Across the APS, legacy processes, tool sprawl, and gaps in workforce and governance readiness are limiting the productivity returns from technology investment.

At Government Edge last June 2026 in Canberra, Matt Boon, Senior Research Director at ADAPT, links that gap to agencies’ ability to operationalise investment, reduce complexity and build the workforce and governance capability required to deliver measurable outcomes at scale.

 

Key takeaways:

  • Operationalise investment around measurable outcomes. Early, demonstrable wins build executive confidence and strengthen the case for further funding.
  • Treat workforce readiness and governance as core delivery work. Advanced capabilities can only scale when agencies have the skills, controls and operating models to manage them effectively.
  • Redesign processes before adding more tools. Reducing complexity and removing inefficient workflows gives technology a clearer path to productivity gains.

 

Execution determines whether innovation produces productivity gains

Australia has strong innovation capacity. The constraint lies in scaling and operationalising that innovation into measurable productivity gains.

Continued investment without clear returns erodes executive trust, especially when CFOs already believe a significant share of technology spend is wasted.

Only 6% of agencies report clear, embedded productivity gains, with most seeing value in isolated pockets.

At the same time, CFOs estimate around 40% of technology spend is wasted, creating a credibility gap between investment and impact.

Demonstrable outcomes give leaders stronger evidence for continued investment and a clearer view of where technology is improving performance.

Complexity is increasing faster than capability

More tools can increase friction when they are layered onto fragmented systems and inefficient processes.

Knowledge workers now use around 10 enterprise applications on average, up from six, increasing the number of systems employees must navigate to complete their work.

At the same time, 40% of agencies are layering new technology onto old processes.

That approach carries existing inefficiencies into new systems and limits the productivity gains those investments are intended to create.

Process redesign, simplification and clearer workflows give new technology a stronger foundation for adoption and measurable impact.

Workforce and governance readiness determine whether AI can scale

The largest barriers between investment and enterprise impact sit across workforce capability, governance and operating models.

Only around 9% of agencies are scaling agentic AI, while 73% plan to invest in it.

Organisational readiness trails that investment. No leaders report high confidence in AI governance, while 75% of data and AI leaders say they are unprepared to manage an agentic workforce.

Advanced capabilities increase the need for clear accountability, governance, workforce preparation and integration into existing operating models.

Closing the productivity gap requires disciplined execution, organisational readiness and shared accountability for measurable outcomes.

Contributors
Matt Boon Senior Research Director at ADAPT
Matt Boon is the Senior Director for Strategic Research at ADAPT, responsible for directing and developing research content and positions. For over... More

Matt Boon is the Senior Director for Strategic Research at ADAPT, responsible for directing and developing research content and positions.

For over 30 years, Matt has worked in research and advisory, including senior leadership roles at Gartner as Principal Analyst, Research Director, and Managing Vice President, where his 18 year history included working with Dell, Microsoft, and many others.

Throughout his career, Matt has been a sought after and highly respected authority on the local and global IT landscape.​ He interacts with executives daily, bringing together groups of C-suite leaders to discuss and prepare for the challenges and opportunities they face.​
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At ADAPT, Matt hosts numerous industry-leading business and technology events which Matt chairs, including the yearly Security Edge conference, delivering unique market trends and white-papers, advising executives across the technology provider landscape to make informed IT decisions.​

When he is not working, Matt enjoys walking the many trails of the NSW Southern Highlands, travelling and listening to music. He is also partial to a good steak and nice glass of red wine.

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