Five enablers to support the transformation toward a digital government organization

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IntroductionDigital transformation is all around us. Most companies are already fully embracing digital technologies and processes to improve the customer experience. New business models have surfaced, disrupting the market and thriving (e.g., Airbnb, Uber, etc.). Convenience has become king in parcel delivery, where next-day or even same-day delivery of the goods is promised, such as with Amazon Prime.

Companies that embrace digital went through a complete transformation of the business process and operating model to be able to deliver the product or service. Some dematerialized their offerings, going from products to digital services, including the product (e.g., Rolls-Royce, airplane engines as a service or GE Predictive Maintenance).

Often this meant partnering with other companies, revisiting the value chain or opting for a new go-to-market approach using a platform where consumers and producers find each other. This also meant automating and digitizing a part of the back office or even allowing technology like AI to make decisions.

But this also always means that the customer experience is now at the center of the process. Happy customers who get personalized services come back.

What has become the new normal for the industry is not yet happening at full scale at governments. In fact, the WEF (Global Agenda Council on the Future of Government with the People: A New Formula for Creating Public Value, 2017) states in its April 2019 report that, “Governments are the dinosaurs of the digital age: slow, lumbering and outdated.”

In this paper, we will discuss a set of enablers to start or speed up the digital transformation of a government organization.

True, the criteria and reasons for a company to become digital (i.e., more revenue, new business models, more efficiency) are not applicable for a government. However, it is the citizen — driven by the widespread availability of digital technologies such as the internet or smartphones — who now expects the same behavior from government as from any other company. They want personalized services and for the government to be proactive and fast in response.

Citizens no longer live in an analog world. Their worlds are largely digital, and if you were to measure the digital maturity of citizens, and the digital maturity that most single organizations can offer to those citizens, in many cases there would be a huge gap — one that needs to be closed.

While most government organizations vary in scope and approach, the overarching objectives are the same: to focus on enhancing the citizen’s experience and be more efficient in the back office.

We stand by the definition of Canada Chief Information Officer Alex Benay (2019) as a definition of what a digital government means:

“The term ‘digital government’ is not a buzzword for flashy new government websites, apps or the end of paperwork. Rather than an exclusively technological transformation, ‘digital government’ presents an opportunity for a cultural and operational shift that is much more than the digitization of government services. It is about cultivating an environment that prioritizes citizens and promotes streamlined, secure service delivery supported by technology. It is about reimagining the service

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relationship with citizens to remain relevant. To do this, government must build an innovative and agile public service, with modern governance structures that correspond to the new digital landscape.”

Digitalization or digitization?We define digitalization as the transformation of the people, processes and technology to become a digital organization, which encompasses realizing a digital workplace, creating a digital value chain, use of digital technologies and of data, improving business (not just processes) and creating a digital culture whereby digital information is at the core of every service made available to the public. Automation is a major part of the digitalization, whether it be shifting work roles or transforming business processes generally.

Digital transformation requires the organization to deal better with change overall, essentially making change a core competency as the organization becomes end-to-end citizen-driven. According to CXOTransform (Rob Llewellyn, 2019), “Transformation is about creating a new future, without the constraints of the past. The difference with change is that change improves the past, while transformation creates the future.”

Becoming a digital organization is, by default, a transformation of the current operating model to a future version of it based on a high confidence in digital capabilities. Organizations will have to strategize the future target operating model, and this will undoubtedly result in introducing new capabilities in the organization. This will require new people, processes and technologies to be used to improve the services.

This is different than digitization, which is simply the automation or digitization of business processes, which in turn is based on the digitization of paper (removing paper-based processes). Along with this is the removal of manual labor where it isn’t effective or efficient.

Putting this together, we can state that we digitize information, we digitalize processes and roles that make up the operating model of an organization, and we digitally transform the business and its strategy. Each one is necessary but not enough for the next, and most importantly, digitization and digitalization are essentially about technology, but digital transformation is not. Digital transformation is about the citizen.

It is fundamental that an organization strategizes “what” to transform, not “how” — that will come later. A digital mindset considers new ways to transform business models, how they can deliver better value and experiences to citizens, operations and the workforce. The mindset calls for new ways of operating within the organization and with its workforce, citizens, partners and external talent.

Target audience and type of organizationThis paper is targeted at business leaders and the CIO of a government administrative organization, which is typically characterized as follows:

• Some degree of autonomy from political direction

• Pre-established strategic direction through political decision

• Budgeting autonomy

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• Public accountability defined by law and tradition

• Handling administrative services such as permits, grants, taxes, stimulus programs, innovation funding, education (funding), public roadworks planning, etc.

Government organizations are typically highly diversified and offer no single solution to efficient service production. Since the organization has some degree of autonomy, it is usually up to the organization to chart their own transformation journey.

It is our intention to explain several enablers that can inspire leadership of such an organization to define and execute their unique journey.

At the same time, we want to convey the message that digital transformation is not a technology story; it is the transformation of the organization itself to use the digital channels to better provide services to its citizens. This requires a strategy that is endorsed by the organization’s leadership and mandates a transformation toward a new operating model, new capabilities and processes.

Yesterday’s IT solutions vs. today’s digital services

Rethinking the way a process is designed

Before we dive deeper into what the enablers are, let’s make sure we understand what a digital government organization is supposed to be, why it is different and what its value is.

Until recently, most government IT solutions were created by the business department with the intention to automate the back office. Requirements were gathered from the case workers in the back office and converted into functionality. The IT solution was entirely focused on the internal operating model to support the back office in becoming more efficient in handling requests from citizens or companies.

Websites often projected the internal way of working to the requestor, meaning the requestor had to follow the logic that was imposed by the provider. This often resulted in a bad experience for the requestor, as it required a decent amount of patience, work and sometimes luck to work through the process. Processes were triggered by the requestor unless it was a tax declaration. Often the requestor was the errand boy of the organization, moving from one step to another, moving from one office to another, moving from one form to another.

“ If you don’t know where you’re going, you’ll probably end up somewhere else.” — Yogi Berra

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Yesterday’s approach to designing IT solutions

Citizen

Today’s approach to designing IT solutions

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New way of working

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In the digital world, we need another approach — one that centers around providing a good experience to the citizens in interacting with the government. That means government organizations must thoroughly engage and even observe the behavior of the citizen and design a process that starts from these observations.

Requirements and functionality are derived from the behavior, not from the organizational setup. This also means that whatever channel the citizen is using, the government needs to provide a seamless and transparent interaction. The organization adapts its operating model to provide a good service. From an IT perspective, there is no time anymore to write an application per service. The IT needs to think in the platform model, where new services can be introduced quickly on top of existing services. This requires an agile approach from both the business and IT to work together.

ExampleLet us demonstrate both models with an easy example. Assume you want to go fishing and want to request a fishing permit. In the traditional model, this works as follows:

• Once a year I search and visit the website and initiate the process myself, even if just a renewal of my current permit. No data was stored, so I must enter my full details every time I initiate the request.

• On the website, I am bombarded with legal text, and I must scroll down the site to decide what permit fits my needs. The terms used to describe the various fishing permits are vague, so sometimes I just make a guess.

• The process only allows for the request of a yearly permit, so I must make sure to remember when to start the request.

• Once I choose the type of permit, the site informs me that I must initiate on my own a payment via bank transfer (not integrated) to the organization, including the description to use. No communication is possible at this point in time.

• The process notes that approximately 3 weeks after the payment is made, I will receive an email confirmation. Attached will be a PDF holding the permit.

• I must print the permit and carry it with me to the fishing pond for possible inspection by the owner.

Let us now look at the same process, how it has been redesigned and implemented using the right-hand model — meaning how the process was completely overhauled to provide a good experience for citizens. The example that follows comes from the UK and represents the actual process being used today and how it has been implemented.

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First, you can choose if you want to do this online or via your smartphone. Instead of browsing through websites, the process has been converted in a step-by-step wizard approach. You select the option that best suits your needs, identify yourself and do an immediate payment. Along the way, you can choose how the license is delivered. It is simple, fully automated and you can start the process whenever you want — even at the fishing pond, even for a 4-hour license.

This is not the only process that the UK government is redesigning in the same way. In fact, the UK has published a set of best practices on how to design the process for a good experience. See https://www.gov.uk/guidance/government-design-principles. The UK is not the only government that provides these guidelines, but also applies them and really redesigns the process to provide a good experience.

Introducing the five enablersBased on our experiences working with government organizations, we will introduce five key enablers to be part of the transformation program toward a digital government.

These five enablers are also reflected in the 12 principles that the Organization for Economic Cooperation and Development (OECD, 2018) prescribes for a digital government. The site also provides examples of which governments are active on this.

The purpose of these enablers is for an organization to help deliver better services, often iteratively and repetitively.

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Positioning the enablers in the organization’s operating modelA typical model to depict an organization is still the front-office/back-office model.

An organization — simply put — consists of two distinct structures that cooperate to provide services to the citizen:

• The front office is the section of the organization that takes on the responsibility of interacting with the citizens. Citizens interact with the organization through websites, help desk or mobile applications.

• The back-office section mainly consists of the administration department. The main goal is to ensure that all the operations are performed seamlessly so that the daily business is run smoothly. The back-office civil servants are an integral part of the organization, as they are responsible for handling daily activities. This is where core applications assist in processing the handling of service requests.

There are several typical characteristics of a back office in the pre-digital age:

• They usually use complex legacy IT systems built over a long period of time

• Many processes are manual, disconnected or sometimes still paper based

• Data sources are siloed

• There is an inability to launch new services rapidly

• There are delayed response times to citizen requests

• There is a lack of a seamless experience across government organizations

When we translate this model to the digital world, we can still apply it, but we will see that there is now a different approach to using people, processes and technology to provide a better service. So, we hereby introduce an updated version of this model that illustrates how and where the enablers can help improve the services.

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(Source: Adapted from HFS Research, 2018)

In the digital world, we redefine the front and back office as follows:

• The front office is where you provide a good experience to the citizens searching or using your service portfolio. It is multichannel by default and highly personalized. That means you need to have good insight into who is visiting or requesting a service. Real-time data analytics on citizen behavior will assist in plotting the course to the best option for the specific situation. Governments are proactive in providing extra advice, options or making the citizen attentive to more eligible services. The process is 100% tweaked to meet the citizen’s outcomes, not to mimic the organizational structure.

• The back office is a redesigned and digitalized environment where people, processes and technology are fully aligned to fulfill the citizen’s request. Labor-intensive or manual work is automated, and the process can be easily adapted to changing needs. Legacy systems are minimized or replaced with platforms, usually procured as a service in the cloud. This requires a new set of capabilities to be fast and a culture of innovation.

Change is a constant, taking many small steps forward instead of one major step per 3 years, so we use different techniques to design services. Digital technology has been introduced to support making automated and autonomous (but still transparent) decisions, and there is a data culture established that thrives on the combination of many sources of internal and external data to be used.

Although this is an oversimplified model of the reality, it will serve its purpose to position where and how the enablers will impact this model.

Outcome-driven processes

Multi-channel

engagement

Proactive

Personalized

Designingprocesses

to meetcitizen

outcomes

Real-time actionable data for greaterpersonalization

Digital underbelly• Digitalization of manual processes• Automation and standardization

of processes• Cloudification of processes• Cybersecurity

Intelligent digital support functions• Intelligent digital support functions• IT, HR, procurement, shared services• Design thinking to unify outcomes• Change management• Culture of innovation

Intelligent digital processes• Predictive analytics• Machine learning• Data-driven organization• IoT, blockchain, etc.

Core digitalprocesses

Supportingcapabilities

Supportingtechnology

The experience-driven front office

The enabling intelligent back office

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Enabler 1: Service redesign using “design thinking”

What?

Design thinking — also called “human-centered design” — is a creative problem-solving process that puts the user (in our case the citizen) at the center of attention to provide a good experience to fulfill the citizen’s needs. Originally developed and used by designers, architects and the private sector heading into the 1960s, design thinking gained traction in governments all around the world.

Although different schools of thoughts and terminology exist, the main pillars of the process are consistent and include deep empathy, listening and connecting to the citizen, experimenting through rapid prototyping and constant iteration.

We propose to use the two-diamond model, whereby you have two distinct phases: The Problem Space and the Solution Space.

First there is the Problem Space, where you come to a shared understanding of the problem. Citizen centricity starts with understanding your citizens, which is the first step of the design thinking process. The better you understand your citizens’ problems, the better your odds of innovation success or improving the experience. This requires empathy as a core skill. You need to fully understand the experience of the citizen for whom you’re designing. Some of the techniques include observation, interaction and immersing yourself in their experiences.

The next step is to define the process and synthesize the findings from your empathy work to form a citizen point of view that you will address with your design. This will create a customer journey of — as we prefer to call it — a happy flow.

At this stage you will have to decide what are possible designs to implement the customer journey. The technique used here is ideation. To ideate is to explore a wide variety of possible solutions by generating a large quantity of diverse possible solutions, allowing you to step beyond the obvious and explore a range of ideas.

Ideation is often done through sketching, meaning working together to produce a whiteboard style of sketch of the happy flow. At the end, some decisions will have to be made as to which one of the sketches you can move forward. Making decisions in design thinking is done via three main axes:

• Desirability. Do the citizens really want it, and will it help resolve issues?

• Feasibility. Can we realize this as an organization, giving constraint of technology, budget, time, etc.?

• Viability. Should we do this?

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Now that we have defined a customer journey and have narrowed down the sketches into opportunities, it is time to start the second phase of design thinking, the Solution Space.

The first activity here is to transform the selected opportunities into a physical form so that you can experience and interact with them and, in the process, learn and develop more empathy. This is called prototyping. It involves creating basic mock-ups in a standalone environment of the chosen design. Next is to test the prototype in real life and use observations and feedback to refine prototypes, learn more about the user and refine your original point of view.

Only when the test is positive can you consider moving to an MVP (minimal viable product), where the prototype is installed in the target environment of the organization, which will trigger architecture, security and technology discussions. When the MVP is successfully integrated, the design can be further enhanced or scaled out in the organization.

One important point to keep in mind is that innovating for the citizen should put the citizen’s needs ahead of digital possibilities. Too many people in the technology space get excited by what a technology can do, ahead of what the citizen needs. When you start a design thinking project, you need to stop thinking as an engineer and start thinking as a designer. The one and only goal is to design an experience that makes a difference for the citizen.

Why?

Since it is all about the experience, this technique is perfectly fit to design services based on a citizen’s real needs. It ensures that the ultimate application is driven based on a customer journey that adds value to each step. It starts from observing behavior in the real situation.

Recent research from McKinsey (McKinsey, 2019) provides proof that improving customer experience can drive better outcomes for government agencies around the world. The following key performance indicators are improved by using these techniques:

Increasetrust

Satisfiedcustomersare

9×more likely to trust the agency providing the service

Achieve stated

missions

Satisfiedcustomersare

9×more likely to agree an agency is delivering onits mission

Meet or exceed

budgetarygoals

Reducerisk

Boost employee

morale

Dissatisfiedcustomersare

2×more likely to reach out for help 3+ times

Dissatisfiedcustomersare

2×more likely to publiclyexpressdissatisfaction

Long-termoperational success is

50%driven by organizationalhealth and ismutuallyreinforced bycustomerexperience

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The same study revealed that reliability and simplicity — not speed — are the top two drivers of customer experience.

In the KPMG report “Power to the People”(KPMG, 2019), the authors state that there is much work to be done for governments to provide a good experience, as they rank 10th and last vs. other industries. Governments are picking up, though, and show the largest growth compared to a year ago.

Where to position

This enabler works best in the front office, where citizen experiences are being designed and act as input to building applications that deliver that experience.

How to measure

Here are a set of typical objectives and metrics that this enabler brings:

Objectives MetricsAchieve 100% experience- driven interactions

• Number of services converted to an experience-driven interaction

• Number of services not yet converted• Effort remaining to convert

remaining services

The citizen can use whatever platform they want to interact with the organization

• Number of channels used vs. non-used• Number of interactions per channel (and

trend analysis)

Requesting the service is easy • Number of steps to request a service• Number of prepopulated fields vs. total

number of data elements needed

UK sectorUK 2019sector rating

% difference in UK sector CEE score vs. 2018

Sector performancevs. UK average

Non-groceryretail

Grocery retailFinancial

servicesRestaurant

and fast foodEntertainment

and leisureTelecoms

Travel andhotels

UtilitiesLogistics

Public sector

+1%

0%

0%

+1%

+2%

+3%

+4%

+2%

+1%

+1%

+3%

+3%+2%

+1%

-1%

-1%-3%

-4%-6%-10%

1st

2nd3rd

4th

5th

6th7th

8th9th10th

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Objectives Metrics

Questions are answered within 30 minutes

• Number of questions• Average time to respond• Average effort to respond• Average effort that is automated

(immediately answered) vs. effort that is still manually processed (and thus asynchronous)

The citizen rates the experiences as at least 80% positive

• Best/worst experience rate• Average experience rate

Citizens find the information needed in less than three clicks or interactions

• Number of pages visited• Number of aborted service requests

This are illustrative but can be tweaked to suit the specific nature of the organization.

Enabler 2: Experiment in an agile way

What?

Remember that we positioned the journey to becoming a digital organization as one where the organization delivers better services — often, iteratively and repetitively.

Sticking to the classical approach (i.e., Waterfall) is not the way to do it anymore, as the way to value and implementation simply takes too long — certainly for legacy systems that only release new features once or twice per year.

Bottlenecks and constraints in this approach prevent rapid innovation cycles that digital organizations need today. In this enabler, we will position an iterative approach to allow experimenting for innovating processes and applications with the use of new technologies.

Experimenting is a vital component of any journey to becoming a digital organization and must be endorsed to get people, processes and technology aligned to optimize the workload. Introducing digital technologies also exposes organizations to increased risk, so next to the following approach for experimenting, we also need a new digital governance approach to cover the value and risk of experimenting before

Businessdemand

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Inefficiencies in manual

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Poor confidence

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Late engagement

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Repetitivetasks andincreasing

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quick fixes

Planning and design

Build and integration

Quality assurance

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Application deployment

Production support

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Become a data-driven organization

Digital transformation

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going live. In other words, experimenting is not a technical playground; it is to be an essential part of the organization’s culture, meaning people must get used to testing and even failing when exploring new ideas.

We propose this overarching approach for experimenting:

We see these major steps in this approach:

• In the Discover step, we create service use cases and do an early validation of what the value of these cases might be, what the new process might look like and what the new technology will contribute to optimizing or automating the workload.

Use cases are thoroughly researched, internally and externally. All use cases will need to demonstrate the anticipated value and benefits. Only when this is clear can the management team decide to make the team and funds available for the next step. Note that the management team must keep an open mind to innovation at this step, as risk aversion will kill any idea. It is even up to management to promote this culture in the organization.

• In the Prototype step we use prototyping techniques to work on the use case with the new technology. Prototypes should be used when you have a hypothesis about a solution but there is still uncertainty about how it will look, feel and work.

This is particularly useful when we innovate the process and the operating model of the organization, acknowledging that the technology can automate or autonomously drive a large part of the workload. As such, capabilities (such as people skills) also will be impacted.

Based on the prototype findings, the team can now prepare or update the business case with reduced risk for funding. An MVP can then be developed and positioned to early adopters. From there you can build on the minimal viable product using an iterative approach. This approach also helps teams learn from their failures but without having invested too much effort or put current operations at risk.

We also advocate bringing in the IT architects and security experts early in this step, triggering a discussion to find the right circumstances to allow the technology to be used in the client’s productive environment.

• In the Pilot step, we implement the process along with new technology in a test environment whereby small-scale validations in real-life situations can occur. Selected people are trained to adapt their way of working and even be assisted by technology in the decision process — certainly when more advanced technologies such as AI for automated decision making are introduced.

This is where the combination of new capabilities, processes and technology is put in the organization’s operating model and validated if the end-to-end experience is improved.

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Before we move further, we do a final revision of the business case and review if the anticipated benefits already can be seen or measured at this stage. There is nothing wrong with deciding to stop the Pilot and either start a new Pilot or even go back to an earlier step if it happens quickly and with good reason.

• If the Pilot proves successful and value can be demonstrated, we introduce the Scale phase to move all this into production in an agile and controlled way, including attention to change management and transforming the operating model along the way.

This will require more than only one step and will probably be the launch of an agile implementation project (or even program) with its own team, budget and specific methodologies such as SCRUM or SAFE to be used.

Next to the methodology aspect, there is also the people and process dimension to be considered here. We suggest focusing early on change management and keeping people in the organization informed about the anticipated changes — even making them advocates of the change to come.

Some governments have externalized this approach, seeking the help of partners to innovate the operating model. This can be done by setting up an ecosystem of stakeholders that each contribute to a certain step. For example, universities and research institutes can contribute to the Discovery phase, where IT partners can help introduce new technology in the Prototype and Pilot phases.

Startups can bring in innovation while hackathons might trigger new ways of working. This is already a well-established approach for cultivating an open data culture. In fact, externalizing brings extra transparency in the transformation journey the organization wants to take.

In any case, we advocate institutionalizing this as a culture inside the organization but being open to partners to participate in building out the digitalized experience or optimize the back office. We understand that politicians are risk averse, but given the right strategy, all stakeholders can reach consensus on the journey ahead. There is no way around transforming to a digital organization.

Why?

The step-by-step approach and the concept of experimenting can be used in both the front and back offices. Whether it is used for designing a better experience as it is used for renewing legacy applications, small iterative steps will generally bring faster benefits and results.

In any case, the focus should be on innovating the process while exploring the use of new technologies — often, iteratively and repetitively.

Where to position

As you can see, each step indicates to the executed in cycles. This advocates the use of agile methodologies such as SCRUM or SAFE as standard.

Where design thinking is more appropriate for experience-driven front-office applications, experimenting is more appropriate for enabling intelligent back-office applications. Both approaches meet when moving into production where the process and technology needs to be rolled out in the organization, along with the necessary

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attention for change in people, skills and capabilities to come to the full potential. Regardless of the methodology behind this, the advice is to set up this cycle in the organization for the front and back offices and make sure the right governance is put in place to support this from end to end.

How to measure

Here are a set of typical objectives and metrics that this enabler brings:

Objectives MetricsEncourage and inspire business people to propose ideas

• Number of ideas put forward• Number of business units putting

ideas forward• Number of business goals impacted

by idea• Average estimated duration• Average estimated cost

Run an experimentation environment • Number of projects started• Amount of budget per experiment• Number of projects stopped after proof

of concept (PoC) phase• Number of projects moving to the

Scale step• Average duration of a PoC phase

Coach people sufficiently to start an experiment cycle

• Number of people trained• Number of trainings provided• Percentage trained vs. non-trained

Ensure a smooth decision process is set up and followed

• Number of experiments presented to management team per month

• Number of approved and rejected experiments

• Average budget for experiment• Minimum and maximum budget for a

particular experiment• Risk and impact indicator

Ensure successful experiments are implemented

• Number of processes changed or automated

• Duration of implementation

These are illustrative but can be tweaked to suit the specific nature of the organization.

Enabler 3: Invest in new technology to drive automation

What?

Technology is playing an increasing role in the way we live our lives, do business and interact with companies and government. Governments can also greatly benefit from introducing new technologies to improve the citizen experience throughout the dialogue with the organization.

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agile way

Experiment in an

agile way

Serviceredesign

using design thinking

Newtechnology

to drive automation

Get new(digital)

capabilities

Become a data-driven organization

Digital transformation

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Engin Zekia states in his recent research (Engin and Treleaven, 2019) that “the disruption caused by the key technologies — namely artificial intelligence, internet of things (IoT), big data, behavioral/predictive analytics and blockchain technologies — offers the greatest potential in the public sector to transform the way governments engage with citizens, make policy decisions and manage the national infrastructure.”

Many industries have already been disrupted by technology, so the question becomes whether governments realize that civil servants and bureaucracy can be disrupted and how fast this can be implemented. Research (Capgemini, 2018) clearly shows that governments are late in adopting technology to automate. However, the same report indicates that most industries have not tapped into the full potential yet.

Here we will mainly focus on the technological automation of a typical administrative government organization, but new technologies such as IoT also provide a unique opportunity for government to interconnect and dynamically manage the public infrastructure.

Going back to the front- and back-office model, we selected the following technologies to be considered mature and useful enough for improving the experience in the front office:

• Be available 24/7 to answer the most common questions using chatbot technology, being a personal (digital) assistant through the service request.

• Provide a personalized dialogue using data to “know your client” and propose the best possible dialogue. This is often done via advanced analytics technology.

• Provide natural language understanding — the application of computational techniques to the analysis and synthesis of natural language and speech, often an extension of chatbot technology.

• Offer your services on an IT platform. This may sound strange, but by integrating government services in other platforms, citizens might be able to discover them more quickly and seamlessly (e.g., job offers, learning opportunities, permit information).

14%Testing use cases

17%Deployed pilotsfor some use cases

39%Deployed a few

use cases at scale

16%Deployed multipleuse cases at scale

14%Developed proofsof concept forsome use cases

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• Offer immediate information on events or alerts. Sometimes good old SMS texting technology is still extremely powerful, fast and lowkey, although we would advocate this to be one of the channels in a multi-channel approach. Automated, outbound notices can provide citizens with information directly targeted to their life: a road closure in his neighborhood, changed times of her child’s park program, a late school bus or the impending expiration of a recycling-center permit.

Meanwhile, other new technologies can greatly improve the efficiency of the back office:

• Automation of repetitive and often administrative tasks by using robotics technology (i.e., RPA) — essentially getting the robot out of the human.

• Automation of decision making by using AI and machine learning technology without losing track of transparency (i.e., how the model came to a decision).

• Becoming a data-driven organization by using advanced analytics technologies.

• Blockchain emerges as a foundational technology as the natural solution to secure data sharing. The technology offers many potential applications in managing all types of contracts, transactions and records efficiently and in a verifiable and permanent way. Blockchain offers a new approach to enhancing transparency and collaboration between governments, business and citizens.

The list goes on, and we never can be exhaustive. But when we recommend investing in new technology, we also mean setting up an innovation program governance that allows the organization to experiment with new technology. It is wise for an organization to invest in an innovation lab where new technologies can be tested against real processes.

An innovation lab cannot be a playground for technical people. First, we need to make it easy for business and IT people to collaborate and contribute to innovation. It may seem obvious, but tools and technology must be made available without much discussion, but they must contribute to realizing an organizational goal. Do not tell people what exactly they must innovate; give them freedom, including a percentage of time they can devote to this. People who contribute should be rewarded for their efforts. Finally, make it clear that failure is OK.

Now that we’ve considered the cultural side of innovation, there also needs to be a process to help cultivate, capture and manage the stream of ideas that are going come from staff across the organization. Just like any other business function, innovation is a business function that needs to be managed.

Every organization also needs to be able to measure innovation, including the investment in it and the outcomes of it. Measuring innovation should be part of the innovation process, driven by the innovation leader. Ultimately, measuring innovation will help produce better results and keep management (or even politicians) happy.

There are also some constraints to consider here. The issues around the use of private citizen data, fairness of algorithmic decision-making practices, transparency of public operations, the accountability for any damages caused by computer-assisted processes and the natural threat of potential job losses are all valid considerations.

Finally, start small but do start. You can always increase the maturity, scope and impact of your innovation lab over time.

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Why?

Potential use cases in the front office include these:

• Using intelligent virtual assistants to answer questions or act as passthrough to your case expert. For example, a citizen might consult a “robo-advisor” that passes the query to a human advisor when specialist help is required.

• Automated form filling and registration. An example is when a citizen logs into a secure zone, all his data is available for reuse as part of the service request. Principles like “you will only ask for data once and then reuse it” are valuable to avoid multiple reentries of basic data such as a citizen’s address.

• Being proactive. For example, a citizen might receive advice on potential benefits (e.g., tax credits, disability allowances, retirement, energy efficiency), services (e.g., health checks, housing), registrations (e.g., fishing permit, parking permits) and other information.

• Gathering public opinion to drive policy; using sentiment or behavioral analysis to make a summary of reactions on policy communications.

• Enabling citizen-to-citizen community engagement, even at policy level.

• Detecting abuse of public services and fraud, for example, in the manipulation, ordering and analysis of data using optical character recognition (OCR) and natural language processing (NLP).

Potential use cases in the back office include:

• Automated payments to citizens. When a service is granted, this can involve an automated allocation of funds, which could potentially also be registered in a blockchain register.

• Intelligent automation can help crack down on fraud attempts. Virtual workers can monitor transaction patterns, flagging anomalies of what is considered normal or safe activity. They can then put the account on hold and flag suspicious behavior to a civil servant.

• The virtual worker could pick up some of these tasks to ensure efficiency. For example, a virtual worker can take the name of the citizen in question and search their name across multiple databases. The information obtained from this search can inform caseworkers if this person is eligible for extra services or even poses a threat (e.g., owns a firearms license, has any previous criminal history, has any history of substance or alcohol abuse). This type of information can, in turn, enable them to prepare for their response accordingly.

How to measure

Here are a set of typical objectives and metrics that this enabler brings:

Objectives MetricsContinuously scan the market for new technologies

• Number of interactions with partners (broadly defined, could be academic, suppliers, startups, other organizations, etc.)

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Objectives Metrics

Reduce workload by automating • Number of processes that are automated per technology (e.g., RPA)

• Number of interactions with citizens handled via chatbot vs. number of traditional human interactions

• ROI per initiative

Inspire people to consider AI • Number of info sessions• Number of use cases per technology• Number of experiments

Implement autonomous decision making • Number of AI/advanced analytics algorithms running in productions

• Number of cases decided by AI• Complexity level of cases decided by AI• Number of corrections by civil servants• Organization’s level of trust in AI

Offer support to business to improve automation capabilities

• Number of processes in scope for AI• Number of selected experiments with AI• Number of experiments running

These are illustrative but can be tweaked to suit the specific nature of the organization.

Examples

Below we captured some examples of countries where the government has embraced technology to drive a digital experience for its citizens.

• One of the best examples of a government that has fully embraced digital technologies and reworked the processes to work with the technologies is Estonia. See https://e-estonia.com/.

• Since its inception, the Smart Dubai Office has launched over 130 initiatives in partnership with government and private sector entities. Some key initiatives include the Dubai Data Initiative, the Dubai Blockchain Strategy, the Happiness Agenda, the Dubai AI Roadmap and the Dubai Paperless Strategy. Visit https://www.smartdubai.ae/

• Singapore envisions a Smart Nation that is a leading economy powered by digital innovation, and a world-class city with a government that gives citizens the best home possible and responds to their different and changing needs. See https://www.smartnation.sg/

Enabler 4: Get new (digital) capabilities

What?

An organization’s capability is defined as its ability to “perform a set of coordinated tasks, utilizing organizational resources, for the purposes of achieving a particular end result.” (Helfat and Peteraf, 2003)

Having the right capabilities is key to execute a digital transformation. These are the people who have the knowledge and experience to lead on key aspects of digital business transformation. No organization will be able to introduce new technologies and change the operating model if they don’t have the right capabilities among their workforce. Management needs to ask themselves, “what capabilities do we need?”,

Experiment in an

agile way

Experiment in an

agile way

Serviceredesign

using design thinking

Newtechnology

to drive automation

Get new(digital)

capabilities

Become a data-driven organization

Digital transformation

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“what capabilities do we have?” and “how do we fill the gap?”

Let’s start by presenting a long list of new capabilities that will be needed over time as the organization matures in its transformation journey:

Area CapabilitiesStrategy and leadership • Digital business strategy

• Digital business leadership• Digital governance• Business engagement and alignment• Digital innovation • Business model agility and evolution• Business process digitization and reinvention

Business • Product and service design/development • Business analytics and reporting• Data-empowered decision making• Service cost analytics

IT • Digital technology architecture and modular IT platforms

• Big data and information asset management• Cloud business• Enterprise information architecture• Cybersecurity and risk management• Vendor management• IT platform experts

Governance • Digital investment portfolio management• Business ecosystem management

Others • Innovation leadership• Transformation program leaders• Change managers

When we bring this back to the basic front- and back-office model, we can already start by introducing these capabilities in the organization as a minimal:

Area CapabilitiesFront office • Customer experience management

• User interaction design• Experience-driven designs• Design thinking

Back office • Advanced analytics• Automation, RPA• Decision making, AI

Some of the skills these people will need to develop or bring into the organization are not so traditional. The Organization for Economic Cooperation and Development (OECD, 2017) recently defined the following capabilities and associated maturity model specific to government innovation:

• Iteration. Incrementally and experimentally developing policies, products and services

• Data literacy. Ensuring decisions are data driven and that data isn’t an afterthought

• User centricity. Public services focused on solving and servicing user needs

• Curiosity. Seeking out and trying new ideas or ways of working

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• Storytelling. Explaining change in a way that builds support

• Insurgency. Challenging the status quo and working with unusual partners

Our presented enablers are well in line to support these skills.

Why?

To keep up with changing user expectations and the emergence of new technologies, organizations need to:

• Attract, keep and develop staff with specialist digital skills

• Improve the digital literacy of senior leaders

• Make sure existing staff have access to the tools and resources they need to deliver better digital services

How to measure

Here are a set of typical objectives and metrics that this enabler brings:

Objectives MetricsBuild out new skills for business and IT people

• Number of trainings planned, executed• Number of new hires per skill type• Number of new technologies

introduced and in production state

Hire new people • Number of new hires per skill type

Define job roles for digital • Number of roles defined• Number of talents per role

Establish continuous and customized capacity-building programs and industry exposure on technology and business domains to ICT staff supporting the digital ecosystem

• Number of programs running• Number of people certified (internally

or externally)

Empower the CIO to lead digital experiments

• Number of experiments • Budget allocated versus spent• ROI

These are illustrative but can be tweaked to suit the specific nature of the organization.

Examples

A good example can be found in the UK (Gov.uk, 2018), where the “Digital, Data and Technology Profession Capability Framework” has defined 37 key roles in government and the skills needed to fulfill them.

Enabler 5: Become a data-driven organization

What?

Most government organizations are aspiring to become data driven, meaning embracing all kinds of data to drive better services.

Experiment in an

agile way

Experiment in an

agile way

Serviceredesign

using design thinking

Newtechnology

to drive automation

Get new(digital)

capabilities

Become a data-driven organization

Digital transformation

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We define data-driven government as an organization where actionable information (data that can be used to make specific business decisions) is available for all critical decisions. The benefits include sound governance and control; optimized fraud and error detection; and improved services (GovLoop, 2015).

Moving to a data-driven organization is not unique to governments. The industry has adopted this approach already, and we see many possibilities where services are transformed due to a more analytical use of data.

Becoming a data-driven organization means that you can enhance your service delivery on the following dimensions:

• Become PREDICTIVE. What trends can we see in our data and how can these impact our service delivery? Can we predict where the need will shift and adjust our budgets and workloads accordingly?

One interesting case is the Department of Public Roadworks of the Flemish Government that created an algorithm that — based on various input datasets from different sources — can predict when and where the next traffic accident is likely to happen. This can trigger preventive actions such as broadcasting speed reduction on the highway or sending dedicated TMC messages.

• Become PROACTIVE. If you have all the data available, you can send out a proactive proposal to the citizen.

An example here is the Department of Education of the Flemish Government, which has been sending out proactive proposals for granting scholarships. Parents receive a letter with a proposal and only have to acknowledge the proposal.

• Become PREVENTIVE. Based on data, you can spot an early warning and take precautions to minimize the likelihood of a situation arising or avoiding it altogether.

Here we see the use of drones and real-time data emerging quickly. An example is where drones capture areas at risk of flooding and alert the organization to open certain floodgates or river locks.

• Be PERSONALIZED. What is the best service option for this specific case or situation?

Personalization aims to provide users with what they want without asking them explicitly about their needs (Brusilovsky, 2007).

When we go to the hairdresser, we do not expect the stylist to cut our hair like everyone else’s. No, we want our hairdresser to give us a unique style. The hairdresser will use their wide base of knowledge about you, your preferences, your behavior, etc., and apply a similar set of tools and techniques in a personalized way.

In a way, the same principle applies to government services. If the government has the right data about me, my situation and my behavior, it should be able to provide a personalized service.

An example is the discount you get from requesting a bus or train pass. In Flanders, Belgium, the bus company provides a discount on subscriptions based on your family situation. Depending on the number of children you have and their age, you get a certain discount. Instead of holding information on your family situation, the bus company has an agreement to consult the master databases of the Flemish Government to get the family situation. The answer only contains those fields that

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are necessary to feed into the discount formula. As such, the bus company provides a personalized offer that fits the family situation without the citizen needing to provide its family situation.

This may seem a trivial case and focused on master data only, but the amount of data needed to personalize the citizen experience is far larger. Also, data about interaction history, behavior, location and preferences are key to get to a personalized experience. This data will come from different sources and channels, such as social media or mobile apps. The value of personalized services is based on the analysis of all these sources, not only on the operational data the citizen uses on your website.

When you move to a data-driven organization, it is essential to capture, store and analyze data from different sources to personalize the experience. Based on the Accenture “4R Personalization Framework” (Accenture, 2019), we define the following opportunities to improve services and provide personalized value:

• Recognize — Identify citizens and potential new audiences for your service

• Remember — Use previous activity to anticipate future needs

• Recommend — Present the most relevant content, services and products

• Relevance — Consider the context to propose certain services (e.g., family situation)

This analysis means that the organization does not need to sit and wait for a service request to come in. In a truly transformed and data-driven organization, the data can be proactively searched for services needed. So, the value of being proactive is enhanced when using data to personalize the experience.

Why?

Apart from the benefits to the citizens, becoming a data-driven organization also brings internal value to the organization. For sure, there is efficiency value as the organization can improve its resource utilization by shifting capabilities toward data scientists or case experts to interpret the data.

It also brings innovation, as analysis of the data can generate new ideas, processes or services to improve the current or future way of working.

Most of all, it brings value in the experience offered to citizens. By better understanding citizen behavior, engaging with citizens in meaningful interactions and delivering an outstanding 360-degree view, delivering on a positive citizen experience has never been more important. The industry standard to retain clients is also becoming a necessity at the government level, where citizens demand to see personalized and proactive government behavior.

Understanding citizens holistically requires combining digital, behavioral, sentiment and predictive analytics. This knowledge must be applied to treat each citizen as an individual based on their recent actions and unique relationship with your organization or even other government organizations.

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How to measure

Here are a set of typical objectives and metrics that this enabler brings:

Objectives Metrics• Define ethical handling of data in

the organization • Educate staff on the organization’s

risks of improper data handling• Change/instill preferred culture and

behaviors on handling data

• Number of compliance violations• Executive involvement

• Enable an organization to manage its data as an asset

• Define, approve, communicate and implement principles, policies, procedures, metrics, tools and responsibilities for data management

• Value• Effectiveness

• Strategically prepare organizations to quickly evolve their products, services and data to take advantage of business opportunities inherent in emerging technologies

• Architecture standards compliance rates

• Trends in implementation • Business value metrics

• Ensure data governance framework setting and maintenance

• Meeting minutes on data strategy in the IT governance steering committee

• Percentage of data elements managed via the framework

• Manage data knowledge by increasing data literacy on all levels and functions

• Number of info sessions, trainings, etc. on the importance of data in a digital organization

• Nominate a chief data officer and team that bring together all knowledge and potential of data collecting and processing techniques (e.g., advanced analytics)

• CDO nominated• Data strategy published

• Data is of the highest quality; data quality attributes are defined, communicated and applied

• Number of data quality assessments done

• Open data is fully supported • Number of data sets made available as open data vs. number of identified data sets that can be opened as open data

• Manage availability of data throughout the data life cycle

• Ensure the integrity of data assets• Manage performance of

data transactions

• Data storage metrics • Performance metrics • Operations metrics• Service metrics

• Drive automated decision-making using AI

• Number of processes that can make autonomous decisions

• Percentage service response time improvement vs. manual decisions

• Increase knowledge about data science inside the organization

• Number of data scientists• Level of awareness at the business

and within IT about the possibilities• Number of data discovery engagements

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Objectives Metrics

• Enable appropriate, and prevent inappropriate, access to enterprise data assets

• Security implementation metrics• Security awareness metrics • Data protection metrics• Security incident metrics• Confidential data

• Enable sharing of information assets across business domains and applications within an organization

• Data sharing availability

• Lower cost and complexity through use of standards, common data models and integration patterns

• Data steward coverage • Data sharing volume and utilization

These are illustrative but can be tweaked to suit the specific nature of the organization. Inspiration for some of these objectives was found in the DMBOK (Mosley, Brackett, Earley and Henderson, 2009) standard.

How will these enablers drive overall better business outcomes?

Overall value the enablers bring

Now that we explained the enablers, let’s collect their individual value and add these up. This way we can demonstrate the overall value of a digital transformation journey, realizing that we only described a piece of a more complex puzzle as more types of enablers will be needed.

There are many types of value, but we will stick to only two sets:

• External value represents the benefits transformation creates for the citizens.

• Internal value represents the benefits delivered to the organization because of transformation investment. Internal value is generated through initiatives that provide stakeholders with tangible or intangible return on investment.

The following table summarizes the value of the presented enablers:

Internal value External valueFor citizens • Making it easier for citizens

to request services online and get direct results

• Proactive and outcome-driven processes

• Personalized experience, through whatever channel you choose, online or offline

• Service request just a few clicks away

• Guided process to request the service with minimal data input

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Internal value External value

For the organization

• Improved efficiency in operations

• Better management of workload through automation

• Lower administrative burden due to automation

• More insights into the behavior of the citizens in relation to the services needed by becoming a data-driven organization

• Contributions to business objectives

• Reduction of risk

• Automated delivery of services by (semi-) automated decision-making algorithms, including transparency as to how the decision was made

• Better understanding of citizen needs and behavior (related to services portfolio)

• Knowing when to present them the right offer at the right time

For the politicians

• Increase quality of service delivery of administrations

• Faster turnaround of decisions into actions

Bringing it all togetherAt first sight, the mentioned enablers stand on their own, and it may look difficult to convince the management team to invest in each of them individually or separately without seeing the greater picture of where this will lead. We already introduced objectives and metrics on the level of each enabler; here we want to link them to reinforce the transformation.

We suggest a simple model (based on the Balance Score Card Model of Norton Kaplan) to visualize how these enablers interact in strengthening the organization’s outcomes. This way we can put common objectives and metrics on how these enablers contribute to the organization’s overall mission. There are more elements to be added, so we hope this model can be maintained and extended with the arrival of more enablers or initiatives.

User orientation — Impact on citizen experience• How will we provide a better

experience to our citizens?

3Objectives Metrics

Corporate contribution — Impact on realizing theorganization’s mission• How will all of this enable

better outcomes?

4Objectives Metrics

Operational excellence — Impact of enablers on businessprocesses and ways of working• How will we improve the efficiency of

the business operations team?

2Objectives Metrics

Future orientation — Impact on capabilities of IT• What investments in people,

capabilities and technologies do we need to become a digital organization?

1Objectives Metrics

Digital transformationstrategy

(Based on Norton Kaplan balanced scorecard model)

User orientationIncreased usersatisfaction

CorporatecontributionHigher businessvalue of IT

Vision andstrategy

OperationalexcellenceBetter quality of developedsystems

Future orientationMore and bettereducation of IT staff

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The question to ask to management is not how these enablers individually contribute but how they amplify the mission of the organization. Plotting the enablers explained creates this view:

Applying this model allows you to plot the presented enablers on it and establish a logical sequence into them. Then you can see how these enablers build on each other toward the organization’s goals.

So, here is an attempt to read this model from a leadership (CIO and CEO) perspective:

• If you have a clear IT and business future orientation (read: digital transformation strategy) you can invest in the right new technology and right new capabilities for your organization to successfully execute the strategy.

• This will impact operational excellence, as you will be able to improve the operational model and become more efficient by automating processes in the back office.

• This will impact the user orientation, as you can improve the experience of the citizens in their interactions with the organization in the front office.

• This will ultimately contribute to the organization’s objectives of driving better outcomes, as you will become a data-driven company.

As stated, this is not an exhaustive list of initiatives or enablers, but it shows how each can interact to reach the common objectives. When we add objectives and metrics to each of the enablers, we can easily follow up on the overall success of the transformation and adjust as needed.

The message is that one single enabler will not lead to a digital government organization. There will be a need for initiatives on various dimensions (people, process, technology) that all need to be coordinated as part of one overarching goal —to transform into a digital organization.

User orientation — Impact on citizen experience• How will we provide a better experience

to our citizens?

Corporate contribution — Impact on realilzing the organization’s mission• How will all of this enable better outcomes?

Operational excellence — Impact of enablers on businessprocesses and ways of working

Future orientation — Impact on capabilities of IT

Digital transformationstrategy

Enabler 1: Service redesignusing design thining

Enabler 5: Become a data-drivenorganization

Enabler 2: Experiment in an agile way

Enabler 4: Get (new) digital capabilties

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How DXC can helpDXC has established a Digital Practice that works around the proposed enablers. Based on actual project work with government organizations, our insights have been bundled into offerings that can help you strategize, plan and execute your journey toward becoming a digital organization.

About the authorYves Vanderbeken is the chief technologist for Belgium. His focus is on delivering innovative approaches to digital services transformation, deriving public and business value from data and helping governments, at all levels, realize benefits from consolidated platforms and shared services models associated with adoption of new digital strategies based on the principle of “everything as a service.”

He leads the Digital Strategy, Architecture and Transformation Practice in Belgium where he, together with his team, creates digital strategy roadmaps for clients. These are based on extensive experience in creating business- and IT-interlocked strategies and converting them to actionable projects.

Yves graduated in 2018 from the Antwerp Management School with a master’s degree in IT Management and a thesis on how to create value with data in a government organization.

ReferencesAccenture. (2019). Personalization and Government Services | Accenture. Retrieved July 21, 2019, from https://www.accenture.com/us-en/insight-unleash-personalization-power

Benay, A. (2019). How will Ottowa build a succesfull digital government? Retrieved from https://policyoptions.irpp.org/magazines/january-2019/how-will-ottawa-build-a-successful-digital-government/

Brusilovsky, P. (2007). Adaptive Navigation Support. The Adaptive Web: Methods and Strategies of Web Personalization. Springer-Verlag (Berlin and New York), 263–290.

Capgemini. (2018). Unlocking automation’s untapped value. Retrieved from https://www.capgemini.com/research/reshaping-the-future-unlocking-automations-untapped-value/

Engin, Z., and Treleaven, P. (2019). Algorithmic Government: Automating Public Services and Supporting Civil Servants in using Data Science Technologies. Computer Journal, 62(3), 448–460. https://doi.org/10.1093/comjnl/bxy082

Global Agenda Council on the Future of Government Government with the People: A New Formula for Creating Public Value. (2017). Retrieved from http://www3.weforum.org/docs/WEF_White_Paper_Future_of_Government_Council.pdf

Gov.uk. (2018). Digital, Data and Technology Profession Capability Framework. Retrieved July 31, 2019, from https://www.gov.uk/government/collections/digital-data-and-technology-profession-capability-framework

GovLoop. (2015). Data-Driven Government. Retrieved August 1, 2018, from https://www.govloop.com/data-driven-government/

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Helfat, C.E. and Peteraf, M. A. (2003). The dynamic resource-based view: Capability lifecycles. Strategic Management Journal, 24(10 SPEC ISS.), 997–1010. https://doi.org/10.1002/smj.332

HFS (2018). Digital OneOffice. Retrieved from https://www.hfsresearch.com/pointsofview/defining-and-sizing-the-digital-oneoffice-framework

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McKinsey (2019). The global case for customer experience in government. Retrieved September 15, 2019, from https://www.mckinsey.com/industries/public-sector/our-insights/the-global-case-for-customer-experience-in-government

Mosley, M., Brackett, M., Earley, S. and Henderson, D. (2009). The DAMA Guide to The Data Management Body of Knowledge. In Technics Publications, LLC Post.

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Rob Llewellyn (2019). The Business of Transformation Management. Retrieved from https://cxotransform.com/

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About DXC TechnologyDXC Technology, the world’s leading independent, end-to-end IT services company, manages and modernizes mission-critical systems, integrating them with new digital solutions to produce better business outcomes. The company’s global reach and talent, innovation platforms, technology independence and extensive partner network enable more than 6,000 private- and public-sector clients in 70 countries to thrive on change. For more information, visit www.dxc.technology.

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