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Digital public infrastructure explained

Luke Collier, Partner in Deloitte’s Digital Transformation team, outlines what digital public infrastructure is and why the public sector and all of Aotearoa New Zealand needs to get on board with it.

Digital government makes it possible to provide services more efficiently and at lower costs while also making these services easier for citizens to access. It is clear that investment needs to be made into digital government. This is consistently emphasised in reports on productivity, equity, growth, and international competitiveness. The private sector is also committing significant capital to core system upgrades, service digitisation, and the introduction of innovative new services and products.

This digital investment could be as big and as complex as investments in physical infrastructure. It could have substantial positive benefits for the economic and social welfare of all New Zealanders. However, our approach to planning, investing, and maintaining digital infrastructure is less well-developed than our physical infrastructure capabilities. A new approach called ‘digital public infrastructure’ presents an opportunity to improve our digital infrastructure capabilities and, hence, realise the benefits of living in a more digital world.

Digital public infrastructure (DPI) sits between the physical digital infrastructure layer (e.g., an ultra-fast broadband network) and the specific apps people use, such as online banking and passport renewals.

The best way to think about DPI is to compare it to physical infrastructure like roads. Roads (the physical layer) allow cars, trucks, buses, vans, and bikes (the apps) to deliver public, private, and non-profit services to people. But between the physical road and the cars is an intermediary layer we often don’t think about, but it is fundamental to making our roading network efficient and safe. The road code makes sure we all understand how to operate on the road. Signs, road markings, and traffic lights control the flow. Number plates let vehicles be identified whether bikes, cars, or buses. And we have petrol stations plugged into the roading network to allow things to keep flowing.

DPI recognises, that like roads, our digital infrastructure needs a set of reusable building blocks that anyone can use, whether they work for government or businesses. We need to plan for and jointly invest in these things for maximum benefit. The most common elements of DPI are:

  • Discovery and fulfilment: Supports finding and accessing services as efficiently as possible, through a one-step process; for example, my.gov.au is the discovery and fulfillment system for the Australian government services.
  • Identity and registries: Digital identities allow people, organisations, and products to be identified in a trusted way. Digital identity is generally regarded as the core of DPI.
  • Consented data sharing: Seamless, safe, and trusted exchange of data is a fundamental component of DPI. This needs to encompass consent management to allow citizens to choose how their data is used.
  • Digital payment infrastructure: Simplifies the rapid and safe transfer of money. This includes existing infrastructure like eInvoicing but also newer concepts like smart contracts and digital accounts.

Digital enablement as a resource multiplier is a powerful way for Aotearoa New Zealand to meet its most essential needs. DPI is crucial for enhancing productivity, entering new markets, fostering innovation, and promoting sustainability. It can be used in a way that is both long-lasting and scalable.

While physical infrastructure benefits are localised, DPI enables a national uplift in efficiency, service delivery, and equity. It paves the way for innovative service delivery models, including a revitalised social investment approach with outcome-based commissioning and devolution to local community providers and iwi. A more joined-up and thoughtful approach could see us lay the beginnings of DPI alongside social investment that can then be used to tackle some of our other wicked problems.

There are numerous global examples of the same digital building blocks within DPI being used to transform health, business setup, social assistance, and trade. The impact of good DPI is beginning to extend beyond single nations into international efficiencies for those nations with common DPI components. For example, the European Union uses DPI to realise a ‘once only’ principle for information capture across the entire bloc.

New Zealand was world-leading in its digitisation efforts and in some areas we continue to be digital leaders. However, in recent years we have not kept up. In the Briefing to the Incoming Minister for Digitising Government, it was recognised that “modern, agile and digitally enabled services that span agency boundaries challenge the public service’s existing funding, governance and delivery models, and we have struggled to change or overcome these deeply rooted settings”.

Global experience with DPI suggests six main elements could be used to accelerate our progress:

  1. National policy framework: A clear, integrated, and agreed national policy on DPI is essential for ensuring the required joined-up direction.
  2. Dedicated DPI alliance: DPI is only successful with a joint public, private, and not-for-profit alliance behind it. That alliance will need to educate, incentivise, monitor, and enforce.
  3. Partnership ecosystem: Outside of the core alliance a broader ecosystem of activators, investors, facilitators, and builders is needed.
  4. Financial framework: Creating a funding pipeline for DPIs requires public, private, and not-for-profits to have clarity on what should be publicly, privately, and jointly funded.
  5. Progressive infrastructure: DPI around the world is creating a set of tried-and-true design patterns and building blocks based on advanced infrastructure and the ability to work with other systems.
  6. Outreach and capacity building: Successful nations have created urgency and momentum around DPI by establishing a policy-driven change management and adoption strategy from the very beginning.

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