Written evidence submitted by SAS Institute (DCG0030)

 

Science, Innovation and Technology Committee:
Digital centre of government inquiry

About SAS

  1. SAS Institute (“SAS”), a global leader in artificial intelligence and analytics, has been at the forefront of innovation for over four decades, transforming data into insight and knowledge that enables governments to identify what’s working and fix what isn’t. Through responsible innovation and trustworthy AI, SAS is a trusted partner for over 650 government agencies worldwide, helping them improve efficiency, protect citizens, and tackle complex challenges like climate change and public health crises.

2. What should be the priorities for the digital centre of government?

  1. Digital transformation is one of the biggest strategic issues for global business, education, and government. Process Automation, Analytics and AI are seen as a key enabler, particularly in the form of Automated Intelligent Decisioning (AID).
     
  2. The UK Government makes millions of vital decisions each day, including how to fund the prevention of coastal erosion, or evaluating immediate responses to economic crime, national security and military threats, and assessing citizens’ eligibility for benefit and welfare payments.
     
  3. As the sheer volume, complexity and velocity of decisions rises across government, all departments must seek more effective and efficient means to improve the throughput, the accuracy, fairness, and speed of those decisions – digital transformation underpins this work. We would highlight the below examples as leading contenders for further digital transformation:

Tackling economic crime (National Economic Crime Centre)

  1. Economic crime has a major impact on British citizens, UK industry and financial services. Through Digital Transformation, the Serious Fraud Office (SFO), the National Economic Crime Centre (NECC), and the UK Financial Intelligence Unit (UKFIU) could automatically identify, assess, and prioritise the most appropriate types of investigations, whether criminal, civil or regulatory, which is important for ensuring maximum impact.
     
  2. This would be achieved by modernising data management processes, including the collection of intelligence data, creating entities, building a data network to perform link analysis, and implementing automated risk scoring, alerting, and triage management of investigations through to conclusion.
     

Immigration enforcement and case management (Home Office)

  1. Small teams manage thousands of active cases at any one time – such as immigration enforcement and sham marriages. Using a central rules repository, teams could collaborate, develop, and deploy automated governed rules to drive decisions that SAS estimates would deliver an efficiency saving of some 1500% per rule change. Further, digital transformation can scale to meet expanding requirements and integrate with other intelligent systems through Application Programming Interfaces (APIs).

Reducing recidivism (Ministry of Justice)

  1. Using data from a range of categories such as age, gender, offending history, can help reduce recidivism by identifying and addressing the underlying causes of criminal behaviour. The transformation of existing processes can facilitate the processing and automated analysis of behavioural insights that help to evaluate the likelihood of reoffending.

Detecting insider threats (defence and national security organisations)

  1. One of the remits of the newly established National Preventative Security Authority is the protection of critical national infrastructure and systems of national interest and the risk posed by insider threats. Insider threats pose an insidious risk, from revealing proprietary information to competitors, to introducing malware into IT systems to sabotage the UK’s future success.

 

  1. By transforming existing processes within these critical environments, we can process huge volumes of data from many disconnected systems and use analytical models, AI, and organisational rules to detect and alert authorities to potential threats, ensuring significant and hidden risks are not overlooked.

Improve the performance of UK security vetting

  1. National security vetting is of vital importance to the effective functioning of government. If individuals’ clearances are not processed quickly then government departments risk being unable to progress work relating to national security. Once individuals are given clearance it is important that this is reviewed and renewed regularly to ensure that there have not been material changes in their circumstances that might increase the risks associated with them having access to sensitive government information.
     
  2. Beyond case management, digital transformation would enhance vetting and aftercare by enabling more informed and efficient decision-making on candidate eligibility. A forward-looking solution would provide timely and actionable insights into factors that could affect a person’s vetting status. For United Kingdom Security Vetting this would deliver the following benefits:
     

Question 3 - What lessons are there for DSIT as it establishes the digital centre?

Digital Transformation Initiatives

  1. For all organisations digital transformation requires multiple capabilities and a change in the culture of the organisation. There are a vast number of vendors in the market, and, in our experience, executives cannot just buy a ‘single solution’. Any real transformation effort requires that multiple departmental functions become tightly coupled.
     
  2. The allocation of single-executive accountability is problematic, and we have witnessed that the Chief Data Officer role is often not working as advertised, at least in part as they are not engaged early enough in pursuit of transformation efforts. 
     
  3. If the whole aim of digital transformation is to improve decisions in the public sector, it is important to be clear on what decisions Government is seeking to improve. The higher order business requirement for digital transformation is to enable the optimal allocation of government resources and respond to the needs of citizens in a more efficient and effective way. However, the smart use of data requires discipline, structure, and the transparency of decisions. The penalties for data and AI misuse are high.
     
  4. Successful digital transformation depends on analytics and the key to success is the automating of dynamic decisions. To drive real impact, analytics must be operational—value is only realised when insights and analytics are effectively deployed into day-to-day operations.
     
  5. It is important to always be able to trace, understand and manage the way that data and analytics is used and where AI is brought to bear, with a framework (“People, Processes, and Technologies”) that drives and ensures Responsible AI and sufficient transparency and governance around every decision.
     
  6. SAS would highlight these lessons learnt from contemporary digital transformation initiatives:

Case studies

  1. SAS collaborates with public sector customers in over 130 countries. From this experience, we highlight key organisations that have successfully adopted a data-led approach to address critical challenges such as tackling insider threats, improving tax compliance, and combating money laundering. The Committee may like to consider some of the below examples of successful digital transformation:

North Carolina Criminal Justice Analysis (Criminal justice data)

  1. In Wake County, North Carolina, drug and narcotic violations are the second most reported crimes after simple assaults, according to the FBI’s National Incident-Based Reporting System (NIBRS). This raised concerns about whether sufficient community services were funded to support assault victims and individuals struggling with addiction.[1]
     
  2. To address such questions, the North Carolina Criminal Justice Analysis Center (CJAC) launched the North Carolina Justice Data Portal in 2022, centralising criminal justice data from agencies across the state.[2] The portal provides publicly accessible, visual crime data analysis at state and county levels.

Iowa Department of Corrections (Prison system management)

  1. The Iowa Department of Corrections (DOC) has undergone digital transformation, leveraging data and advanced analytics to enhance evidence-based correctional practices. Its research team analyses data to inform decision-making, shaping operations and policies across the state’s nine prison
     
  2. With prisons collecting large amounts of daily data, the DOC serves as a central hub for analytics covering approximately 8,500 inmates, using data-driven insights to reduce recidivism for three consecutive years, achieving its most significant reduction in 2023 and demonstrating the role of predictive analytics in informing correctional policies and improving rehabilitation outcomes.
     

Turkish Insurer Aksigorta (Countering fraud and error)

  1. Aksigorta, one of Turkey’s leading insurance companies, prioritised fraud prevention as part of its digital transformation programme, recognising its direct impact on profitability and pricing. With three million customers, the insurer sought an end-to-end fraud management platform to enhance fraud detection, identify organised fraud, and integrate seamlessly with existing systems.
     
  2. Previously reliant on business rules and experience, Aksigorta faced challenges as fraudsters adapted to known detection methods. By adopting a data-driven approach, the insurer now benefits from predictive analytics, real-time fraud detection, and financial reporting—delivering a comprehensive solution for tackling both opportunistic and organised fraud.[3]

Southern States Energy Board (Energy and environment)

  1. The Southern States Energy Board (SSEB) is now a nonprofit interstate compact organisation addressing energy and environmental policy. SSEB’s carbon management efforts extend beyond CO₂ capture, integrating data, technology, and expertise to combat global warming. The organisation analyses geological, regulatory, and community sentiment data with speed and precision.
     
  2. Representatives from SSEB highlight that the use of data, combined with generative AI, is enabling more informed and transformative discussions with regulators. By providing clear insights into public concerns, the organisation can proactively shape messaging and policy engagement.”[4]

 

Lessons from other countries

Digital transformation is a multifaceted challenge, and there are valuable lessons to be learned from various countries' experiences across different dimensions:

Policy Issues

  1. Countries like South Korea and Estonia have made significant strides in digital transformation through comprehensive policy frameworks. South Korea's "Digital New Deal" focuses on building digital infrastructure and fostering innovation. Estonia's ‘e-Estonia’ initiative has transformed public services through digital means, emphasizing transparency and efficiency.[5]
     

Cultural Issues

  1. Cultural alignment is crucial for successful digital transformation. In Japan, companies often face resistance to change due to traditional hierarchical structures. To address this, some organisations have implemented cultural ambassadors and upskilling programs to foster a more adaptable and innovative culture.[6][7]


Skills Issues

  1. Countries like Singapore and Finland have invested heavily in digital skills training. Singapore's SkillsFuture initiative provides citizens with resources to continuously upgrade their skills, ensuring a workforce ready for digital challenges.[8] Finland's education system integrates digital literacy from an early age, preparing students for a digital future.


Data Management and Regulation

  1. Data management and privacy are critical components of digital transformation. The European Union's General Data Protection Regulation (GDPR) sets a high standard for data privacy and security, influencing global practices. Countries like Canada and Australia have also developed robust frameworks to manage data flows and protect privacy while promoting innovation


Cybersecurity Issues

  1. Australia has faced several high-profile cyberattacks, highlighting the importance of robust cybersecurity measures. The government has responded with initiatives to strengthen national cybersecurity infrastructure and promote best practices among businesses. Similarly, Singapore has implemented comprehensive cybersecurity strategies to protect its digital infrastructure.

Question 4 - What assessment can be made of DSIT’s work on establishing the digital centre to date?

How should DSIT and other public bodies leverage reforms to public procurement to deliver and operate the digital centre?

  1. One of the key objectives of public procurement reform is to help government departments and other public bodies to reduce the time, cost, effort, and risk involved in executing their Digital Transformation Agenda.
     
  2. Streamlined procurement processes can help DSIT quickly acquire the necessary technology and services to support digital initiatives, reducing delays and will ensure that procurement decisions are clear and accountable.
     
  3. By making it easier for small businesses and enterprises to compete for contracts, DSIT can explore innovative solutions and technologies from a diverse range of suppliers.
     
  4. The new powers to exclude and debar suppliers for poor performance or security concerns ensure that departments can work with reliable and secure partners, which is crucial for maintaining the integrity of digital services.
     
  5. The National Procurement Policy Statement (NPPS) sets out priorities that align with DSIT's goals, such as promoting innovation and ensuring value for money. This alignment can help DSIT focus on strategic objectives while adhering to national priorities.

Question 5 - What are the barriers to successfully establishing a digital centre of government? How can DSIT address these barriers? What infrastructure and regulation are required to make the government “more digital”?

  1. Citizens, as service users, are the primary beneficiaries of digital transformation, which aims to enhance their experience and satisfaction with public services.
     
  2. In many organisations we work with, we see a growing divide between strategic vision and execution. This is typically due to lack of alignment between the board room, senior managers, middle management and delivery and operational teams. This has a huge impact in meeting digital transformation objectives.
     
  3. To bridge this gap, a well-defined operating model is essential, one that aligns with the organisation’s structure and capabilities required to deliver digital transformation. This model needs to consider the flow down of responsibilities and have in place an established governance model that ensures risks are identified and mitigated against whilst striking a balance against performance and outcomes.
     
  4. For example, within the public sector:
     

Barriers to successfully establishing a digital centre of government

  1. Several barriers can impede digital transformation in government, affecting the adoption, implementation, and effectiveness of new technologies. Key challenges include:

 

03 March 2025

 

[1] https://www.sas.com/en_us/customers/north-carolina-criminal-justice-analysis-center.html

[2] North Carolina Justice Data Portal

[3] https://www.sas.com/en_us/customers/aksigorta-tr.html

[4] https://www.sas.com/en_gb/customers/southern-states-energy-board.html

[5] https://www.oecd.org/en/topics/digital-transformation.html

[6] https://www.panorama-consulting.com/cultural-barriers-to-digital-transformation-and-how-to-overcome-them/

[7] https://www.panorama-consulting.com/challenges-in-aligning-corporate-culture-with-digital-transformation/

[8] https://www.skillsfuture.gov.sg/