueprint: Funding, Governance, and Assurance Model
Comments