Iceland's Leap into the Digital Era
Digital Iceland's journey in developing the public sector's digital infrastructure that enabled the Icelandic government to achieve significant and rapid results.
Table of contents
1. Introduction Digital Iceland
At the turn of the last century, Iceland led in digital services. However, as other countries began to surpass us, Iceland slid down the rankings that tracked countries' progress in this field. It was evident that to stay at the forefront, we needed to significantly advance our digital services.
In many quarters, there was a recognition that action was needed. Ambitious policies were established, but the actions to implement these policies fell short. Some organizations excelled in information technology use, while others lacked a holistic vision. Each organization's decisions depended largely on the interest of its manager, resulting in little inter-organizational cooperation, leading to redundant efforts and wastage.
Furthermore, we lacked comprehensive oversight and leadership in developing Iceland's digital infrastructure. Those who understood the challenges and had solutions lacked the authority to act. Despite this, their analysis and desire for change managed to spotlight these issues, paving the way for further development. The Finance Minister's understanding of the importance of reevaluating the issue played a significant role, leading to a political consensus for change.
Indeed, being present and aware of possibilities is crucial. It's interesting to note how quickly some aspects of our work can regress. Perhaps that's the lesson. Habits set in, and before we know it, our way of working is decades behind.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
Digital Services as the Primary Communication Method
The decision was made for digital services to become the country's primary communication method, with a significant emphasis on developing digital infrastructure. The Icelandic government also aimed to regain its place at the forefront of digital governance. This goal was ambitious, particularly considering the intense competition for digital technology expertise in a country as small as Iceland. The results, however, are remarkable. In 2019, Iceland was 19th in the international E-Government index, which measures the quality of digital administration. By 2022, Iceland had climbed to 5th place, an impressive leap of 14 spots.
European (Egov - 4th place) and World Championships (eGDI - 5th place).
This progress was made possible by consolidating authority over this issue into one ministry and subsequently establishing an agency for Digital Iceland. With this, a digital transformation within the Icelandic state was realized, with information technology issues being considered from the standpoint of service and transparency, rather than just operationally. The focus was on exploring collaborative efforts and shared access to services to boost competitiveness. There was an emphasis on building a safer infrastructure, enhancing public services, and creating a more contemporary working environment.
During this restructuring, the employee's ability and courage to reimagine a project were critical. The boldness to stick with decisions despite initial opposition and a complete reassessment of tenders regarding government service purchases played significant roles. The subsequent reorganization within the administration provided the leaders of Digital Iceland with more flexibility than usual, a robust authority for decision-making, and the capacity to act swiftly. Additionally, the thoughtful selection of initial projects demonstrated that quick results in creating new digital solutions that mattered to people were achievable. A well-presented, user-focused approach boosted people's confidence in the importance of this new infrastructure development.
Creating Valuable Knowledge
By documenting Digital Iceland's journey in developing the public sector's digital infrastructure, our intention is to record the experiences, expertise, procedures, and approaches that enabled the Icelandic government to achieve significant and rapid results at a minimal cost. The methods utilized have proven valuable, and important knowledge has been created. It is crucial to keep track of this knowledge and share it with other parties aiming for reforms, increased transparency, and improved services.
Digital technology has enhanced efficiency, reduced costs, saved time, and improved services within public institutions. Additionally, digitization has simplified the lives of both the public and institutional employees, who can now address matters through electronic processes, saving both time and money. This development positively affects the environment and public expectations, as the benefits are visible. Also, reduced intermediaries within institutions enhance efficiency and safety, leading to increased satisfaction among stakeholders.
In a project like this, where the focus is on reform, innovation, and change management, a multifaceted experience and valuable knowledge are generated. This information can be useful to others, especially when achieving success on par with Digital Iceland. Its representatives consider it their duty to record and pass on this knowledge to others with similar objectives, as we aspire to serve as a model for other countries in terms of digital literacy.
Best Practice
It is essential to track successful approaches and methods for communication, increasing efficiency, and enhancing quality. By recording proven best practices, others can utilize these methods for challenges and improvements. Knowledge and experience are invaluable resources created through collaboration and are important to pass on to others who join the project later or wish to build on previous experiences.
In Digital Iceland's journey, an unconventional path was taken within the administration to ensure the project's progress. The public tender for software development was reimagined from the ground up, enabling various private companies to collaborate on new solutions for the public sector by securing the shared interests of all parties involved. The tender process was then refined as more experience was gained, leading to even greater success. Best practices are not universal rules, but are effective approaches adapted to the situation and reviewed regularly. In this way, best practices support individuals in shaping their own work and enhancing their creativity, as well as highlighting methods aimed at achieving optimal results.
Cultivating Innovation and Improvement Thinking
While pioneering paths within the administration to achieve success in an innovative project like Digital Iceland, efforts were made to leverage knowledge of technical solutions that had proven successful for other nations. This approach was used to prevent unnecessary duplication while seeking to refine those solutions. It also encouraged a culture of continuous improvement and effective solution utilization, thereby facilitating efficient progress.
It is important to document an equally progressive procedure that thoroughly proved its value. The approach taken by Digital Iceland can serve as an important resource for all managers aiming to promote employees initiative, improvement thinking, cross-team collaboration, and the achievement of results in a short time for complex projects that serve society.
To effectively address a problem, we must understand the people involved, the dynamics, and the reasons why progress has stagnated. Ask the right questions and then strive to solve the problems.
Andri Heiðar Kristinsson, CEO of Digital Iceland
2. The Prequel to Digital Iceland
I've often referenced a line from the Nirvana song, Plateau: "Who needs action when you've got words?" It feels as if we've been stuck in that mindset - why act when we can just talk?
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
Icelandic society is receptive to new technology. Our country has consistently had the highest percentage of internet-connected homes and internet users in Europe, according to Eurostat, the European Union's Statistical Office. The World Economic Forum's general competitiveness metrics have also highly rated Iceland's ability to adopt new technologies. The Icelandic government recognized the potential for significant improvements in public access to information, administrative efficiency, and public finance management through administrative innovation and information technology use. The public and businesses possessed the necessary skills. However, the administration had yet to harness this advantage, which had previously given us an edge over other nations.
It was concerning to see Iceland fall behind. We were once among the nations leading in digital services and information utilization, but we began to slide down the rankings.
Guðrún Ögmundsdóttir, department manager at the Ministry of Finance and Economic Affairs.
As we started investigating, we decided to catalog all testimonials - especially those highlighting outdated or old-fashioned practices.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
Several hurdles stood in the way of those advocating IT reforms. While ambitious policies had been proposed, and many demonstrated a willingness to improve, the related projects were scattered across ministries. This led to unclear responsibilities, mandates, and oversight. As a result, securing project funding was difficult and the impact was thus limited. Those who wished to progress and had the means to do so had limited decision-making authority over the matter.
The emphasis on digital services depended heavily on each director's enthusiasm. It was a bit surprising. Coming from the Ministry of Finance and having worked with the Tax Office, which was a leader in its field, I assumed all organizations held the same view that digital services represented the future.
Guðrún Ögmundsdóttir, department manager at the Ministry of Finance and Economic Affairs.
In 2013, the Ministry of Finance took a step in the right direction by establishing an Office of Management and Reform. Among other things, this office was tasked with handling the state's financial management and operational issues, as well as leading reform and innovation in the state's operations and institutional system, including the development of digital infrastructure. One of their initial tasks was to analyze the government system's infrastructure and IT status. This analysis provided an overview of the resources allocated to the initiatives and the number of employees involved. It became apparent that substantial funding went to IT issues, but the outcomes were inconsistent. This analysis marked the starting point for the Office of Management and Reform and informed decision-making aimed at improving government operations and services through information technology.
We found that almost all the funding was channeled into operations, and almost none was invested in development. There was a clear lack of focus on development within government institutions.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
The Ministry of Finance began to explore possibilities in joint ventures and shared services, such as IT solutions and financial management, recognizing the synergy that could come from project consolidation. With this new focus, organizational changes were implemented within the ministry, moving more issues under the purview of the Office of Management and Reform, which subsequently broadened its oversight. Organized teamwork across projects was established, and the group developed a shared vision for the evolution of government operations and services. They believed that this vision could only be realized through enhanced digital infrastructure development, viewing information technology from the perspective of service and transparency, not solely operations.
It's often said that sound policy stems from the principle of 'Policy to Action,' but we flipped that, stating, 'Action to Policy.' Once we demonstrate that a method of task execution yields benefits, we then formulate a strategy based on what we have observed works.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
Despite recognizing the need for action, it's not guaranteed that these actions will be undertaken, let alone successful. Most agreed on the necessity of developing digital services for Iceland's public sector, but unlike traditional infrastructure development, there were no established workflows.
If a bridge needs to be built, there are clear answers to questions like who will handle the work, where is the best place to start, who pays, who manages, who is responsible, who grants permission, which tools and materials are best, and who gets the project underway. These questions have established channels and traditions within administration for a physical bridge, but not for digital ones.
The Office of Management and Reform at the Ministry of Finance recognized the need for action, but lacked the authority to make decisions on the matter. The range of issues was distributed among different ministries, resulting in unclear responsibilities. The state lacked a coherent service provision policy, and decisions on technical matters and service innovation were subject to individual managers' interests within state institutions at any given time.
Once the most challenging tasks resulting from the banking system collapse were overcome, more focus was placed on reforms in state administration. Digital issues were part of the agenda and goals we defined. We created a plan called 'Better State Administration,' with two main focuses. On one hand, we looked at procurement and personnel issues, and on the other, we sought to enhance public services through improved utilization of information technology.
Guðmundur Árnason, Permanent Secretary of the Ministry of Finance and Economic Affairs.
The Icelandic government launched a special initiative in 2015 called the 'Correction.' The Correction aimed to address the public's debt situation, which had spiraled out of control due to the 2008 banking collapse, while concurrently accelerating the development of digital infrastructure in the country. The implementation of the Correction was technically complex, involving the government, pension funds, and financial institutions.
In a small country like Iceland, the same people often have to wear many hats, which places high demands on them but also broadens their perspectives. The project leader for the Correction, also a leading expert in the Office of Management and Reform, knew that to realize the Correction, it was necessary to automate processes while ensuring data security.
In collaboration with the tax authority it was decided that all loan adjustment applications must be submitted through electronic ID cards, which could also be used for electronically signing documents. Despite the political controversy surrounding the decision, the government remained steadfast. It was a strategic choice to use electronic identity cards to ensure the applicants' safety and simultaneously promote secure electronic commerce in Iceland. Consequently, the number of electronic ID users significantly increased, becoming a vital prerequisite for further digital infrastructure development.
I thought this was an obvious waste, so I talked to the person in charge and asked if it was wrong to post vehicle tax payment slips only in the digital mailbox. The person concerned did not think this was a priority and wanted to wait for the implementation, but to authorize the publication, a change in the law was required. Fortunately, the minister wanted to push the case forward. I remember being surprised that colleagues did not take advantage of such a simple optimization opportunity.
Guðrún Ögmundsdóttir, department manager at the Ministry of Finance and Economic Affairs.
Requiring people to use electronic identification turned into a significant political issue. It was crucial that the Minister of Finance was resolved to make this happen. He remained undeterred, and saw an opportunity to propel us forward into a new era.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
We viewed it as a pivotal project to encourage the adoption of electronic IDs, but until then their use had been relatively limited in Iceland. We had a great opportunity with the 'Correction'. It was the first time it was decided that access to public services could only be via an electronic solution and that the only way to authenticate oneself for this electronic solution was with electronic credentials. This led to a lot of people feeling 'compelled' to acquire electronic IDs, which marked a significant breakthrough.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
When it came to implementing the Correction, there was really only one institution that fit the bill - the Tax Authority. Technologically, they were the most advanced among the groups and had the best capacity to guide us on what was needed. Their pioneering work with electronic tax returns, undertaken long before, was an absolute prerequisite. Making it compulsory for people to use IDs for the Reform was a brilliant decision. This led to a significant increase in usage.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
A sudden change of government in Iceland towards the end of 2017 sparked an unexpected opportunity for Iceland's digital journey. Fragmented responsibilities and mandates for information technology issues had previously hindered project progress. However, the new government introduced a reorganization of duties, consolidating almost all IT matters within the Ministry of Finance, where significant knowledge and ambition regarding these issues had already been developed. This change fostered a stronger influence for the topic and clearer responsibility.
To make the most efficient use of resources and manpower, an analysis was performed to determine how to achieve maximum benefit with the least possible cost. A project office for Digital Iceland was subsequently established within the Office of Administration and Reform, prompting a common Icelandic phrase: "Are you ready for the boats?"
So, what's next? It was evident that the development of digital services in Iceland needed to be initiated. Authority over the matter had been consolidated within a single ministry, and it was now crucial to let actions speak louder than words. There was a lot of discussion about the best way to proceed and how to expedite the work. For a long time, it was considered that the development of digital infrastructure should be a collaborative project of all ministries, led by the Ministry of Finance across the Cabinet. However, this approach was too fraught with doubts, inefficiencies, and debates that did not drive direct development.
Eventually, it was decided that the project would operate under different laws and a different structure than typically seen within ministry administrations. New and pressing tasks required new approaches.
Right from the start, I wanted to ensure that such a critical project, which was to be given high priority, would be situated within the ministry in a manner that left no doubt about the project leader's authority to make significant decisions and their proximity to the minister, at the top of the ministry's organizational chart. This entailed quite a bit of overhead since we weren't going to create a new office with a conventional office manager. This led to the fantastic idea to establish a unique arrangement around this project office, which partially reports directly to the minister, even though structurally the project is managed within the Office of Management and Reform in the ministry. I believe this made quite a difference.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
A decision was made to establish a Digital Iceland task force within the Ministry of Finance. This group would have the temporary mission of enhancing the availability of digital services, supporting the development of digital infrastructure, and exploring ways to improve services and operations of public institutions. The project office enjoyed far greater autonomy in decision-making than is generally the case in ministries, allowing for flexibility and innovative ways to get things done. Employees were encouraged to adopt fresh perspectives, propose changes, and implement them. This demanded courage, negotiation skills, the ability to drive change, and permission to make mistakes along the way.
It was highly significant that the Ministry of Finance was able to advocate for funds to be invested in this initiative. It is also important that these funds would be centrally managed, meaning that the Ministry of Finance would handle the allocation of those funds and could then evaluate all the ministries and their subjects when it came to prioritizing the funds.
Guðmundur Árnason, Permanent Secretary of the Ministry of Finance and Economic Affairs.
We recognized that a new approach was needed to get things done. The arrangement we chose has worked well. The reason for this is two-fold. Firstly, it operates under clear leadership, eliminating any delegation issues. Secondly, the arrangement was planned in a way that did not rely on other ministries for funding, except for a few select projects. We found that there were so many projects that there was no need to write any green papers, white papers, or extensive plans before we could get started. We could simply dive into the projects.
Guðmundur Árnason, Permanent Secretary of the Ministry of Finance and Economic Affairs.
We set a few straightforward goals. Namely, digital communication should be the primary means of communication, and we should strive to be at the forefront among nations in digital service. It's crucial to stay on this path.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
3. The First Steps - Preparation Indoors
In a government meeting in May 2018, the policy was established that by 2020, digital services would be the primary channel of communication between the public sector, the public, and businesses. It was clear that the prerequisites were in place to achieve significantly better results in the development of public sector digital services.
Icelanders had long been considered one of the most networked nations globally according to international standards, and banking had predominantly shifted to digital platforms. If approached correctly, a digital revolution within the administration could be achieved.
Investment isn't just about roads and new buildings, but also the critical infrastructure our systems depend on. When it came to digital infrastructure, public investment had been stagnant for a long time. We decided to initiate an investment effort to improve technology in Iceland and its administration. At one point, I simply said that we wanted the result of this to be that we could say we had built Iceland 2.0. One of the first things we agreed on was to invest enough in this project to get things moving. It's not beneficial for management to set high goals and underfund them, leading to a constant struggle.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
The Digital Iceland Project Office was formally launched, designed to support public institutions in enhancing their digital services for the public, making these services more straightforward, simpler, and faster.
The objective was to enable individuals and businesses to solve their issues through self-service, thereby enhancing efficiency and economy, facilitating secure data transfers between institutions, preventing redundancy, and saving the public time and effort that would otherwise be spent on visits to institutions. All digital services relating to the administration would be accessible in one place on Ísland.is.
• Boosting competitiveness
• Enhancing public services
• Establishing a more secure infrastructure
• Creating a modern working environment
Upon completion of the fiber optic infrastructure project in Iceland - a venture that involved significant investment - we saw striking results, including data indicating that Icelandic households had the highest internet connectivity in Europe. Additionally, we found that internet usage among Icelanders was incredibly high, extending even to the older generation. This provided the confidence to think on a larger scale. We realized that this infrastructure, which we had heavily invested in and which had accustomed people to using digital solutions, should be utilized more effectively. Consequently, we submitted a proposal to the government advocating for electronic communication to be the primary means of interaction between the public sector and the public. This proposal was approved.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
The Digital Iceland project office placed significant emphasis on a careful selection of the initial projects to be undertaken. The goal was to choose projects that could be completed within a relatively short timeframe and would benefit a large number of people. This approach would allow us to showcase our ability to produce meaningful results quickly and build trust in the project.
It became abundantly clear to us—and had been for quite some time—that we couldn't streamline government operations without incorporating information and digital development into virtually every aspect of the entire government system.
Guðmundur Árnason, Permanent Secretary of the Ministry of Finance and Economic Affairs.
In 2018, the Digital Iceland project office assumed responsibility for the mailboxes of public bodies at Ísland.is. The mailbox was initially created around 2010 and was designed, developed, and operated by the National Register of Iceland, which published real estate valuations and documents from the Social Insurance Administration among other things. However, legal uncertainties surrounding the mailbox hindered its use and development. After the Digital Iceland project office took over, it was decided to limit its use to public entities, and the mailbox law, which defined its use and operation, came into effect in 2021.
A plan has been outlined for the implementation of the digital mailbox for organizations, which aims to ensure that by 2025 individuals and companies can access all main data from the public sector via the mailbox. The goal is to promote efficient public services, increase transparency in case handling and administrative efficiency, and provide a secure method for data sharing with individuals, legal entities, and institutions.
Within the Office of Management and Reform, extensive expertise had been cultivated around initiatives aimed at capitalizing on the government's bargaining power with suppliers, especially in areas like computer equipment procurement. Larger contracts allowed for more favorable terms and conditions overall, ensuring small and medium-sized organizations the same benefits as their larger counterparts, while offering a better understanding of the technical state in the public sector. Within Digital Iceland's project office, this knowledge was utilized and focus was given to the potential savings achievable through unified public sector purchases, rather than individual organizations managing their own. Apart from the efficiency that larger contracts and centralized management offer, it also provides a broader view that curtails waste and opens up opportunities for coordination.
The Office of Management and Reform had been overseeing a project aimed at leveraging the government's bargaining power with suppliers in procuring computers and computer equipment. This approach offered a comprehensive view of the resources being used, balanced the capabilities of institutions, and reduced waste. We incorporated this model into Digital Iceland.
Einar Birkir Einarsson, department manager at LSR – the Pension Fund for Icelandic State Empoyees.
On June 1st, 2018, Iceland became the first nation in the world to sign a comprehensive software agreement with Microsoft. It provided government agencies access to the latest version of the Office 365 software suite. This was a first-of-its-kind initiative where the state signed a comprehensive agreement with Microsoft, as prior to this, individual institutions and ministries had made their own agreements.
The contract further integrated the state's technological environment, enabling state employees to communicate more securely and directly, thereby increasing efficiency in case handling and flexibility in the work environment to support remote work.
The agreement was also part of a broader initiative to enhance and increase public services. The cost optimizations contained within it generated capital that could be used for the development of digital services and further efficiency in state institutions' operations.
It was a challenging project and led to tough discussions with institution representatives who initially didn't see the value in these ideas. However, when we realized the fruits of our labor with a coordinated government contract with Microsoft for 22,000 licenses, the results quickly became apparent. Smaller organizations could access their licenses at the same price as larger ones, and we all achieved compatibility with greater security. Most importantly, we were able to engage in dialogue with every single organization, sharing our vision about Ísland.is as a centralized hub for all government institutions interacting with the public. While some embraced these ideas, larger organizations were more skeptical, finding it unusual that we proposed their websites could become subdomains of Ísland.is with a coordinated strategy for design, content, and operation. However, many institutions have joined now, and there's a long waiting list for participation.
Einar Birkir Einarsson, department manager at LSR – the Pension Fund for Icelandic State Empoyees.
In late June 2018, it was announced that starting July 1st, individual motor vehicle tax payment slips would be exclusively published electronically. Along with this transition, a claim would be automatically created in the online banking systems. Prior to this change, about 480,000 payment slips for vehicle taxes were sent out in paper form. The transition to electronic publishing saves approximately 83 million ISK annually and avoids the use of around 5 tons of paper.
I saw the inefficiency in the old system and approached the responsible person to discuss whether we should publish vehicle tax payment slips only via the digital mailbox. The initial response was to delay the change by a year. In the end, I had to resort to securing a decision from the minister and just declared, 'This has already been decided.' I would have preferred not to operate this way, but I wanted my colleagues to realize the incredible opportunities available through this change.
Guðrún Ögmundsdóttir, department manager at the Ministry of Finance and Economic Affairs.
The implementation of X-Road in Iceland commenced in November 2018. X-Road serves as a data exchange layer for information systems, functioning as both a technical environment and organization while ensuring secure data communication between different information systems. It provides a more flexible channel for organizations to communicate with citizens, allowing for information registered in one system to flow to another, thereby reducing duplication and eliminating the need for citizens to provide information that the government already possesses. Institutions and companies can connect to X-Road, which standardizes the communication channels between information systems. This increases efficiency in system setup and operation, as well as enhancing the security of communications.
The Estonians developed this method of secure data flow between institutions around 2002. There is some historical evidence suggesting that the same idea was conceived earlier in Iceland. I'm not suggesting we take credit away from the Estonians, but I believe there could be some truth to it. After all, we Icelanders were pioneers in IT from the 1990s to the early 2000s, achieving milestones like being the first nation to file tax returns online. However, when we lost our focus, we also missed out on the opportunity to implement such innovative ideas.
Einar Birkir Einarsson, department manager at LSR – the Pension Fund for Icelandic State Empoyees.
There are substantial benefits to be derived from everyone using a similar foundational system. Having a common infrastructure enables simpler and safer cooperation across organizations, and it allows for mutual use of each other's solutions.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
In 2019, a technology strategy was developed for Ísland.is, aiming to better manage the government's IT issues and systems. By defining the state's technology architecture, a strategy was formulated that ensured further alignment and flexibility of the IT infrastructure. This also paved the way for more effective utilization of optimization opportunities in the operation and procurement of information technology equipment, for instance, by decreasing the variety of equipment utilized in government operations.
I was aware that the state had invested a substantial amount in the systems, yet we were falling behind. It comes down to how the money is spent. For instance, are we financing the same projects repeatedly without investigating their returns? This level of overview was lacking. The minister completely shifted the perspective and we came up with a plan focused on improving services, enhancing the infrastructure, and, most importantly, strengthening cooperation to achieve success.
Einar Birkir Einarsson, department manager at LSR – the Pension Fund for Icelandic State Empoyees.
Our intention was not to delegate all the work to the ministry employees or Digital Iceland employees. Instead, we aimed to leverage the innovation and drive present in society and within technology companies. This collaborative approach was introduced and executed. We sought out talent instead of isolated solutions, and in my view, this approach has been incredibly successful in Digital Iceland.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
The swift evolution of the public sector's digital infrastructure can be significantly attributed to a total overhaul of the government's conventional practices of procuring custom-made software. A collaborative initiative between Central Public Procurement and Digital Iceland introduced a project that hinged on the engagement of multidisciplinary teams. Comprehensive preparatory work was undertaken with the goal of devising a framework that encouraged proficient teams from varying companies to collaborate in an open environment. This collaboration was guided by the Agile philosophy to augment digital services in the public sector. To select the ideal team, an innovative method was devised for vetting bidders in the tender process. The proficiency of the companies was appraised based on actual examples, which were reviewed by the evaluation committee prior to considering the price offers. As a result, teams from various companies, often competitors, were selected to collectively develop solutions. This method effectively tapped into the capabilities of the commercial sector to benefit the public sector, attracting a wider spectrum of approaches and experiences to the project than traditional tendering methods would have facilitated.
The key lessons learned from this approach were dual-pronged:
First, it underscored the potential to conserve substantial resources, accelerate work processes, minimize waste, and yield superior outcomes using innovative yet stringent methods of government service procurement.
Second, it emphasized that quality should bear more weight than price in tender evaluations.
The adoption of this methodology was a deliberate decision and was not entirely new to Digital Iceland, having been under development for a short while. I am of the view that introducing this concept within the ministry would have been more challenging if we hadn't regularly referenced past experiences - those of the Icelandic Parliament, the Directorate of Labour, and the Financial Supervisory Authority. Interestingly, this methodology had also been embraced by the city of Reykjavík.
Guðrún Birna Finnsdóttir, specialist at the Ministry of Finance and Economic Affairs.
Agile Procurement Reimagined: Contract Formulation through Collective Innovation
In the realm of procurement and contract development, an innovative and collaborative approach emerged, thanks to the active involvement of companies and their contributions to the methodology. Lessons from previous projects guided further refinements. Acknowledging an initial overemphasis on price, subsequent projects allocated greater importance to quality (70%) alongside price (30%). Notably, the introduction of Digital Iceland, a single tender for a legacy system's maintenance, smoothly paved the way for gradual adoption of the methodology. The journey towards transformation through procurement was recognized as a means to effect improvements, rather than an end in itself. Leaning on information technology, the Ministry of Finance aimed for optimization, taking around a year or two to achieve resonance with the desired changes. Overall, this narrative showcases how collaborative efforts, iterative adjustments, and embracing technology can lead to innovative and effective procurement strategies, ultimately contributing to the success and growth of the national team of companies involved.
The method of engaging with companies, aligning them, determining the participants, and structuring the deal was a developmental project, not something that just materialized out of thin air. The companies themselves had a significant part in shaping the methodology. The Agile Ísland conference in 2013 played a significant role in this success, with companies creating Agile software involved in shaping the philosophy of how they could bid for Agile projects.
Guðrún Birna Finnsdóttir, specialist at the Ministry of Finance and Economic Affairs.
We were in essence, crafting this form of contract to encompass all these aspects. It was meant to outline who would enter into the contract, how the competition would be organized - a process modeled after the one we designed originally for the Financial Supervisory Authority. A part of the project was taken, paid for, its quality evaluated, and then weighed against the hourly rate. The contract form is a framework agreement, as we can't predict with certainty what will occur during the contract period, dependent as it is on budgets and other factors. It should be clearly stipulated that there could be a scenario where the funds deplete, and all parties are dismissed. Also, the order in which teams are entitled to the project needs to be clearly defined.
Guðrún Birna Finnsdóttir, specialist at the Ministry of Finance and Economic Affairs.
Our experience from the initial tender was that we had put too much emphasis on price. As a result, in the next project, we revised the parameters, allocating 30% importance to price and 70% to quality.
Guðrún Birna Finnsdóttir, specialist at the Ministry of Finance and Economic Affairs.
Perhaps our main revelation was the unexpected level of collaboration among software companies. We initially perceived these companies as competitors, expecting a fierce contest. Yet, we discovered a spirit of collaboration, where everyone was already working on their regular hourly wage for their primary client, focusing on a common objective. Success could only come from doing well collectively. This is how our national team thrives together.
Guðrún Birna Finnsdóttir, sérfræðingur hjá fjármála- og efnahagsráðuneytinu.
Consider the maintenance of an old legacy system; there was never genuine competition for this task. Yet, with Digital Iceland, that was the first tender, a single tender, which proceeded smoothly. But what had been done in that contract was to say that there was a maximum amount. I don't remember who she was. [After a little over a year] And then it will be just nice to get a little involved in this methodology, you know iterate a little more. Yet, the core idea was to gradually adopt more of this methodology. The individuals involved with the contract had acquired much more knowledge than I had, as I wasn't directly involved with the contract. Despite these modifications, the methodology remains fundamentally the same.
Guðrún Birna Finnsdóttir, specialist at the Ministry of Finance and Economic Affairs.
Procurement is not an end in itself, but a tool that can be utilized to effect improvements.
Guðrún Ögmundsdóttir, department manager at the Ministry of Finance and Economic Affairs.
Let's leverage information technology to implement the changes. The idea is to use IT to achieve the optimization that the Ministry of Finance desires from the institutions. It took about a year or two to achieve this resonance within the ministry.
Einar Birkir Einarsson, department manager at LSR – the Pension Fund for Icelandic State Empoyees.
All the codes crafted in collaboration with private entities for the Ísland.is website are open. The objective is to ensure all software developed by Digital Iceland is accessible to anyone who wishes to use or improve it, thus becoming a shared asset of the community. This decision also implies that public institutions are less likely to become entangled in business with the initial software developer. Additionally, open source reduces project costs, prevents redundancy, and enhances transparency. Therefore, the codes are not monopolized by the government or private sector but are beneficial to both.
We didn't have prior knowledge about government procurement, so we needed to learn and simultaneously rethink our approaches. We participated in a 'crash course' with Guðrún Birna, a procurement expert from the Ministry of Finance, and outlined our strategy to hire individuals for code development. No one in Iceland had done this the way we did - getting a range of different software companies to collaboratively develop an open-source code library.
Vésteinn Viðarsson, product manager at Digital Iceland.
This embodies our technology strategy and the path we're taking. It allows organizations to share solutions. This facilitates optimization and provides direct monetary benefits; having all the code produced over the last three years or so accessible to anyone, not just institutions, but potentially a company from out of town, who can utilize something the public has already paid for. It's crucial.
Einar Birkir Einarsson, department manager at LSR – the Pension Fund for Icelandic State Empoyees.
Announced in the late 2019 budget bill for 2020, the Icelandic government resolved to intensify efforts in advancing digital administration. A series of projects were delineated and substantial financial backing was secured for their execution. This move, coupled with prior groundwork, would prove to be exceptionally fortuitous, as the Covid-19 pandemic was on the brink of global eruption. Strategies to curb the virus's spread necessitated a complete overhaul of communication systems and a radical transformation in information technology and automation. Though the government hadn't anticipated such a scenario, preparations were well advanced, plans were laid out, funds were allocated, and a competent leader had been chosen to spearhead the further development of digital administration. This set the stage well for the forthcoming challenges. Therefore, while Covid-19 wasn't the catalyst for the broad-scale development of digital services, it underscored the importance of such plans and spurred even quicker implementation than initially intended.
The establishment of a separate unit for this initiative was indispensable for its permeation throughout the command system, as the system tends to operate projects in silos. There were several critical elements that needed to be secured for this to truly take flight, and the most important ones bear mentioning: Alignment within the government system and across all administrations, appointment of a strong leader with ambition, vision, and knowledge, adequate resources, and an initial focus on securing small victories rather than trying to conquer the world all at once.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
We made a deliberate decision to embark on an investment initiative, aiming to propel Iceland into the realm of advanced technology and transform the Icelandic administration. We envisioned a future where we could proudly declare that we had built Iceland 2.0. To make this vision a reality, one of our initial priorities was to ensure adequate funding and resources. It is crucial for effective management not to set ambitious goals without providing sufficient support, as it can lead to constant struggles and setbacks. Therefore, we took the responsibility of allocating significant resources to launch an extensive effort, which has resulted in approximately one and a half billion in annual investments in technological solutions. Along this journey, we coined the term 'Digital Iceland,' although I don't recall the exact moment when this term originated.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
I presented a future vision for Digital Iceland, highlighting the development of technology in Iceland and our aspiration to become a global leader. Icelandic society possesses all the necessary resources for this achievement, including knowledgeable individuals who can work swiftly when we invest in projects. My goal was to build upon these foundations, demonstrating that we can attain rapid and secure success.
Andri Heiðar Kristinsson, CEO of Digital Iceland.
4. Advancing Towards a Digital Future - Strengthening Digital Infrastructure and Deepening Collaboration with Digital Iceland
In early 2020, the Ministry of Finance appointed a digital leader to head the project office for Digital Iceland. Bringing management experience from international companies and a track record of founding successful ventures, the digital leader harbored an ambitious vision for the future. While significant groundwork had already been laid within the Office of Management and Reform, the establishment of Digital Iceland as an independent entity marked a significant turning point. It gained its own professional and administrative infrastructure, substantial funding, and the ability to hire dedicated employees who could fully commit themselves to the cause. Previously, projects relied on enthusiastic individuals borrowed from other departments.
This shift allowed Digital Icelands' work to become more targeted and bolstered the image of the projects. Digital Iceland carved out its niche, gaining visibility. During the hiring process for the digital leader, emphasis was placed on finding someone who went beyond being a manager - they needed to be a face of digital issues, an advocate for the development of digital services, both internally and externally.
Things really took off when we recognized the need for the project office to function as a distinct unit led by its own dedicated manager. We wanted the leader of these initiatives to be more than just a manager; they needed to be a passionate advocate. Such a model is uncommon in ministries, as projects typically lack advocates aside from the minister. However, this approach was well-thought-out and immensely satisfying for those of us involved in these critical aspects. Seeing the project flourish and prove its worth was truly rewarding. We clearly hit the right chords, and we found the right people to ensure its success.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
We wouldn't have been able to progress so rapidly and achieve such remarkable success without the solid groundwork that had been laid and the various preparatory work that had taken place. The launch of the first tender and the establishment of the current structure surrounding Digital Iceland were essential elements. This approach, which is both unorthodox and courageous for the government, aimed to create flexibility and enable swift action while maintaining a clear mandate. It provided me with the opportunity to make my mark and lead the next phase.
Andri Heiðar Kristinsson, CEO of Digital Iceland
Right from the outset, I was determined to ensure that a project of such paramount importance, receiving such high priority, was organized within the ministry in a way that left no doubts about its leadership. The project leader needed the authority to make significant decisions and maintain close proximity to the minister. Therefore, I positioned the head of the project office as a prominent figure in the organizational chart, with considerable overhead costs. Rather than establishing an entirely new office, we created a novel arrangement around the project office. It now reports directly to the minister, while organizationally operating within the Office of Management and Reform. This strategic decision made a substantial difference.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
In 2019, Iceland ranked 19th in the international E-Government index, a measure of digital administration quality. Determined to reclaim its position as a leading nation in digital administration, Iceland embarked on an ambitious journey. The result was a remarkable leap in just three years, with Iceland skyrocketing to 5th place on the same scale in 2022, ascending 14 places in one fell swoop. The official service portal, Ísland.is, stands as one of the premier service portals for public entities, while the Ísland.is app is hailed as the most comprehensive of its kind.
I remember Bjarni once telling me, 'The preparation period is coming to an end. We've laid the groundwork and done the necessary preparations. Now it's time to shift gears, start competing, and secure some victories.' His words resonated with me. I thrive on delivering tangible results. I was eager to don my racing gear, roll up my sleeves, and propel our efforts to an unprecedented level of speed and scale.
Andri Heiðar Kristinsson, CEO of Digital Iceland
With the establishment of Ísland.is as a central digital service portal and the inception of the Digital Iceland project agency, the momentum accelerated further. A deliberate decision was made to showcase the rapid progress, fostering public and administrative confidence in the journey ahead. The focus remained on selecting projects that yielded tangible outcomes, reduced inefficiencies, and, most importantly, directly impacted people's lives by improving services.
A key emphasis was placed on user-friendly design, simplifying interactions between the public and the government through digital solutions while ensuring seamless data transfer between institutions, rather than burdening individuals. Simultaneously, a strong focus was placed on effective marketing and promotion, with comprehensive documentation of project histories to highlight the achieved benefits.
Our primary focus was on shaping the future and envisioning the desired developments. However, we also needed to deliver immediate results. Merely working on hidden projects behind the scenes without any visible outcomes wouldn't suffice. We needed tangible outcomes right from the start.
Vésteinn Viðarsson, product manager at Digital Iceland.
Typically, our process involved engaging with representatives from organizations, understanding their services, mapping out the opportunities, and identifying areas for improvement. We assessed the complexity of each service and prioritized tasks accordingly. We began with relatively straightforward projects, allowing collaboration to grow organically from there.
Vésteinn Viðarsson, product manager at Digital Iceland.
Ísland.is serves as a user-oriented, centralized digital service portal managed by Digital Iceland. The design of Ísland.is is meticulously tailored to cater to the needs of individuals seeking public sector services and engagement in public life events. It provides clear guidance on where to begin, access information, apply for services, and communicate with the government through digital solutions.
The ultimate goal is to enable efficient access to all public services and facilitate problem-solving. Many organizations have already opted to integrate their websites as subpages within Ísland.is, benefiting from shared tools such as design, content strategy, and operational environment. The aim is to eliminate the need for individuals to navigate through multiple organizational websites, offering guidance and support in completing tasks related to the public sector. Accessibility considerations are also embedded within Ísland.is, with larger institutions demonstrating better accessibility practices compared to smaller ones. The uniform service and user experience contribute to enhanced communication with the public sector, and Ísland.is has garnered recognition as one of the top-rated service portals for public bodies, as per the European Union's eGovernment Benchmark.
Our primary objective is to enhance the services provided by the government and public institutions. People have grown accustomed to digital services, solving their problems conveniently through computers or phones. That was the essence of our project. The concept behind a centralized service portal was to establish a single platform where organizations could offer their services, eliminating the need for 164 entities to tackle the same issue individually. It is not cost-effective for the government to procure redundant software solutions through 164 different parties, not to mention the involvement of municipalities. At one point, the government operated 240 websites, and that number kept increasing each week. It raises the question: Does the state need yet another webpage?
Vésteinn Viðarsson, product manager at Digital Iceland.
Many of the organizations we engaged with struggled to update and maintain their existing systems. The ever-evolving landscape of browsers, devices, security requirements, and accessibility standards posed ongoing challenges for digital organizations. We aimed to address these issues with a comprehensive, all-encompassing solution.
Vésteinn Viðarsson, product manager at Digital Iceland.
I was pleasantly surprised by the dynamism and competence of the individuals within the ministry and other entities. However, there was a tendency to be hesitant when making decisions, constantly seeking higher authorities and lacking the confidence to act independently. Every decision seemed to go through multiple levels of approval, from department heads to ministry officials and ministers. This resulted in significant delays. Often, I found myself in situations where everyone wondered who had the authority to make a particular decision. In such instances, I took it upon myself to make those decisions. With a clear mandate to oversee IT matters on behalf of the Treasury, I didn't hesitate to take the responsibility. Sometimes decisions turned out to be right, while others proved to be wrong, but I was always ready to acknowledge any mistakes and learn from them. I believed in driving things forward, making decisions, and adjusting if necessary, rather than avoiding decisions altogether.
Andri Heiðar Kristinsson, CEO of Digital Iceland
In the summer of 2021, the public sector unveiled a new policy aimed at positioning Iceland among the world's leading nations in digital services. The policy emphasizes the use of digital solutions to create a strong and competitive society, fostering value creation and prosperity.
The objective is to provide clear, secure, simple, and fast digital services that offer an exceptional user experience comparable to the best services available. The policy ensures that the public and businesses have direct access to content anytime, anywhere, saving valuable time and reducing the environmental impact of service delivery.
Efforts were promptly initiated to simplify people's lives, starting with the digitalization of criminal record requests. Annually, approximately 14,000 individuals were required to submit criminal records, with the majority having no offenses. Previously, they had to physically visit the District Commissioner’s office to obtain a printed document. To streamline the process, the focus was placed on automating requests for individuals with clean records, optimizing their experience and saving them time and effort.
Around 14,000 people receive a criminal record annually. Nearly 98% to 99% of them have a clean record, so they simply receive a blank sheet of paper stating their clean record. This document is often needed for employment purposes and must be submitted annually. Our aim was to make the process easier. Initially, we started with individuals who had a clean record, providing them with the blank sheet they required. Simultaneously, we worked behind the scenes to improve record registration, leading to subsequent updates in the solution. During this time, around 13,000 people benefited from the digital service. It's important to note that while we improve services for one group, we continue to enhance services for others. By adopting an Agile approach and launching minimum viable products, we gain valuable experience and gradually expand the service to additional groups. The ability to access the service digitally, without the need for physical visits, greatly benefits users.
Vésteinn Viðarsson, product manager at Digital Iceland.
The digitization efforts extended to other areas as well. An application process for maternity leave, catering to over 4,000 births annually and involving parents and employers (approximately 16,000 parties in total), went live in January 2022. This initiative significantly reduced costs and workload for both the Maternity/Paternity Leave Fund employees and parents receiving payments from the fund.
By embracing digital solutions and prioritizing user-centric services, the public sector in Iceland is driving a comprehensive transformation, benefiting citizens and organizations alike.
We conducted profit analyses, such as with the Maternity/Paternity Leave Fund, and presented the opportunities to the Directorate of Labour after taking over the fund. Through our presentation, we showcased the benefits and they were willing to collaborate with us. We also organized an information meeting for ICT managers within the state, where we discovered a high demand for digital solutions. The enthusiasm was overwhelming, and many individuals expressed interest in joining the project. However, due to their existing commitments, it was challenging for them to fully dedicate themselves. Despite this, we continued presenting our vision and opportunities, engaging with specific institutions and meeting with commissioners to discuss electronic registrations. Some projects, like the electronic registration initiative, had been ongoing for many years and took longer than anticipated.
Guðrún Ögmundsdóttir, department manager at the Ministry of Finance and Economic Affairs.
It has only been a few years since working in a paper-based environment was considered normal. The maternity/paternity leave project played a significant role in changing perceptions. It served as a powerful example that we could reference in any discussion. Everyone understands the need for a streamlined maternity/paternity leave application process, and there was no need to invest a great deal of effort in convincing people otherwise.
Vésteinn Viðarsson, product manager at Digital Iceland.
Efforts to digitize registrations had been ongoing for several years, but it wasn't until the project landed on Digital Icelands’ desk that significant progress was made. The first phase of electronic registrations was launched in July 2021, marking a significant milestone. The ultimate goal is to enable everyone to register documents electronically by the end of 2023. This achievement is of great importance on a macroeconomic level, with substantial benefits. The project is estimated to save approximately 1.5 million ISK annually.
The digitisation of the Icelandic Government is moving at great speed and daily new services are becoming accessible digitally. This signifies the progress made and highlights the growing availability of digital services to the public.
From the beginning, we recognized that the benefits of this project go far beyond monetary savings. It is about maintaining and strengthening trust and confidence in the government system...
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
5. Unlocking the Benefits of Digital Iceland: Efficiency, Cost Savings, and Improved Services
Digital Iceland has brought forth a multitude of undeniable benefits. The integration of digital technology has led to enhanced efficiency, reduced costs, time savings, and improved services within public institutions. The remarkable success achieved thus far is a testament to the increased cooperation and joint ventures fostered by Digital Iceland. Through the implementation of digital solutions, substantial savings have been realized. These savings can now be reinvested to further develop digital services, thereby advancing the quality of public services.
One of the significant advantages of digitization is the simplification it brings to people's lives, benefiting both the general public and institutional employees. Previously, many interactions required physical visits to public sector institutions, such as the District Commissioner’s office. However, with the advent of electronic processes, individuals can now handle their cases conveniently and efficiently. This transition also yields positive environmental effects while meeting public expectations. The tangible benefits experienced by users, coupled with streamlined operations within institutions, contribute to heightened satisfaction and improved service delivery.
The central focus of our efforts is simplifying people's lives, which serves as our guiding principle. We consistently evaluate whether our solutions truly simplify people's lives. Our energy is devoted to optimizing front-line services that directly impact users, rather than internal organizational convenience. That's where our primary focus lies.
Vésteinn Viðarsson, product manager at Digital Iceland.
The implementation of digital solutions has sparked a remarkable shift in attitudes, fostering a culture of cooperation and collaboration among public sector employees. Recognizing the significance of working collectively, alongside Digital Iceland, to enhance public services, digitization has emerged as a guiding principle.
The most significant benefit is undoubtedly the change in attitude. We have witnessed a complete transformation and a deepened understanding of the importance of this endeavor. Simple yet impactful changes, like eliminating the need for individuals to make unnecessary trips or wait in crowded waiting rooms, are deeply appreciated by the public. The realization that collaborative efforts yield better results than individual endeavors is of paramount importance.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
The benefits are evident in tangible outcomes, such as improved and simplified services. People now find it easier to resolve their issues and interact with the government system and service providers, who strive to offer agile and efficient assistance. The extensive list of projects undertaken by Stafrænt Ísland serves as a testament to the progress made. However, the transformation extends beyond these accomplishments. There has been a fundamental shift in values, expectations, and attitudes. People no longer accept the inconvenience of gathering certificates from multiple sources, enduring lengthy journeys or bureaucratic processes. Achieving visible results has propelled a demand for higher standards, prompting the government system to proactively respond and stay ahead of evolving needs.
Guðmundur Árnason, Permanent Secretary of the Ministry of Finance and Economic Affairs.
One of the remarkable benefits of digitalization is the enhanced and improved service provided to Icelanders residing abroad, approximately 60,000 individuals. They now have access to various information and services that were previously out of reach, resulting in increased efficiency. Moreover, individuals living in rural areas can obtain specific data without enduring long journeys. This saves valuable time, resources, and fosters greater equality among people.
It is often overlooked that there is a substantial number of Icelanders residing abroad who require a criminal record for educational or employment purposes. In fact, this group is comparable in size to the combined population of Kópavogur, Garðabær, and Hafnarfjörður. They rely on services from their home country, either by personally communicating or through the assistance of friends and relatives. If you reside abroad and possess an electronic ID, you can obtain a criminal record without the need for someone to physically visit the district commissioner´s office. It is crucial to consider the needs of this significant and underserved population.
Vésteinn Viðarsson, product manager at Digital Iceland.
Another overlooked aspect is the profound impact these services have on individuals living in rural areas. The ability to interact with government services through computers or phones eliminates the need to undertake arduous journeys for assistance. This holds even more value for those residing far away, surpassing the convenience experienced by someone living in a well-connected area like 203 Kópavogur, who can easily access the district commissioner’s office nearby. By enabling remote access, running a business from a distant location becomes more viable and convenient.
Vésteinn Viðarsson, product manager at Digital Iceland.
Reducing unnecessary car journeys and eliminating redundant work for employees is a significant benefit of digital services.
Vésteinn Viðarsson, product manager at Digital Iceland.
Digital services enable us to provide better personalized service and information to everyone. It's a delightful discovery.
Einar Birkir Einarsson, department manager at LSR – the Pension Fund for Icelandic State Empoyees.
The foremost benefit is the improved service. People now have the convenience of applying for a wide range of things online, such as maternity/paternity leave, registrations, and criminal records. They no longer need to physically visit offices like the district commissioner’s. This significantly enhances the quality of service. Additionally, it leads to a remarkable level of optimization and increased productivity. For instance, at the district commisioners, automation has freed up employees from tedious manual tasks, allowing them to focus on more important matters such as service quality and process optimization.
Andri Heiðar Kristinsson, CEO of Digital Iceland
Undoubtedly, the greatest benefit is the simplification of people's lives. It's not just about money; it's about reducing the hassle for individuals. By eliminating the need for people to drive between institutions, we are benefiting both the environment and their wallets. Ultimately, it leads to increased happiness.
Einar Birkir Einarsson, department manager at LSR – the Pension Fund for Icelandic State Empoyees.
From the beginning, we recognized that the benefits of this project go far beyond monetary savings. It is about maintaining and strengthening trust and confidence in the government system. In a technologically advanced society, if the government processes are outdated and inefficient, it erodes trust in institutions, including the parliament and the government. Conversely, when people experience a society where their needs are understood and their interactions with the government are smooth and efficient, it boosts trust in the government and the political system as a whole. This is a crucial aspect. It's not just about saving billions; it's about building a functional society where people feel that their tax money is being allocated to meaningful initiatives that support their success.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
The key lesson is that incredible things can happen when people are willing to open their minds.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
6. Reform Thinking and Boldness to Drive Progress
From the inception of Digital Iceland, the focus shifted from discussing how things should be to taking action. This required individuals to have a comprehensive understanding of the challenges and the empowerment to respond to them, while also embracing the freedom to make mistakes.
Initially, efforts focused on operational optimization rather than service development, as the mandate did not extend to that area. Instead of accepting the status quo, they sought change and advocated for better approaches, sharing their ideas and driving them forward.
The vision began to take shape, leading to the consolidation of digital issues within a single ministry. Subsequently, a project center for Digital Iceland was established as part of the Ministry of Finance's Office of Management and Reform.
This center provided an overarching view of the entire management system, fostered a drive for improvement, and was empowered to systematically advance the work. Although the project office initially operated with limited resources and relied heavily on labor contributions from personnel borrowed from other government entities, it remained focused and utilized the accumulated experience to push boundaries and make progress.
In interviews with the project initiators, it is acknowledged that progress could have been faster with more initial investment. However, success is not solely reliant on financial resources. The chosen path required time, but the acquired experience was carefully managed and utilized to establish a foundation for subsequent rapid success with increased funding.
Throughout the journey, the experiences of other nations were harnessed, adopting and adapting solutions that had proven successful elsewhere to meet the specific needs of Icelandic society. This approach saved time and infused greater ambition into solutions that had not yet been explored elsewhere.
We didn't need to reinvent the wheel. We studied the playbook of what other nations had already accomplished, adapted it, implemented it effectively, and naturally, we were able to enhance it. This allowed us to move faster. There are few countries that have such a comprehensive app as we do, and we are also at the forefront of the world in terms of digital certificates.
Andri Heiðar Kristinsson, CEO of Digital Iceland
From the outset, the project agency prioritized the selection of a limited number of simple projects with a high likelihood of success. This strategic approach recognized the need to start somewhere, and the project studio demonstrated that their ideas and methodologies were effective. Through the implementation of digital solutions, services were improved, and efficiency and optimization were achieved. These achievements garnered increased interest and confidence in the journey, leading to further funding in later stages.
To me, it always comes down to the people and empowering them." The key factor was assembling an exceptional and capable team. They were able to deliver, communicate and effectively manage the projects. While it would have been possible to engage prominent companies, nothing substantial would have been achieved without the right team. The success lies in the individuals who were recruited, as they were highly motivated and complemented each other well. The Ministry of Finance has made significant efforts to empower its own employees, and those efforts have paid off. The employees are empowered to make decisions and take action.
Guðrún Birna Finnsdóttir, specialist at the Ministry of Finance and Economic Affairs.
From the outset, it was crucial to establish clear and concise goals that served as guiding principles for the digital transformation. A single sentence in a memo, approved during a cabinet meeting, charted the course for the initial phase of digital services: "The aim is that by the year 2020, digital communication will be the primary means of interaction between the public and the public sector."
Another paramount goal was for Iceland to become a global leader in digital services. This objective was pursued with unwavering determination under the leadership of the head of Digital Iceland, after it became an independent entity within the Ministry of Finance. The vision was to propel Iceland to the top of the international rankings for digital governance, utilizing the existing resources and capabilities.
The collective expertise of numerous individuals is evident in the execution of this project." We were exceptionally fortunate in assembling a skilled team at the project office, which proved to be the most critical factor in mitigating risks. The diversity of backgrounds within the team was crucial, as it fostered a collaborative environment and enabled us to form a strong and successful unit.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
The foundational concepts were established and decided prior to the project's full commencement. We laid the groundwork for a unified IT infrastructure for the state and set forth a few simple yet impactful goals: digital communication as the primary mode of interaction and positioning Iceland as a global frontrunner in digital services based on prevailing standards. It is imperative to continue along this path, with a focus on renewing the outdated technical infrastructure.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
Naturally, there are expectations that this endeavor will lay the foundation for streamlining the state's institutional framework. We should shift our focus from numerous fragmented institutions to prioritizing services and processes.
Guðrún Ögmundsdóttir, department manager at the Ministry of Finance and Economic Affairs.
By integrating Digital Iceland within the Ministry of Finance, a comprehensive overview of the administrative system's costs was obtained, allowing for a holistic approach. Engaging in conversations with various organizations, although initially challenging, revealed opportunities to harness the benefits of digital solutions. The journey began with simpler projects, gradually fostering collaboration that expanded over time. Enhanced cooperation between institutions was also prioritized, with the specific advantages highlighted in a targeted manner.
The Minister of the Ministry of Finance's keen interest in leveraging information technology for improved outcomes played a vital role. The minister actively listened to the ideas of the employees on enhancing processes, finding ways to overcome obstacles, and empowering them to make decisions and take action. This approach created a platform for continuous improvement, mobilizing the employees’ ambition to strive for excellence. Importantly, the minister's unwavering support for the employees' decisions, including the implementation of the Amendment mandating the use of electronic IDs, proved pivotal. Despite the political sensitivity surrounding the issue, the minister recognized the opportunity for broader adoption of electronic IDs and remained steadfast in the decision that laid the foundation for digital reforms.
I observed a remarkable cross-political consensus regarding the importance and rationale of this initiative.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
One crucial aspect, which I haven't mentioned yet, is the unwavering political support and the genuine interest of the minister overseeing this endeavor. The enthusiasm is infectious, and everyone involved in this project can sense the genuine commitment and seriousness driving it. Such dedication from the political leadership is invaluable to the success of this project.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
Promoting Digital Iceland's projects with a people-centered approach has been instrumental in its success. The emphasis is placed on providing services that cater to people's specific needs during important life events, such as starting a business, raising a child, or preparing for retirement. Instead of navigating through multiple organization websites, individuals can easily find the services they require on the centralized service portal Ísland.is, along with clear instructions for the next steps.
Placing importance on the public's needs and ensuring they feel valued was also crucial.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
The primary goal was to enhance service and operations. Improved service has always been the foundation, which leads to various inherent benefits.
Guðrún Ögmundsdóttir, department manager at the Ministry of Finance and Economic Affairs.
7. The Never-Ending Journey of Digital Iceland: Strengthening Administration and Future Development
The success of Digital Iceland has been the result of countless factors coming together, driven by the continuous desire for improvement. Lessons learned from previous projects have paved the way for even greater success. Mistakes were acknowledged and rectified, always moving forward towards the set goals of enhancing services and utilizing public funds for the benefit of society.
Empowered employees were entrusted with implementing innovative solutions, fostering cooperation between different organizations and reshaping traditional administrative structures to accommodate new plans and efficient digital solutions.
However, the question arises: Will this project ever be truly finished? While Digital Iceland was initially conceived as a temporary initiative, the development of digital systems and technological advancements continue indefinitely, much like the ongoing construction of roads by the Icelandic Road and Coastal Administration.
It's a somewhat ludicrous question because we never truly finish building all the roads. Digital development and technology are fundamental infrastructures that require ongoing sustainability.
Andri Heiðar Kristinsson, CEO of Digital Iceland
Digital Iceland has successfully delivered numerous projects within reach. However, as the complexity and cost of projects increase, there is a need for more systematic structural elements. The future calls for a clearer legal framework and administration of digital issues, which may differ from the innovative culture and energy that propelled Digital Iceland. Balancing future growth and administrative efficiency while preserving the power of reform to create new solutions is a challenge.
In the long run, this initiative needs to find a more suitable home. I've always argued that it should be part of the Ministry of Finance, Economy, and Technology, to give it greater significance. Most neighboring countries have dedicated ministries for technology. Our project is not a conventional ministry project but more aligned with a developer like the Road and Coastal Administration under the Ministry of Infrastructure.
Andri Heiðar Kristinsson, CEO of Digital Iceland
I would propose the establishment of a strong organization overseeing digital and data issues. This organization should form a digital core in various sectors such as healthcare, judiciary, and education, ensuring expertise is integrated into each respective area. Rather than centralizing everything under Digital Iceland, we should focus on methodology and provide common basic services. Comparable units in larger sectors, such as a digital health cluster, could operate alongside or collaborate with us, utilizing our methodology while maintaining specialization in their specific domain. We would ensure proper funding and support for these initiatives.
Andri Heiðar Kristinsson, CEO of Digital Iceland
We have significant and costly projects ahead of us that will have a fundamental impact on the state as a service provider. We need to renew the main legacy systems that form the foundation of the state's activities and services. Refreshing the base files is essential. We have made some progress in improving communication channels, both internal and external. The government needs to collaborate to address how these systems will be developed. We are moving closer to finding solutions in that area, and we have already begun working on it.
Guðmundur Árnason, Permanent Secretary of the Ministry of Finance and Economic Affairs.
There are vast opportunities in harnessing the power of data processing for informed decision-making, analyzing waste, identifying areas for enhanced efficiency, and reaching vulnerable groups more effectively. However, there is still significant work to be done to fully unlock this potential and utilize it effectively.
The power of data processing holds the key to gaining an unprecedented societal overview, enabling informed planning and decision-making. However, significant efforts are still required to fully realize this potential and effectively utilize the data at hand.
To be honest, I don't think I fully grasp the vast possibilities that data processing offers. It opens up remarkable opportunities for data-driven decision-making, waste analysis, identifying areas for enhanced outcomes, and better serving vulnerable groups. Additionally, data analysis can shed light on how funds are utilized to achieve desired results outlined in our plans.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
These outdated and semi-obsolete systems inherently restrict our ability to introduce features that could unlock substantial optimization.
Sigurður H. Helgason, director general of Iceland Health. Former deputy permanent secretary at the Ministry of Finance and Economic Affairs.
In just a few years, technology has revolutionized waste reduction and resource allocation, minimizing unnecessary car trips, paper usage, and saving valuable time for the public by streamlining administrative processes. By embracing innovative solutions and automation, we can further enhance services, minimize waste, and maximize the efficient use of public funds. Additionally, by harnessing the power of data processing and establishing robust connections between databases, we can gain invaluable insights that were previously unattainable. This comprehensive overview of society would be a crucial tool for effective planning and decision-making. However, significant work lies ahead to fully tap into this potential and turn it into a tangible reality.
Frankly, the possibilities that data mining offers exceed my current understanding. I believe there is a wealth of untapped opportunities waiting to be explored. Once we successfully connect and process data across databases, we will propel Iceland into the realm of Iceland 3.0.
Bjarni Benediktsson, Minister of Finance and Economic Affairs.
There is a strong belief that the pursuit of further advancements in digital infrastructure will continue to present valuable opportunities. Iceland has developed a robust methodology that has consistently yielded rapid and excellent results. The knowledge accumulated throughout this journey holds immense value, and it has captured the attention of other nations.
I see this as a tremendous opportunity for us to take a leading position, and we are already witnessing it happening. Other nations are beginning to recognize our outstanding achievements. This opens up vast prospects for Iceland to export its services and knowledge, benefiting both the companies that have collaborated with us and the overall digital transformation landscape. Why shouldn't Icelandic companies be the ones spearheading digital transformations in Germany or Canada? I believe there is an exciting opportunity for us to establish ourselves as a prominent global force in the digital evolution of nations.
Andri Heiðar Kristinsson, CEO of Digital Iceland