IR Confidential & Proprietary Do Not Distribute Our Proposed IT Strategy (2006 – 2011) Developing Optimal IT Strategy Through Business Context, Applications, Technology Infrastructure, Organisational Capability and Governance Document: IT Strategy Plan – Recommendations Version 1.01 DRAFT 12 June 2006 s Stephen Law Strategic Technology & E-Business Manager Inland Revenue, New Zealand

2006 Inland Revenue. All rights reserved. Confidential & Proprietary Document. 1 CRFVGAP BATOG IT Strategic Plan REC Future Vision Current Future Gaps Transformation Plan Development of a Plan to Close the Gap Snapshot of the Current Reality Development of a Future Vision 4 Final Report, Stakeholder Presentation, and Communication IT Strategy Plan Approach has Four Phases

2006 Inland Revenue. All rights reserved. Confidential & Proprietary Document. 2 CRFVGAP BATOG IT Strategic Plan REC An optimal IT strategy must comprehend the business context, applications, technology, organisational capability and governance. B T O IT Strategy Business Context Application Portfolio Technology Infrastructure Organisational Capability Governance & Funding GA The state of IRs business applications and their ability to support todays and tomorrows business The degree of simplicity, uniformity and sufficiency that IRs technology infrastructure represents The realities associated with IRs business and their implication on its IT function The readiness of IRs human assets to perform consistently with the needs of the organisation The decision-making process and its impact on ITs ability to meet its objectives The dynamics of the Revenue and Tax industry

2006 Inland Revenue. All rights reserved. Confidential & Proprietary Document. 3 CRFVGAP BATOG IT Strategic Plan REC Our applications and technology have served us well but are no longer sufficient to deliver Our Way Forward and support the new operating model Successful IT project delivery track-record but 18 month legislative deployment timeframe The strong business value of FIRST is compromised due to its tightly integrated architecture Difficult to integrate FIRST with commercial solutions Recent IT investments have been implemented on a project basis by individual business units resulting in duplicate functionality Proliferation of IT infrastructure Where we are today Our IT strategy will close the gap Where we want to get to Preserve the business value of FIRST by removing integration barriers IR realises benefits from cost saving and flexibility through IT infrastructure commoditisation IT capability is deployed to maximise reuse Exploit commercial off-the-shelf applications where appropriate Optimised end-to-end IT applications and technology support processes

2006 Inland Revenue. All rights reserved. Confidential & Proprietary Document. 4 CRFVGAP BATOG IT Strategic Plan REC The Gaps we identified A.1FIRST A.2Customer Relationship Management A.3Workflow / Business Process Management A.4Case Management A.5Business Intelligence A.6Knowledge and Enterprise Content Management A.7E-Business A.8Joined up services / Data Sharing A.9Dealing with Paper A.10Human Resource Management A.11Financial Systems A.12Telephony T.1Workspace Enhancement T.2IT Infrastructure Optimisation T.3Security G.1IT Planning and Investment Management G.2Investment Portfolio Management G.3IT engagement with Business & other Agencies O.1IT Organisation Capability O.2IT Service Management O.3Software Development Lifecycle Applications Technology Organisation Governance Business The intent of the IT Strategy is draw on the current business reality and desired future state. The IT Strategy is not intended to identify or address business gaps

2006 Inland Revenue. All rights reserved. Confidential & Proprietary Document. 5 CRFVGAP BATOG IT Strategic Plan REC IT Transformation Initiatives Reduce manual intervention through self-service and end-to-end automation Enhance customer service through more effective and efficient productivity solutions Provide intelligence to tailor actions based on risk and customer behaviour Make the best use of IRs financial and human resources Transform FIRST into an easy-to-use agile and open platform Zero Touch Human Touch Intelligent Business Managing IR Resources Transforming FIRST Initiatives to support Business Transformation Initiatives to support IT Transformation Provide an agile and optimised technology infrastructure that cost effectively meets the business capacity and availability needs Ensure IT skills and capability are in place to meet business needs Create an IT governance and funding structure to ensure cost efficiency and continuous improvement in IT service delivery Technology Optimisation IT Organisational Capability Enhancement IT Governance and Investment Management Our Way Forward Our Strategic Direction AGTO Legislative Initiatives