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