16 July 2026

New research reveals councils risk missing the ROI from digital transformation and AI

Most councils across Australia and New Zealand struggle to clearly demonstrate the value generated by their technology investments, despite spending millions modernising critical systems, according to new independent research from Intelligent Business Research Services (IBRS).

The research found that in almost every council studied, measurement of benefits stopped after implementation, leaving councils unable to answer a fundamental question: what value did we get for the investment?

Many councils are running ageing systems approaching end of life while facing growing cybersecurity risks, tighter budgets and rising service expectations. As councils accelerate digital transformation, the ability to measure and demonstrate value has become as important as the technology itself.

Councils that have embedded value realisation are already seeing strong results. One Victorian council cut monthly financial close from 22 weeks to two weeks. A New South Wales council issued certificates six days faster and reduced bill payment processing time by nearly a third. Another council approved development applications 47% faster, while a large city council saved an estimated 75,000 community hours a year by moving public forms online. These improvements freed staff to spend more time serving their communities and less time on administration.

To help councils maximise the return on digital transformation, TechnologyOne commissioned independent research from IBRS Senior Advisor & Analyst Dr Joe Sweeney, resulting in Local Government Digital Transformation: A Practical Guide to Value Realisation.

The research argues that technology projects should not end at go-live. Instead, councils that continuously measure outcomes, refine processes and track benefits over time achieve significantly stronger community and operational outcomes.

To support Councils, the report introduces the Continuous Digital Transformation (CDT) Framework. The framework includes a maturity model, value register, ROI calculator, readiness assessment, workshop guide and governance tools to help councils embed value realisation into everyday operations.

TechnologyOne’s EVP Local Government, Ben Malpass said, “This report gives every council in the country a practical roadmap to measure, demonstrate and maximise the return on their technology investments.”

“For too long, success has been measured by whether a project was delivered on time and on budget. The real measure of success is the value created after implementation”, said Mr Malpass.

“Councils that measure value are better placed to make confident investment decisions, build community trust and unlock the potential of AI opportunities. The leading councils of the next decade will be those that build a culture of improvement and leverage their data to demonstrate real outcomes for their community,” he added.

IBRS Senior Advisor & Analyst Dr Joe Sweeney said, "The moment a new system goes live isn't the finish line, it's the starting line. The councils getting the greatest value from their technology treat value realisation as an ongoing discipline. They assign accountability, measure outcomes, and continuously improve long after implementation is complete."

Download the full report HERE.