Councils urged to track digital spend gains after go-live

TechnologyOne has published research on Australian and New Zealand councils' ability to measure returns on digital transformation spending. It found most councils stop measuring benefits after systems go live.

The findings come from research by Intelligent Business Research Services, commissioned by the software company, into how local authorities assess the value of technology projects after implementation. Councils often spend heavily on modernising core systems but struggle to show what those investments have delivered in operational or community terms.

Across the councils reviewed, benefit measurement had ceased after implementation in almost every case. As a result, many authorities could not show whether spending on new systems had improved service delivery, reduced processing times or freed staff from administrative work.

The issue matters as councils contend with ageing technology, cybersecurity pressures, budget constraints and higher expectations from residents. In that environment, proving value has become as important as delivering a project on time and within budget, the report argues.

The research cites examples of measurable gains where councils continued to track outcomes after launch. One Victorian council reduced its monthly financial close process from 22 weeks to 2 weeks, while a New South Wales council issued certificates six days faster and cut bill-payment processing times by nearly a third.

Another council approved development applications 47% faster, according to the report. A large city council also saved an estimated 75,000 community hours each year by moving public forms online.

The research says those changes allowed staff to spend less time on administrative tasks and more time on direct service to communities. More broadly, it argues that technology projects should be treated as ongoing improvement programs rather than one-off implementations.

Value tracking

To address that gap, the study introduces what it calls a Continuous Digital Transformation framework. It includes a maturity model, a value register, an ROI calculator, a readiness assessment, a workshop guide and governance tools designed to help councils build benefit tracking into daily operations.

The report was written by IBRS Senior Advisor & Analyst Dr Joe Sweeney. It argues that councils that continue to measure outcomes, refine processes and review benefits over time tend to deliver stronger operational and community results than those that stop at deployment.

TechnologyOne says the framework is intended to provide councils with a more consistent way to evaluate digital transformation spending, including emerging investments linked to artificial intelligence. The report links that process to accountability, decision-making and public trust.

Ben Malpass, Executive Vice President, Local Government at TechnologyOne, said the research was designed to give councils a clearer way to demonstrate return on investment after a project goes live.

"This report gives every council in the country a practical roadmap to measure, demonstrate and maximise the return on their technology investments," Malpass said.

He said implementation milestones alone do not show whether a project has succeeded.

"For too long, success has been measured by whether a project was delivered on time and on budget. The real measure of success is the value created after implementation," Malpass said.

In a separate comment, Malpass linked post-implementation measurement to future investment choices and the use of data.

"Councils that measure value are better placed to make confident investment decisions, build community trust and unlock the potential of AI opportunities. The leading councils of the next decade will be those that build a culture of improvement and leverage their data to demonstrate real outcomes for their community," Malpass said.

Operational pressure

The findings highlight a common tension in local government technology programs. Councils are often under pressure to replace legacy systems and respond to cyber risks, but the discipline of measuring whether those investments continue to produce value can fall away once a project is signed off.

That can make it harder for executives and elected members to justify further spending, particularly when budgets are tight. It also limits councils' ability to compare projects, prioritise future work and identify where process changes, rather than software alone, may deliver better results.

Sweeney said the report found a pattern among councils getting more from digital transformation. In those cases, value measurement was treated as an ongoing management task rather than a final project checkpoint.

"The moment a new system goes live isn't the finish line, it's the starting line. The councils getting the greatest value from their technology treat value realisation as an ongoing discipline. They assign accountability, measure outcomes and continuously improve long after implementation is complete," Dr Joe Sweeney, Senior Advisor & Analyst, Intelligent Business Research Services, said.