Funding digital products in a government agency

Great ideas are everywhere in the public sector But without funding they are just wishful thinking.  How do you go from a smart, people-centered idea to a real, usable digital service that’s funded, built, and delivered?  The traditional funding model – Why it’s a problem?  Let’s start with the reality most government teams face.  The traditional funding model in government is built around projects, not products. That means big, upfront business cases, detailed five-year delivery plans, and a lot of pressure to lock in scope, budget, and timelines before you’ve even tested if your idea solves the right problem.  This works for building roads or bridges.   But digital products?   They don’t behave like infrastructure. They’re living systems. You build, learn, iterate, and improve.  If your funding model expects perfection from day one -- you’re going to run into problems.  Overbuilt, underused platforms. Bloated apps nobody wants. Or worse—projects that burn through funding and collapse before launch.  So what’s the alternative?  A product-centered approach to funding  More and more forward-thinking government agencies are shifting from project-based funding to product-centered funding.  This means funding a team, not just a plan. Funding outcomes, not just features. Investing in learning—not just delivery.  Breaking it down Instead of funding “The Housing Assistance Digital Portal v3.0” - you fund a Housing Assistance Access Team whose job is to improve how people apply for help.  You give them the runway to research, prototype, and test ideas. You fund them in stages—say, discovery, alpha, beta, and then live—so they can prove value at each step before scaling up.  It’s more flexible. More accountable. And most importantly—it leads to better results. How do you make the case? One of the best ways to unlock funding is to show that you’ve done the legwork. That means user research. Real-world evidence. Pain points backed by data and lived experience.  Instead of starting with “We want to build an app,” start with: “We found that 60% of people abandon the online form for housing support. They’re confused by the language, the system doesn’t save progress, and the mobile version is broken. We believe we can improve this.”  This way you are not pitching an app—you’re pitching a solution to a real problem.  Fixing the service might cost money—but it also saves money. That’s the kind of math that gets funding approved.  Finding allies   Sometimes the money’s there—you just have to know where to look.  Some teams tap into innovation funds, service transformation budgets, or pilot project grants. Others partner with internal strategy teams or even external organizations to co-fund discovery work.  Don’t underestimate the power of alliances. Fi nance teams, policy leads, operations folks—they all have stakes in making services better. If you can show that your digital product will help them meet their goals? You’ve got yourself an ally.  Funding after launch  One last piece that often gets missed - ongoing funding.  Government loves a launch party, but digital products don’t end when they go live. They need teams to monitor, maintain, and improve them over time.  That means budgeting not just for development—but for sustainment.  One approach? Build digital product funding into operational budgets. Make it part of how the organization does business—not a one-off investment.  If you want digital services to be reliable, user-centered, and constantly improving you have to fund them like they matter.  The bottom line Funding digital products in government isn’t just about writing business cases—it’s about changing how we think. It’s about moving from rigid projects to adaptable products. From fixed plans to learning journeys. From one-time funding to long-term investment in better public services.