The Australian federal government is exploring the adoption of Agile methodologies, specifically the INVEST model (Independent, Negotiable, Valuable, Estimable, Small, and Testable), to overhaul its approach to IT projects and reduce the risk of “catastrophic” failures. Government Services Minister Bill Shorten is advocating for the use of the INVEST model to encourage the development of smaller, self-contained projects, early technology testing, and the promotion of reuse to save costs and prevent large-scale project failures.
The INVEST model has already proven successful in creating a facility for digitally executing statutory declarations and deeds, with a development cost of $1.5 million and expected savings of hundreds of millions of dollars. This model is designed to shift the focus from costly, large-scale IT projects with high failure rates to smaller, innovative initiatives that align with government and citizen priorities. It aims to ensure that IT projects remain in the single-digit million-dollar range, which are considered to be significantly less risky than projects costing hundreds of millions.
Key principles of the proposed approach include:
Small, Innovative Projects: The focus should be on smaller projects with a cost in the single-digit millions rather than the hundreds of millions, reducing the risk.
Minimum Viable Product (MVP): Reaching an MVP quickly and with minimal investment is a priority to detect project viability early.
Self-Contained Projects: Projects should not be heavily reliant on other works to proceed, providing flexibility in project order and cancellation.
Reduced Vendor Reliance: The Agile alignment may reduce reliance on proprietary vendor ecosystems, fostering interoperability.
In-House Digital Competency: The government should invest in its in-house digital competency to run delivery and execution without excessive outsourcing.
Encouraging Reuse: Promoting the development of reusable componentry to reduce costs and improve efficiency.
Bill Shorten emphasized the need to change the current dynamics of vendor relationships, avoid vendor lock-in, and break away from commodity technology purchasing arrangements. The government aims to build its digital competence to run project delivery, shift from the traditional procurement model, and actively seek partnerships with small and medium-sized enterprises to enhance its IT capabilities.
The adoption of Agile methodologies is expected to bring greater flexibility, resilience, and adaptability to government IT projects while reducing the risk of costly failures and improving the overall value for money in technology investments.
