Digital NSW’s Test and Buy Innovation is developing a comprehensive support model that encourages NSW Government buyers to adopt agile innovation procurement methods to find, test and buy the most cutting-edge technology solutions to problems communities face in NSW. Self-service guidance covering the practical steps buyers can take is being released progressively, with the first set published in November 2024.
“The guidance supports the NSW Digital Strategy commitment to build world-class digital services that strengthen our communities while supporting economic growth. It puts innovation and partnerships at the heart of procurement to deliver smarter, faster services to the people of NSW, powered by the newest and best in technological advancement”
- – Mark Lenzner, Executive Director, ICT/Digital Sourcing, Digital NSW, Test and Buy Innovation Sponsor
“Part of our ICT/digital sourcing policy landscape within Digital NSW is supporting the adoption of rapidly changing tech innovation—we’re talking to many innovation projects in NSW government and looking for best practice around the world.
"The fast-paced ICT and digital landscape makes it challenging to find the leading-edge innovation solutions for the NSW Government. Adopting innovation-friendly procurement practices allows buyers to access the latest expertise and improve project outcomes.”
— Marina Troyak, Director, Supplier Policy and Innovation Development, Test and Buy Innovation Business owner
Agencies empowered — successful use of innovation-friendly procurement methods solving complex digital challenges
Digital NSW recently supported several significant NSW Government initiatives, including the Smart City Innovation Challenges and AI in NSW Planning, to adopt the Test and Buy Innovation model.
The first initiative, led by Transport for NSW, uncovered leading edge technology and data solutions to improve places and outcomes for NSW communities. The innovation challenges aimed to create partnerships between the NSW Government, technology and innovation sector and grow the number of new smart places products, services and solutions in NSW, while increasing the commercialisation of NSW Government-funded innovation for smart places.
“Our experience working with industry has shown that suppliers benefit from working more closely with the NSW Government and understanding the problems we want to solve. Providing paid opportunities to test solutions was important for this program, both to find the best ideas and to lower the barrier to entry for innovative small and local businesses.
“Across four Smart City Innovation Challenges, we created opportunities for 33 pitchfest participants to showcase their solutions and 14 suppliers to develop their ideas further through paid feasibility studies, before the final decision to award a contract to deliver one proof of concept for each challenge.”
– Lizzy Pattinson, Director, Strategic Projects and Innovation, Transport for NSW
The second project, led by Department of Planning, Housing and Infrastructure, explores how AI can help NSW councils create workflow efficiencies in the local development application (DA) process. Particularly in the pre-lodgement phase, to support the delivery of housing through initiatives such as the AI Early Adopter Grant Program.
“We had heard about a success story in Victoria but didn’t want to assume we knew the best solutions. We used the Test and Buy Innovation model, with support from the advisory team at Digital NSW, to adopt a human-centric approach, define several challenge statements and run an outcome-based market approach to explore possibilities that could be tested with councils before implementing the solutions.
"NSW Councils can now trial solutions from four different suppliers, all NSW small to medium enterprises, through the AI Solutions Panel. This helps to achieve annual dwelling targets in NSW and stay on track with current NSW Government priorities.”
– April Pham, A/Director, Planning Portal Interface, Department of Planning, Housing and Infrastructure
Smart City Innovation Challenges and AI in NSW Planning adopted innovation-friendly agile procurement practices that are now encoded in the recently launched Test and Buy Innovation self-support guidance, two great examples of how we should be buying innovation and that is by:
- Approaching the market with an outcomes-focus, using challenge statements supported by user stories, success criteria and constraints.
- Using a single procurement strategy and market approach to cover multiple procurement stages, from early testing right through to implementation at scale.
- Testing multiple solutions before proceeding to invest in successful ones.
- Compensating suppliers for testing.
- Clearly communicating the procurement process to suppliers in plain English.
“NSW Government agencies can seek tailored support for eligible projects through our innovation procurement sandbox or ad-hoc advisory services. Our team is always looking to test out new approaches not yet attempted in the NSW Government, and push the limits on innovation procurement.
"We can fill two key skill gaps – firstly, bringing stakeholders together to shape complex problems and develop challenge statements the market can respond to. And secondly, designing buying pathways that include testing stages. We can support documentation and work hand in hand with agency procurement teams to implement them while meeting all the public sector obligations around fairness, transparency, value for money and of course compliance with policies.”
– Dr Kellie Adlam, Principal Policy Officer, Transformation, Test and Buy Innovation Product owner
Other innovation programs across the NSW Government such as Small business innovation and research program (SBIR), Bushfire technology pilots and Natural Hazards Technology program have successfully adopted select innovation-friendly practices, like the use of challenge statements or testing a range of solutions, despite not focusing on procurement.
All innovation procurement initiatives supported by Digital NSW have benefited multiple small to medium businesses, many of whom are based in NSW, by providing opportunities to put forward and develop their proposals with the NSW Government, lowering the cost to participate and having a clear pathway to scale implementation.
Digital NSW is also working with NSW Treasury to explore how the Test and Buy Innovation model can help government to tap into the large and growing innovation ecosystem around banking and payments.
About Test and Buy Innovation
Test and Buy Innovation is led from Digital NSW within the Department of Customer Service to help buyers of innovation find, test and buy the best technology solutions to the problems communities face in NSW.
Through consultation with over 100 suppliers of emerging technology and buyers of innovation across the sector, the NSW Government gained insights into the biggest impact areas for improving how it buys innovation. Read more at Innovation Procurement overview page.
Test and Buy Innovation recently published its first set of innovation procurement self-service guidance to help NSW Government buyers access the latest expertise and most innovative solutions which address community needs across the state. The guidance was launched on Wed, 27 Nov 2024 during the Digital NSW 2024 Showcase. Read more in the media release.
If you’re interested in learning more or getting involved, email the program team at InnovationProcurement@customerservice.nsw.gov.au or visit the Innovation Procurement overview page. For more information about the projects, visit the Department of Customer Service Tenders, NSW Planning website and Smart City Innovation Challenges.