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January 2021 AN IDC INFOBRIEF SPONSORED BY DELL TECHNOLOGIES How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment An IDC InfoBrief, sponsored by

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Page 1: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by1

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

January 2021

AN IDC INFOBRIEF SPONSORED BY DELL TECHNOLOGIES

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

An IDC InfoBrief, sponsored by

Page 2: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by2

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Impact of the Crisis on German Public Sector Digital Transformation

20% of public sector organizations in Europe still report organizational challenges

stemming from compliance with health and safety regulations.

15% of public sector organizations in Europe report challenges with developing metrics

to measure productivity in hybrid working environments. Almost the same percentage struggle with developing adequate management skills for the next normal.

Almost 8 months from the start of the crisis

9% of public sector organizations have reported having no organizational challenges as a result

of COVID-19 and the emergence of new working models.

European economies and public sectors are facing unprecedented pressures, and the German public sector is no exception. IDC data suggests that most of the German public sector (national, state, and local government, healthcare and education) are still in the early phases of the crisis, focusing on business continuity and management of economic slowdown. The public sector is in a unique position in terms of the immediate impact of the crisis. While some of the challenges facing the public sector are the same as for other sectors of the economy (how to retain quality of services in a lockdown, how to manage business continuity), some differ. Most of the public sector is not experiencing immediate budget slashes, as governments across Europe step up and provide the necessary liquidity, but organizations across the public sector are facing increased demand for services (especially those tied to healthcare, employment, and taxes). In the medium term most organizations will also face increased pressure for more efficiency, as the long-term deterioration of fiscal positions forces governments into a new round of fiscal consolidation.

However, 2020 was also a year of many firsts in the public sector in Germany and Europe as a whole. Many organizations tried for the first time to deliver their services predominantly in remote mode, many tried to let the majority of employees work from home, and many discovered that significant process, cultural, and technological changes were needed to successfully face the new normal. This paper will outline how to utilize these newly found experiences to the benefit of public sector organizations, their employees, and citizens.

Where Are German Public Sector Organizations on the Recovery Curve?

Source: IDC EMEA, COVID-19 Impact Survey, Waves 12–15, German Public sector sample

Source: IDC EMEA, COVID-19 Impact Survey, Wave 14, November 10–20, 2020

BUSINESS FOCUS

ECONOMIC SITUATION

Business Continuity

COVID Crisis

ROI Focus

Economic Slowdown

Operational Resilience

Recession

Acceleration

Return to Growth

Innovation

Next Normal

27%31%

23%

10% 9%

Only

Page 3: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by3

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Opportunities to Reignite the Public Sector Post-Pandemic

In the coming years, public sector organizations in Germany will have a once in a lifetime opportunity for transformation, as the political will for change, experiences from the crisis, and the necessary financial investments will all be aligned, supporting change. How well they will be able to utilize this opportunity will decide their trajectories for at least a decade.

While the current crisis has brought additional challenges to public sector organizations striving to retain quality of services, there are also significant opportunities on the horizon. Both the German government and the European Union are stepping in with planned fiscal stimulus reaching €130 billion in Germany and €750 billion on a European level. IDC expects that for Germany alone, 10%–15% of that amount will be allocated to digital transformation investments, mostly (although not exclusively) in the public sector. Substantial investment is expected especially in the area of governmental transformation.

Germany’s ICT Market — 2021 Expected Growth Distribution and services

Manufacturing and resources

Financial

Infrastructure

Consumer

Public sector

Taking previously announced investments in education and healthcare (see below) into account, this stimulus package will present one of the largest opportunities for public sector transformation since German reunification. However, as the stimulus window is limited and the post-stimulus world will likely tilt toward fiscal retrenchment, this window of opportunity is limited.

German healthcare will also profit from the recently unveiled €3 billion fund to support hospitals in the modernization of emergency facilities, digitization, and IT security. A further €1.3 billion boost is expected from federal states and hospital operators. These funds will help healthcare improve patient portals, electronic documentation of care and treatment services, digital medication management, IT security solutions, and cross-sector telemedical network infrastructure. The funds will also be used to support the adoption of telemedicine, robotics, and high-tech medicine. An additional €4 billion will be allocated as a part of “Pact for the Public Health Service.” These funds will be used for staffing as well as technical modernization.

The potential transformation of education can now be supported by DigitalPakt Schule, a potentially massive program approved before the current crisis which could allocate €5 billion to German schools. Uptake has been limited so far, but it is to be expected that experiences with remote learning will change that. DigitalPakt Schule is inter alia focusing on blended learning, IT infrastructure in schools, and digital curricula.

Additional investments are planned to mitigate the effects of the pandemic, with €500 million allocated for device loans for students in need, €500 million for teachers’ devices, and the same amount for the training and financing of primary and secondary education IT administrators.

In this paper, public sector organizations are defined as organizations owned and operated by public authorities in the following areas: central government, state/local government, education, public utility operators, and healthcare.

The paper covers all these subindustries, with case studies, use cases, and recommendations selected for relevance irrespective of subindustry.

Investments in Healthcare Investments in Education

Public Sector Definition

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

-3.0% -2.0% -1.0% +0.0% +1.0% +2.0% +3.0% +4.0%

Source: IDC Worldwide ICT Spending Guide Industry and Company Size - Forecast 2020 | Oct (V3 2020)

Page 4: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by4

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Key conceptual frameworks for education and health reflect the overall public sector ETHIC framework, but add additional angles based on current developments in these two sectors — both focused on enlarging the ecosystem, modes of service provision, and holistic view of the customer (student/patient).

Long-Term Vision in the Public Sector To fully utilize this opportunity, public sector organizations will need to look at their long-term priorities and select those that are most likely to help them thrive in the next normal. While the current crisis may have altered short-term priorities, the long-term objectives of public sector stakeholders across Europe remain the same. The basic set of long-term priorities can be neatly described as adopting a new ETHIC for public services.

The new ETHIC of the European public sector calls out five key objectives that public sector organizations, no matter their purview, are focusing on:

These five priorities need to be met by the public sector across all processes and use cases that are being adopted during transformation. Public sector organizations also need to be mindful of differing complexity that the implementation of various use cases might bring.The emphasis of differing parts of ETHIC as well as institutional capacity to deal with complexity should inform the decisions around which use cases are better to adopt early and which may be a better fit in later stages of the transformation.

Efficient public services. The public sector is increasingly asked to provide more with fewer resources. As budgetary pressures are certain to grow in the medium term across Europe, the push toward ever more efficiency will remain a priority.

Trusted operations models. Trust, both in relation to technology and interpersonal trust, emerged as a pivotal issue in remote working environments, and in times of social media altered perceptions.

Highly responsive processes. According to IDC data, improving customer experience is a priority for 61.5% of European government officials. To do so, public sector organizations are retooling their processes to enable a higher degree of personalization and shorter response times.

Inclusive delivery and workplace. As face-to-face interactions become rarer, government organizations are focusing on maintaining the inclusiveness of their processes, both for citizens and for their staff.

Convenient delivery frameworks. The convenience of delivery frameworks features high on the agenda of public sector stakeholders. According to IDC data, channel innovation is a priority for 60% of European public sector organizations.

Omni-learning. The prefix omni means “in all ways or places,” and perfectly fits the new educational paradigm. In the next normal the education ecosystem grows to fully encompass non-traditional providers such as MOOCs, non-traditional places of provision such as homes (via remote learning), and non-traditional students, such as life-long learners. Education must also reflect feedback from multiple sources — not just students and parents, but also industry associations, government stakeholders, and labor market trends to ensure the continuous relevance of curricula.

“Patient of One” is a comprehensive patient-centric approach that focuses on personalization and integration of healthcare services through an intelligent and actionable use of patient data. It is about building a comprehensive patient management system that integrates information across a wider ecosystem involved in the patient journey, delivering a 360-degree view that focuses on enabling superior outcomes and experiences.

Good stewardship of taxpayer money

Efficient Trusted Highly responsive Inclusive Convenient

Productivity Security and compliance

Cross-silointegration

Personalization Omni-experience

Transparent non-intrusive engagement

Invisible bureaucracy

Equitable Seamless access

The inside-out government view

The outside-in citizen view

Page 5: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by5

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Closing the digital divide by partnering with IT and telecom companies to extend access to

broadband and grow digital literacy, including making citizens aware of the security and ethical

risks of technology innovation.

Investing in open platforms and hybrid infrastructure that enable them to scale

innovative technologies, such as AI, and IoT, through reusable microservices. For example,

the Estonian government, when developing and implementing SUVE, a chatbot that provided

services to citizens during the pandemic, made sure the algorithm could be deployed across more than 10 government websites.

Leveraging data as a strategic asset. To realize the value of data, government leaders will invest in

innovative solutions, such as Big Data, analytics, and machine learning, and related skills. Such capabilities

will enable the delivery of intelligent insights for policy decision making, service automation, and

collaboration across the key government missions, such as economic development, international relations, civic engagement, public security

and justice, social services and benefits, tax and revenue collection, sustainable energy and resources, and intelligent transportation.

Guaranteeing the security of digital services, so that both citizens and civil servants can trust their reliability and the stewardship of sensitive data. IDC’s COVID-19 Impact Survey (Wave 11) showed that 47% of government agencies interviewed identified digital trust programs as a top business priority into 2021. Research and innovation projects funded by the European Commission, such as SUNFISH (SecUre iNFormatIon SHaring in federated heterogeneous private

clouds) and HEAT (Homomorphic Encryption Applications and Technology), are developing and piloting leading-edge solutions in this area.

Future of work. Governments are embracing a hybrid working model, in which secure remote access to data and applications and collaborative tools enable staff to work across departmental silos. Change management services will be a critical success factor of this transition.

Omni-channel citizen experience. This goes beyond the digitalization of front-end services. It will require the reimagining of the citizen and business experience. Governments will use APIs, machine learning, and intelligent process automation to reduce the time between the events that trigger the eligibility for a

government payment, such as a pension or unemployment benefit, or the obligation to pay a debt, such as a tax or license fee, or the entitlement to a permit, and the ability of a case worker to verify those changes in specific circumstances. This makes processing more efficient and potentially reduces the collection/payment debts and credit positions of governments, as well as providing a more responsive service to citizens.

What Public Sector Organizations Need to do to Make ETHIC a RealitySocietal and technology evolution creates ever increasing pressure to bring together citizen-centricity and operational effectiveness, and the pandemic has accelerated the transformation. Social distancing measures made digital interactions between government and citizens, government and businesses, and among government agencies the rule rather than a complement to face-to-face interactions. It catapulted civil servants into the future of remote, flexible working arrangements, and it prompted the government to roll out urgent public health and economic recovery measures that must be quickly translated into new business workflows and digital services. The six keys to unlocking this next normal of public services will be:

Omni-channel citizen experience

Data-driven policymaking and service delivery

Agile, intelligent platforms and infrastructure

Digital inclusion

Trust and security

Future of Work

Page 6: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by6

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

The world of work changed significantly in 2020, and public sector organizations were the most likely to experience dramatic shifts. Before COVID-19, public sector white-collar employees were much less likely than their private sector counterparts to work from home and deliver their services remotely. This has changed.

In the next normal, German public sector organizations will need to analyze which of the changes enforced by the crisis worked well, and which of them are not sustainable in the long term. Blended workspaces will require organizations to not only maintain in some cases newly instituted homeworking policies, but also a cultural shift. German public organizations should ask themselves the following:

• Was our organization efficient while the majority of employees worked in remote settings?

• Do we need to change regulations, internal practices, and organizational culture to enable blended learning in the next normal?

• Is our current workplace collaboration suite supported by adequate infrastructure?

To set an example for businesses and public sector alike, Lindau Landratsamt has moved almost all workers which can work from to Homeoffice. To be able to do that, the Landratsamt not only had to adjust processes to make sure that the level of service for citizens is not impacted, but also purchase enough devices to make sure that every civil servant can work from home. As a result, approximately 95% administrative employees are now equipped with necessary devices and moving to home office when appropriate. This shows that even public administration organizations can execute the move to remote working on a massive scale, given the resources to do so.

Future of Work

Lindau District Office (Landratsamt) have sucessfuly switched to almost fully remote working.

Page 7: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by7

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

5/5 1/5 2/5 1/5 4/5

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

4/5 1/5 1/5 2/5 2/5

Connected Back Office

The connected back office replaces today’s systems of record with new intelligent systems that retain core capabilities while layering in new automated and predictive intelligence. The goals are to transform the platform tier for core ERP applications to drive cost reduction and process efficiency across the organization (e.g., by cutting cost per transaction)

and enable organizational agility (e.g., by allowing the organization to scale up or down its business units more easily and to acquire or divest units faster and cheaper). These systems will become more intelligent by leveraging machine learning and predictive analytics on massive data sets capable of learning from exceptions and adapting business rules, allowing users to discover insights, better predict and plan for outcomes, recommend next best steps, and automate processes.

Smart Campus and Public Building Infrastructure

Operating public buildings is a significant expense that public sector organizations want to control better. Smart buildings ensure occupant safety while helping save energy and costs. Governments are deploying IoT technology that utilizes advanced automation and building systems integration to measure, monitor, control, and optimize operations. The

end goal is optimization, but also improvement of working conditions for public employees. These systems manage how building equipment operates to use energy in the most efficient and cost-effective way and optimize the environment. Analytics and data management tools accommodate the increasing volume of data associated with the instrumented and connected equipment in the facility and make this data understandable and actionable.

Future of Work

Key Use Cases to Consider

While changing workplace processes, start with cultural change. It is likely that without employee and middle management buy-in, any changes will fail to deliver tangible benefits.

Note:Complexity denotes the overall time and resources likely needed to execute the transformative project in a given use case. The complexity rating takes into consideration both the technological complexity and the required changes in processes,, culture, or regulatory framework. For all other ratings related to ETHIC, 1 means that the use case does not have significant influence and 5 means the use case has very significant influence.

Recommendation

1 32 4 51 32 4 5

Page 8: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by8

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

The number and seriousness of attacks on the European public sector and on European societies as a whole has grown in recent years. Investment in cybersecurity and other security related measures have reflected that.

Trust is a key ingredient of success for every organization and society, not only in the public sector. According to Eurostat, Germany’s citizens display above average trust in their government and its key services. The focus in most organizations is thus more on retaining already high levels of trust, rather than on further improvement. This implies the focus on defensive measures, with cybersecurity (and its impact on trust in communications) as one of the key aspects of trust to consider. German public sector organizations should ask themselves:

• Is our security architecture limiting risks, but also simultaneously not presenting users with an overly limiting environment that stifles productivity?

• Are our contingency measures in case of a breach aligned with dynamic changes undertaken in recent years across our enterprise architecture?

• Have we done enough to inform and educate the usual weak links in all security architectures — the employees?

A spate of recent cyberattacks has been keeping public sector CISOs busy. Among the most serious was a ransomware attack at Düsseldorf University Hospital, which disabled servers with data needed to treat critically ill patients. While ultimately a police investigation has not proved the direct link between the death of a patient which occurred after the incident and the attack, the serious disruption has nevertheless impacted the ability of the hospital to operate as normal.

Trust and Security

Hospital Cyberattacks Prove Importance of Security

Page 9: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by9

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Critical Infrastructure Management

Critical infrastructure is increasingly the target of cybersecurity breaches — targeted because of the disruption and chaos violations bring to society. Legacy technologies are ill-equipped to manage or even detect these breaches. Public sector organizations are investing in next-gen security solutions that help to minimize risks stemming from breaches.

Social Engineering (Defense)

A number of hostile actors have recently used social media as a key tool to disrupt the foundations of the democratic process, such as public opinion, the electoral process, and social activism. Preexisting tools and vetting processes were patently incapable of detecting these breaches. Public sector organizations, and national governments in particular, are adopting

technologies to detect, reveal, and neutralize potential influences from foreign hostile actors.

Key Use Cases to Consider

Trust and Security

Cybersecurity’s weakest links are often associated with human error. Ensure a balance between the freedom of users and appropriate and enforced security policies. Monitor and measure compliance, but also the hidden costs of security policies, especially those tied to the loss of time for users.

Recommendation

Note:Complexity denotes the overall time and resources likely needed to execute the transformative project in a given use case. The complexity rating takes into consideration both the technological complexity and the required changes in processes,, culture, or regulatory framework. For all other ratings related to ETHIC, 1 means that the use case does not have significant influence and 5 means the use case has very significant influence.

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

3/5 5/5 2/5 1/5 3/5

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

2/5 5/5 1/5 4/5 2/51 32 4 5 1 32 4 5

Page 10: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by10

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

The demand for the usage of data in decision-making processes is increasing. Recent IDC research conducted in Central Europe indicates that more than 9 in 10 government stakeholders consider making decisions based on data as a crucial mark of quality of the decision-making process.

However, the actual practice across the public sector often does not meet the perceived importance of data. Organizational obstacles, legal boundaries, political process, as well as insufficient internal know-how for turning data into actionable insights are among the most frequently cited reasons why data does not play its role as it should. In this context, German public sector organizations should ask themselves the following questions:

• Do we have the necessary in-house skills for the transformation of data into insights?

• Are decision makers incentivized to utilize available data in their management decision-making process?

• Do we have data architecture in place that enables the usage of data across the organization and also utilizes other available public sector data?

The importance of data-driven policymaking has become fully apparent during the coronavirus crisis. Although operating in highly decentralized settings with regional and state-level public authorities playing an important role, the German public sector has managed to present comprehensive, timely data and act on it, setting up a tracing system that reacts to changing situations with agility. More importantly, surveillance systems developed by the Robert Koch Institute serve as a basis for decision making in the highest levels of government as a basis for fact-based public discussion and helps to retain the trust of the public in the measures.

Data-Driven Policymaking and Service Delivery

German Coronavirus Data Management

Page 11: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by11

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Data-Driven Social Services

Social services organizations are frequently reactive, coping with large caseloads per worker and dealing with crises well after a number of triggers and warning signs have arisen. Analytics enable social services organizations to better manage their caseload by proactively tracking at-risk individuals and connecting them with the right services before crisis

point. The objectives are to proactively collect and analyze data to understand the factors that put individuals at social risk and implement processes for intervention and prevention. This includes measuring outcomes and success factors.

Digital Twin

In the public sector, a digital twin refers to a digital model, or version, of the physical assets and resources tied to a particular public sector organization; and in the case of municipalities more broadly to the area under their purview. Digital twins are a 3D model of systems from infrastructure such as buildings and transportation to the movement of

people, things, and resources (e.g., water) using sensors installed on physical objects. Digital twins offer a view into the existing situation and help to make predictions about how city systems will respond to changes and events. The goal is to understand city operations at a systemic level for improvements in operations, processes, resource use, policy development, and urban planning.

Key Use Cases to Consider

Get your data management in order. Ensure that data flows as freely as legislation allows and incentivize proposals that are based on quantifiable insights provided by available data sets.

Data-Driven Policymaking and Service Delivery

Note:Complexity denotes the overall time and resources likely needed to execute the transformative project in a given use case. The complexity rating takes into consideration both the technological complexity and the required changes in processes,, culture, or regulatory framework. For all other ratings related to ETHIC, 1 means that the use case does not have significant influence and 5 means the use case has very significant influence.

Recommendation

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

2/5 3/5 5/5 4/5 5/5

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

5/5 2/5 5/5 2/5 3/51 32 4 5 1 32 4 5

Page 12: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by12

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

The migration to an effective platform and use of modern IT infrastructure is essential for further transformational projects.

German public sector organizations often battle with a desire to adopt current architectural principles favoring cloud-first approaches, and simultaneous need to adhere to regulations, particularly those related to data protection. There may be very little room for innovation, delimited largely by tried solutions that established legal precedents for particular approaches to data management, storage, and access management. German organizations seeking to start with the modernization of their infrastructure should ask themselves the following questions:

• Are there legal precedents for the approach that we are considering?

• Did we align our long-term data management strategy with our infrastructure strategy?

• Are we ready to integrate new infrastructure with legacy parts that cannot be easily discarded?

Heidelberg University has switched to a private cloud IaaS solution to enable more flexibility and faster development of computing capabilities to foster evolving research needs.

The new private cloud has increased scalability and flexibility significantly and the research needs of research departments can be met quickly, without resorting to tedious and lengthy procurement processes.

Agile, Intelligent Platforms and Infrastructure

Heidelberg University Relying on Private Cloud to Enable Top-Notch Research

Page 13: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by13

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Smart (City) Platforms

Public sector organizations tend to have multiple platforms for various functions, but they exist in silos and lack an organizationwide view into operations or a view that brings together data from disparate sources, especially from sensors and other devices, for analysis and subsequent recommendations for actions across multiple departments. This is especially true for cities, as they need to incorporate data covering numerous activities beyond the municipal administration. A smart platform seeks to optimize operations, improve the quality of citizen-facing services, and increase citizen engagement through secure real-time data intelligence, intra-agency collaboration, and new service offers. A smart city platform interconnects the physical and digital worlds across one or more domains, connecting new and legacy applications, and edge data collection devices on an organization’s assets,

providing a holistic view of infrastructure for improved management and control.

Key Use Cases to Consider

While a decent infrastructure is a necessary underpinning for the development of all kinds of initiatives, it is often hard to push through the substantial investment, as the immediate benefits for employees and citizens may be less apparent than in the case of other types of major projects.

Make sure that you tie up the proposals for major infrastructure investments directly with other types of projects that directly benefit citizens/customers. This is the right time for major investment, financed by fiscal stimuli, which will support citizen-facing initiatives for years to come.

Agile, Intelligent Platforms and Infrastructure

Note:Complexity denotes the overall time and resources likely needed to execute the transformative project in a given use case. The complexity rating takes into consideration both the technological complexity and the required changes in processes,, culture, or regulatory framework. For all other ratings related to ETHIC, 1 means that the use case does not have significant influence and 5 means the use case has very significant influence.

Recommendation

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

5/5 3/5 4/5 2/5 4/5 1 32 4 5

Page 14: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by14

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Digital inclusion is one of the priorities of the German government in the area of digital society. There are two reasons why inclusion should be high on the agenda: firstly, citizens that feel excluded are significantly less likely to be satisfied with government services in general; and second, without reaching the critical mass of users, most digitized services cannot deliver efficiency gains as original analog processes must run in parallel as well.

The German government already has substantial experience with supporting initiatives for digital inclusion, especially in the field of closing the age gap in the adoption of digital technologies, including conducting major research initiatives (such as project FUTA). However, inclusivity is not dependent only on centrally run initiatives. Each public sector organization must strive to make its services more inclusive. German public organizations should ask themselves the following:

• Have we tested the appropriateness and ease of access of our channels across important socioeconomic divides?

• Do we present alternatives for citizens/customers that are for whatever reason unable to access the service via the most common channel?

• Do we incentivize the use of digital channels in a way that is both attractive, but also non-discriminatory?

Digital inclusion in Germany is often driven by the public sector (especially providers of social services) in cooperation with not-for-profit organizations. For instance, the PIKSL (an acronym for “Person-centered interaction and communication for more self-determination in life”) organization with its laboratories and projects is enabling disabled and elderly people to navigate the internet (including tackling the issue of internet misinformation).

Digital Inclusion

Cooperation Between Social Services and the Not-for-Profit Sector Spurs Innovation

Page 15: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by15

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Skills Development and Labor Market Programs

The employability of the population is maintained by matching organizational needs with employee skills at a macro level. As the economy evolves and jobs change, there is a need for governments to collaborate with large and small employers and academic institutions at all levels to ensure that skills are taught the right way through the formal educational

system and job-related skills and lifelong learning are available to citizens of all levels. While this use case may be more relevant to national government than to other parts of the public sector, these other parts should cooperate to fit their inclusivity strategies into the overall approach taken by the government, so that the newly utilized skills can be immediately used in the context of the wider public sector ecosystem.

Digital Equity Inclusion and Accessibility

Faster and broader network pipes with efficient spectrum management aid government equity of service delivery. Accessible design typically delivers a better user experience for everyone and enables internet access to help reduce the digital divide and facilitate economic growth.

Key Use Cases to Consider

Analyze your customer base, establish a key typological group of users, and conduct regular analysis of the appropriateness of outreach tools to these groups.

Digital Inclusion

Note:Complexity denotes the overall time and resources likely needed to execute the transformative project in a given use case. The complexity rating takes into consideration both the technological complexity and the required changes in processes,, culture, or regulatory framework. For all other ratings related to ETHIC, 1 means that the use case does not have significant influence and 5 means the use case has very significant influence.

Recommendation

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

2/5 3/5 4/5 5/5 4/5

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

2/5 5/5 2/5 3/5 2/51 32 4 5 1 32 4 5

Page 16: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by16

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Omni-channel citizen experience (as defined on slide 5) is a prerequisite for the overall improvement of Germany’s digital society. The latest data from the European Digital Economy and Society Index shows that while Germany is doing very well in human capital, connectivity, and overall usage of the internet, it lags comparable peers in the integration of digital technology by business and the scope and utilization of digital public services.

This means that if the German public sector is to attain the goals of ETHIC, it needs to significantly improve its ability to interact with its citizens and businesses digitally and provide platforms and incentives for businesses looking to align their business transformation to the overall digitization of the public sector (especially services related to taxes, employment, insurance, compliance, etc.). German public organizations should ask themselves the following:

• Are we able to engage with citizens with the same efficiency no matter which channel of communication they choose?

• Do we have aligned data management so that all communications are clearly visible and civil servants work with the comprehensive view of the citizen, able to provide them with the best possible advice?

• Did we optimize processes and utilize available technologies to enable change to an omni-channel mindset?

The City of Vienna is renowned for its citizen-centric approach. That approach has been of great use in the current crisis, when Vienna repurposed some of its more advanced channels of communications to deliver COVID-relevant information and help to maintain compliance with rules. For example, Vienna repurposed its chatbot (WienBot) to deliver information on the COVID situation and measures, alleviating pressure on the main information line. This concerted effort, which used synergies across communication channels, has helped to deliver reliable information to the Viennese population.

Omni-Channel Citizen Experience

Vienna Leading the Way in Citizen Engagement

Page 17: How Digital Transformation of the Public Sector Can

An IDC InfoBrief, sponsored by17

How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Omni-Channel Portal

Many public sector organizations have developed a central website that links to services provided by separate departments, but most lack clear navigation and an easy user experience. Omni-channel portals consolidate government departments’ data to enable users to see all information (policies, alerts, and statistics) as well as access digital services. Next-gen

portals also add on mobile access and interactive features that move beyond simple transactions to offerings such as contextualized search and citizen online accounts.

Open Data

A key tenet of ETHIC is to improve transparency, accountability, and government-community engagement. “Open data” became the movement to achieve these goals by tracking performance, sharing data within government and outside government, and, as a result, spurring the development of public sector services by the private sector using open data

sets. Open data is typically provided by a software solution that catalogs, aggregates, and publishes data for the express purpose of sharing government data online with those outside and inside government. Many of these solutions provide built-in data visualization and dashboarding capabilities with data access via APIs to feed analytics systems. Oftentimes, open data sets are accompanied by policies or guidelines on what data is published and how the data can be used, shared, and referenced.

Key Use Cases to Consider

Conduct a thorough process and technology audit to discover obstacles to the adoption of an omni-channel approach. Focus especially on data governance.

Omni-Channel Citizen Experience

Note:Complexity denotes the overall time and resources likely needed to execute the transformative project in a given use case. The complexity rating takes into consideration both the technological complexity and the required changes in processes,, culture, or regulatory framework. For all other ratings related to ETHIC, 1 means that the use case does not have significant influence and 5 means the use case has very significant influence.

Recommendation

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

4/5 2/5 5/5 4/5 5/5

Impact of use case adoption on ETHIC and its complexity

Efficient Trusted Highly responsive Inclusive Convenient Complexity

2/5 5/5 2/5 3/5 2/5 1 32 4 51 32 4 5

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Key Recommendations

Cybersecurity’s weakest links are often associated with human error. Make sure there is a balance between freedom for users and appropriate and enforced security policies. Monitor and measure compliance, but also the hidden costs of security policies, especially those tied to the loss of time for users.

While changing workplace processes, start with cultural change. It is likely that without employee and middle management buy-in, any changes will fail to deliver tangible benefits.

While executing change, try to repurpose existing technologies to fit with the new processes. Not everything needs to be built again from scratch.

Get your data management in order. Ensure that data flows as freely as legislation allows and incentivize proposals that are based on quantifiable insights provided by available datasets.

Analyze your customer base, establish a key typological group of users, and conduct regular analysis of the appropriateness of outreach tools to these groups.

Make sure that you tie proposals for major infrastructure investments directly with other types of projects that benefit citizens/customers. This is the right time for major investment, financed by fiscal stimuli, which will support citizen-facing initiatives for years to come.

Conduct a thorough process and technology audit to discover obstacles to the adoption of an omni-channel approach. Focus especially on data governance.

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How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

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