Stage Two: development of solutions Consistency with information technology strategy

2.11  Once a project has been through the Department's approval process, the next stage is for EDS to develop a technical solution. If the Department is to achieve value for money in the award of new work to EDS, it is essential that information technology developments are directed by a strategy which will:

■  ensure that technical solutions are consistent with, and contribute to, the achievement of the Department's objectives;

■  give the Department access to hardware and software which are widely used and capable of operating together, giving it freedom in the choice of suppliers and avoiding, as far as practicable, "lock-in" to any one system or supplier;

■  obtain maximum value from investments in hardware and software, especially bespoke developments, by enabling them to be shared or re-used in different systems;

■  encourage operational efficiency by setting rules on data formats, storage and access which enable common data to be shared and avoid duplication of keying or storage; and

■  minimise the cost of hardware provision by encouraging standardisation, which maximises the Department's purchasing power and minimises maintenance costs.

2.12  A comprehensive information systems and information technology strategy, by encouraging common standards, should enable savings to be made in the procurement of hardware and software and their subsequent maintenance. It should also produce indirect benefits by, for example, reducing the need for staff training, and the risks associated with acquisition and operation, such as the risk of a purpose-built software system failing to meet specification, or of no back-up being available in the case of hardware failure.

2.13  Under the partnership, the Department is responsible for defining its information systems strategy and it shares responsibility for the information technology strategy with EDS. The information technology strategy aims to achieve long term value for money by specifying a preference for:

■  open operating systems (systems for operating computers which allow a wide variety of different producers' software to be run, rather than a single manufacturer's systems);

■  the purchase of off-the-shelf software rather than the development of purpose-built software;

■  development of single software modules for common procedures, such as the handling of receipts and payments, which can be used in a number of systems supporting individual taxes or administrative processes;

■  data to be only keyed once and to be stored in a single place; and

■  use of a common desktop computer system throughout the Department.

2.14  The Department's strategy also builds on the information technology strategies of EDS, where they are compatible with the aims and interests of the Department, so that the expertise, facilities and purchasing power of EDS can be exploited to best advantage.

2.15  Information technology strategies are not, however, set in stone. Developments in information technology and policy developments flowing from, for example, the Modernising Government initiative, mean that the strategy needs to be kept under review to ensure that current developments are in line with the medium- and long-term vision of the Department's business. The Department has recognised this as a key issue for the continued success of the partnership.

2.16  Without an overall strategy, each technical solution might be developed in isolation, leading to fragmentation and failure to secure the advantages outlined at paragraph 2.11 above. Departures from the Department's strategy have, however, occurred and could still occur, because, for example, the Department has had to make tactical decisions which are out of step with the strategy in order to deliver systems in time to meet legislative or other deadlines (see Figure 7). As this may result in further work being necessary at a later date to bring a development into line with the information technology strategy, as with self assessment, such departures should be made consciously, for defined and justifiable reasons.