Post on 24-Jul-2020
Partnerships for Digital Transformation Roadmaps Linnar Viik
eGovernanceAcademy
130+countries,200+organisations5500+participantsintrainingevents
digital decades
+1990s internal efficiency +2000s cross government efficiency +2010s business/citizen efficiency +2020s digital transformation by sector
Prioritisation exercise
Complexity
Recurrence
Governments around the world are increasingly looking to digitization to solve a number of pressing issues
SOURCE: McKinsey research
Fiscal pressures
Shortage of hands
Digitization as a solution
1
23
Citizen expectations
The public sector must keep up with the increasing technological demands and savviness of citizens
Citizens are going digital in the private sphere …
1
… and expect the same from the public sector
Governments face pressure with citizens being relatively dissatisfied with the quality of public services …
SOURCE: Putting citizens first, McKinsey Center for Government
-13-9
12
59
1616
1925
30343535
3747
5050
535455
57666768
727576
78
Higher Education
Public housing and assistance
Public transportation
Department of motor vehicles (DMV)
Small business assistance
K-12 Education
Taxes
Environmental protection Public safety
Mobile phoneSporting licenses
Cable or Satellite TV
Food stamps
Job programsUnemployment benefits
Medicaid services
Cultural facilities/activities
Business regulationState-run healthcare facilities
Electric company
Professional licenses
Favorite retailerE-commerce site
Primary bank or credit union
State parksAirline
Car insuranceCredit card companyPrimary physician
Private-sector services Public-sector services
1 Share of citizens who are highly satisfied minus share of dissatisfied citizens
Citizen Satisfaction Score (CSS)1 for private sector and state government services, United States, 2015
2
… while a global budget deficit now and in the future also needs to be addressed
15
31.0
36.0
35.034.5
35.5
32.532.0
34.0
31.5
33.533.0
30.030.5
05 14 20 21190
1716 1807 1306 10 121108 09
Forecast
Revenue2
Expenditure1
$3.3 trillion3
SOURCE: IMF; OECD; McKinsey Center for Government analysis
1 Government expenditure; data from 182 countries 2 Government revenue; data from 182 countries
Total government expenditure compared to revenue 2005-2021, % of GDP2
How do governments leverage the private sector in bringing
about a digital society?
OftendigitizationstrategieshaveahighlevelofpublicsectorinvolvementinexecutionPrivate sector Public sector
DescriptionInvolvementTypicalsetup
Whoinitiatesthedigitization?Initiate
Whoisinthescopeofthedigitization?Scope
Whoisresponsiblefordevelopment?Develop
Whosetstheregulatoryframework?Control
Whooperates?Operate
Howisthedigitizationfinanced?Finance
Thisapproachputsgovernmentsincontrolandinaroletoenforceenrolmentanduse,butitcanbecostly,slowandrigid
Government is in full control and can oversee and manage entire process
Governmentisabletoensurethatservicesareactuallyprovided
Possibletoenforceenrolmentintoanduseofe.g.digitalID
Governmentbearsfullcostandrisk
Developmentisslowandrigid
Approachislegalistic
Customerisrarelyatfocus
InvolvementTypicalsetupPublic sector
Private sector
Initiate
Scope
Develop
Control
Operate
Finance
Governmentscanpursueamoreintegratedandcollaborativeapproachtoleveragetheprivatesector,includingmarketdynamics
Gvt. involvement
▪ Establishpartnershipstoshareriskandcost
▪ Allowvendorstomakeaprofittoleveragemarketdynamics
▪ Leveragesynergiesfromshareddigitalsolutions
▪ Letthemarketprovidethefullsolution
▪ Provideaclearandflexibleregulatoryframework
▪ Buyfromexistingvendor
Publicprivatepartnership
Fullyprivatesectordrivenapproach
PPPPublic PrivatePublic sector
Private sector Involvement
Initiate
Scope
Develop
Control
Operate
Finance
Summing up – what can government do in digitizing the society?
1▪ Invite private sector players into the process at an early stage
▪ Allow vendors to make a profit in order to create strong incentives for development
▪ Be ready to pay for the services – government has a strong interest in furthering strong and widespread digital IDs, secure mail boxes etc.
Establish public-private partnerships
▪ Allow existing digital IDs for low security transactions
▪ Provide clarity about requirements for high level of assurance
▪ Have clear and quick procedure for accrediting new suppliers
▪ Have clear and quick procedures for accepting new technologies
Enable the market2