Business Case Summary

(:typeset-page fontset=kepler fontsize=2col space=french surtitle="" subtitle="INZ Business Development Programme":)

The first round of change will focus on supporting INZ's drive to reduce costs:

# adapting the global service delivery model in response to MFAT's decision to exit from visa services provision by mid-2012

** education providers

%id=projectPhasing%Attach:project-phasing.png"phasing" | Planned project phasing

The first round of change will focus on:

# simplifying processes to realise the benefits from the first tranche of IGMS, scheduled for completion by mid-2013

{=Flexible, agile, efficient=}Fully achieving these benefits will require incremental reconfiguration of INZ's global service delivery model to meet different needs in different markets, a new technology platform (IGMS) that takes advantage of the Web to deliver more online information and services, and enhanced identity management capability. Together, the changes will progressively deliver the following performance improvements:

# Establish future service delivery model: will address the issues around inflexibility and high cost through a redesign of the global service delivery model.

Fully achieving these benefits will require incremental reconfiguration of INZ's global service delivery model to meet different needs in different markets, a new technology platform (IGMS) that takes advantage of the Web to deliver more online information and services, and enhanced identity management capability. Together, the changes will progressively deliver the following performance improvements:

* Increased consistency of decisions

* Increased customer satisfaction

* Improved INZ reputation

* Potential savings for DHBs through recovery of medical expenses from patients

There are seven options which each deliver a combined set of initiatives and can be implemented independantly of other options:

These seven options were assessed against criteria which included payback, {NPV|nett present value}, flexibility, customer focus, reach and ease of implementation. Based on this analysis, it is recommended that the following options be approved in principle, and that scoping and detailed business cases be completed for the initiatives underlying these options:

It is also recommended that potential changes to the service delivery model be investigated further to explore options to reduce implementation costs and shorten the payback period by being more selective about proposed changes.

The cost of the programme is significant and will need to be phased in a manner that minimises cash outflows in early years. Fig(projectPhasing) shows the optimal cash flow. This excludes the estimated cost of changes to the service delivery model, which has a negative NPV, and the estimated cost of IGMS, which will be funded externally by an injection of capital. However even this phasing results in a funding shortfall of $10M in the first two years.

{=Support migrants to settle in work=}Migrant support is not included in the programme scope. Other INZ initiatives, such as developing an employer portal, address this goal.

The current product portfolio is the result of many years of incremental change, which have led to a proliferation of visa types.

{=Build capability and agility=}The programme will achieve these changes through a portfolio of related investment initiatives:

# Establish future customer service framework

# Improve customer service experience

# Improve business processes

# Improve customer access to information

# Establish future service delivery model

# Enhance identity management capability

# Establish future IT platform (IGMS)

Tab(gapAnalysis) summarises the changes the programme will deliver, enabling INZ to become more responsive to customer needs and more adaptable to changing market conditions.

# Establish future customer service framework: includes three infrastructure type initiatives which are necessary to support other initiatives in the programme (“enablers”). These initiatives by themselves will only deliver minor cost savings, but they provide the platform which will “enable” other initiatives to realise savings.

# Establish future IT platform (IGMS):will provide a replacement IT system for immigration.

These seven options were assessed against criterion which included payback, NPV, flexibility, customer focus, reach and ease of implementation. Based on this analysis, it is recommended that the following options be approved in principle, and that scoping and detailed business cases be completed for the initiatives underlying these options:

It is also recommended that potenetial changes to the service delivery model be investigated further to explore options to reduce implementation costs and shorten the payback period by being more selective about proposed changes.

The cost of the programme is significant and will need to be phased in a manner that minimises cash outflows in early years. The optimal cash flow is shown below and excludes the estimated cost of changes to the service delivery model whcih has a negative NPV and the estimated cost of IGMS which will be funded externally by an injection of capital. However even this phasing results in a funding shortfall of $10m in the first two years:

Attach:project-phasing.png | Planned project phasing

Attach:project-phasing.gif | Planned project phasing

The cost of the programme is significant and will need to be phased in a manner that minimises cash outflows in early years. The optimal cash flow is shown below, however even this phasing results in a funding shortfall of $10m in the first two years:

Attach:project-phasing.gif

These seven options were assessed against criterion which included payback, NPV, flexibility, customer focus, reach and ease of implementation. Based on this analysis, it is recommended that the following options be approved in principle, and that scoping and detailed business cases be completed for the initiaitves underlying these options:

# Establish future IT platform (IGMS):

The programme supports and enables the Immigration New Zealand strategic direction. It delivers an enhanced customer experience in which everyone uses the online channel to access information and services. Customers choose either a self-service option, accessing information and services directly over the Internet, or assisted-service, using a mix of face-to-face, telephone and mail (paper or electronic) to interact with INZ or a service delivery partner. The mix of self-service and assisted-service will vary from market to market depending on the risk and value of the application. In some high-risk markets, customers will be directed to the assisted-service option to mitigate the risk of attempted immigration fraud. This will include capture of biometric data, verification of paper documents, and verification of identity.

Tab(gapAnalysis) summarises the changes the programme will deliver, enabling INZ to become more responsive to customer needs and more adaptable to changing market conditions.

||border=1 cellpadding=2 id=gapAnalysis"gap analysis"
||!Gap Assessment!||
||!Rigid current state ||!Flexible future state ||
||Process variability ||Consistency ||
||People ||Self-service ||
||Fixed costs ||Variable costs ||
||Risk averse ||Manage risk ||
||Bricks and Mortar ||Online channels ||
||Paper flows ||Web documents ||
||Opaque ||Transparent ||
||General attraction ||Targeted attraction ||

INZ's customers are:

** students

Change can't be planned: it is emergent as the result of doing the things necessary to improve service to customers. This can only come from joint investigation by staff and managers of the 'what' and 'why' of current capability, then experimenting with what works to make it better. Planning change before we know what it should be ... doesn't make much sense.

* lower total processing cost per application

* higher percentage of applicants applying online

* fewer visa application types

* shorter visa application forms

The programme supports and enables the Immigration New Zealand strategic direction. It delivers an enhanced customer experience in which everyone uses the online channel to access information and services. Customers choose either a self-service option, accessing information and services directly over the Internet, or assisted-service, using a mix of face-to-face, telephone and mail (paper or electronic) to interact with INZ or a service delivery partner. The mix of self-service and assisted-service will vary from market to market. In some high-risk markets, customers will be directed to the assisted-service option to mitigate the risk of attempted immigration fraud. This will include capture of biometric data, verification of paper documents, and verification of identity.

It will achieve this through a portfolio of related investment initiatives:

# Establish future customer service framework

# Improve customer service experience

# Improve business processes

# Improve customer access to information

# Establish future service delivery model

# Enhance identity management capability

# Establish future IT platform (IGMS)

Tab(gapAnalysis) summarises the changes the programme will deliver, enabling INZ to become more responsive and more adaptable.

The business development programme covers a range of changes to services, processes and supporting platforms. These will move INZ to a future state delivering better, more flexible service at lower cost and enabling more effective management of value and risk. The programme will:

Fully achieving these benefits will require incremental reconfiguration of INZ's global service delivery model to meet different needs in different markets, a new technology platform (IGMS) that takes advantage of the Web to deliver more online information and services, and enhanced identity management capability. Together, the changes will progressively improve the following performance measures:

* total processing cost per application

* end-to-end time to process an application

* percentage of applicants applying online

* number of visa application types

* number of pages in visa application forms

{=Become more customer-centred=}New Zealand's economic future (John - I think this might over-state the economic contribution - Jacki) depends on our ability to attract and keep skilled migrants, and on the continued success of our education, tourism and other export sectors. We are competing with other developed countries for the same pool of potential migrants, students and visitors. At the same time, all countries are facing increased pressures on their borders from refugees and illegal immigrants. And like other countries with high overseas debt, low income and low productivity growth, the New Zealand government needs to deliver better service for less cost. To operate in this environment, INZ needs business processes and systems that make it easy to identify and facilitate entry of people who will make a positive contribution to New Zealand, and to identify and exclude those who do not meet our requirements. This depends on a sophisticated, flexible and consistent assessment of customer risk and value.

{=Become more customer-centred=}New Zealand's economic future depends on our ability to attract and keep skilled migrants, and on the continued success of our education, tourism and other export sectors. We are competing with other developed countries for the same pool of potential migrants, students and visitors. At the same time, all countries are facing increased pressures on their borders from refugees and illegal immigrants. And like other countries with high overseas debt, low income and low productivity growth, the New Zealand government needs to deliver better service for less cost. To operate in this environment, INZ needs business processes and systems that make it easy to identify and facilitate entry of people who will make a positive contribution to New Zealand, and to identify and exclude those who do not meet our requirements. This depends on a sophisticated, flexible and consistent assessment of customer risk and value.

The current immigration "system" is not, in fact, a system. Information that customers need is hard to find on the INZ web site and the sheer number and complexity of different visa types mean that customers need help to navigate to the correct application form. It is hard for applicants to get meaningful information about the status of their application and when they can expect a decision. Employers and other clients cannot rely on receiving a consistent quality of service. Government agencies that need to verify a person's entitlement to receive public services cannot access the information they need without help from INZ staff. INZ has long recognised that its systems and processes have become progressively more complex and are no longer fit for purpose. The business development programme builds on a number of past change initiatives and in particular the proposed replacement IT system, IGMS.

The current IT system, AMS, was designed and built in the early 1990s, well before the Internet and Web changed the way organisations communicate and transact business with their customers. The system includes a large number of ''ad hoc'' extensions made over the years to meet new requirements, has become increasingly expensive to maintain, and is an unsuitable platform on which to build future online services. INZ also lacks automated biometric capability for application processing. This limits its ability to fulfil its obligation as the authoritative source of identity information for non New Zealanders.

Continuous process improvement reduces waste (work that adds no value) and eliminates unnecessary local process variation. The first stage, process simplification, is to reduce the number of visa types and simplify the application forms. A risk-adjusted value framework supports early intervention and ensures decision quality and consistency, enabling more effective workload planning and resourcing. The business has also identified a wide range of process improvement and efficiency opportunities.

Fully achieving these benefits will require incremental reconfiguration of INZ's global service delivery model to meet different needs in different markets, a new technology platform (IGMS) that takes advantage of the Web to deliver more online information and services, and enhanced identity management capability. Together, the changes will progressively improve to the following performance measures:

* lower total processing cost per application

* faster end-to-end time to process an application

* more applicants applying online

* fewer visa application types

* shorter visa application forms

(:typeset-page fontset=kepler fontsize=2col space=french surtitle="" subtitle="Immigration New Zealand":)

(:typeset-page fontset=kepler fontsize=2col space=french:)

{=Better for less=}The benefit from the programme is cost reduction through simpler, more efficient, more automated processes. Online lodgement reduces data entry and rework cost (fewer return failed lodgements). Automating low risk applications reduces processing cost and improves the service for a large number of applicants. Secure online access to applicant status information reduces the number of calls to the contact centres. Authorised customers can access information when and where they need it.

Continuouse process improvement reduces waste (work that adds no value) and eliminates unnecessary local process variation. The first stage, process simplification, is to reduce the number of visa types and simplify the application forms. A risk-adjusted value framework supports early intervention and ensures decision quality and consistency, enabling more effective workload planning and resourcing.

Process simplification, first by reducing the number of visa types and simplifying the application forms, reduces waste (work that adds no value) and eliminates unnecessary local process variation. A risk-adjusted value framework supports early intervention and ensures decision quality and consistency, enabling more effective workload planning and resourcing.

;Staff member;There is no consistency across the different branches performing the same functions.

{=Building an organisation that is fit for the future=}The business case presents the justification for a future state in which INZ is more joined up--information flows securely and seamlessly between INZ and its customers and service partners; more transparent--customers or their agents can access the information they need at any time and any place; and more cost-effective--the time and cost of processing an application are reduced, while maintaining decision quality. It describes investments proposed for the 2011/12 financial year, savings from which can be applied to fund future years' investments. It draws on information provided by a wide range of subject matter experts from across the business.

;Customer;Something about how the web site is hard to use?

* reduced processing cost per application

* reduced end-to-end time to process an application

;Staff member;AMS has improved but it still has issues. That affects timeliness and also productivity for us.

Process simplification, first by reducing the number of visa types and simplifying the application forms, reduces waste (work that adds no value) and eliminates unnecessary local process variation. A risk-adjusted value framework ensures decision quality and consistency, enabling more effective workload planning and resourcing.

Fully achieving these benefits will require incremental reconfiguration of INZ's global service delivery model, a new technology platform (IGMS) that takes advantage of the Web to deliver more online information and services, and enhanced identity management capability.

The business development programme covers a range of changes to services, processes and supporting platforms which will move INZ to a future state delivering better, more flexible service at lower cost and enabling more effective management of value and risk. The programme will:

{=Become more customer-centred=}New Zealand's economic future depends on our ability to attract and keep skilled migrants, and on the continued success of our education, tourism and other export sectors. We are competing with other developed countries for the same pool of potential migrants, students and visitors. At the same time, all countries are facing increased pressures on their borders from refugees and illegal immigrants. And like other countries with high overseas debt and low productivity growth, the New Zealand government needs to deliver better service for less cost. To operate in this environment, INZ needs business processes that make it easy to identify and facilitate entry of people who will make a positive contribution to New Zealand, and to identify and exclude those who do not meet requirements. This depends on a sophisticated, flexible and consistent assessment of customer risk and value.

;Staff member;The best thing about working for INZ is the feeling we are making adifference and helping New Zealand grow.

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(:description The indicative business case for the Immigration New Zealand business development programme is being submitted to the Immigration Leadership Team in June 2011. It sets out an investment strategy, preferred implementation options and a funding plan. The programme is an overdue investment to improve customers' access to information and services, and to make INZ more efficient and cost-effective.:)

* Replace or enhance INZ's enabling technology infrastructure, including transition from AMS to IGMS and improved identity management.

{=Become more customer-centred=}New Zealand's economic future depends on our ability to attract and keep skilled migrants, and on the continued success of our education, tourism and other export sectors. We are competing with other developed countries for the same pool of potential migrants, students and visitors. At the same time, all countries are facing increased pressures on their borders from refugees and illegal immigrants. And like other countries with high overseas debt and low productivity growth, the New Zealand government needs to deliver better service for less cost. To operate in this environment, INZ needs business processes that make it easy to identify and facilitate entry of people who will make a positive contribution to New Zealand, and to identify and exclude those who do not meet the requirements. This requires a sophisticated, flexible and consistent assessment of customer risk and value.

The current immigration "system" is not, in fact, a system. Information that customers need is hard to find on the INZ web site and the sheer number and complexity of different visa types mean that customers need help to navigate to the correct application form. It is hard for applicants to get meaningful information about the status of their application and when they can expect a decision. Employers and other clients cannot rely on receiving a consistent level of service. Government agencies that need to verify a person's entitlement to receive public services cannot access the information they need without help from INZ staff. INZ has long recognised that its systems and processes have become progressively more complex and are no longer fit for purpose. The business development programme builds on a number of past change initiatives and in particular the proposed replacement IT system, {IGMS|Immigration Global Management System}.