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DEFENCE INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) STRATEGIC DIRECTION

2016-2020

August 2016

Australian GovernmentDepartment of Defence

ICT STRATEGIC DIRECTION 2016-2020

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Message from the Chief Information Officer (CIO)

Defence is modernising its Information and Communications Technology (ICT) to drive operational superiority for the Australian Defence Force (ADF) and improve effectiveness and efficiency across the Defence enterprise.

The contribution ICT makes to Defence is becoming increasingly critical—ICT helps to offset the relatively small size of the ADF and enables a war fighting advantage.

We are undertaking an information transformation, and in partnership with the Services and Groups, we are introducing significant new capabilities and new ways of working.

This transformation will take us from an infrastructure-centric approach to ICT, to an information-centric approach. Through this transformation we will deliver more effective and responsive ICT to the Australian Defence Organisation to enable Defence outcomes.

Defence has made progress since the 2009 ICT Strategy, in particular through improvements to our core ICT infrastructure. The 2009 ICT strategy now needs updating to reflect the increased demands

across Defence, the focus on information, the evolving technology landscape, and changes in the way ICT services are delivered—to play our part in delivering One Defence reforms, and the 2016 Defence White Paper.

My priorities as CIO are to:

• Protect and secure Defence information and the information environment, and provide Defence with accurate information for decision-making and military interoperability through reliable enterprise-wide information management;

• Develop and implement a road map to standardise business processes, information and their supporting applications to improve Defence effectiveness and efficiency;

• Manage and deliver reliable ICT services across fixed, deployed, and mobile environments that provide Defence an operational advantage and enables integrated joint and combined operations with global partners; and,

• Secure and manage Defence ICT capabilities, workforce, and resources for the future.

By focusing on these key areas, we will drive significant improvements in the way Defence ICT supports the Defence enterprise, and the ADF, to deliver value to the taxpayer, and advantage for Defence in fulfilling the mission set for it by Government.

Dr Peter Lawrence Defence CIO

2016


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Contents

Introduction Message from the CIO 2

Executive Summary 4

I. Defence Priorities Information in the 21st century battlespace 6The First Principles Review provides direction for ICT and 7 information managementSupporting Service digitisation agendas 8Strategic drivers shaping ICT 9Accelerating technologies 10Five core strategic planks required from ICT 11

2. ICT Strategic Priorities Defence ICT vision, mission and scope 13Defence ICT current state 14Future state: the Single Information Environment 15

3. Implementation Approach Strategic approach to implementation 17New governance structure 18Implementation 19Investment 20A fit-for-purpose workforce 21Workforce capability and capacity gaps 22Priority workforce interventions 23Industry and the extended enterprise 24Risks and mitigations 25Conclusion from the CIO 26

Glossary and contacts Glossary and contacts 27


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Executive summary The Defence ICT Vision and Mission outline how we will transform, in order to deliver what Defence needs from ICT to achieve the missions set by Government.

The Vision and Mission for Defence ICT have shaped our Strategic Priorities, and Implementation Approach.

• Lead Enterprise Information Management reform to ensure single source of truth and enable information management.

• Implement contemporary cyber security capabilities to protect the flow of information from threats.

• Enable access to an increased quantity and quality of information from greater numbers of fixed and mobile devices, operating at home and abroad within the protection of the secure single information environment.

• Deliver a single, modern ICT environment with simplified applications and services that is interoperable across Defence and with other government agencies, allies and partners.

• Roll out a service delivery reform model, which meets One Defence objectives of accountability, streamlining, and standardisation.

• Strengthen ICT governance and decision making to support the Defence Integrated Investment Program.

• Implement new ways of working to deliver faster, more functional and cost effective ICT capabilities and services to support business and military operations.

• Increased investment funding through the Defence Integrated Investment Program (DIIP) to improve and remediate Defence ICT.

• Whole-of-Defence implementation (capability and enterprise led) required through appropriate governance arrangements to deliver on our strategy, in accord with the Capability Lifecycle process.

• Development of an ICT Strategic Planning Management Office that coordinates whole-of-Defence ICT and informs decision making.

• Business-led adoption of standardised solutions, and exploration of the potential of new technologies, in support of the Groups and Services in achieving capability outcomes.

• Ensuring the transition from an infrastructure focus to an information focus considers security, reliability and interoperability.

• A workforce strategy to address the development of an appropriately skilled workforce to achieve strategic outcomes, including improved approaches to diversity and inclusion to attract staff from a wider demography.

• Implement stronger and more strategic partnership with industry to ensure the realisation of the strategic plan.

• Consider innovation in accordance with Defence Industry Policy Statement (Innovation Hub).

Defence ICT VisionA modern, secure, sustainable and scalable information environment to enable current and future military and business operations.

Defence ICT Mission

Delivering ICT capabilities for Defence by:• Working with stakeholders to shape business requirements and understand priorities; • Partnering with industry to deliver outcomes; and • Building the ICT organisation to shape and direct the future priorities.

ICT Strategic Priorities Implementation Approach

Defence Priorities 01


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Information is critical for joint operations, and in the 21st century battlespace

Defence operations in the 21st century, and particularly joint operations, are complex and highly reliant upon ICT. Increasingly, the focus is on ensuring information management provides situational awareness and information superiority essential to our war fighters. We must capitalise on this opportunity to reform the way we think about information and support Defence in achieving its operational and strategic imperatives.

… Information will pervade the 2030 operating environment. However, ‘understanding’, and therefore knowledge, will be much less evenly distributed. The ability to create a shared awareness and understanding across the joint force as well as within Defence’s military and civilian partners will underpin operational success.”

The 2016 Defence White Paper states:

“The Government will make a significant new investment in information management capabilities to ensure that the right information is available to Defence decision makers, at the right time. These investments will ensure that our armed forces are able to respond quickly to emerging threats, as well as ensuring Defence’s business processes become more effective and efficient.”

The battlespace of the 21st century is more complex than ever. Today, the domains of space and cyberspace are increasingly important for the successful execution of tasks set by Government for delivery by Defence.

The protection of satellites and telecommunications networks are now critically important challenges.

The Future Joint Operating Concept 2030 states:

“Technical networks (integrated communication and information systems) offer to extend the joint force’s interoperability with a wide range of other organisations, formal and informal, providing access to the resources and expertise needed to address complex security challenges…

Defence Priorities1


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The First Principles Review provides direction for ICT and for information management

The First Principles Review provides clear direction for an effective Enterprise Information Management (EIM) capability that delivers a warfighting advantage. The efforts underway to stabilise our ICT core will provide the platform that will drive an information centric enterprise.

Information management is a critical enabler for One Defence. In the military environment, information management must provide the war fighter with common battlespace awareness and information superiority through integrated and interoperable information.

It underpins the next generation of Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems, and links sensors and weapons platforms.

It is crucial to offset the relatively small size of the Australian Defence Force and enable a competitive war fighting advantage over Australia’s adversaries.

Within the corporate arena, information management must enable the organisation to make informed decisions, measure performance, provide timely, credible, traceable and relevant management information, and support enterprise-wide business processes.

It must be underpinned by a trusted single source of enterprise-wide data, and to the extent possible, common and standardised applications and infrastructure.

Source: First Principles Review, ‘Creating One Defence’, Corporate and Military Enabler, Recommendation #3 p47

Defence Priorities 1


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ICT priorities will be informed by Capability Manager strategies and Defence business requirementsTo deliver advantage to a joint ADF, close collaboration is required between Vice Chief of the Defence Force, Chief Joint Operations, those delivering ICT to enable C4ISR integration, and in the design and operation of the joint battlespace environment.

“[Network centric warfare] seeks to provide the future force with the ability to generate tempo, precision and combat power through shared situational awareness, clear procedures, and the information connectivity needed to synchronise our actions to meet the commander’s intent.”

Beersheba

“As Plan Beersheba is implemented, Army will take significant steps to becoming a digital, networked force…”

Jericho

“… the Air Force of the future will fight and win through enhanced command and

control, information sharing and decision superiority.”

Pelorus

“Through advanced warfighting networks, the individual

strengths of diverse units will combine to produce powerful

and flexible effects…”

F-35 capabilities enabled by ICT: An example of the 5th generation ADF

The Australian F-35 program is introducing the F-35 aircraft, which is a 5th generation air combat capability.

The F-35 is an ‘information rich’ platform. Realising its full capabilities requires it to be integrated with Defence ICT infrastructure and be interoperable with other platforms, systems and sensors. Every flight captures a substantial amount of mission information which places significant new demands on storage, processing and available bandwidth.

The F-35 Autonomic Logistics Information System, as part of the support system, also requires integration with other ADF and global logistics support systems, requiring multi-level security and connection to local and global ICT networks and systems.

Joint Operations for the 21st Century

Defence Priorities1


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Strategic drivers shaping the future direction for Defence ICT

There are many drivers that shape the strategic direction for Defence ICT

• Simplified governance arrangements.• Standardised business processes.• Considerable organisation reform. • Enterprise Information Management.• Service Delivery Reform. • Performance management and reporting.• Focus on culture and behaviours.

• Ensure reliability of support to operations. • Anticipate growing demand for services.• Prolonged under-investment in ICT resulted

in obsolete systems and technologies.• Effective and efficient management and acquittal

requests.• Proactive sustainment plans in place to minimise

future technical obsolescence.

• Defence is becoming more service focused.• Services that are aligned to business needs,

not technology outcomes.• Integration of enabling services. • Need to measure service performance with

appropriate metrics.• Through the Digital Transformation Office,

work on modernising service delivery in line with the Digital Service Standard.

• Improved integrated planning.• A significant pipeline of new ICT

investment projects to meet the pace of global technology change.

• Need for tighter integration with other components of major projects (i.e. platforms and systems, infrastructure, other Fundamental Input to Capability elements).

• Reduced reliance on ‘big bang’ projects, with increased focus on incremental delivery.

• Integrated whole of capability lifecycle view of ICT from needs to implementation and operation.

• Defending Australia and its national interests. • Self-reliance in direct defence of Australia. • Integration with coalition partners and allies. • Maintaining and building regional relationships.

Defence Strategic DirectionService Orientation

Investment Profile

One Defence

Sustainment Requirements

Strategic

drivers

impacting

Defence ICT

1Defence Priorities

One Defence


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Accelerating technological changes present both opportunities and challenges for Defence and its ICT

The unprecedented scale and pace of change in ICT globally presents challenges and opportunities for Defence ICT, and these drivers have been vital to shaping this strategy. Defence ICT will embrace, prepare for, and leverage changes including…

Growth in connected devices aimed at improving the flow of information and business processes

There is rapid growth in internet traffic, bandwidth requirements, and the number of connected devices:

• ~ 2.6 billion smart phones in use today, forecast to grow to 6.1 billion within five years.

• ~ 26 billion connected devices within 5 years.

• Smartphones overtook desktop/laptop PCs as an install base in 2013.

Increased importance of ICT in support of military operations and raise, train and sustain capabilities

These trends are driving increased importance of ICT for the conduct of military operations:

• Next-generation military capabilities have additional sensors with high ICT demands.

• Increased demand for high quality video.

• Information is increasingly critical to maintaining operational superiority.

• Information environments in the battle-space are becoming more vigorously challenged by adversaries.

Prevailing cyber security requirements

Cyber-attacks are now a persistent part of the global environment, and the threats continue to increase in quantity and sophistication:

• Threats emanate from the cyber-sphere in the military, Defence enterprise, and the wider national contexts

• Increased threats are driving increased security and resilience requirements for Defence

• Global firms increased their spend on cyber security by an average of 24% in 2015.

Source: PwC Global State of Information Security Survey® 2016

Figure 3. Growth in average annual security incidents across 10,000 organisations

Source: US DOD Spectrum Strategy, 2013Source: BII estimates, Strategy Analytics, Company filings, World Bank 2013

Figure 2. Growth in Megabits per second used per 5,000 Military members

Figure 1. Growth in number of connected devices

Defence Priorities1


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Future state ICT will be implemented through five strategic planks

Strategic Defence priorities will be met by directing efforts towards five strategic planks which each deliver key benefits to Defence

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Enabled ‘One Defence’ reforms enabled

2

Stable Stable core

3

Secure Rationalised and secure services

4

Enhanced Enhanced Defence capabilities

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Agile Optimised and agile environment

• Improved decision making

• Strengthened ability to align Defence and its enabling ICT

• Rigorous performance and risk management

• Accelerated reform implementation

• Improved ICT management

• Standardised business processes

• Improved resilience for Defence activities from modern, secure, sustainable and scalable infrastructure

• Improved communications capacity

• Improved ICT services through leveraging new infrastructure

• Increased trust in information

• Reduced complexity of the information and infrastructure environment

• Rationalised applications simplify Defence activities

• Improved security from modern and proactive cyber solutions

• Enhanced battlespace awareness

• Enhanced military interoperability

• Enhanced support to deployed forces

• Improved productivity from workflow tools

• Improved enterprise effectiveness and efficiency

• Increased effectiveness from joint and combined training

• Optimised operational efficiency and effectiveness

• Improved solutions delivered faster from innovation

• Improved outcomes by effective partnering with industry

• Faster response from ICT to changing business needs

• Faster delivery of solutions from agile delivery methods

1Defence Priorities

ICT Strategic Priorities02


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Policy & strategy Military command Force design & joint capability authority

Enterprise planning, performance & risk

Needs & requirements Acquire Prepare Operate

Finance Internal audit Inspectors general Judge advocate

Joint operations

Scope: Defence ICT covers all of DefenceDefence ICT consists of all ICT capabilities, services, and support to the entire Defence enterprise.

Defence ICT includes the information holdings, technology and communications infrastructure, workforce and processes that enable military operations, and the efficient and effective delivery of Defence enabling services, everywhere that Defence operates.

Defence ICT VisionA modern, secure, sustainable and scalable information environment to enable current and future military and business operations.

Defence ICT MissionDelivering ICT capabilities for Defence by:• Working with stakeholders to shape business requirements and understand priorities; • Partnering with industry to deliver outcomes; and • Building the ICT organisation to shape and direct the future priorities.

The vision, mission and scope for Defence ICT are clear

ICT provides operational advantage to the ADF and is a strategic asset for the Defence enterprise

Direction setting and contestability

Defence capability

Enablers

Control

Navy Army Air Force Intel.

Security Facilities & estate

Info mgmt & ICT

Human Resources Legal

Health, logistics, education

and training

Capability acquisition & sustainment

Science & technology

Science & technology

Capability Managers

ICT Strategic Priorities 2


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The current state of Defence ICT presents a number of challenges

Currently, Defence ICT does not adequately support the cooperation, coordination and communications needs of its personnel

The Defence Business Context:• ~57,000 ADF members• ~20,000 reservists• ~18,000 civilian staff• Global operations• Integrated with other Government departments

and national security organisations• Integrated with Five Eyes nations• Interoperable with coalition partners• Integrated with global supply chains

The Defence ICT Environment:• ~ 100,000 workstations• ~ 3,000 applications• ~ 280 processing centres• ~ 670 networks• Access to eight satellite constellations• A real time world requiring 24/7 access• A mobile world requiring device portability• Identity and context driven authorisations that

govern security and confidentiality

ICT is not fully connected across fixed and

deployed locations

Interoperability and integration in the battlespace is not seamless or

complete

Information to support decision making is often incomplete and

unreliable

Users cannot access all their information

when they are out of the office

It is confusing for users to learn and use multiple

networks

Maintaining duplicate obsolete systems is

expensive

Basic tasks can be time-consuming

Finding information from paper-based archives and removable media can be time consuming

Collaborating across boundaries can be difficult

• Information to support decision making is often incomplete and unreliable.

• Users have to manually deliver integration and analytics.

• Processes and analytics are tightly coupled to devices and applications.

• Enterprise enablers and C4ISR are not integrated.

• Enterprise enablers including Finance, Personnel, Engineering and Logistics, Estate and Infrastructure are not integrated.

• Cyber security on many networks is reactive and not preventative.

• The current ICT workforce does not reflect all capabilities needed for the future.

• Service delivery models introduce new capabilities too slowly.

• Obsolescence and duplication drive costs higher than necessary.

Defence challenges with the ICT current state

ICT Strategic Priorities2


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Satisfying Defence priorities requires a robust and modern Single Information EnvironmentA Single Information Environment (SIE) is being implemented to deliver the modern, secure, sustainable and scalable information environment to enable military and business operations across fixed, deployed, and mobile environments.

• The SIE is the target architecture that will continue to guide investment in ICT capabilities, systems, services and infrastructure.

• Elements of the SIE are being implemented now, such as consolidation of data centres, infrastructure remediation, end user computing, and high speed networking.

• CIO Group will continue to provide the SIE Architecture to safeguard ICT systems.

• Operational & enterprise outcomes delivered by the SIE:- Operational superiority- Effective and efficient Defence enterprise- Modern, secure, scalable and sustainable infrastructure- Single source of truth- Standardised business processes- Reduced cost of ownership for ICT

• User outcomes delivered by the SIE:- Enhanced decision support- Improved search and discovery- Tailored analytics and reports- Traceable and reliable information- Common systems to use- Improved access to information

• Management outcomes delivered by the SIE:- Governed at all levels- Portfolio and program managed- Agreed target architecture- Synchronised investment- Professionalised workforce- Compliant- Continuously improved

Proa

ctiv

e cy

ber s

ecur

ity a

nd p

rote

ctio

n

Common Operating Picture

Integration & Interoperability

Business & Information Management

Public and other organisations

Top SecretSecretProtectedUnclassified

Fixed Deployed Mobile

Holistic Network Management

Allies and Coalition Partners

Figure 4. Defence Single Information Environment

Command & Control

Situational Understanding

Joint Force Application

Joint Force Protection

Joint Force Projection

Joint Force Generation & Sustainment

Enable Priority Defence Outcomes

Capability Managers & Enabling Groups

Single Information Environment Core

Defence Owned Infrastructure As A Service/ Cloud Service

Defence Leased

Standardised Business Processes

C4ISR Applications & Services

Corporate/ Business Management

Applications & Services

IndustryDefence

Other Government

Organisations

ICT Strategic Priorities 2

Implementation Approach 03


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A strategic approach is being taken to coordinate ICT activities with other Defence initiatives

There are many current and related strategic initiatives across Defence that will, when combined, meet Defence‘s priorities and deliver the ICT strategic prioritiesThe overarching approach to implementation is to manage these initiatives strategically to deliver against the end state and ensure the outcomes are synchronised and consistent. There will be ongoing focus on delivering benefits to Defence against each of the five core strategic planks.

✗ Fragmented processes

✗ Fragmented information

✗ Many separate infrastructure islands

✗ Ageing infrastructure and applications

✗ Lack of innovation

✗ Bespoke customised applications

✗ Reactive cyber security in many places

✗ Limited industry strategic partnering

• Defence Integrated Investment Program

• Transformation through First Principles

• Service delivery redesign

• Enterprise Resource Planning (ERP) strategy

• Enterprise Information Management

• Infrastructure Transformation Program

• Portfolio, Program, Project Management

• Enterprise Architecture and Roadmaps

• Cloud and Spectrum strategies

• Managing ICT Total Cost of Ownership

• Streamlined 2 pass approval process

• Defence ICT Workforce strategy

• Industry partnerships

• Innovation platform, including new technologies such as cognitive computing

✓ Standardised processes

✓ Information is an asset

✓ Integrated infrastructure landscape

✓ Modern infrastructure and applications

✓ Agile service delivery

✓ Fit-for-purpose applications

✓ Proactive and intelligence based cyber security

✓ Widespread industry strategic partnerships

Defence and Defence ICT related strategic initiatives

2020 future state characteristics

2016 current state characteristics



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A new governance structure will provide decision-making and coordination for whole-of-Defence ICT

The new Governance structure for whole-of-Defence ICT aligns to One Defence reforms and will enable delivery of the ICT components of the Defence Integrated Investment Program. Through the Defence ICT Advisory Group and Leaders Group Defence will deliver the benefits of this ICT strategy, and build a comprehensive and accurate picture of the inputs of and dependencies on ICT across Defence.

1 The Defence Committee is the primary decision-making committee in the Department of Defence.

2 The objective of the Enterprise Business Committee (EBC) is to ensure the effective running of Defence.

3 The Investment Committee (IC) exists to bring the future force and supporting enablers into being.

4 The Defence ICT Advisory Group (ICT AG) governs all Defence ICT, through a future-focused lens.

5 The Defence ICT Leaders Group (ICT LG) is represented by senior ICT project leaders across Defence and is accountable for translating ICT strategy into benefits, as directed by the Advisory Group.

6 The Investment Portfolio Management Branch (IPMB) performs the portfolio management role in support of the IC.

7 The ICT Strategic Planning Management Office (ICT SPMO) advises the CIO and supports Advisory Group decision-making by leveraging a single source of truth of Defence ICT data and providing secretariat support.

8 The ICT organisations across Defence are represented at the LG and are responsible for delivering the services and support which lead to planned ICT benefits.

Defence Committee

Defence ICT Advisory Group

Defence ICT Leaders Group

Investment Portfolio

Management Branch (IPMB)

Program Management

Offices & Other Reps for

Defence ICT, e.g. DSO, ITP TMO

ICT Strategic Planning

Management Office (ICT SPMO)

Enterprise Business

CommitteeInvestment Committee

1

2

4

5

3 6

7

8

ICT Operating Arrangements ICT supporting functions

Implementation Approach3


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Programs and projects have been carefully designed to implement the strategic planks

This strategy will be delivered through sub-programs and projects, each aligned to the five core strategic planks

• All initiatives are aligned to Defence’s highest priorities. They build on the journey that Defence started in 2009 and leverage the foundations already established.

• These initiatives significantly evolve the ICT capability and support the business transformation across Defence.

• They will be resourced, funded and scheduled, and supported by robust sub-program and project management to synchronise them with other Defence reforms and initiatives.

• Under ‘One Defence’ the CIO and Chief Technology Officer (CTO) have significant authority delegated to them.

• CIOG is collaborating with the Groups and Services to align their ICT needs to their business outcomes and partnering with industry to develop and deliver robust services and solutions.

• Innovative approaches will be used to accelerate the process from ‘idea to implementation’. Innovation such as cognitive computing is already underway.

• Cloud based services gradually being introduced. Private cloud, with public, community or hybrid clouds will be adopted on a case by case basis.

• The Chief Information Security Officer (CISO) and Information Technology Security Authority with the cyber security governance board will set the strategy, direction, technology choices and best practices to ensure that Defence can be assured of state of the art and proactive cyber security and computer network defence.

• CIOG will continue to work with the Defence community to improve technology for operational services and maintain security. Figure 5: ICT Initiatives identified to deliver each strategic plank

• Redesigning the organisation

• Clarifying roles and responsibilities

• Shifting internal skillsets

• Strengthening strategic portfolio management

• Reforming service delivery

• Improving industry partnerships

• Developing faster delivery pathways

• Extending innovation

Evolving the Defence ICT Organisation

Strategic Planks

Sub-Programs and Projects implement initiatives to deliver defined benefits

• Enabling Defence through standardised business processes• Progressing Enterprise Information Management• Enabling Capability Life Cycle with improved systems• Enabling enterprise-wide business management through ERP• Modernising HR/People systems• Enhancing mobility and digitisation• Enhancing identity and access management

‘One Defence’ reforms enabled

• Embedding and extending the Infrastructure Transformation Program across networks, storage, processing, and end-user computing

• Modernising networks, communications, and military systems• Strengthening multinational information exchange capabilities• Enhancing case management• Integrating Joint Strike Fighter into networks and systems

Stable core

• Rationalising the application portfolio to reduce duplication• Rationalising intelligence, surveillance & reconnaissance for warfighting• Strengthening cyber security across the infrastructure• Enhancing security through computer network defence• Rationalising business processes with workflow management systems

Rationalised and secure services

• Enhancing battlespace awareness and command and control• Improving productivity from workflow tools• Enhancing support to maritime forces at sea• Improving enterprise efficiency and effectiveness in key areas i.e. Health• Strengthening spectrum management• Enhancing enablers including Garrison and Estate Mgt, and Parliamentary

workflow

Enhanced Defence capabilities

• Enhancing agility through high grade cryptographic equipment• Optimising data centre capability• Enhancing agility through cyber security capability improvement• Extending SIE to mobile and deployed users• Next wave of end user computing enhancements

Optimised and agile environment

1

2

3

4

5



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Defence plans to invest $20 billion over ten years in ICT

Defence is investing sufficient resources to fund ongoing support, upgrade and refresh of ICT capabilities • Defence is investing the funds required to implement this strategy.

Defence is increasing the level of funding to accelerate the business transformation and lift the contribution of ICT to Defence outcomes.

• There has historically been insufficient sustainment funding to address obsolescence and ageing infrastructure, with an over-reliance on major new projects. This resulted in higher sustainment costs to maintain obsolete technologies.

• Apart from investment in new capabilities, sustainment funding will also be increased to address lifecycle management deficiencies and allow for growth.

• The strategy will be realised by approximately $20bn investment in Defence ICT over 10 years, covering sustainment and capital for new business capabilities. The delivery roadmap is an integral part of the Defence Integrated Investment Program, governed by the Investment Committee and the Enterprise Business Committee.

• The roadmap uses programs to integrate, coordinate, and synchronise the many individual projects. Programs are focussed on delivering business outcomes, rather than locking-in individual technologies and products, which provides flexibility to adjust the roadmap and remain agile to new demands and emerging technologies.

• Due to the fast pace of technology evolution, it is difficult to accurately forecast ICT demands beyond 5 years, thus the outer years are expected to evolve as new demands and new technologies emerge. As part of the new Capability Life Cycle, additional ICT investments are anticipated beyond the 5 year detailed planning window.

• A Defence ICT Advisory Group will balance the investment plans and escalate risks to the appropriate governance body. Whole-of-life asset management will improve the timing of release cycles, refresh and obsolescence.

• The Vice Chief of the Defence Force will act as the Design Authority for C4ISR, and the CTO as the Technical Authority.

• The CTO will ensure all initiatives follow approved architecture, standards, and policy. The CTO will also focus on reducing unnecessary customisation and bespoke development.

• The Defence CISO will shape all information security investments and ensure alignment with architectural direction.

Figure 6: Future ICT Budget emphasis (Constant $)

Investment

Sustainment

Contingency Implementation investment and components

Defence ICT investment will increase over coming years to address an historic underinvestment



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Creating a fit-for-purpose workforce is a core part of the implementation approachThis strategy focuses on the continued development of a fit-for-purpose Defence ICT workforce

The Defence ICT Organisation Defence manages extensive ICT and Communications and Information Systems (CIS) capabilities using a large distributed workforce. Staff reside in CIO Group, ADF personnel provide support in fixed and deployed environments, and staff reside within other Defence organisations. In addition, a large industry workforce is relied upon to deliver Defence ICT services.

Drivers of workforce changeThis strategy sets the direction for the next five years and serves as the anchor for all ICT workforce decisions. Defence’s ICT workforce faces three strategic drivers of change:• The First Principles Review prompts a review of the entire Defence workforce (including

the use of ADF personnel in non-Service roles); • The Force Structure Review and 2016 Defence White Paper will reset ICT demand and

establish delivery priorities for the decade; and,• Demographic and labour market shifts and technology change will continue to evolve,

and the resulting workforce impacts are difficult to predict.Changing Shape of the ICT workforce• Defence’s business transformation requires a corresponding transformation in the ICT

service delivery model. Workforce change will start in CIOG.• CIOG is currently operating many blended teams as part of a transition towards a more

outsourced model. The revised operating model is more selective in setting workforce priorities for the Australian Public Service (APS), ADF staff and industry.

• These changes are not intended to impact the delivery of military-specific CIS services, but rather to enhance them.

ADF Members with ICT or CIS ResponsibilitiesArmy, Navy, Air Force (both Permanent and Reservists)

ICT and CIS FTE (including non-CIOG ICT Job Family) in Other ICT Service Delivery Teams SP&I, CASG, DSTG, VCDF, Army, Navy, Air Force

CIO Group (APS, ADF) Functions including: Business Relationship Management, ICT Operation, ICT Delivery, CTO, Commercial and Business Enablement

Strategic Planning & Industry Engagement, Governance, Architecture & Security

Business Engagement & Solution Scoping

Business Case Support

Business Case Management

Innovation

Program Delivery Management

Project Management

Project Delivery

Service Delivery Management

Defence

Industry

Indu

stry

Defe

nce

Service Delivery

Military-specific CIS Services

Figure 7: Defence ICT People and Organisations Figure 8: Simplified Future ICT Functional Model and Delivery Approach

Industry (ICT only, not CIS)



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A detailed workforce assessment has identified workforce capacity and capability gapsThe Defence ICT workforce is under significant capacity and skills pressure

Existing Workforce PressuresStrategic intervention will be required over the next ten years to ensure that demand on the total (APS, ADF and industry) Defence ICT workforce does not outstrip supply. The shortfall in supply can be largely attributed to an increasing reliance on industry support to program, project and service delivery activities.

Skills and Capability GapsDemand has been forecast for future priority skills within the internal Defence ICT workforce against skill categories from the Skills Framework for the Information Age (SFIA):• There is a transition towards

stakeholder, business change, quality management (which incorporates sourcing and vendor management skills), and strategy and planning; and,

• There is a transition away from hands-on ICT delivery (albeit it is a skill that will continue to be required in some areas).

Managing this shift is an important part of evolving to a more highly outsourced service delivery model.

Geographic Supply and Demand Considerations• While the ADF components of Defence’s ICT workforce are spread broadly across Australia, the civilian

ICT workforce is concentrated in the ACT where the majority of governance, project and service delivery operations are located. The Department of Employment forecasts demand in the ACT for ICT professionals exceeds the labour market supply, with the shortage expected to continue until 2019.

• A key component of the workforce strategy is to shift labour demand to regions beyond Canberra to take advantage of better labour markets and mitigate the risks of higher costs, insufficient expertise, and late delivery.

Stakeholder Management

Business Change Implementation

Quality & Conformance

Service Design

Service Operation

Service Transition

Information Strategy

Business Change Management

Advice & Guidance

People Management

Installation & Integration

Systems Development

Skill Management

User Experience

Sales & Marketing

Business Strategy & Planning Technical Strategy & Planning

Figure 9: Defence ICT workforce (APS, ADF and industry) demand vs supply over time (assuming no intervention)Source: FTE for demand is based on CIOG FPR Workforce Stream modelling. Demand and supply are modelled from the start of FY15/16.

Figure 10: Percent of APS/ADF workforce requiring skills by SFIA Category



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The ICT Strategic Workforce Plan identifies priority workforce interventionsTo address identified capacity and capability gaps, and ensure the delivery of Defence ICT in the future, the CIO will implement strategic and near-term workforce interventions and build Defence’s capacity to work with industry

Priority Near-Term Workforce InterventionsThese near-term interventions will manage the workforce transition:• Disciplined prioritisation of recruitment against key shortfalls; • Redistribution of ICT demand outside the ACT to broaden the workforce

supply base (for both APS and industry personnel); and• Expanding outcomes-based strategic partnering to meet additional

demand (including partnering to meet short-term gaps in internal capability and capacity).

Strategic Workforce InterventionsOver the medium to long term, the CIO will implement the following strategic workforce interventions:• Implement targeted professionalisation plans; • Implement targeted strategies to meet persistent shortfalls (such as

ICT Security); • Optimise the workforce’s ability to partner with industry, through:

- Establishing and enforcing clear principles and expected behaviours for working with industry,

- Establishing a formal, standardised on-boarding program for industry partners, and

- Defining shared learning obligations between industry and internal staff and enshrine them in in formal arrangements.

• Focus on diversity and inclusion. Stronger emphasis and focus on diversity and inclusion has been included in the Workforce Strategy. Specific initiatives already underway include programs to provide improved employment opportunities for people on the autism spectrum, with indigenous origin, women and other demographic groups;

• Refresh the existing model for ICT workforce planning and management; and,• Implement a program to constantly reinforce the need for change around

organisational culture, diversity and inclusion.

Workforce Impacts

What will start?

• Managed investment of additional capacity and capability in key planning functions

• A shift toward higher value activities in the ICT lifecycle build phase (with a much stronger focus on governing delivery by industry)

• Focused attention on building more robust governance, service integration and service delivery management capabilities

• Development of capability in new areas where Defence requires additional depth

What will continue?

• Workforce growth and professionalisation, focusing on areas of highest future demand

• A managed transition of program and project management and delivery to outsourced providers

• A managed transition of service delivery and sustainment operations to outsourced providers

What will stop?

• Utilising significant components of our internal workforce on detailed delivery activities (including project management, project delivery, service delivery and sustainment activities)



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Industry and the extended enterprise have key roles in implementing the ICT StrategyDefence must be able to rely upon industry to deliver and sustain its ICT capabilities, enabling Defence to focus its internal resources on successfully delivering operational outcomes

Working with industryThis strategy acknowledges the increasing importance of industry as a strategic partner in delivering ICT capabilities and services across Defence. Defence will implement the following steps as part of working with industry: • Evolve policies for a new world of industry cooperation and collaboration

to deliver an array of new technologies that are complex to implement and integrate.

• Revise and deepen industry relationships to better support Defence, overcome internal workforce gaps, deliver improved value for money and continue migrating transactional tasks to industry.

• Develop longer term, productivity and performance based contracts to ensure ICT capability and capacity meets current and future Defence preparedness requirements.

• Strengthen vendor management capabilities to better monitor vendor relationship health and provide a path for vendors to bring improvements and innovation for the benefit of Defence.

• Improve the information sharing across Defence and industry for enhanced visibility, integration and interoperability.

The extended Defence ICT enterpriseDefence is part of, and relies on, a broad ICT community. This strategy emphasises interoperability and integration with partners, allies and other Commonwealth agencies as follows:• Allies and coalition partners: Normal activities and the majority of ADF

deployments involve collaboration with allies and coalition partners. This drives a need for effective ICT interoperability and integration between involved parties. Interoperability and integration requirements will be defined by the C4ISR Design Authority and implemented by the CIO in conjunction with CASG.

• Defence industry: Defence industry supplies inputs to capability such as platforms and sustainment services. Defence needs increased visibility of industry partner-held information to support preparedness and operations, such as information for materiel condition, maintenance planning and supply chain performance.

• ICT industry: The ICT industry provides information, communications and technology services to Defence. Industry will take a stronger role in delivering outcomes to Defence, which requires increased visibility of industry partner-held information such as technical configuration and network performance to support Defence activities.

• Commonwealth agencies: Defence provides services to government and collaborates with a range of Commonwealth agencies. This drives requirements for interoperability and integration with Commonwealth agencies.

• Whole-of-Government ICT: The Commonwealth has a broad ICT agenda and Defence will comply with whole-of-Government guidance and policies for ICT and digital services.



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Successfully implementing this strategy requires key risks to be recognised and treated

Key risks and mitigation strategies

Risk Description Mitigation

1. The ICT Strategy is not understood or agreed

The ICT strategy must be collectively owned by the Services and Groups. There needs to be a collective alignment with the strategic objectives and implementation approach.

CIO establishes governance under the Defence ICT Advisory Group, and all ICT activities adhere to agreed principles and priorities.

2. Shortage of ICT workforce capability or capacity

Workforce trends and forecasts suggest there will be a continued gap between demand and supply of suitably skilled resources to deliver ICT services.

Understand drivers of workforce change and application of near term and more strategic workforce interventions in collaboration with industry.

3. Inability to execute a strategy driven plan

A transactional approach to delivery of ICT capabilities and services will hinder the ability to deliver large scale change that meets key goals such as interoperability.

Establish and empower the Defence ICT Advisory Group, manage ICT strategically through an ICT Strategic Planning Management Office, and partner strategically with industry.

4. Change in the outside world may outpace Defence

The rate of technological change could outpace the delivery of the ICT strategy rendering some capabilities obsolete on delivery.

Manage ICT using an architecture that allows introduction of new technologies supported by flexible approval processes and agile service delivery platforms.

5. Lack of organisational agility / Ability to adapt to change

Onerous and time consuming approaches and protocols to accept capabilities into service, and insufficient business change management, impede the fast release of ICT capabilities into use.

Increase collaboration with business owners, and re-imagine and reconstruct programs and projects to deliver objectives in smaller pieces and shorter timeframes.

6. Failure to deliver interoperability

Time pressures lead to design, build and integrate solutions and applications without sufficiently understanding interoperability requirements, architecture, and standards.

Defence must create architectures, components and adaptors that enable rapid build and integration of applications and solutions. There needs to be a recognition that common data usage is a key to interoperability.

7. Services and Groups continue to develop in-house ICT solutions

Services and Groups fail to trust that ICT will include enough capability to enable adoption of the overall approach.

Stronger cooperation and collaboration across Defence, improved whole-of-Defence governance under the Defence ICT Advisory Group and a more empowered CIO and CTO to enforce ‘red card’ architecture compliance.

8. Delivery failure by a strategic industry partner

The industry partners may fail to adopt the necessary behavioural attributes needed to deliver the strategic priorities.

Create the market model that will be used to govern the consumption of services from the market including the new norms for intellectual property and cooperation, communication and coordination. Let industry partners have their say and allow them to opt out if the market model does not suit them.



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Conclusion from the CIO

“We must apply new ways of thinking and working that allow us to take advantage of faster, better and cheaper ways of delivering services to our military and civilian personnel.

In re-imagining the way we do things we must take advantage of agile approaches that deliver outcomes more quickly. This will include providing more services to Defence delivered from partnerships with industry.

If we can embed these new approaches in the way we do things we will be able to deliver incremental change that keeps pace with the changing world and we will avoid the high cost and risk of generational changes that have proven to be challenging and time consuming to implement in the past.

This is no more evident anywhere than in our need to transform the computing applications and the computing and telecommunications infrastructure. The current investment in these transformations is necessary to establish future platforms and systems upon which we will deliver interoperability.

We are all aware of the heightened risk of cyber attack. In this strategic update we must apply ourselves to taking advantage of new thinking and new architectural approaches that improve our ability to mitigate cyber risks.

Likewise in the ever shrinking world of globalisation we have to take advantage of and be of advantage to our friends, the allied nations. This means secure and confidential communications that fully enable joint operations to be successfully planned and executed.

The coalescence of interests that we share with the allied nations must be fully supported by technologies that enable collaboration, communication and cooperation with underlying security and confidentiality that can be relied upon.

We are supporting Defence’s global activities and continue to improve the way we deliver ICT capabilities. We are upskilling the Defence ICT workforce, delivering new capabilities faster, developing solutions in partnership with users, standardising and simplifying our systems and services, reducing reliance on customised design and maturing our partnerships with industry.

In future, the success of our strategy will be measured across two key metrics. Firstly, mission effectiveness: we must continue to be successful in supporting military operations. Secondly, efficiency: we must be able to avoid costly generational investments that consume our funds.”

Dr Peter Lawrence Defence CIO

2016



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Glossary and contacts

Term/Acronym Description

ADF Australian Defence Force

APS Australian Public Service

C4ISR Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance

CASG Capability Acquisition and Sustainment Group

CIO Chief Information Officer

CIOG Chief Information Officer Group

CIS Communications and Information Systems

CISO Chief Information Security Officer

CJOPS Commander Joint Operations

CTO Chief Technology Officer

DSTG Defence Science and Technology Group

EIM Enterprise Information Management

ERP Enterprise Resource Planning

FIC Fundamental Input to Capability

FPR First Principles Review

FSR Force Structure Review

FTE Full Time Equivalent

ICT Information and Communications Technology

SFIA Skills Framework for the Information Age

SIE Single Information Environment

VCDF Vice Chief of the Defence Force

Contacts

Chief Technology [email protected]

Glossary

DPSJUL010-16

Australian GovernmentDepartment of Defence

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