Digital transformation at the Department of Finance WA
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Department of Finance WA: Improving process through people-driven digital transformation WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
MIKE SADR
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ANDY WOOD, EXECUTIVE DIRECTOR – CORPORATE SERVICES AT THE DEPARTMENT OF FINANCE WESTERN AUSTRALIA, DISCUSSES THE DYNAMIC DIGITAL TRANSFORMATION JOURNEY THAT HAS IMPROVED PROCESSES, SERVICES AND OPERATIONAL EFFICIENCY
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he Western Australian Government’s Department of Finance has undergone an important period of innovation and
change, driven by disruptive technologies and a people-first approach to both its customers and employees. Andy Wood, the Department’s Executive Director of Corporate Services, has led Finance’s transition to cloud-based operations and continues to encourage a focus on data analytics and the exciting possibilities afforded by AI and automated services. “Adopting a digital approach is absolutely vital in everything,” Wood says. “With it, we can drive practical, cost-effective and quality outcomes across government, which will ultimately benefit the people of Western Australia.” At the root of the Department’s digital transformation is its approach to vendor management - building a strong level of symbiosis between provider and customer. “If you really want true success or innovation, you’ve got to treat them
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“ Adopting a digital approach is absolutely vital in everything” — Andy Wood, Executive Director – Corporate Services, Department of Finance WA 06
as partners,” says Wood. “This helps
isolation and rather understand the
them provide the best offerings to enable
full scope of Finance’s digital transfor-
and achieve strategic outcomes.”
mation.” Of its vendor-partners,
Wood describes this as a paradigm shift
Microsoft has been important through
in procurement thinking, where tradition-
the Department’s digital transformation
ally vendors would offer their best price
journey, particularly as a provider of
to deliver a service or product to exact
vital cloud capabilities. “Our previous
specifications, limiting the ability to
operating model was very heavy and
understand the problem and collabo-
lethargic in that we would buy a piece
rate on solutions. “We take an approach
of kit, we’d put it in place and it would
whereby we select a small number of
stay there for 10 years and we’d never
strategic partners which not only
innovate with it,” said Wood. “Cloud
challenge us and our preconceptions
computing has become a building block
but also look beyond technology in
of Finance’s digital transformation. It’s
what our strategy is built upon and the key foundation of everything we want to achieve.” Over the next decade, the Department plans to continue its prolific usage of cloud technology across its infrastructure services, creating a Platform as a Service (PaaS) for each of the software and service offerings it provides to its customers. The adoption of cloud has also given the Department a more complete understanding and access to its data,
The Department of Finance’s ABW environment incorporates wireless access in three zones across each floor, including a quiet zone
enable it to drive increased efficiency through data-driven insights. Its cloud-enabled data platform collates information sets, not only from within
E XE CU T I VE PRO FI LE
Andy Wood Andy Wood has 20 years’ experience in leadership roles across Banking, Superannuation, Professional Services, Local and State Government. Prior to being appointed as Executive Director, Corporate Services in February 2016, Wood spent six years as a Director with a global outsourcing firm, leading their Citizen Services business in Western Australia. Wood is the senior responsible officer for the Department of Finance’s Digital Transition Program and holds a Masters in Business Administration specialising in Leadership and Innovation.
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Digital Transformation executed locally with global vision. Velrada congratulates the Department of Finance on it’s vision to drive digital transformation across the Western Australian Public Sector. Recognised globally as the Number 1 Microsoft Partner, with a focus on Business Advisory, Microsoft Dynamics 365, Office 365, Data & AI & Azure Cloud Services. Our large and experienced local WA team offer international expertise to Mining, Oil&Gas, Private and Public Sector organisations who want to drive positive outcomes through a digital transformation journey.
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“ “ W Wee treat treat cybersecurity cybersecurity as as more more than than an an IT IT issue issue” — — AndyWood, Wood, Andy ExecutiveDirector Director– Corporate Services, Executive – CorporateofServices, Department Finance WA Department of Finance WA
reused across the organisation. This was a massive step forward for us.” The Department is now moving towards harnessing data to be more predictive, particularly regarding cash analytics and optimising cash flow to mitigate wasted spending and accurately forecast the Department’s financial situation over given lengths of time. In order to achieve continued success, the Department recognises the importance of engaging staff and instilling a culture of innovation and disruption. “In any transformation there are three questions that need to be answered: the strategy question, the
the Department itself but also different
technology question and the people
areas across government, to enrich
question. The people question is the
decision-making processes, and its
hardest to answer but is absolutely
swift uptake has resulted in positive
paramount, and how well you answer
impacts. “Business intelligence has
it ultimately determines the level of
been rapidly adopted across the
success you’ll have,” says Wood.
organisation,” notes Wood. “We started
A culture of embracing change has
out with a small proof of concept to get
come through instilling an understand-
50 people from the organisation using
ing that challenges along the way will
Microsoft’s Power BI to visualise reports
ultimately benefit every stakeholder
from the massive data source we have.
in the business. A key element of this
Within 12 months, it has exploded to
is affirming that people, not technology,
about 350 users actively investigating
are leading the transformation. By
and developing reports both in the front
incorporating Kotter’s 8-Step Change
and back ends, meaning they can be
Model to ensure new capabilities are w w w.f i na nc e .wa. g ov. a u
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A$1.4bn+ Approximate revenue (AUD)
2011
Year founded
1,000
Approximate number of employees 10
incorporated into processes effectively
inspiring them to believe that they are
from both an operational and skills-
responsible, the creators, of the future
based point of view, the Department
state,” says Wood. “That really is what
has ensured that staff remain focused
drives cultural change.”
on their end goals and aware of the
Cybersecurity was also a priority
mounting benefits throughout the
of the Department due to the enormity
journey. “Keeping people focused on
of financial, operational and sensitive
the endpoint, which in many instances
data that it accrues. In a report released
was only six to eight months away,
by CompTIA this year, it was found that
saw us through. You instill a common
60% of IT professionals in Australia
understanding about what we’re
and New Zealand deem employees
collectively working towards and
to be the biggest risk factor to keeping
what we’re trying to achieve, while
data safe, and Wood is with the majority.
Engaging Department of Finance WA staff is a key component in Finance’s digital transformation
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“We treat cybersecurity as more than
its transition to the cloud has benefit-
an IT issue,” he says. “Fundamentally,
ted again from the Department’s
the weakest point of any organisation’s
close work with Microsoft, enabling
security practices is its people.” To that
multi-factor authentication through
end, the Department has ingrained a
the Azure platform along with proven
culture of awareness and vigilance
concept trials around Azure data
amongst its employees to mitigate this
protection capabilities.
risk as much as possible. The Depart-
“It’s about framing the metadata
ment has also established an informa-
within documents and adding different
tion security management framework
security controls around how and
that complies with the ISO 27001
with whom those documents can be
international standard, with around 114
shared, and preventing the ability to
security controls in place. At an IT level,
share externally if certain parameters w w w.f i na nc e .wa. g ov. a u
are not met,” says Woods. “For us, it’s a top priority not only for the data we hold but also the data that’s shared with us from other government entities or third parties.” Wood outlines the five key goals of Finance’s continued digital transformation: 1. Empowering customers to interact with the Department in the ways that best suit them; 2. Converting every transaction to a digital format; 12
3. Maximising the value of data through generating increased actionable insights; 4. Developing and maintaining a strong cybersecurity culture that ensures information is shared with relevance and responsibility; 5. Ensuring that the Department is prepared for the digital future. This final goal, the future-proofing of the organisation, has already partly taken effect to the extent that this is what’s driving the achievement of the others. “We’re in a position now where we’ve freed ourselves to be able to look at new technologies as they
The Department of Finance oversees complex building projects including Optus Stadium and the surrounding Stadium Park
“The people question is the hardest to answer but is absolutely paramount. How well you answer it ultimately determines the level of success you’ll have” — Andy Wood, Executive Director – Corporate Services, Department of Finance WA 13
appear, assess them quickly, and decide if it’s something we want to spin-off as a proof of concept,” he says. “Under our old operating model, we couldn’t do that. We were too busy just trying to get the lights on.” The future is certainly bright for the Department of Finance WA; positively positioned for its ongoing digital transformation with a culture that embraces change and finds excitement in a digital future in place.
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Government of Western Australia Department of Finance T (+61) 08 6551 1000 E customerservice@finance.wa.gov.au www.finance.wa.gov.au