19
Recommendation
Thirty-Sixth Report - The Defence digit…
Deferred
The Department told us government sees digital technology as a way it can make services more affordable and that the Integrated Review in 2023 will inevitably focus on this.59 The Department hopes to use digital technology to transform how it runs itself and the Armed Forces, and has already assumed …
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The Department told us government sees digital technology as a way it can make services more affordable and that the Integrated Review in 2023 will inevitably focus on this.59 The Department hopes to use digital technology to transform how it runs itself and the Armed Forces, and has already assumed in its planning that it will achieve productivity improvements and cash savings.60 The NAO reported that the Department’s plans include a target to find £1.4 billion of cash from efficiency savings between 2023–24 and 2032–33, including £695 million from better supplier management. The Department appears to be on-track with this so far, but still needs to find £160 million more to meet its target.61 We asked the Department if it was realistic to find this much money through efficiency savings, such as those from better supplier management. The Department was confident that it will achieve its target because there are still economy of scale savings it can make. This is because it has not previously managed suppliers in a coordinated way and so it can increase its commercial leverage, and reduce prices, for example by buying software licences once for the whole Department.62
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Government response AI summary
The department will provide an update on the impact to the implementation of the department’s Digital Strategy following the publication of the refreshed Integrated Review in Summer 2023.
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HM Treasury
20
Conclusion
Thirty-Sixth Report - The Defence digit…
Deferred
The Department has a substantial legacy technology estate, in part because it has not prioritised the investment needed to keep it up to date.63 Defence Digital, the organisation responsible for leading on the digital strategy, estimates it will cost £11.7 billion over 10 years to remediate just its own legacy …
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The Department has a substantial legacy technology estate, in part because it has not prioritised the investment needed to keep it up to date.63 Defence Digital, the organisation responsible for leading on the digital strategy, estimates it will cost £11.7 billion over 10 years to remediate just its own legacy systems.64 We asked the Department whether it was more cost effective to fix its legacy systems gradually, or simply to start afresh with a different approach. The Department explained that from now on it will ensure its programmes set aside money to keep systems up to date for life and comply with the rules of its future architecture. The Department said it is taking a risk-based approach to 55 Q 23; C&AG’s Report para 19 56 Q 11 57 Q 10 58 Q 23 59 Q 43 60 Q 67 61 Q 93; C&AG’s Report, paras 3.5–3.6 62 Qq 93–94; C&AG’s Report, para 3.6 63 Q 45 64 Q 47; C&AG’s Report, para 11 The Defence digital strategy 15 upgrading the legacy systems it already has and considers factors such as vulnerability to cyber-attack and the value of the data. However, the Department told us it will take time for this approach to result in a healthier, more current technology estate.65 Using data for advantage
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Government response AI summary
The government agrees with the Committee's (implied) recommendation, setting a Summer 2023 target, and will provide an update on its Digital Strategy implementation after the refreshed Integrated Review, while making the best use of existing digital funding.
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HM Treasury