From vision to reality

Department of Service and Innovation Annual Report 2025

Digital Reykjavík

Roles and responsibilities

Digital Reykjavík leads and coordinates digital development within the Department of Service and Innovation and supports digital transformation across Reykjavík City. The office oversees and coordinates digital projects, manages project delivery, handles product management for digital solutions, addresses web matters, and supports digital transformation leads across City departments.

The office plays a central role in connecting policy making, development, and the daily operation of digital solutions, ensuring projects advance the City's shared goals of better services, greater efficiency, and responsible resource use.

Operations are built on four core pillars:

  • Processes and workflow
  • Web and product management
  • Project Management Office
  • Digital transformation leads

2025 at a glance

  • 3.5 million visits to reykjavik.is
  • 9,000+ web assistant conversations
  • 17.5% reduction in search clicks following the rollout of AI-generated summaries
  • 38 primary school websites migrated to a new environment
  • Implementing the Varða quality management system across more City departments
  • Digital city card in rollout

Ongoing digital service development, a stronger focus on product management, and greater project coordination across the City defined the year. The City also prioritized benefits assessment, synergies, and building shared processes and tools.

Results and priorities

Synergies and benefits management

Throughout the year, the City deliberately strengthened oversight and synergies across its digital projects. The City paid special attention to standardizing benefits analyses and assessing project value to better inform prioritization and decision-making.

Greater visibility into projects, digital solutions, and shared challenges enables better resource use, less duplicated effort, and more focused digital solution development. This work also supports data-driven decision-making and clarifies the returns on digital transformation investments.

Organizational changes and operational development

The City reviewed web and product development operations during the year and reorganized the structure to meet growing demands for operating and developing digital solutions. The unit was divided into two independent divisions:

  • Web Division
  • Product Management Division

These changes aimed to strengthen professional accountability, clarify roles, and lay a better foundation for ongoing development. They reflect the expanding scope of digital solutions, the web's growing importance as a service channel, and the rising need for focused product management.

The City's digital roadmap

Digital leaders work directly within every City department and maintain each Department's digital roadmap. Their collaboration produces a citywide view of digital development and a shared perspective on opportunities, challenges, and priorities.

Work continued during the year on departmental digital roadmaps to:

  • Identify shared themes
  • Reduce duplication of effort
  • Find synergy opportunities
  • Enhance data-driven decision making

This groundwork enables greater project coordination across the City and will continue to evolve next year.

Illustration of a roadmap symbolizing policies.

Office operations

Processes and workflow 

Purpose

Processes and workflow play a central role in project administration, quality management, and overseeing projects and products within the Department. This work includes maintaining the project schedule, product catalog, and quality matters, while developing processes that support effective digital project delivery.

Work continued during the year on:

  • Developing the Varða quality manual
  • Building out the project schedule
  • Developing the product catalog
  • Reviewing Fylkið as the Department's prioritization tool

Key projects of the year 

Varða quality manual
Varða continued growing during the year as more departments joined the system. The rollout produced a more unified approach to quality matters, processes, and practices across the City. ÞON will continue leading the development and maintenance of Reykjavík City's quality manual.

Product catalog 
The City published the first version of a shared product catalog during the year. It provides an overview of operational products, costs, revenues, responsibilities, and development to support more targeted product management.

Task list
Migrating the project schedule to Microsoft Lists improved oversight, simplified reporting, and strengthened project management.

Digital transformation leads

Digital leaders are based in every City department and form a shared team within ÞON. They play a central role connecting departmental needs with digital policy making and project delivery.

Digital leaders:

  • Lead digital roadmaps
  • Prioritize projects
  • Support diagnosis and consultation
  • Connect departmental needs to ÞON processes

This approach builds a shared vision for the City's digital development and fosters greater collaboration across departments.

Illustration of a person with many hands handling diverse tasks.

Project Management Office

The project management office leads investment projects and supports professional project management across the City's digital transformation efforts. Project management relies on clear processes, thorough preparation, and focused follow-through to support successful delivery.

In 2025, the Project Management Office tackled a more diverse range of projects and expanded its role beyond traditional technology initiatives. Examples of projects led by the Project Management Office PMs include:

MOLI — new human resources and payroll system

Preparation and procurement for a new City human resources and payroll system began during the year. The project involves rolling out a new solution, automating processes, and preparing to decommission the current system.

The project's focus areas include:

  • Automation
  • Integrations
  • Data migration
  • Modern HR processes

Digital city card

A collaboration with PassCreator began rolling out a digital city card, giving residents access to Department of Culture and Sports services through a digital solution.

New financial system

The City conducted a needs assessment and began preparing for the next phase of its new financial system project, focusing on modern financial processes, automation, and improved oversight.

Web Division

The Web Division leads the development and operation of the City's web-based solutions and continuously improves reykjavik.is, prioritizing accessibility, user experience, and information quality. 

AI on reykjavik.is

The City introduced two AI solutions during the year:

  • Web assistant
  • AI-generated summaries in search

These solutions help residents access information more quickly and improve the overall service experience. 

Results:

  • About 9,000 web assistant conversations
  • 17.5% reduction in search clicks

Translations

The City further developed automated AI-powered translations, which now cover nearly all content on reykjavik.is. Work also continued to improve information access for residents with diverse linguistic and cultural backgrounds.

School websites

38 primary school websites moved to a new shared environment featuring a standardized setup, improved accessibility, and a unified technical approach.

Frístund.is

A new website launched during the year, while product management got underway at the Department of Culture and Sports and the Department of Education and Youth.

Illustration of a service representative pointing to the web assistant.

Product management

Product management strengthens the operation and development of the City's digital solutions through clear accountability, lifecycle management, and consistent service delivery.

The year's priorities were:

  • Product catalog
  • M365
  • Power Platform
  • Atlassian
  • Copilot

Suggestion Portal

Throughout the year, work focused on strengthening governance, accountability, and oversight of digital products by building out product management practices that support the operation, development, and continued transformation of digital services.

2026 priorities

  • Further development of the digital roadmap
  • Expansion of Varða
  • Strengthening product management
  • Continued AI development on reykjavik.is
  • Aligning solutions and increasing synergies across the City
  • Strengthening data-driven decision-making