A failed attempt to modernise business registers
The federal government’s ambitious plan to modernise its business registers has been scrapped after a scathing report by the Australian National Audit Office (ANAO) revealed serious flaws in the project’s design, governance and delivery.
The Modernising Business Registers (MBR) program was launched in 2018 with the aim of creating a single platform for 35 business registers, including the Australian Business Register and the Australian Securities and Investments Commission’s registers. The project was expected to cost $537.3 million over four years and deliver benefits such as improved data quality, reduced compliance costs and enhanced service delivery.
However, the ANAO found that the project was poorly planned, managed and executed, resulting in significant delays, cost overruns and risks to data security and integrity. The report highlighted several issues, such as:
- The project scope was too broad and complex, requiring the integration of multiple legacy systems and data sources, some of which were outdated or incompatible.
- The project governance was ineffective, with unclear roles and responsibilities, inadequate oversight and reporting, and frequent changes in leadership and personnel.
- The project delivery was inefficient, with poor procurement practices, insufficient testing and quality assurance, and frequent technical issues and defects.
- The project benefits were overstated, with unrealistic assumptions, unreliable estimates and insufficient evidence to support the expected outcomes
As a result of these problems, the project failed to meet any of its milestones or deliverables, and was terminated in June 2021 after spending $223.9 million. The ANAO concluded that the project did not achieve its objectives or provide value for money for the government or the public.
Lessons learned from the tech catastrophe
The MBR debacle is not an isolated case of government technology failure. In recent years, Canberra has witnessed several high-profile tech wrecks, such as the robodebt scheme, the myGov website and the COVIDSafe app. These examples demonstrate that the federal government struggles with digital technology and needs to improve its capabilities and practices.
According to Dr Lesley Seebeck, a former chief digital officer for the Australian Defence Department and a cyber expert at the Australian National University, the government needs a better conceptual model of how technology fits with democratic government. She argues that technology is now core to the interaction between government and citizens, but it is often seen as a cost centre or a tool for efficiency rather than a way to enhance democracy and public trust.
She suggests that the government should adopt a more user-centric approach to digital service design, focusing on the needs and expectations of citizens rather than its own interests. She also proposes that the government should act as a steward rather than a controller of citizen data, ensuring that it is collected, stored and used in a transparent and ethical manner. Moreover, she advocates for a bill of digital rights that would protect the rights and freedoms of citizens in the digital age.
Another lesson that can be drawn from the MBR fiasco is that big bang technology projects are doomed to fail. As Damon Rees, a former deputy secretary for ICT at Services Australia, said in a recent podcast: “There is no such thing as big bang transformation. It’s incremental change over time” . He explained that large-scale IT projects are inherently risky and complex, requiring constant adaptation and iteration to cope with changing requirements, technologies and environments.
He recommended that the government should adopt a more agile and modular approach to technology delivery, breaking down projects into smaller and manageable chunks that can be tested and validated before scaling up. He also stressed the importance of having clear vision, strong leadership and effective governance for technology projects, as well as engaging with stakeholders and users throughout the process.
How to avoid future tech disasters
The MBR case study provides valuable insights into what can go wrong with government technology projects and how to prevent them. Based on the ANAO report and the expert opinions, some possible strategies to avoid future tech disasters are:
- Define a clear scope and objectives for technology projects, ensuring that they are aligned with the government’s strategic priorities and outcomes.
- Establish an effective governance structure for technology projects, clarifying roles and responsibilities, setting up appropriate oversight and reporting mechanisms, and ensuring accountability and transparency.
- Follow best practices for procurement, contracting and vendor management, ensuring that they are fair, competitive and compliant with relevant policies and standards.
- Adopt an agile and modular methodology for technology delivery, using iterative cycles of design, development, testing and feedback to deliver value incrementally.
- Conduct rigorous testing and quality assurance for technology products, ensuring that they meet functional, performance, security and usability requirements.
- Monitor and evaluate technology projects regularly, measuring progress against milestones and deliverables, assessing risks and issues, and reporting on benefits and outcomes.
By following these steps, the government can improve its chances of delivering successful technology projects that provide value for money and enhance public service delivery.
