David Heacock, Spokesperson and Coordinator, Australian Digital Delivery Alliance, 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 at CIO Edge.

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 would not only help control costs but also improve the overall quality of government services for citizens. 

Despite the challenges, David remains optimistic that, with steady leadership and policy change, governments can make real progress in digital transformation. 

 

Key Takeaways: 

  • Smarter Procurement: David pushes for reform in government procurement, shifting away from large vendors to smaller consultancies for more targeted project delivery. 
  • Product-Based Approach: David suggests adopting a product-based funding model, prioritising long-term value and continuous improvement over short-term projects. This could lead to better service outcomes for citizens. 
  • Leadership and Accountability: The success of these changes relies on strong leadership from both government and industry. David emphasises the importance of ongoing executive support to keep product-based teams moving forward and prevent setbacks. 
Contributors
David Heacock Chief Digital Innovation Officer, Federal Government and Lead Partner for Digital Transformation Centre Growth, APAC at DXC Technology
Digital innovator. Transformation leader. Outside-the-square thinker. David specialises in design leadership, strategic design, service design, user experience architecture, product leadership and digital... More

Digital innovator. Transformation leader. Outside-the-square thinker. David specialises in design leadership, strategic design, service design, user experience architecture, product leadership and digital transformation for start-ups, large programs and complex enterprises in public and private sectors.

David is building a new digital innovation capability for DXC Technology – the DTC Vision. His team is responsible for delivering cutting-edge digital innovation to DXC’s clients by designing digital solutions at the intersection of technical feasibility, business viability and human desirability. DTC Vision delivers intense and energetic co-designed, co-invested engagements to shape our client’s digital product visions. DTC Vision supports clients to take fresh perspectives on technology problems by bringing a strategic lens to future investments and showcasing the best available technology and approaches from DXC and partners.

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Byron Connolly Head of Programs & Value Engagement at ADAPT
Byron is a highly experienced technology and business journalist, editor, corporate writer, and event producer.​ Prior to joining ADAPT, he was the... More

Byron is a highly experienced technology and business journalist, editor, corporate writer, and event producer.​

Prior to joining ADAPT, he was the editor-in-chief at CIO Australia and associate editor at CSO Australia. He also created and led the well-known CIO50 awards program in Australia and The CIO Show podcast.​

Byron creates valuable insights for our community of senior technology and business professionals that help them reach their organisational and professional goals. He has a passion for uncovering stories about the careers and personal philosophies of Australia’s top technology and digital executives.​

When he is not working, Byron enjoys hot yoga, swimming, running and spending time with his family. He completed the North Face 100km ultra marathon in the NSW Blue Mountains in 2012 and 2013.​

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