Driving Government Digital Transformation through Smarter Procurement and Product-Based Approaches

In this interview, David Heacock, Digital Health Senior Strategic Advisor at Department of Health and Aged Care, highlights the critical need for smarter procurement practices and a shift to a product-based funding approach to fix long-standing issues in government IT spending.

David explains that traditional procurement models—dominated by large vendors—often lead to massive cost blowouts.

Government projects, initially budgeted at $50 million, can easily blow out to hundreds of millions due to inefficiencies in vendor contracts and a lack of accountability.

David advocates for a more level playing field that allows smaller consultancies to deliver targeted work, creating flexibility and bringing down costs.

A key issue in government spending, according to David, is the reliance on waterfall funding models that focus on short-term projects with clear beginnings and ends.

He suggests moving towards a product-based approach, like major companies like Telstra, which focuses on long-term value and continuous improvement.

This…