East Midlands Development Agency and the Regional Economic Strategy - East Midlands Regional Committee Contents


Memorandum submitted by Mr David Gale, CEO, SITFO—Strategic IT Framework Organisation (EM 38)

THE FINANCIAL BURDEN CAUSED BY THE LACK OF CLEAR NATIONAL STRATEGIES RELATING TO THE DELIVERY OF PUBLIC SECTOR IT IN THE EAST MIDLANDS

  I have been engaged at a senior level as both customer and supplier in both public and private sector IT for the past twenty years. I am the originator of TADAG (tadag.com), the Strategic IT Framework (sitfo.org), and the architecture for CSIS (Customer Services Information System), and have worked with senior Microsoft Corp (Redmond) personnel and IBM on strategic product development and associated marketing. I was the principal customer speaker at Microsoft's product launch of BizTalk 2006 at the Stock Exchange, and have participated in speaker roles at numerous major European conferences. I have been the guest of both the Scottish and Welsh Assemblies, and have consulted with European governments, up to and including ministerial level. I have hosted and delivered a major seminar for the Chinese government attended by Xin Renzhou and all 21 of China's regional CIOs. I am currently engaged with the EU, via the cabinet of Viviane Reding, in trying to identify a mechanism for the EU's adoption of the Strategic IT Framework as a long-term, Europe-wide enabler of service transformation. By contrast, I have had a particularly poor relationship with the English government, and the Cabinet Office in particular. I am seen as an individual that seeks to call-in the money-wasting antics of window-dressing Whitehall IT tacticians and their lucrative arrangements with major UK suppliers of public sector IT that should and do know better.

There is a complete lack of cohesion with English public sector IT that perpetuates "point solutions" in the vacuum that is long-term vision.

Delivery mechanisms are a complex, interwoven mire of accountancy and bean-counting, where the mitigation of risk to the cv's of involved parties and the need to show an almost instantaneous return, outweigh the need for the long-term strategic investment that could deliver substantial savings and improvements in public services.

  The national malaise is too large a subject area for me to give details in this brief email but I submit the following as examples that link directly to emda and the Derby and Derbyshire Economic Partnership (DDEP) for your consideration:

    DDEP broadband hot-spot project—funding for "consultants" to deliver broadband to areas of Derbyshire without broadband. The consultants looked to wi-fi small market towns like Chesterfield, Glossop, Matlock and Bakewell, all of which already have broadband. Rather than give the £100,000 back to emda they gave the money to a Derby City Council project to wi-fi Derby's Cathedral quarter with a tactical, window-dressing solution. This despite there being an unfunded long-term strategy to deliver wi-fi as a public utility within the city, using substantially different technology.

    The consultants did try to get wi-fi into Peak Forest by going to tender but received no bids. The consultants seem to be keeping a low profile.

    Lightspeed is a 21st century Derby project to deliver public access fibre run by another DDEP-funded consultant. This project has been running for two years and, so far, not a single metre of fibre has been laid. The opportunity to lay fibre inexpensively, when refurbishing roadside kerbs which could have had precast conduit, has been ignored because of the level of joined-upness required.

    Derby City Council has had the opportunity to make savings in excess of £10M by seeing through its early deployment of a strategic IT framework. This world-leading development successfully demonstrated (video case studies available) a sustainable, cost effective, transformation enabling IT framework but has been abandoned as a handful of officers seek to window-dress their cv.s with short-term, tactical solutions. Politicians are ill-equipped to deliver the requisite governance to prevent this substantial waste of public money, instead focussing on smoothing potentially troubled waters by ignoring the issue completely.

    The Quad—Derby: emda contributed £3.5 million to Derby's Quad project, with £1.2 million coming from DDEP. This was despite my advice to Derby City Council that the basic premise of the Quad was unsustainable. Alterative proposals for a world-leading, showcase building demonstrated a sustainable building and business model, funded by cooperation with major global partners from the private sector. These plans were ignored by the project board and alternative consultative advice was found by the city council that concurred with the project board's plans. The over-riding rationale for continued investment by Derby City Council was that the money had to be spent within a particular time-frame.

    Friargate Studios—Derby: DDEP invested over £1 million. This predates the Quad but essentially follows the same pattern. I gave unpopular, consultative advice that both the design and the business model were unsustainable.

  Alternative plans were ignored. "Money had to be spent". Alternative, "friendly consultancy" was sought and delivered. The tax payer picks up an ever-increasing burden:

    "DDEP funding has helped develop the Creative Industries Network (CIN) website. Grant funding has also facilitated the appointment of a full-time Network Co-ordinator to oversee its growth and develop working relationships with the City and County Creative Industries Development Officers. The funding has also ensured more companies in the area are making the most of ICT, and are made aware of funding opportunities. This support has meant the CIN will become involved in the Friar Gate Studios project, which is part-funded by DDEP, with support through European Regional Development Funds, Derby City partnership and Derby City Council". The modern technology consultancy offered to companies in the area appears to be little more than a pre-ordained shopping catalogue from favoured suppliers.

    On both of the above building projects, I raised significant concerns over the ability of the incumbent architects to understand how technology could be used to deliver buildings that could also act as a catalyst for sustainable building technology across the region. I lined up both CISCO and Microsoft (Corp, not UK) who demonstrated both the technical capability and the willingness to get involved. This route was ignored with an evident bias towards established supplier relationships. emda has already been approached with a view to "renegotiating the agreement around Friargate Studios".

  The above are just a few examples of how budgetary pressures to spend within a window, reluctance to step outside of senior managers' comfort zones, and a desire to maintain commercial relationships with unsuitable suppliers and consultants, demonstrate the symptoms of a lack of overall vision. We no longer live in a world where technology can be considered along with the pot plants when designing a new building, or a transformed service. Suppliers know that there is a better way but are happy to milk the gravy-train for as long as they are allowed. I have some shocking examples from major suppliers of public sector IT, as part of one of my presentations. Those empowered with delivering the requisite governance are ill-equipped to do anything other than follow the established line of least resistance, relying on marketing and PR to window-dress questionable returns on substantial public investment.

  In my international experience, the role of technology and technologists is best understood by the Chinese who have a central government cabinet stuffed with scientists and engineers who don't have to answer to newspaper proprietors or points-scoring politicians. Regional CIOs would be a good start for England but long-term change can only come when politicians bite the bullet and start to talk about 10-20 year strategies driven by cross-party consensus and a shared, coherent vision.

David Gale





 
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