Investment Oversight Framework

This diagram is an interactive diagram that shows how the six states of the IOF influence each other. Selecting an IOF state highlights that state, and the states it affects, and describes how they are related.

1. The first state is planning, which ‘defines Digital Portfolio Direction, future objectives and capability gaps. It informs state 2, prioritisation, by identifying investment proposals.
2. The second state is prioritisation, which prioritises, plans and advises on aligned investment proposals. It informs the planning state by mapping portfolio dependencies. It also informs the contestability state by advancing digital capability and maturity.
3. The third state is contestability, which ensures proposals are robust and meet whole-of-government requirements prior to approval. Contestability informs state one, planning, by identifying missing architectural policy, standards and designs in future states. It informs the prioritisation state through forcing reconsideration of poorly formed proposals. It informs the assurance state, through informing of conditions and risks.
4. The fourth state is assurance, which provides assurance that initiatives are on track to deliver expected benefits. It informs the planning state by identifying the extent of change complexity in the portfolio. It informs the prioritisation state through informing on attractiveness and achievability measurements. It informs the contestability state by overseeing effective alignment. It informs state 5, sourcing, through ensuring whole-of-government procurement directions are followed. It also informs state 6, operations, through assuring realisation of value.
5. The fifth state is sourcing, which provides strategic advice and delivers simple, value-for-money digital sourcing arrangements. This state informs the planning state through providing strategic sourcing direction. It informs the prioritisation and contestability states through new whole of government sourcing arrangements. It informs the assurance state through providing procurement guidance. It also informs the operations state by obtaining the best value for money.
6. The six and final state is operations, which collects and analyses the real-world impact of digital investment over time. This state impacts the planning state through identifying weaknesses and opportunities to improve digital and ICT capability and maturity of the portfolio. It impacts the prioritisation state by showing the value of dependent investment. It impacts the contestability state through measuring effectiveness. It impacts the assurance state through providing lessons learned. It also impacts the sourcing state through measuring effectiveness. 

The IOF applies, in principle, to all government digital and ICT-enabled investments that meet the below eligibility criteria.

A digital and ICT-enabled investment is an investment that uses technology as the primary lever for achieving expected outcomes and benefits. This includes investments which are:

• transforming the way people and businesses interact with the Australian Government
• improving the efficiency and effectiveness of Australian Government operations, including through automation.

The IOF applies where the digital and ICT-enabled investment:

• is brought forward by a non-corporate Commonwealth entity and, where specifically requested by the Minister responsible for the Digital Transformation Agency, a Corporate Commonwealth entity
• involves ICT costs*
• is being brought forward for government consideration as a new policy proposal**.

* note – for the ICT Investment Approval Process, the annual prioritisation process and reporting purposes, only investments with initial ICT set-up capital costs of $10 million or more, or whole-of-initiative costs of $30 million or more, will be considered at these states of the Framework.

** note – The DTA and the Department of Defence are applying the IOF in a way that avoids duplicating Defence’s established, comparable and effective strategic planning and decision-making process under the Defence Integrated Investment Program (IIP) or the application of standards and policies compromising warfighting or coalition requirements. The Office of National Intelligence is also tailoring the IOF by using existing policies and governance processes already in place in the National Intelligence Community to lead the provision of advice to the Australian Government for Top Secret digital and ICT-enabled proposals across the life cycle, including assurance, for Top Secret proposals seeking funding outside the Defence IIP process.

The Australian Government has commitment to deliver simple, secure and connected public services, for all people and business, through world class data and digital capabilities. To realise this ambition, the Australian Government needs to make the right digital and ICT-enabled investments, at the right time and in the right way.

A focus for the DTA is purpose is to provide digital and ICT strategy and policy leadership. We help We do this by providing investment advice, strategic sourcing and delivery oversight. 

Our role directly supports the government’s Data and Digital Government Strategy. Its 2030 vision is to deliver simple, secure and connected public services for all people and business through world class data and digital capabilities. 

The DTA works with government agencies and stakeholders throughout the ‘digital lifecycle’. This starts with early engagement (to help agencies to plan their future digital transformations) through to the delivery of new digital capabilities and innovations, as well as their eventual integration into their business-as-usual arrangements.

We do this by

• providing advice to agencies developing business cases, new policy proposals, and Cabinet Submissions, to ensure they align with whole-of-government digital and ICT policies, priorities, and standards
• providing advice to the government when deciding on new digital and ICT-enabled investment policy proposals
• ensuring agencies plan for assurance activities and overseeing their application during delivery
• collecting regular project performance reports from agencies and providing advice to the government on the overall health of its entire digital and ICT-enabled investment portfolio.