Will Governments Return to the Past Or Nurture a Digital Future? Contents Executive Summary

Will Governments return to the past or nurture a digital future? Contents Executive summary

The response by many governments to the Embedding these new technologies, operating have the digital skills and mindset to adapt to COVID-19 pandemic has demonstrated a models, behaviors and mindsets as standard new working practices and embrace a more previously untapped ability to innovate and practice will lead to a step change in digital experimental culture. deliver at speed when the urgency and maturity and better outcomes for citizens in political support is present. future. But securing long-term benefits will The knowledge and resources of the wider require concerted action from three different ecosystem, including start-ups, small Public sector organizations, which for years had groups: the center of government; individual and medium-sized enterprises (SMEs), lagged behind the private sector in exploiting agencies, departments and local government; entrepreneurs, academia, civil society and new technologies, had an abrupt awakening as and the wider societal ecosystem. citizens themselves, must be harnessed in they found themselves having to control the order to find innovative digital solutions to spread of COVID-19, shift their employees to The center of government must create the public policy challenges. Since budgets will be remote working, find alternative ways to deliver enabling environment for a thriving digital even more constrained post-pandemic, these services, and administer large-scale financial economy: for example, by building high-speed, partnerships will be essential to help finance a support to keep citizens and businesses afloat. reliable and robust infrastructure, and by government’s capacity for service improvement. enacting new legislation that will safeguard Many organizations rose to the challenge, citizens’ rights and protect against risks. We cannot take it for granted that new ways of drawing on a wide range of technologies, working will naturally continue after the crisis from mobile apps to drones and artificial Individual agencies, departments and local has passed; rather, they will need deliberate intelligence (AI), to serve their societies. governments must become more agile and nurturing and investment. Governments must The vital importance of digital transformation user-centric by focusing on designing better find the energy and determination to sustain has been writ large, as has the pivotal role citizen experiences and building flexible IT change beyond the extraordinary circumstances of an effective, inclusive and accountable architecture to facilitate data sharing and that the pandemic has created and ensure their government. analytics. And they must ensure their staff hard-won progress doesn’t go to waste.

Will Governments return to the past or nurture a digital future? 3 Introduction

The COVID-19 pandemic has proved to be the The COVID-19 crisis served as a wake-up call to technology, and to adopt new operating • New operating models are emerging, many biggest global disruptor to people’s lives since governments that had placed too much focus models. They seized the opportunity to stress of which harness the power of digital tools to the end of World War II. In the space of just a on daily operational needs at the expense of test new digital solutions, many of which draw enable remote working, increase efficiency few months, the crisis altered our expectations digital transformation. With populations relying on “human augmentation” technologies such as and improve the citizen experience. and behaviors, catalyzing changes in the way heavily on public services, those governments AI, machine learning, robotics, blockchain, we work, play, shop and interact. suddenly had to play a far more pervasive role virtual reality and the internet of things (IoT). • Governments have a more experimental in everyday life — both to protect health and “can-do” attitude and are able to make rapid, The impact on governments has been profound. to support individuals and businesses facing This sudden acceleration has led to many evidence-based policy decisions through Very few were well prepared to deal with financial difficulties. Technology has been long-term benefits for governments and better use of data and analytics. the challenges created by this kind of an central to their responses. Many governments citizens, beyond the immediate crisis response: • Collaborations are springing up between the emergency. During a decade of austerity, developed and implemented new digital • Government leaders have gained a private, public and voluntary sectors, and most governments failed to invest in preparing solutions and service delivery models that deeper understanding of the role digital with citizens, to tackle deep-seated problems for global shocks, which they regarded as were previously seen as too challenging, technologies can play in improving service and develop imaginative solutions. low-probability, high-impact occurrences. And sometimes in a matter of days. many were slow to embrace the kind of data delivery and ways of working. The political Not all agencies have taken the chance to and technology that is ubiquitous in the private The result was a dramatic acceleration in digital will is now there to push forward rapid change and, for most, challenges undeniably sector, despite the fact that these technologies service delivery and interactions with citizens organizational transformation. remain. Many agencies are still late in had enormous potential to transform a across many areas of government, from health • Organizational silos are being broken down, transforming their operating model to focus government’s ways of working, the services care and social services to education, justice, and some services fundamentally reformed, on citizen value and exploit new digital it delivers to citizens, and its ability to predict taxation and political decision-making. Under now that the interdependency of needs and technologies. And for those who have moved and manage crises. Some commentators were extreme pressure, many public departments or services has become apparent. forward, inclusive digital transformation may even beginning to question the relevance of the agencies demonstrated an extraordinary ability still be an issue: for example, for some of the public sector in the 21st century. to innovate, to be flexible and agile in deploying

Will Governments return to the past or nurture a digital future? 4 most vulnerable groups in society and those Figure 1. Percentage of citizens who think the COVID-19 pandemic will lead to greater use of technology in their daily lives in the future living in remote areas may still have limited than if the pandemic had never happened access to technologies. But governments and societies now seem to be on an unstoppable path toward even greater digital adoption. The EY Connected Citizen survey1 reveals that the % % % % majority of people anticipate making more use 75 73 71 69 of technology in their daily lives than if the pandemic had not happened (Figure 1). South Africa Malaysia India Mexico

67% 67% 64% 60%

UK US Australia Brazil

% 55 49% 42%

Japan Germany France

71–80% 61–70% 51–60% 41–50%

1 Ipsos MORI conducted online interviews with 12,100 participants across 12 countries globally between July and September 2020. Quotas were set by age, gender, region and working status in order to achieve a representative sample in each country. Data has been weighted to account for any shortfall in quotas. Additional weights by education have also been applied. Source: EY Connected Citizen Survey 2020, EYGM Limited 2020.

Will Governments return to the past or nurture a digital future? 5 And they expect this technology to improve Figure 2. Percentage of citizens who think technology will change, for the better, the way they conduct different tasks many aspects of their lives (Figure 2). These citizens will become ever more demanding of digital public services, which currently lag behind other sectors, such as online banking and retail, 70% 67% 65% % in improving the customer experience. 64

The way I bank The way I shop The way I work/study The health care How health and human service services I use from organizations have harnessed doctors or hospitals digital technology in their crisis response In September 2020, the UK market 62% 59% 58% 57% research firm YouGov conducted a survey of health and human service providers in six countries on behalf of Imperial The way I The way that children The way I travel The services I use from College London and the EY organization. entertain myself are educated government or other public services The survey revealed that almost two- thirds of respondents have increased their use of digital and data solutions in response to COVID-19, with a doubling in 51% % % the deployment of specific tools such as 43 41 video consultations and patient portals. The way I socialize The way I exercise The way I maintain my The majority of respondents reported with friends and family mental well-being that these solutions have increased the productivity of staff, improved access to care, and delivered better outcomes for 61–70% 51–60% 41–50% patients and service users. Source: EY Connected Citizen Survey 2020, EYGM Limited 2020. Will Governments return to the past or nurture a digital future? 6 The recent crisis will not see whole Figure 3. How effective or ineffective do you think the government and public services have been in using digital technology to respond to the governments leap to higher levels of digital COVID-19 pandemic? maturity overnight. Indeed, public perceptions % % 6 % of their government’s effectiveness in using 8 11 14% 27% digital technology during the pandemic varies 44% 39% from country to country (Figure 3). But the % 53% 50% 36 crisis has at least demonstrated what is 47% possible when the will is there. It is vital that 65% governments do not slip back into their old Australia Brazil France Germany ways once the immediate crisis has passed and, instead, concentrate on embedding new 2% % % % % practices and ensuring that all their citizens 18% 11 3 9 5 have equal access to services. 29% 60% 42% 53%

80% 88% India Japan Malaysia Mexico

3% 9% 10% 7%

% 41 52% 44% 40% 56% 39% 46% 52%

South Africa UK US All countries

Ineffective Effective Don’t know Source: EY Connected Citizen Survey 2020, EYGM Limited 20202.

2 Ipsos MORI conducted online interviews with 12,100 participants across 12 countries globally between July 2020 and September 2020. Quotas were set by age, gender, region and working status in order to achieve a representative sample in each country. Data has been weighted to account for any shortfall in quotas. Additional weights by education have also been applied.

Will Governments return to the past or nurture a digital future? 7 In this paper, we explore how governments can maintain the momentum for change, highlighting examples of those that are leading the charge. We can offer recommendations on how to capture the wider benefits that digital transformation can bring to people and society over the long term by harnessing the efforts of three different groups that have a critical role to play:

• The center of government, in developing the infrastructure and enabling conditions for digital transformation at a national level

• Individual departments, agencies and local governments, in driving transformation within their own organizations, from senior leaders to frontline employees, and through collaboration with other agencies

• The wider societal ecosystem, including The big risk is that we go back to normal without learning start-ups, SMEs, academic institutions, civil “from the pandemic. Successful governments will be those society and citizens themselves, in helping governments find and deliver innovative that continue to experiment with new ways to serve their solutions to public policy challenges 21st-century citizens.

The combined power of these groups coming Arnauld Bertrand together will achieve not simply government EY Global Government and Infrastructure Consulting Leader and Innovation & transformation but rather a wider societal Digital Services Leader transformation that delivers better outcomes for all.

Will Governments return to the past or nurture a digital future? 8 esign co-d C in on ns sul ize t o cit n n e ew From government ag d ng ig E ita l s transformation … er vi ce to societal transformation Top leadership IT architecture s support

Innovation and Vision and experimentation purpose

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n t Organizational Progress e a

h i

c structures monitoring

i n

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Digital knowledge o

a Digital

t and talent

standards and o

regulations n

w The center of government

Culture and Digital strategy Digital skills k creates the enabling conditions ... s working practices C and collaboration and capabilities e nt nte e r of governm Better citizen Agile delivery ... for individual agencies to experiences approach drive transformation ... M o d e rn ts iz In n s e d e n pr iv m io o id rt ut cu ua pa ol re l a de s m gencies and ch en Te t ov pra s G cti nes ces Har ... while harnessing the knowledge and resources of the wider ecosystem Wider ecosystem

Will Governments return to the past or nurture a digital future? 9 Part 1 The role of the center of government

The center of government must create the enabling environment for a thriving digital economy — the right infrastructure, policies, regulations, technology platforms, etc. — while also supporting individual government departments with their own transformation efforts. The center of government has four core roles to operators experiencing as much as a 60% The urban-rural divide has intensified during play: increase in internet traffic. In the long term, the COVID-19 outbreak, with a massive shift in digital infrastructure will play a critical role in broadband usage toward suburban and rural 1. Creating digital infrastructure a country’s economic recovery and success in areas, where people are now working, and and fostering inclusion building resilience to future shocks. children learning, from their homes. Even within high-income countries, some groups, such as To promote the development of the digital state, Saudi Arabia was better prepared for the those in low-income neighborhoods or remote governments will look to invest in and regulate crisis than many, having invested significantly regions, have poorer access to broadband for the creation of high-speed, reliable and in its digital infrastructure, including mobile signals and smart phones. And the closure of robust digital infrastructure. Advanced telecom broadband and 5G networks, as part of its cafés, restaurants and libraries during lockdown networks — including enhanced 4G and 5G mobile Vision 2030 strategy. The country adopted a hampered those who rely on free or low-cost networks — and data centers are the foundation number of measures to help maintain continuity public Wi-Fi to perform basic online tasks of the digital economy. 5G networks provide of business and government services through related to schooling, employment, housing and the connectivity that will transform the lives of the pandemic, including increased mobile benefits. The impact on many citizens’ lives is billions of citizens and are already available in internet speeds and data capacity. Its online significant: for example, less than a quarter of nearly 400 cities across 34 countries. By 2026, government portal maintained reliable access to students in low-income countries had access to 5G is expected to cover 60 percent of the world’s over 900 services, despite the massive surge in remote learning during the lockdown. population. internet traffic. Improving connectivity is therefore an Given the high development costs, government Digital networks must support the universal important priority for governments as they agencies are increasingl y teaming up with provision of digital services by addressing seek to ensure equality of opportunity. In Israel, private partners to put this infrastructure in often stark urban-rural and economic divides. the Government allocated resources to buy place. The COVID-19 pandemic has heightened While the number of internet users worldwide computers for deprived children and established the need for this investment. In the short term, is growing every year, half the globe is still not a fund to extend fiber-optic technology to it has sharply increased demand for high- connected. The use is disproportionally greater all parts of the country. The UK Government speed, resilient telecom networks to provide the in high-income areas than in low- and middle- agreed with telecom companies to lift data caps connectivity for remote working and learning, income areas (82% penetration in Europe versus on broadband plans, waive or defer unpaid e-commerce and service delivery, with some 28% in Africa). broadband bills during the crisis, and offer

Will Governments return to the past or nurture a digital future? 11 lower-cost mobile and landline packages to Improving digital literacy is another important keep more people connected. priority as governments seek to develop Estonia’s transformation to a digital state citizens’ skills and confidence in interacting with Estonia’s transformation started with a group were able to identify those most at risk from Other governments have sought to broaden digital services. The Scottish Government, for of reform-minded government leaders on a COVID-19. Automated registries automatically access to public Wi-Fi: for example, some example, launched Connecting Scotland as part mission to improve the lives of its citizens. Its share information across departments, US districts have equipped buses with of its COVID-19 response, providing internet advanced digital infrastructure and culture enabling people to apply for and receive social solar-powered routers and parked them in access, training and support, and a laptop or meant that all government functions could security benefits digitally. Marten Kaevats, underserved neighborhoods. In India, as more tablet to 9,000 people who were not already operate as normal online when the COVID-19 Digital Adviser, Estonian Government, said: people work and study online due to COVID-19, online and considered at high clinical risk. crisis hit. e-Cabinet meetings had been “We have been preparing for this kind of the Kerala Government is to provide extra 5G running since the early 2000s, so government a crisis for the last 25 years. Estonia did bandwidth, with free access across the state. 2. Driving whole-of-government business could continue as normal. All not need to radically change anything, as Even as improvements are made to digital transformation and collaboration educational materials were digitized by 2020, our infrastructure and processes had been infrastructure and digital literacy, further steps so there was a seamless shift to teaching and digitized for a while. Estonia was one of the Many of today’s front-runners in digital may be needed to ensure citizens everywhere learning online. Patient health records are also few countries in the world whose government government embarked on their transformation have access to the same quality of public digitized, and doctors have access to these, so functions could remain entirely intact.” journeys because their leaders linked the services. Governments will need to provide changes to an urgent national reform agenda, omnichannel access through both online and sustainable development plans or the need for Malta’s AI transformation offline services (offline channels may include fundamental structural change. mobile units, community centers and call The Government of Malta introduced a management, healthcare, education, customer centers that operate in conjunction with online Most central governments have now developed pioneering national AI strategy with the help service, tourism and energy management. channels). For example, in October 2020, the a national digital strategy, often aligned with of EY. The strategy positions Malta as the The program will also identify private French Government launched a network of their national development strategy. These Ultimate AI Launchpad for local and foreign sector industries that can benefit from new 856 one-stop branches in mainland France and strategies help to ensure that individual companies to develop, prototype, test and technologies and explore policies to stimulate overseas territories under the brand France departments invest in government-wide then scale AI solutions. The program will AI investment and adoption, strengthening Services, allowing citizens to call in to their outcomes and promote interdepartmental and create use cases and prototypes for AI to be the education system to attract AI researchers local branch to get expert support in accessing government-wide collaboration, rather than incorporated across each area of government and equip all higher education students with AI a range of public services. More will be opened siloed solutions. The most digitally advanced and the public administration. Six pilot projects skills, as well as creating a national certification in due course. countries also emphasize e-participation; have been initiated spanning intelligent traffic framework for ethical and trustworthy AI.

Will Governments return to the past or nurture a digital future? 12 digital inclusion; digital-first, digital-by-default central digital units avoid top-down approaches data and the delivery of public services, attacks and digital-by-design principles; and the and rely instead on collaborative working. by state and non-state actors have heightened “tell us once” data principle. Increasingly, Some units secure buy-in by involving other the vulnerability of those same assets. The they are developing specific strategies organizations in the design of the strategy or pandemic has also raised cybersecurity focused on new technologies, such as AI, by creating a network of champions to help risks, including email phishing attempts by blockchain and data analytics. implement the strategy. In Spain, for example, impersonating governmental public health Red.es, the agency responsible for driving the authorities, and malware websites mimicking Many countries have created a central digital national digital agenda, launched its Connected official COVID-19-related communications. service or transformation agency, often led by Schools program to bring super-fast broadband a chief information officer (CIO) or chief digital to schools. It was designed and implemented This threat has not gone unnoticed by officer (CDO), to spearhead their digital agenda with the involvement of various departments, governments around the world. In 2018, and implementation efforts across the whole including the ministries of education and for example, the US Federal Government of the government. These entities coordinate science, as well as the regional governments published the National Cyber Strategy and strategy, promote cross-agency collaboration that manage most education services. Similarly, created the Cybersecurity and Infrastructure and support digital capability building. In in New Zealand, the Digital Government Security Agency, responsible for coordinating some cases, they send teams into different Partnership comprises around 60 agency cybersecurity across the country. As departments to help with the change process chief executives and senior directors who many governments are realizing, trust in and spread innovative ways of working. oversee the development of digital policies, infrastructure, both physical and digital, is tools and major projects. critical to nationhood, and steps must be taken Often, these central government digital units to secure it. It is impossible for governments to have no mandate over other organizations As we move more rapidly to a connected world, prevent every attack; rather, the focus should (such as individual government departments, the center of government must consider how be on prioritizing the risks relating to key assets public service agencies or local governments), to address the evolving cybersecurity threats and taking action accordingly. Governments which can impede the implementation of the that are transforming the risk environment. need to embed cybersecurity from the national strategy. Strong direction and support At a time when we increasingly rely on digital beginning and at every stage: strategy, design from political leaders are needed. But many infrastructure for the sharing and storage of and operations. They should also collaborate

Will Governments return to the past or nurture a digital future? 13 with other stakeholders, including the private been essential during the COVID-19 crisis as and other benefits. Different countries deploy sector, to develop a robust cybersecurity governments have endeavored to get billions different credentials to authenticate individuals, policy framework and a secure ecosystem. of dollars of financial support into the hands of including a unique ID number (India), a mobile struggling individuals and small businesses. In ID (the UAE, Finland and Estonia), an e-ID card 3. Facilitating seamless digital Pakistan, the Government launched the Ehsaas (Spain and Portugal) and a digital identity access to services Emergency Cash Program within just 10 days certificate that enables parties to sign legal of lockdown. Citizens were able to apply for documents electronically (Denmark). The The center of government plays a crucial emergency cash transfers (made available to sophistication of ID systems is constantly role in breaking down silos and achieving 12 million households) directly from their evolving as new technologies, regulations and interoperability of different systems, databases mobile phones. And the Canada Revenue standards come into play. The Government of and registers to provide one-stop access to Agency was able to process over 3.5 million Singapore, for example, has launched a facial public services. Common IT platforms can unemployment benefit applications in the verification system that confirms citizens’ be slotted into the services of any agency, first week after the launch of the Canada identities in seconds, with access via dedicated offering a range of applications, such as Emergency Response Benefit program. The public booths or on personal mobiles, tablets identity management, payments, messaging whole application and approval processes were and computers. and notifications. Denmark, for example, has digitized, and applicants were able to receive created a central digital infrastructure that the benefits directly into their bank accounts. As national digital ID systems are rolled out, all agencies and municipalities can use. It has it is essential for governments to communicate several platforms, including NemLog-in (a single Governments must also create the means for clearly with citizens about benefits, and to sign-on solution), borger.dk (a one-stop portal citizens to access services through secure address any concerns around privacy and for citizens to access public services), virk.dk digital user identification and authentication security. The EY Connected Citizen survey (a business portal), NemKonto (for collecting systems. All the leading e-government countries shows that the majority of citizens in many payments) and Digital Post (for secure email). have created such systems, underpinned by a of the countries surveyed are comfortable legal and regulatory framework that establishes with having a single digital ID, but more could Many other governments have been introducing rules, standards and guidelines. Many countries be done to gain people’s buy-in in France, digital payment systems, working with banks recorded an increase in the use of digital IDs Germany, the US and Japan. or telecom companies to manage fulfillment and digital signatures during the pandemic, of requests through e-payments. These have due to spikes in applications for unemployment

Will Governments return to the past or nurture a digital future? 14 Figure 4. How comfortable are you with having a single digital ID for every time you use a government service, that includes your details and the 4. Setting and enforcing policies, history of government service use? regulations and standards

As new technologies start to permeate all aspects of people’s lives, governments have a core responsibility to safeguard citizens’ basic % % % % 77 73 70 69 rights, ensure fairness and protect against risks.

The center of government must set and UAE India South Africa Malaysia enforce appropriate laws, regulations, policies, guidelines and standards that allow innovation to flourish, while managing potential risks in the deployment and application of technologies. Such frameworks are critical % % % % 64 64 61 60 to enabling digital identity management and authentication, simplifying transactions, governing access to data, facilitating data UK Australia Brazil Mexico sharing, and protecting data privacy and security. For example, re-engineering back-office business processes to provide personalized services online may call for % % 50 50 41% 40% an electronic signature policy, as well as new regulations on how agencies handle France US Germany Japan private data provided by individuals as part of those transactions.

Interoperability standards are critical for 71–80% 61–70% 51–60% 41–50% 31–40% enabling the seamless exchange of data across different systems. The Australian Government Source: EY Connected Citizen Survey 2020, EYGM Limited 2020.

Will Governments return to the past or nurture a digital future? 15 passed legislation in 2018 on data governance, has developed an “algorithm charter” to expertise, rather than relying on stakeholders How regulatory reform enabled making it mandatory for all government protect against AI discrimination and biases. with outside interests. And there will need to be transformation in Biscay agencies to use open standards. Meanwhile, It requires agencies to publish information a move away from individual regulatory action Ireland’s Data Sharing and Governance Act about how data is collected and stored, and toward a more collaborative, coordinated and In Spain, Biscay’s provincial government 2019 lays out guidelines and policies governing use tools and processes to ensure that privacy, systematic approach: for example, working set up the BiscayTIK portal as a shared the format, management, retention and ethics and human rights considerations are with businesses to adopt ethical standards in online platform for 108 municipalities security of data. Some governments have integrated as part of algorithm development the design of AI systems. to deliver their services online. The established interoperability standards for and procurement; it also includes a pledge to project raised a myriad of complex legal specific platforms, such as payment systems. explain how significant decisions are informed Governments must include public engagement issues that required new regulations: In Kenya, for instance, the National Payment by algorithms. Organizations that embrace in their regulation-setting activities, given for example, to permit certain types System Act requires all service providers to use these good practices in ethical design and the ethical issues surrounding the use of of services to be transacted online or systems that can work with other domestic governance will be well equipped to mitigate algorithms in political decision-making and determine when and how to use an and international payment systems. risks, safeguard against harmful outcomes and, targeting of services. Building partnerships with electronic signature. Laws relating to most importantly, build the trust that is needed international regulators to achieve common areas such as privacy, transparency, Governments are also instituting legal and to maximize the potential benefits of data. standards could also be a useful strategy. public contracting and accounting had policy frameworks that give people a level of to be written or amended. The resulting active control over their data and the right to While developers of AI cannot predict exactly Furthermore, governments must be ready to platform delivers services online to more know what is being done with it. In Estonia, the how these tools will learn and evolve, regulators adapt regulation, when needed, to take account than 1.2 million citizens. right to the protection of personal data and the need to consider questions such as who is of changing circumstances. In response to right to public information have been written liable in the case of an accident involving COVID-19, there has been a total revamping into the constitution. Estonians can choose an autonomous vehicle, and how medical of regulations in health testing, education how to share information with government negligence laws will apply to wrong clinical certifications and data privacy. The need for bodies and see exactly which public servants diagnoses made using AI. Smart and agile greater testing and monitoring of the population are using their data and for what purpose, regulatory practices will be needed to address for signs of disease transmission was used to through citizens’ data dashboards. such issues. Government regulators will need justify greater surveillance powers for many to be educated about the potential of emerging governments as they rolled out test-and-trace The regulatory environment must also build technologies and the possible trade-offs, using systems. In the US, Congress changed provisions trust in rapidly evolving new technologies. foresight methods to identify possible futures. to allow the use of telemedicine services The New Zealand Government, for example, They will need to build their own technical for all Medicare beneficiaries. And as public

Will Governments return to the past or nurture a digital future? 16 sector employees rapidly shifted to remote High-performing governments recognize part of Australia’s national science agency, is by ramping up their recruitment working during the pandemic, governments the need to develop their workforce’s digital helping create an ecosystem of data talent, and talent management capabilities: for adapted regulations to accommodate new skills and capabilities in order to capitalize on through placements of public sector employees example, developing forecasting capacities working arrangements: for example, the Indian the potential of technological advances. In in the private sector. In the US, the Presidential to predict what skills might be needed in the Government developed a draft framework and the UK, the Topol Review explored how new Innovation Fellows program pairs innovators in future. Staff management practices must also a new set of standard operating procedures to technologies are likely to change the roles and government with their counterparts from the change — both to help digital professionals ensure seamless functioning as public employees functions of National Health Service workers private sector, nonprofits and academia. adapt to working in the unique environment of worked from home. over the next two decades, and what the public services and to enable effective implications are for their education, training In future, every public servant will need remote working. 5. Securing the right knowledge and development. a baseline level of digital literacy. The UK’s and talent Digital Academy has trained 10,000 civil As governments build a more dynamic New digital training academies and centers servants in digital skills since it was formed in environment, they will attract younger workers Central governments have an important of excellence are helping to build specialist 2014. And the Nepalese Government launched in search of purposeful roles, where they can role in promoting knowledge-sharing across technical skills (such as software development the Data Literacy Program, which aims to drive make a difference to society. Public sector government departments, both nationally and and systems architecture), as well as the skills stronger data-driven decision-making across the organizations need to promote this, and place internationally. The Digital Nations (formerly that support transformation (such as data workforce. Its 100-hour, customizable training greater emphasis on finding candidates who D9 group of nations) — the UK, Estonia, South science, systems design, digital marketing, course supports both technical skills-building are the right cultural fit and share the Korea, Israel, New Zealand, Canada, Uruguay, agile methodologies and user experience and a culture of data use among Nepalese organization’s vision and values. Mexico and Portugal — meets regularly to research). Sometimes, this is done in civil servants. Programs such as these help disseminate best practice and develop solutions partnership with universities and to raise the status of digital and data literacy Recruiting inspirational, highly regarded to common stumbling blocks. Estonia is planning private businesses. in government. leaders will help to attract the best talent, to establish a Global Digital Society Fund to as will the creation of a strong, centrally led export its e-governance solutions on a global Exchange programs between the public and The public sector faces challenges in attracting digital profession that provides a clear route for scale. And the UK’s Government Digital Service private sector present another way to build and retaining staff with the right skills, given progression. This means developing a defined and Singapore’s GovTech Agency have signed an government capability. Allowing people to move that it must compete with the private sector for career path for new roles: for example, the agreement to strengthen collaboration between more fluidly between organizations and projects the best talent. A lack of funding means public Australian Public Service is establishing digital the agencies to improve the design and delivery gives governments the benefit of development sector organizations are unable to offer the and data professions to build capability and of digital government services. and capacity while helping to accelerate the large salaries that private organizations can. support career development. necessary cultural shift. In Australia, Data61, Some governments are responding proactively

Will Governments return to the past or nurture a digital future? 17 Part 2 The role of individual government departments, agencies and local governments

While central government policy-makers create the national digital strategy and provide the right enabling environment, it falls to individual government departments, agencies and local government to make the necessary changes on the ground. The road map for digital transformation can be built around the following 10 actions:

Will Governments return to the past or nurture a digital future? 18 1. Align digital plans with overall understanding the needs of citizens in real time, 2. Gain support from senior leaders vision and purpose and launching digital portals or virtual care Creating a digital strategy platforms to reduce the need for physical The most successful digital transformation for the UNDP Transformation starts with a consideration of visits to offices. programs are led or supported by senior the organization’s core purpose and a vision of internal sponsors and, sometimes, political The United Nations Development desired outcomes. The vision should incorporate Once project priorities have been decided, leaders, who give the implementation team a Programme (UNDP) works to improve a shared sense of what the desirable future a digital strategy and implementation plan strong mandate for change, as well as visible the lives of the world’s poorest people. looks like, in clear and measurable terms, and to is needed. This should be fully aligned with support. Senior leaders who understand and EY teams helped the organization develop which all stakeholders, including suppliers and the organization’s overall strategy, purpose are passionate about the potential of digital and implement a customized digital partners, are committed. The organization must and vision. It should define the roles and transformation can elevate its importance strategy, enabling it to transform on a then assess the role that digital technologies organizational structure required to develop across the organization. They need to be global scale. As a result, the UNDP created can play in making this vision a reality. Regular and scale the use of technology; assess, strong and charismatic individuals who the new role of chief digital officer, scanning of technology developments will be monitor and facilitate mitigation of any risks understand the transformational benefits, remodeled its go-to-market approach and vital to the planning process. relating to technology and data (including and possess the vision and acumen needed to set up innovation labs in 60 countries. It issues surrounding data integrity, security lead the transition. They must also have the is now more agile and efficient, and has Some governments have started by analyzing and privacy protection, and ethical and legal commitment, credibility, influence and capacity strengthened its reputation as the world’s their biggest challenges, which enables them ramifications of using new technologies); and to mobilize change across the organization. most impactful development partner. to identify and prioritize projects for early establish a mechanism to continually evaluate digitalization. COVID-19 has focused minds progress and measure benefits. Indeed, effective leaders are essential on specific urgent issues and led to a much at all levels in order to empower others more rapid adoption of digital solutions. Many The strategy must permeate the entire and involve the whole organization in the governments have swiftly reprioritized and organization to remove organizational transformation effort. Dedicated executives, accelerated their portfolio of digital projects by siloes and hierarchies, and facilitate both such as a chief data or analytics officer, or chief assessing the direct or indirect contribution of interdepartmental and external collaboration. data scientist, may be appointed to lead specific each to addressing COVID-19 challenges, such Implementation plans should be shared with initiatives and show how these can solve as moving staff to remote working, providing different stakeholder groups so they understand operational challenges. financial support to individuals and businesses, how the changes will affect them and what part they are expected to play.

Will Governments return to the past or nurture a digital future? 19 In a world where change is constant and the delivery platform for taxpayers. It formed program direction, oversight and shared external environment is rapidly evolving, a new an outsourcing company that could provide accountability. There needs to be clarity on set of leadership capabilities are emerging. it with IT and R&D services, and specialists, where responsibilities lie for digitally enabled Leaders, from senior executives to frontline without having to go through slow and services, together with avenues for redress managers, need creativity, curiosity and cumbersome internal recruitment processes or (including by citizens) when things go wrong. adaptability to pilot their organizations source services from external suppliers. This through continuing change. arrangement gave it greater control over the The COVID-19 pandemic has shown the work undertaken and assigned full ownership of importance of adaptable governance 3. Create appropriate organizational any new tools to the FTS. frameworks and decision-making processes. and governance structures In some cases, emergency arrangements have In some cases, these dedicated entities operate been put in place to ensure rapid responses: Public sector bodies’ existing organizational as a centralized unit, with staff working on for example, by adapting existing structures or structures may not be equipped to drive digital specific projects across the wider organization. creating new temporary structures tasked solely transformation. Individual departments or Others have adopted a decentralized approach, with crisis management. These have proved teams may lack the expertise, space, freedom with staff integrated into, or co-located with, crucial for implementing rapid digital solutions or flexibility to explore different ways of doing specific departments. In both models, staff work and maintaining continuity of service delivery. things, as well as the latitude to learn by with stakeholders to identify process, system or trial and error. policy duplication, and develop solutions that 4. Design better citizen experiences simplify tasks or create new value. To overcome the limitations of existing Successful government digital transformation organizational structures, government Governance frameworks must seek to break projects adopt the private sector’s customer- bodies should be prepared to create new down functional siloes so that all relevant centric approach to designing and delivering entities specifically designed for the task in parts of the organization operate in harmony services. They deploy design thinking, customer hand. These entities may drive the entire throughout the journey. The most effective experience labs and data analytics to deepen digital transformation process, or they may programs involve senior stakeholders from their understanding of citizens’ needs, attitudes be responsible for particular elements: for across the organization — including strategy, and behaviors. They then use this insight example, in Russia, the Federal Taxation Service operations, IT, finance, HR, procurement to build services around real user needs, (FTS) took a novel step when building an online and communications — who can provide rather than around traditional government

Will Governments return to the past or nurture a digital future? 20 structures. By mapping the end-to-end citizen the service or fill out multiple forms. In this journey, they can develop digital solutions model, services are offered to citizens when Helping those most at risk from that make each touchpoint better, faster they reach key milestones, such as getting COVID-19 and more efficient. Optimizing the journey married, entering the workforce or retiring. requires the identification of every technology, One example is Singapore’s LifeSG mobile EY partnered with Xantura to support process and capability needed to digitize the app, which provides a one-stop suite of more Barking and Dagenham Council in entire chain of activities, and eliminating any than 40 services from different government collating and analyzing data to help redundant processes along the way. In the most agencies. These include registering the birth of identify which of its residents were progressive organizations, there is a continuous a child and topping up pensions. A personalized most at risk from COVID-19. EY teams cycle of understanding and adapting to citizens’ dashboard makes recommendations based on developed an interactive dashboard that needs: users generate data, which is fed back to user profiles (e.g., active aging for the elderly). integrates data drawn from five core refine and iterate again. The app also includes upcoming medical and service areas (housing, schools, revenues school appointments, as well as reminders for and benefits, adults’ services and In some cases, creating a single end-to-end users to complete important applications, such children’s services) in order to pinpoint citizen experience also requires coordination as primary school registrations. the most vulnerable individuals. In-built across multiple departments, which must work case management functionality then in unison to deliver a seamless experience. In future, governments will move toward more enables cases to be assigned to teams and Agencies recognize and authenticate citizens proactive, and even predictive, service delivery, interventions to be tracked. based on their digital ID, and integrated where they are able to trigger a timely service platforms collate and analyze data from or intervention — in some cases, preventing multiple sources to provide a complete view problems before they arise. This step requires of the citizen. The result: the citizen is served that government departments collect and share effectively at every point of contact. information about citizens without citizens’ active involvement. Increasingly, citizens want governments to proactively provide relevant services and information without them having to request

Will Governments return to the past or nurture a digital future? 21 5. Adapt culture and working practices Sufficient time and space are needed to allow people to adapt to new digital ways of working, Facilitating a rapid shift to remote Digital transformation doesn’t depend on including new processes and workflows. Digital working in Australia technology alone. It requires a change of users who lack in-depth knowledge should culture, behavior, incentives and performance be trained to make effective use of these The Australian Government launched an management across the organization. technologies in their day-to-day work. The AU$130b stimulus package to protect jobs Progressive governments are tackling this speedy adoption of unfamiliar digital tools and help businesses stay afloat during the through various measures, from formal change and processes in response to COVID-19 (for pandemic. Two of its agencies, Services management programs to the creation of example, to accommodate remote working Australia and the Australian Taxation teams or centers of excellence that help to and service delivery) has shown that culture Office, were tasked with administering disseminate digital initiatives. and working practices can adapt rapidly the aid, but were overwhelmed with when required. Almost overnight, staff have demand while also having to shift their Change leaders must work hard to gain had to gain a level of comfort with digital staff to remote working. EY facilitated a employee buy-in by communicating the case tools that previously seemed years away. rapid transition and helped to successfully for change and the anticipated benefits for The Philippines’ Civil Service Commission onboard 12,000 additional staff. Under staff. This engagement needs to start early conducted an employee survey that found the new model, information sharing and and continue throughout the implementation that, despite the upheaval caused by the rapid collaboration have actually improved. process across all stakeholder groups. The move to alternative working arrangements, change plan should communicate the vision and government staff had been more productive identify and tackle any barriers that may hinder during lockdown than previously. Improvements progress. For example, it can instill a sense of were most marked in agencies that had a good ownership and responsibility among frontline communication system in place, that were workers by actively involving them in planning collaborative by nature, and whose managers the change, designing solutions and guiding offered high levels of trust and support. implementation.

Will Governments return to the past or nurture a digital future? 22 6. Build a flexible IT infrastructure During the pandemic, APIs have played a vital to meet surging demand. Rather than having vision evolve swiftly into a tangible product role in public sector responses. For example, they to buy and maintain their own expensive and providing the chance to make adjustments If digital transformation is to succeed, a flexible can easily and securely unlock contact-tracing data centers and servers, government along the way. Multidisciplinary teams work IT infrastructure is needed, based on a service- data and integrate it with other applications and organizations can quickly access resources on together to manage any risk or uncertainty. oriented architecture that enables interoperability data sources, providing leaders with access to demand, helping drive down costs and speed and information sharing. This approach is complete and accurate information in real time. up innovation. During the pandemic, cloud Launching new solutions by piloting in one more cost-effective and allows systems to be As demand for social services and financial technology has helped governments provide particular area can also help test the concept reconfigured to meet evolving requirements. assistance increases, APIs can play a key role in urgent services, from crisis hotlines to remote of a new digital program. A successful pilot helping to integrate eligibility systems, streamline learning: for example, an Italian municipality generates buy-in from executives as well as Many organizations are attempting to integrate and automate approval processes, and extract in Lombardy was able to build a cloud-based from the staff who will implement the program. disparate IT infrastructure into a single system the necessary data to give applicants and case center in less than a week to route COVID-19- Once a pilot has been completed, the results that will be shared between different processes managers a complete view of what benefits and related calls to its staff. Meanwhile, the US state indicate the likely return on investment and the and, potentially, with other bodies. This will services are available. By incorporating newer of Arkansas quickly ramped up its pandemic benefits of rolling out the solution more widely. provide a single view of the citizens that, in technologies such as chatbots, APIs help citizens unemployment assistance program via a Agile development is more important than turn, will help organizations to better meet their to self-serve, getting faster resolution for queries cloud deployment and used cloud to support ever as governments manage their COVID-19 needs, particularly when complex problems and gaining timely access to all the benefits they employees’ return to work. responses. In normal times, digital projects can require the coordinated efforts of multiple are entitled to. agencies and, sometimes, private or nonprofit 7. Adopt an agile approach to delivery take months, if not years, to come to fruition. sector partners. However, managing this The COVID-19 pandemic has also accelerated During the pandemic, the timeframe has been information exchange across numerous legacy adoption of cloud technologies. Many Many government organizations are adopting dramatically compressed. Some organizations systems is not always an easy task. Application government departments had previously new approaches to improve project delivery and reported that solutions were started from scratch programming interfaces (APIs), software been reluctant to use cloud technology due to ultimately realize value faster. A key element on a Monday and pushed to production by intermediaries that allow two applications security concerns. But it has played a critical of this is agile development. Agile approaches Friday of the same week, without any significant to talk to each other, can provide a possible role in enabling the rapid transition to remote divide a multiyear complex program into shorter disruption to workload. Many organizations solution. working and scaling up government services iterations, enabling organizations to see their have gained speed and agility they would have thought impossible before the pandemic.

Will Governments return to the past or nurture a digital future? 23 In many cases, the move to implement or scale 8. Build specialist digital skills technologies was supported by the speeding and capabilities up of internal decision-making processes and collaboration. The UK’s Government Digital Individual government departments and Service teamed up with the Government agencies must invest in dedicated teams of Security Group and the National Cyber skilled digital and technology professionals who Security Centre to issue guidelines for secure can help define needs and deliver on the digital video collaboration, helping to facilitate the transformation strategy. This is one of the most first ever virtual Cabinet meeting. And in the challenging areas for governments, as many of province of Alberta, Canada, the Innovation and these capabilities — including data scientists, Digital Solutions team within Alberta Health cloud architects, user-centered designers and Services came up with a rapid solution to stop cybersecurity experts — are in short supply the nonemergency health care information in the public sector. A greater emphasis on service being overwhelmed with phone calls at workforce planning, training and capability the outset of the pandemic. In just two days, building, and recruitment programs to attract they interviewed health professionals, built a top talent, is essential to help organizations prototype self-assessment tool and conducted adapt to future requirements. user testing. On the third day, they launched the province’s COVID-19 self-assessment tool, While technical specialists are vital, change which had 300,000 hits in the first 24 hours, at scale is not possible without major shifts rising to more than 3 million. The code for the across the whole organization. In order to tool was later shared on GitHub, and the tool optimize digital value, all employees need to has since been adopted by other health care strengthen their digital literacy and cultivate organizations. new attributes: for example, a willingness to collaborate and an appetite for continuous learning.

Will Governments return to the past or nurture a digital future? 24 As in other areas, COVID-19 has been a catalyst the Prime Minister instructed all ministers to internal hackathons or skunkworks – where 10. Monitor and evaluate progress for rapid upskilling. For example, frontline ensure employees devote a fixed percentage small, loosely structured groups work on radical workers have been trained in remote working of their time to trialing new approaches and new projects. They may begin by launching It is important for organizations to continually and collaboration tools, and have had to adapt measuring the impact. This learning-by-doing a minimum viable product (MVP) — a bare- monitor and evaluate the impact of their to new service delivery approaches, such as approach and experimentation works have bones version of their product or service — and digital programs. Public sector leaders should virtual consultations for case workers. The successfully matched experts with departmental deploy practices such as prototyping, piloting set realistic milestones and timelines for the pandemic has also changed the dynamics of teams wishing to innovate. and carrying out phased introductions of new transformation program and develop tangible client needs, requiring care workers to acquire services. They are willing to embrace trial performance measures to demonstrate both new skills and adjust the support they offer. Agencies also need to instill in employees the and error, flexible enough to change direction short- and long-term results. To increase More progressive agencies have proactively motivation to identify ways to deliver better when things go awry, and prepared to tolerate buy-in and momentum, the successful results analyzed future workforce requirements outcomes for citizens. Incentives such as reward uncertainty rather than nailing down every of early transformation efforts should be and risks (due to infection rates among the and recognition programs are useful in creating aspect of the project in advance. widely communicated. workforce and expected demand for services) that nudge. The Singapore Government has a and developed a range of contingency and Transformation Office with an Innovation Lab Obstacles that previously prevented Gathering performance data on a regular capability building plans. that runs training sessions and “makeathons,” organizations from innovating rarely related basis provides insights that can influence which lets public servants collaborate with to the technology itself; instead, they were further planning and decision-making, helping 9. Encourage innovation and citizens to identify challenges and user test tied to bureaucracy and a reluctance to disrupt organizations to determine whether they are experimentation potential solutions. The Government also holds existing ways of working. The COVID-19 crisis moving in the right direction. For instance, the Public Sector Transformation Awards, an has created a unique opportunity for digital organizations can invest in experience Governments need to encourage an innovation- annual innovation competition designed to professionals to apply creative thinking beyond measurement tools to leverage usage oriented and entrepreneurial culture that create a culture of recognition and celebration the realms of comfort for most governments. statistics and monitor citizen satisfaction, permits experimentation and risk-taking. around public sector innovation. It has helped to shift the balance of risk and often in real time. This helps create a Staff throughout the organization should reward, enabling digital innovators to get rapid continuous loop to drive improvements in Some agencies cultivate an experimental be empowered to challenge the status quo, traction on potential new solutions and to response to user feedback. culture through new structures, such as suggest new ideas and have the time and space pursue these without fear of failure. to experiment. In Canada, for example, in 2015, incubators and accelerators, and the use of

Will Governments return to the past or nurture a digital future? 25 It is equally important to share feedback with citizens to let users know their voices are being heard and to build trust in digital government. The latest UN E-Government Survey shows that 124 of the 193 Member States have a “leave feedback” function in their national portals, while 125 Member States allow people to file a complaint about service delivery.

Research carried out by the EY organization and INSEAD shows that those governments that are most successful at digital transformation don’t assume there is an end point on the horizon. Instead, they view transformation as a continual process during which new ideas and possibilities evolve. In the UAE, for example, a new e-claims health portal proved so effective at supporting the governance efforts of the health authority in Abu Dhabi, and in managing health care data generally, that its remit was expanded to support wider objectives. It is now an integral component in the Abu Dhabi Healthcare Strategic Plan, providing a core data source to support evidence-based policy-making.

Will Governments return to the past or nurture a digital future? 26 Part 3 The role of the wider ecosystem

In an age of digital disruption and convergence, governments that act alone are no longer able to deliver the social and economic outcomes that citizens expect. The most progressive governments are proactive in harnessing the knowledge and resources of the wider ecosystem, including start-ups, SMEs, entrepreneurs, academia, civil society and citizens themselves, to source innovative digital solutions to public policy challenges. Their innovation agenda actively seeks out collaborations with third parties. Since the public purse will be even more constrained post-pandemic, these partnerships will be vital to help finance government’s capacity for service improvement.

Will Governments return to the past or nurture a digital future? 27 1. Consult with stakeholders on new Meanwhile, in the UAE, a project to introduce relationship benefits the private and third One of its units is the Societal Challenges service design an online e-claims platform by the Health sectors through public funding, tax credits, Division, which focuses on improving the Authority of Abu Dhabi (HAAD) also excelled R&D investments and policies that make it effectiveness and quality of public services In some cases, the launch of new government at collaborating with external partners. HAAD easier to operate, while at the same time giving through technological innovation. digital products and services relies on the invited into its fold external stakeholders, governments access to new technologies, digital participation or contribution of partners, end such as public hospitals and insurers, that talent and innovative cross-sector solutions. Similarly, Singapore hosts an ecosystem of users or other external stakeholders. The shared its interest in fixing the country’s health start-ups and large corporations that are EY/INSEAD research revealed that successful insurance system, so that they could contribute In Ontario, Canada, the Communitech hub working together to find solutions to the most digital transformation teams carry out genuine to the design of the platform. This collective brings together 1,400 players, from start-ups pressing global challenges. For example, its consultations to get the engagement of other approach facilitated the rapid identification and global brands to government agencies, Startup SG Network, an initiative of Enterprise stakeholders that may be vital to the viability of the systemic issues that had led to a two- academic institutions, tech incubators and Singapore, connects a growing community of the digital program. In Italy, for example, the year backlog in the processing of paper-based accelerators. In 2017, the Ontario Digital of start-ups, investors, accelerators and online platform pagoPA was created to enable claims. The new platform quickly cleared the Service Lab was launched within the hub to incubators. The Government supports this citizens to make payments to any public entity backlog and now handles more than 25 million work on user research for the Government. push for innovation, adopting a “sandbox” in their country. The implementation team claims annually. Its aim is to make it easier for citizens to access approach that allows innovators, universities had to persuade a large and diverse group services online, including health cards, drivers’ and companies to trial new products, while of federal, regional and municipal entities 2. Participate in innovation networks licenses and student loans. offering a cushion against potential failures. to modify their individual accounting and IT Meanwhile, the Israeli Government supports the systems to interface with the new platform. Governments can foster innovation by building 3. Adopt new business models and development of a thriving innovation ecosystem Through open dialogue, the team was able or participating in networks that bring together GovTech solutions through various programs operated by the to address a range of technical and security businesses, entrepreneurs, start-ups, finance Israel Innovation Authority, an independent issues, develop tailored solutions and win over companies, academics and civil society Governments are increasingly looking to publicly funded agency. It provides a variety of payment providers by showing that they would organizations. Through effective collaboration, harness emerging and disruptive technology practical tools and funding platforms aimed at a gain access to the large portion of payments they can co-develop solutions to strengthen solutions developed by various players — diverse range of actors — from entrepreneurs to previously conducted through post offices. competitiveness, improve economic outcomes notably start-ups and scale-ups, but also and raise living standards. This symbiotic academic institutions and global corporations. medium-sized and large enterprises,

Will Governments return to the past or nurture a digital future? 28 universities, nonprofits, social enterprises and New partnerships are an effective way for Government agencies are also partnering citizens themselves — to improve the efficiency governments to meet people’s needs and soften or contracting with third parties to harness EY app manages surges in demand and effectiveness of public services. the impact of the pandemic. For example, many new technology-enabled business models. for financial support in the US have partnered with health tech suppliers on a These alternative delivery models open up The fast-growing “GovTech” (or “CivTech”) range of health care projects, including track- opportunities for other organizations to Providing financial relief to citizens and market provides opportunities for creative new and-trace apps; analytics to predict critical care assume a role in the public sector value chain, local businesses has been at the center of digital solutions across the entire public sector capacity, equipment and staffing needs; and by providing both the innovation required to most government’s response strategies. value chain, from policy-making through to telehealth consultations. And EdTech providers transform existing services and the cost savings In multiple Florida counties, officials service delivery. The Scottish Government, for have also come forward with solutions — in to make it viable. turned to EY for help with the efficient example, has set up an accelerator program, many cases, offering them for free — to help disbursement of public funds. The EY CivTech®, to match technology innovators with education establishments that were forced to During the pandemic, a broader range of app provided an intuitive and secure public sector organizations that are looking to move to remote learning. organizations have stepped forward to offer user interface, together with safeguards create digital solutions to civic challenges. With support to governments. Some agencies for personal data and a toll-free number four successful rounds delivered, CivTech 5.0 and local governments have publicized the connected to a call center staffed by EY launched in June 2020, with a focus on challenges they are facing, asking for help professionals. The counties were able COVID-19-related challenges. and offering rewards for the best solutions. to manage surges in demand, thanks to Others have developed digital “match-making” prompt application processing and real- Unique collaboration builds contact-tracing platform platforms and tools that are able to efficiently time reporting. connect supply and demand: for example, by EY was at the heart of a unique humanitarian effort to reduce the spread of COVID-19 through putting vulnerable people in touch with sources the development and launch of a mobile digital contact-tracing platform. The collaboration was of community support. In London, Camden led by MIT and supported by Harvard, Mayo Clinic and public health agencies. The platform Council is developing a digital platform, has two strands: first, for individuals, Safe Paths matches GPS trails on mobile devices with Beacon, that will provide a single view of all the anonymized location history of infected people, allowing individuals to check if they have COVID-19- related needs. This will enable been exposed to COVID-19. Second, for public health officials and governments, Safe Places the council and its local partners to quickly supports contact-tracing efforts and draws on an individual’s collective data to provide insight coordinate and respond to requests for food on the spread of COVID-19, identify hot spots and activate mitigation plans. A nonprofit entity and medical supplies. has been founded to bring the platform to countries across the world. Inputs by the EY organization, which included cybersecurity and AI, was provided pro bono.

Will Governments return to the past or nurture a digital future? 29 Governments should look to build on this These cross-government digital procurement agency, the Crown Commercial Service, has 5. Build data exchange platforms momentum by adopting this kind of approach frameworks offer several benefits. They also introduced Spark, a technology innovation in the long term. This would be a positive diversify the digital supplier base by reducing marketplace that allows buyers to purchase Most governments and public authorities across shift, helping local governments engage with reliance on larger contractors and extending innovative new technologies through a dynamic the world have launched open data initiatives a broader range of suppliers in future. Given access to a wider range of companies. They purchasing system (DPS). This opens up the and set up data exchange platforms. The focus is the specialist expertise and solutions that enable governments to negotiate better marketplace to an unlimited number of suppliers on making data widely available to third parties, exist outside of the public sector, governments contract terms and improve value for money and has an inbuilt matrix to help customers and including citizens, to help develop solutions should hold on to services where they have a by incentivizing competition. And they foster suppliers match capabilities to needs. to complex problems, and to create greater core capability or responsibility, while opening more innovative solutions from nontraditional transparency and accountability. It is also helping up other services to new providers, if they can suppliers, including SMEs and start-ups. For Other countries are following suit. In Australia, to improve service delivery across a range of deliver them more effectively and efficiently. SMEs, e-procurement reduces barriers to the South Australian Government’s new areas, such as education, health, environment, entry and creates attractive, new opportunities Go2Gov program invites start-ups and early social protection and finance. Open data can be 4. Modernize procurement practices for companies not previously engaged in stage businesses to pitch novel solutions to considered as such when information is released government contract work. It also plays an public sector challenges, with scope to extend in a machine-readable format, there are no legal The acceleration in the uptake of GovTech important role in reducing corruption and service delivery beyond the program and barriers to access, and the information is free of solutions will require changes to the established improving transparency and accountability. become an ongoing provider to state charge and available in widespread type or way governments procure technology and government agencies. And the New South Wales open standard files. services. One option is to create a single, In the UK, for example, the Government Digital Government recently established an user-centric “digital marketplace” to simplify Service has created an online platform allowing ICT/Digital Sovereign Procurement Taskforce Data exchange platforms bring together vast access to public tenders. Another is to adopt public sector bodies to access the skills and charged with making it easier for local tech quantities of this information from numerous new procurement practices (e.g., common services they need, while providing digital companies to get access to government sources, including censuses and surveys, standards for subcontracting) to help innovators with an opportunity to develop contracts. It will create appropriate policies to government departments and other resources departments find more innovative solutions their ideas in a way that directly benefits the ensure procurement dollars end up where they such as those compiled by academia, civil to support their transformation efforts. Government. The Government’s procurement can have the most impact. society and the private sector. People and

Will Governments return to the past or nurture a digital future? 30 organizations outside of government, Figure 5. Number of countries that have instituted open government data portals or catalogues in 2014, 2016, 2018 and 2020 including businesses, nonprofits and civil society organizations, can download, analyze and combine this data with other information to create public value.

The UN E-Government Survey shows that the number of countries with open government data (OGD) portals has grown consistently over the last few years, from just 46 in 2014 106 153 (24%) to 153 in 2020 (80%). Mexico, for 2016 2020 example, has a National Open Data Policy and has set up datos.gob.mx as its central open data portal, populating it with data from both central and local public sector institutions. This has powered projects such as Retos Públicos 46 139 and Red México Abierto, which aid public and 2014 2018 private sector collaborations.

Source: EY Connected Citizen Survey 2020, EYGM Limited 2020.

Will Governments return to the past or nurture a digital future? 31 Cities are also forming their own data hubs by inviting people to participate in the design to address municipal challenges and spur of public services, providing incentives such #EUvsVirus economic growth and sustainable urbanization. as gamification options and 24/7 customer For example, the city of Sydney’s data hub support. EY teams played a central role in grants access to multiple datasets in areas helping the European Commission to such as environment, planning, transport, Other countries are experimenting with various host #EUvsVirus, the world’s largest-ever sustainability and the economy, as well as instruments to capture citizen input. More than hackathon. The event, held over one historical data. Potential applications include 180 policy labs have been set up globally to weekend, brought together more than research-based mapping, dashboards, location- incubate ideas and provide a testing bed for 20,000 innovators from civil society, based applications and predictive analytics. policies in areas as diverse as education, health the private sector and governments to and justice. These policy labs are also leading identify ideas to help societies recover 6. Engage citizens in co-production the way in launching open challenges and from the COVID-19 outbreak. These ideas hackathons to discover solutions to increase included new ways to connect vulnerable Governments have traditionally been slow the efficiency, coordination and delivery of groups with volunteers, and tools to to engage citizens and stakeholders in the social services. Indeed, government-organized encourage behavioral changes to maintain development of new services, in contrast to hackathons are proving an effective way social distancing. private sector companies. But citizens have a to engage people in finding fresh solutions major role to play as a source of fresh ideas to to the economic, social and technological reinvigorate the public sector. challenges posed by COVID-19. As the pandemic progressed, this type of virtual Several governments have created digital event quickly gained popularity around the platforms for public consultation on government world as public officials came together with policies and budget priorities, giving citizens software developers, civil society and social more of a say in the day-to-day decisions entrepreneurs to devise solutions. that affect their lives. The most adventurous governments actively engage citizens in the Governments have also sought to harness ongoing co-production of policies and services. the skills and knowledge of citizens and local The UAE Government, for example, has communities to ease some of the burden and managed to increase digital government usage help build resilience during the pandemic. In

Will Governments return to the past or nurture a digital future? 32 the US, a volunteer-led initiative, U.S. Digital a platform where organizations and citizens can Response, recruited more than 5,000 pro bono register for a variety of tasks, such as assisting technology specialists from across the country with the distribution of necessities and to partner with state and local governments to providing child care for health care workers. tackle the challenges created by COVID-19. This included supporting unemployment insurance Post-COVID-19, volunteering might be here systems, meeting the shortage of hospital staff to stay, with new models of participation and and helping the homebound to get meals. collaboration with government agencies. Since volunteers generally have a deep understanding Digital technology has also played a key role in of grassroots needs and challenges, bringing governments and volunteers together governments could engage with them to build on a common platform and managing their sustainable solutions. Local councils could activities. The State Government of Karnataka, also embrace the opportunity to experiment in India, launched a control center to coordinate with digitally enabled innovations to aid local the work done by more than 30,000 volunteers democratic processes. For example, Iceland’s and provide a real-time display of assigned Better Reykjavík and Paris’s Madame la maire, and pending tasks. Meanwhile, in France, the j’ai une idée initiatives enable citizens to Government’s start-up incubator beta.gouv.fr influence local decision-making and budget and the Ministry of National Education developed allocations.

Will Governments return to the past or nurture a digital future? 33 Conclusion

For some years now, governments have has also acted as a positive disruptive force for Governments must find the energy and been under pressure to catch up with digital long-term transformation. Organizations and determination to sustain change beyond the advances in the private sector and rethink individuals alike have burst out of their long- extraordinary circumstances that the pandemic their approach to public engagement, policy- established professional practices to embrace has created and ensure their hard-won progress making and service delivery. This pressure new digital solutions that previously seemed doesn’t go to waste. We must all remember reached new heights in 2020 as citizens turned too difficult or daunting. It’s now clear that this is just the start of a real, holistic and to governments to protect their lives and the rewards are tremendous for government effective digital transformation, not the end. livelihoods during the pandemic. organizations that can effectively plan and Governments can and must seize this moment manage the transformation journey, ignite a to absorb the lessons learned, determine how COVID-19 has rewritten all the rules and vibrant conversation with the public about the operational models can be remade to provide enabled the public sector to prove just how benefits that an advanced economy brings to citizens with the services they want and need in nimble it can be when the situation demands. the nation as a whole, and tap into the potential the future, and improve resilience to the In the months and years to come, as we reflect of the ecosystem around them. next inevitable global shock — whatever on the digital response to the pandemic, few form that may take. leaders in the public or private sector are likely Nevertheless, we cannot take it for granted to argue that going back to “business as usual” that new ways of working will naturally continue is a viable option. Although COVID-19 has had after the crisis has passed; rather, they will a devastating impact on lives and livelihoods, it need deliberate nurturing and investment.

Will Governments return to the past or nurture a digital future? 34 Contacts

Arnauld Bertrand

EY Global Government and Infrastructure Consulting Leader and Innovation & Digital Services Leader

[email protected]

Julie McQueen

EY Global Government and Infrastructure Lead Analyst

[email protected]

Will Governments return to the past or nurture a digital future? 35 EY | Building a better working world EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited EY exists to build a better working world, helping to create long-term by guarantee, does not provide services to clients. Information about how EY collects and uses personal value for clients, people and society and build trust in the capital markets. data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform How EY’s Global Government & Public Sector can help your organization and operate. Around the world, governments and not-for-profit organizations are continually seeking innovative answers to complex challenges. They are striving to provide better services at lower costs and to create sustainable economic development, a safe environment, more transparency and increased accountability. Working across assurance, consulting, law, strategy, tax and transactions, EY combines private sector leading practices with an understanding of the public sector’s diverse needs, EY teams ask better questions to find new answers for the complex issues focusing on building organizations’ capabilities to deliver improved public services. Drawing on many years facing our world today. of experience, we can work with you to help strengthen your organization nd achieve lasting improvements. Our Global Government & Public Sector brings together teams of highly skilled professionals from our assurance, consulting, strategy, tax and transaction services. We are inspired by a deep commitment to help you meet your goals and enhance public value, for today and tomorrow.

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