How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021

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How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

    AN IDC INFOBRIEF SPONSORED BY DELL TECHNOLOGIES

    How Digital Transformation of
    the Public Sector Can Succeed
    in the Post-Crisis Environment
    January 2021

    An IDC InfoBrief, sponsored by

                                                                                             1   An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Impact of the Crisis on German Public
Sector Digital Transformation
                                                                                                                                                 Almost 8 months from the start of the crisis
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
                                                                                                                                                 20%          of public sector organizations in Europe
                                                                                                                                                              still report organizational challenges
                                                                                                                                                 stemming from compliance with health and safety
challenges facing the public sector are the same as for other sectors of the economy (how to retain quality of services in                       regulations.
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.                                                                 15%          of public sector organizations in Europe
                                                                                                                                                              report challenges with developing metrics
                                                                                                                                                 to measure productivity in hybrid working environments.
             Where Are German Public Sector                                                     However, 2020 was also a year of many            Almost the same percentage struggle with developing
             Organizations on the Recovery Curve?                                               firsts in the public sector in Germany and       adequate management skills for the next normal.
                                                                                                Europe as a whole. Many organizations tried
                                 BUSINESS FOCUS
                                                                                                for the first time to deliver their services
     Business      ROI Focus         Operational     Acceleration      Innovation               predominantly in remote mode, many tried
    Continuity                        Resilience                                                                                                 Only

                                                                                                                                                 9%
                                                                                                to let the majority of employees work from
                    31%                                                                                                                                    of public sector organizations have reported
                                                                                                home, and many discovered that significant
     27%                                                                                                                                                   having no organizational challenges as a result
                                     23%                                                        process, cultural, and technological changes
                                                                                                were needed to successfully face the new         of COVID-19 and the emergence of new working models.
                                                       10%                                      normal. This paper will outline how to utilize
                                                                        9%
                                                                                                these newly found experiences to the
                                                                                                benefit of public sector organizations, their
    COVID Crisis   Economic           Recession     Return to Growth   Next Normal              employees, and citizens.                         Source: IDC EMEA, COVID-19 Impact Survey, Wave 14, November 10–20, 2020
                   Slowdown

                               ECONOMIC SITUATION

                               Source: IDC EMEA, COVID-19 Impact Survey, Waves 12–15, German Public sector sample                                           2       An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

  Opportunities to Reignite the Public Sector Post-Pandemic
  While the current crisis has brought additional challenges to public sector organizations striving to retain quality of services, there are                                                               Public Sector Definition
  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%
                                                                                                                                                                                                In this paper, public sector organizations are defined as organizations
  of that amount will be allocated to digital transformation investments, mostly (although not exclusively) in the public sector. Substantial                                                   owned and operated by public authorities in the following areas:
  investment is expected especially in the area of governmental transformation.                                                                                                                 central government, state/local government, education, public utility
                                                                                                                                                                                                operators, and healthcare.
  Germany’s ICT Market — 2021 Expected Growth                                                                                                                                                   The paper covers all these subindustries, with case studies, use
                                                                                                          Taking previously announced investments in education and                              cases, and recommendations selected for relevance irrespective of
  Distribution and services
                                                                                                          healthcare (see below) into account, this stimulus package will                       subindustry.
  Manufacturing and resources
                                                                                                          present one of the largest opportunities for public sector
  Public sector
                                                                                                          transformation since German reunification. However, as
  Financial
                                                                                                          the stimulus window is limited and the post-stimulus world will
  Infrastructure
                                                                                                          likely tilt toward fiscal retrenchment, this window of opportunity
  Consumer
                                                                                                          is limited.                                                                                   In the coming years, public sector
-3.0%         -2.0%           -1.0%      +0.0%         +1.0%         +2.0%         +3.0%          +4.0%                                                                                                 organizations in Germany will have
  Source: IDC Worldwide ICT Spending Guide Industry and Company Size - Forecast 2020 | Oct (V3 2020)
                                                                                                                                                                                                        a once in a lifetime opportunity for
                                                                                                                                                                                                        transformation, as the political will for
                   Investments in Healthcare                                                                          Investments in Education
                                                                                                                                                                                                        change, experiences from the crisis,
  German healthcare will also profit from the recently unveiled €3 billion fund                           The potential transformation of education can now be supported by DigitalPakt
                                                                                                                                                                                                        and the necessary financial investments
  to support hospitals in the modernization of emergency facilities, digitization,                        Schule, a potentially massive program approved before the current crisis which                will all be aligned, supporting change.
  and IT security. A further €1.3 billion boost is expected from federal states                           could allocate €5 billion to German schools. Uptake has been limited so far,
  and hospital operators. These funds will help healthcare improve patient                                but it is to be expected that experiences with remote learning will change that.
                                                                                                                                                                                                        How well they will be able to utilize this
  portals, electronic documentation of care and treatment services, digital                               DigitalPakt Schule is inter alia focusing on blended learning, IT infrastructure in           opportunity will decide their trajectories
  medication management, IT security solutions, and cross-sector telemedical                              schools, and digital curricula.
  network infrastructure. The funds will also be used to support the adoption of
                                                                                                                                                                                                        for at least a decade.
                                                                                                          Additional investments are planned to mitigate the effects of the pandemic,
  telemedicine, robotics, and high-tech medicine. An additional €4 billion will be
                                                                                                          with €500 million allocated for device loans for students in need, €500 million
  allocated as a part of “Pact for the Public Health Service.” These funds will be
                                                                                                          for teachers’ devices, and the same amount for the training and financing of
  used for staffing as well as technical modernization.
                                                                                                          primary and secondary education IT administrators.

                                                                                                                                                                                                        3       An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

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.

                 Good stewardship
                 of taxpayer money
                                       Transparent non-
                                     intrusive engagement
                                                                    Invisible
                                                                  bureaucracy
                                                                                              Equitable                 Seamless
                                                                                                                         access
                                                                                                                                                     The new ETHIC of the European public sector calls out five key objectives that
                                                                                                                                    The outside-in
                                                                                                                                     citizen view    public sector organizations, no matter their purview, are focusing on:
                                                                                                                                                     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
                     Efficient             Trusted             Highly responsive              Inclusive               Convenient                     perceptions.
The inside-out
government                                                                                                                                           Highly responsive processes. According to IDC data, improving customer experience is a priority
                    Productivity         Security and               Cross-silo              Personalization              Omni-
view                                     compliance                integration                                         experience
                                                                                                                                                     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.
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                                             Inclusive delivery and workplace. As face-to-face interactions become rarer, government
ecosystem, modes of service provision, and holistic view of the customer (student/patient).                                                          organizations are focusing on maintaining the inclusiveness of their processes, both for citizens
                                                                                                                                                     and for their staff.
    Omni-learning. The prefix omni means “in all ways or places,”                  “Patient of One” is a comprehensive patient-
    and perfectly fits the new educational paradigm. In the next normal            centric approach that focuses on personalization and
                                                                                                                                                     Convenient delivery frameworks. The convenience of delivery frameworks features high on the
    the education ecosystem grows to fully encompass non-traditional               integration of healthcare services through an intelligent         agenda of public sector stakeholders. According to IDC data, channel innovation is a priority for
    providers such as MOOCs, non-traditional places of provision such              and actionable use of patient data. It is about building          60% of European public sector organizations.
    as homes (via remote learning), and non-traditional students, such             a comprehensive patient management system that
                                                                                                                                                     These five priorities need to be met by the public sector across all processes and use cases that are being adopted during
    as life-long learners. Education must also reflect feedback from               integrates information across a wider ecosystem
                                                                                                                                                     transformation. Public sector organizations also need to be mindful of differing complexity that the implementation of various
    multiple sources — not just students and parents, but also industry            involved in the patient journey, delivering a 360-degree
                                                                                                                                                     use cases might bring.
    associations, government stakeholders, and labor market trends to              view that focuses on enabling superior outcomes and
                                                                                                                                                     The emphasis of differing parts of ETHIC as well as institutional capacity to deal with complexity should inform the decisions
    ensure the continuous relevance of curricula.                                  experiences.
                                                                                                                                                     around which use cases are better to adopt early and which may be a better fit in later stages of the transformation.

                                                                                                                                                                                                             4        An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

What Public Sector Organizations Need to do to Make ETHIC a Reality
Societal 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. This goes beyond                                                                                           Leveraging data as a strategic asset. To realize
                  the digitalization of front-end services. It will require                                                                                   the value of data, government leaders will invest in
                  the reimagining of the citizen and business experience.                                                                                   innovative solutions, such as Big Data, analytics, and
                  Governments will use APIs, machine learning, and                                      Omni-channel                                       machine learning, and related skills. Such capabilities
                  intelligent process automation to reduce the time                                     citizen experience                                        will enable the delivery of intelligent insights for
                  between the events that trigger the eligibility for a                                                                                          policy decision making, service automation, and
government payment, such as a pension or unemployment benefit, or the                                                            Data-driven                 collaboration across the key government missions, such as economic
obligation to pay a debt, such as a tax or license fee, or the entitlement                                                       policymaking and          development, international relations, civic engagement, public security
to a permit, and the ability of a case worker to verify those changes                                                            service delivery              and justice, social services and benefits, tax and revenue collection,
in specific circumstances. This makes processing more efficient and                                                                                               sustainable energy and resources, and intelligent transportation.
potentially reduces the collection/payment debts and credit positions of
governments, as well as providing a more responsive service to citizens.
                                                                                                                                                                     Investing in open platforms and hybrid
                  Future of work. Governments are embracing a hybrid               Future                                                                          infrastructure that enable them to scale
                  working model, in which secure remote access to                  of Work                           Digital                                     innovative technologies, such as AI, and IoT,
                  data and applications and collaborative tools                                                      inclusion                                    through reusable microservices. For example,
                  enable staff to work across departmental silos.                                                                                               the Estonian government, when developing and
                  Change management services will be a critical success                                                                                             implementing SUVE, a chatbot that provided
                  factor of this transition.                                                                                                                   services to citizens during the pandemic, made sure the algorithm
                                                                                                        Trust and                                                  could be deployed across more than 10 government websites.
                  Guaranteeing the security of digital services, so that both citizens and civil
                                                                                                        security                      Agile, intelligent
                  servants can trust their reliability and the stewardship of sensitive data. IDC’s                                   platforms and
                  COVID-19 Impact Survey (Wave 11) showed that 47% of government agencies                                             infrastructure             Closing the digital divide by partnering with IT
                  interviewed identified digital trust programs as a top business priority into 2021.                                                            and telecom companies to extend access to
                  Research and innovation projects funded by the European Commission, such                                                                    broadband and grow digital literacy, including
                  as SUNFISH (SecUre iNFormatIon SHaring in federated heterogeneous private                                                                    making citizens aware of the security and ethical
clouds) and HEAT (Homomorphic Encryption Applications and Technology), are developing and                                                                                        risks of technology innovation.
piloting leading-edge solutions in this area.

                                                                                                                                                               5        An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Future of Work

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-
                                                                                             Lindau District Office
collar employees were much less likely than their private sector counterparts to work
from home and deliver their services remotely. This has changed.
                                                                                             (Landratsamt) have
In the next normal, German public sector organizations will need to analyze                  sucessfuly switched
                                                                                             to almost fully remote
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                 working.
following:
                                                                                             To set an example for businesses and public
                                                                                             sector alike, Lindau Landratsamt has moved
                   •   Was our organization efficient while the majority of
                                                                                             almost all workers which can work from
                       employees worked in remote settings?
                                                                                             to Homeoffice. To be able to do that, the
                   •   Do we need to change regulations, internal practices,                 Landratsamt not only had to adjust processes to
                       and organizational culture to enable blended learning                 make sure that the level of service for citizens is
                       in the next normal?                                                   not impacted, but also purchase enough devices
                                                                                             to make sure that every civil servant can work
                   •   Is our current workplace collaboration suite supported                from home. As a result, approximately 95%
                       by adequate infrastructure?                                           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.

                                                                                                                                       6      An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Future of Work

Key Use Cases to Consider

Connected Back Office                                                                                                                                 Smart Campus and Public Building Infrastructure
             The connected back office replaces today’s systems of record with new                                                                                 Operating public buildings is a significant expense that public sector
             intelligent systems that retain core capabilities while layering in new                                                                               organizations want to control better. Smart buildings ensure occupant
             automated and predictive intelligence. The goals are to transform the                                                                                 safety while helping save energy and costs. Governments are deploying
             platform tier for core ERP applications to drive cost reduction and process                                                                           IoT technology that utilizes advanced automation and building systems
             efficiency across the organization (e.g., by cutting cost per transaction)                                                                            integration to measure, monitor, control, and optimize operations. The
and enable organizational agility (e.g., by allowing the organization to scale up or                                                                  end goal is optimization, but also improvement of working conditions for public
down its business units more easily and to acquire or divest units faster and cheaper).                                                               employees. These systems manage how building equipment operates to use energy
These systems will become more intelligent by leveraging machine learning and                                                                         in the most efficient and cost-effective way and optimize the environment. Analytics
predictive analytics on massive data sets capable of learning from exceptions and                                                                     and data management tools accommodate the increasing volume of data associated
adapting business rules, allowing users to discover insights, better predict and plan for                                                             with the instrumented and connected equipment in the facility and make this data
outcomes, recommend next best steps, and automate processes.                                                                                          understandable and actionable.

 Impact of use case adoption on ETHIC and its complexity                                                                                                Impact of use case adoption on ETHIC and its complexity

 Efficient   Trusted   Highly responsive               Inclusive          Convenient             Complexity                                             Efficient         Trusted           Highly responsive   Inclusive     Convenient         Complexity
 5/5         1/5       2/5                            1/5                 4/5                     1 2 3 4 5                                             4/5               1/5               1/5                 2/5           2/5                  1 2 3 4 5

                         While changing workplace processes, start with cultural change. It is likely that without employee and middle
Recommendation
                         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
                                                                                                                                                                                                                7     An IDC InfoBrief, sponsored by
                         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.
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment - January 2021
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Trust and Security

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                     Hospital Cyberattacks
organizations is thus more on retaining already high levels of trust, rather than
on further improvement. This implies the focus on defensive measures, with                    Prove Importance of
cybersecurity (and its impact on trust in communications) as one of the key
aspects of trust to consider. German public sector organizations should ask                   Security
themselves:

                                                                                              A spate of recent cyberattacks has been keeping
                                                                                              public sector CISOs busy. Among the most
                   •   Is our security architecture limiting risks, but also simultaneously   serious was a ransomware attack at Düsseldorf
                       not presenting users with an overly limiting environment that          University Hospital, which disabled servers with
                       stifles productivity?                                                  data needed to treat critically ill patients. While
                   •   Are our contingency measures in case of a breach aligned               ultimately a police investigation has not proved
                       with dynamic changes undertaken in recent years across our             the direct link between the death of a patient
                       enterprise architecture?                                               which occurred after the incident and the attack,
                                                                                              the serious disruption has nevertheless impacted
                   •   Have we done enough to inform and educate the usual weak               the ability of the hospital to operate as normal.
                       links in all security architectures — the employees?

                                                                                                                                        8     An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Trust and Security

Key Use Cases to Consider

Critical Infrastructure Management                                                                                                                    Social Engineering (Defense)
             Critical infrastructure is increasingly the target of cybersecurity breaches                                                                         A number of hostile actors have recently used social media as a key tool to
             — targeted because of the disruption and chaos violations bring to society.                                                                          disrupt the foundations of the democratic process, such as public opinion,
             Legacy technologies are ill-equipped to manage or even detect these                                                                                  the electoral process, and social activism. Preexisting tools and vetting
             breaches. Public sector organizations are investing in next-gen security                                                                             processes were patently incapable of detecting these breaches. Public
             solutions that help to minimize risks stemming from breaches.                                                                                        sector organizations, and national governments in particular, are adopting
                                                                                                                                                      technologies to detect, reveal, and neutralize potential influences from foreign hostile
                                                                                                                                                      actors.

 Impact of use case adoption on ETHIC and its complexity                                                                                                Impact of use case adoption on ETHIC and its complexity

 Efficient   Trusted    Highly responsive              Inclusive          Convenient             Complexity                                             Efficient         Trusted           Highly responsive   Inclusive     Convenient         Complexity
 3/5         5/5        2/5                           1/5                 3/5                      1 2 3 4 5                                            2/5               5/5               1/5                 4/5           2/5                  1 2 3 4 5

                         Cybersecurity’s weakest links are often associated with human error. Ensure a balance between the freedom of users
Recommendation           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.

                         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
                                                                                                                                                                                                                9     An IDC InfoBrief, sponsored by
                         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.
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Data-Driven Policymaking and
Service Delivery
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,
                                                                                             German Coronavirus
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
                                                                                             Data Management
not play its role as it should. In this context, German public sector organizations
should ask themselves the following questions:                                               The importance of data-driven policymaking
                                                                                             has become fully apparent during the
                                                                                             coronavirus crisis. Although operating in highly
                                                                                             decentralized settings with regional and state-
                   •   Do we have the necessary in-house skills for the transformation       level public authorities playing an important
                       of data into insights?                                                role, the German public sector has managed
                                                                                             to present comprehensive, timely data and act
                   •   Are decision makers incentivized to utilize available data in their
                                                                                             on it, setting up a tracing system that reacts to
                       management decision-making process?
                                                                                             changing situations with agility. More importantly,
                   •   Do we have data architecture in place that enables the usage          surveillance systems developed by the Robert
                       of data across the organization and also utilizes other available     Koch Institute serve as a basis for decision
                       public sector data?                                                   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.

                                                                                                                                      10     An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Data-Driven Policymaking and Service Delivery

Key Use Cases to Consider

Data-Driven Social Services                                                                                                                           Digital Twin
             Social services organizations are frequently reactive, coping with large                                                                              In the public sector, a digital twin refers to a digital model, or version,
             caseloads per worker and dealing with crises well after a number of                                                                                   of the physical assets and resources tied to a particular public sector
             triggers and warning signs have arisen. Analytics enable social services                                                                              organization; and in the case of municipalities more broadly to the
             organizations to better manage their caseload by proactively tracking at-                                                                             area under their purview. Digital twins are a 3D model of systems from
             risk individuals and connecting them with the right services before crisis                                                                            infrastructure such as buildings and transportation to the movement of
point. The objectives are to proactively collect and analyze data to understand the                                                                   people, things, and resources (e.g., water) using sensors installed on physical objects.
factors that put individuals at social risk and implement processes for intervention and                                                              Digital twins offer a view into the existing situation and help to make predictions about
prevention. This includes measuring outcomes and success factors.                                                                                     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.

 Impact of use case adoption on ETHIC and its complexity                                                                                                Impact of use case adoption on ETHIC and its complexity

 Efficient   Trusted   Highly responsive               Inclusive          Convenient             Complexity                                             Efficient         Trusted           Highly responsive    Inclusive    Convenient         Complexity
 2/5         3/5       5/5                            4/5                 5/5                     1 2 3 4 5                                             5/5               2/5               5/5                 2/5           3/5                  1 2 3 4 5

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

                         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
                                                                                                                                                                                                                11    An IDC InfoBrief, sponsored by
                         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.
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Agile, Intelligent Platforms and
Infrastructure
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            Heidelberg University
established legal precedents for particular approaches to data management,
storage, and access management. German organizations seeking to start with                   Relying on Private Cloud
the modernization of their infrastructure should ask themselves the following
questions:                                                                                   to Enable Top-Notch
                                                                                             Research
                    •   Are there legal precedents for the approach that we are
                        considering?                                                         Heidelberg University has switched to a private
                                                                                             cloud IaaS solution to enable more flexibility and
                    •   Did we align our long-term data management strategy with our         faster development of computing capabilities to
                        infrastructure strategy?                                             foster evolving research needs.
                    •   Are we ready to integrate new infrastructure with legacy parts       The new private cloud has increased scalability
                        that cannot be easily discarded?                                     and flexibility significantly and the research
                                                                                             needs of research departments can be met
                                                                                             quickly, without resorting to tedious and lengthy
                                                                                             procurement processes.

                                                                                                                                      12     An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Agile, Intelligent Platforms and Infrastructure

Key Use Cases to Consider

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.

 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 2 3 4 5

                         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.
Recommendation
                         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.

                         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
                                                                                                                                                                                                              13   An IDC InfoBrief, sponsored by
                         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.
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Digital Inclusion

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                     Cooperation Between
initiatives for digital inclusion, especially in the field of closing the age gap
in the adoption of digital technologies, including conducting major research                 Social Services and the
initiatives (such as project FUTA). However, inclusivity is not dependent only on
centrally run initiatives. Each public sector organization must strive to make its           Not-for-Profit Sector
services more inclusive. German public organizations should ask themselves the
following:                                                                                   Spurs Innovation
                    •   Have we tested the appropriateness and ease                          Digital inclusion in Germany is often driven
                        of access of our channels across important                           by the public sector (especially providers of
                        socioeconomic divides?                                               social services) in cooperation with not-for-
                                                                                             profit organizations. For instance, the PIKSL (an
                    •   Do we present alternatives for citizens/customers that               acronym for “Person-centered interaction and
                        are for whatever reason unable to access the service                 communication for more self-determination
                        via the most common channel?                                         in life”) organization with its laboratories and
                    •   Do we incentivize the use of digital channels in a way               projects is enabling disabled and elderly people
                        that is both attractive, but also non-discriminatory?                to navigate the internet (including tackling the
                                                                                             issue of internet misinformation).

                                                                                                                                      14     An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Digital Inclusion

Key Use Cases to Consider

Skills Development and Labor Market Programs                                                                                                           Digital Equity Inclusion and Accessibility
             The employability of the population is maintained by matching                                                                                                 Faster and broader network pipes with efficient spectrum management aid
             organizational needs with employee skills at a macro level. As the economy                                                                                    government equity of service delivery. Accessible design typically delivers
             evolves and jobs change, there is a need for governments to collaborate                                                                                       a better user experience for everyone and enables internet access to help
             with large and small employers and academic institutions at all levels to                                                                                     reduce the digital divide and facilitate economic growth.
             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.

 Impact of use case adoption on ETHIC and its complexity                                                                                                 Impact of use case adoption on ETHIC and its complexity

 Efficient   Trusted    Highly responsive               Inclusive          Convenient             Complexity                                             Efficient         Trusted           Highly responsive    Inclusive    Convenient         Complexity
 2/5         3/5        4/5                            5/5                 4/5                      1 2 3 4 5                                            2/5               5/5               2/5                 3/5           2/5                  1 2 3 4 5

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

                          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
                                                                                                                                                                                                                 15    An IDC InfoBrief, sponsored by
                          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.
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Omni-Channel Citizen
Experience
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              Vienna Leading the Way
businesses digitally and provide platforms and incentives for businesses looking
to align their business transformation to the overall digitization of the public             in Citizen Engagement
sector (especially services related to taxes, employment, insurance, compliance,
etc.). German public organizations should ask themselves the following:                      The City of Vienna is renowned for its citizen-
                                                                                             centric approach. That approach has been of
                                                                                             great use in the current crisis, when Vienna
                    •   Are we able to engage with citizens with the same efficiency no      repurposed some of its more advanced channels
                        matter which channel of communication they choose?                   of communications to deliver COVID-relevant
                    •   Do we have aligned data management so that all                       information and help to maintain compliance
                        communications are clearly visible and civil servants work with      with rules. For example, Vienna repurposed
                        the comprehensive view of the citizen, able to provide them          its chatbot (WienBot) to deliver information on
                        with the best possible advice?                                       the COVID situation and measures, alleviating
                                                                                             pressure on the main information line. This
                    •   Did we optimize processes and utilize available technologies to      concerted effort, which used synergies across
                        enable change to an omni-channel mindset?                            communication channels, has helped to deliver
                                                                                             reliable information to the Viennese population.

                                                                                                                                    16    An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Omni-Channel Citizen Experience

Key Use Cases to Consider

Omni-Channel Portal                                                                                                                                    Open Data
             Many public sector organizations have developed a central website that                                                                                 A key tenet of ETHIC is to improve transparency, accountability, and
             links to services provided by separate departments, but most lack clear                                                                                government-community engagement. “Open data” became the movement
             navigation and an easy user experience. Omni-channel portals consolidate                                                                               to achieve these goals by tracking performance, sharing data within
             government departments’ data to enable users to see all information                                                                                    government and outside government, and, as a result, spurring the
             (policies, alerts, and statistics) as well as access digital services. Next-gen                                                                        development of public sector services by the private sector using open data
portals also add on mobile access and interactive features that move beyond simple                                                                     sets. Open data is typically provided by a software solution that catalogs, aggregates,
transactions to offerings such as contextualized search and citizen online accounts.                                                                   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.

 Impact of use case adoption on ETHIC and its complexity                                                                                                 Impact of use case adoption on ETHIC and its complexity

 Efficient   Trusted    Highly responsive               Inclusive          Convenient             Complexity                                             Efficient         Trusted           Highly responsive    Inclusive    Convenient         Complexity
 4/5         2/5        5/5                            4/5                 5/5                      1 2 3 4 5                                            2/5               5/5               2/5                 3/5           2/5                  1 2 3 4 5

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

                          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
                                                                                                                                                                                                                 17    An IDC InfoBrief, sponsored by
                          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.
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

Key Recommendations

                                                                                             Make sure that you tie proposals for major infrastructure
                 While changing workplace processes, start with cultural change. It          investments directly with other types of projects that benefit
                 is likely that without employee and middle management buy-in, any           citizens/customers. This is the right time for major investment,
                 changes will fail to deliver tangible benefits.                             financed by fiscal stimuli, which will support citizen-facing initiatives
                                                                                             for years to come.

                 Cybersecurity’s weakest links are often associated with human
                 error. Make sure there is a balance between freedom for users and           Analyze your customer base, establish a key typological group
                 appropriate and enforced security policies. Monitor and measure             of users, and conduct regular analysis of the appropriateness of
                 compliance, but also the hidden costs of security policies, especially      outreach tools to these groups.
                 those tied to the loss of time for users.

                 While executing change, try to repurpose existing technologies to fit       Conduct a thorough process and technology audit to discover
                 with the new processes. Not everything needs to be built again from         obstacles to the adoption of an omni-channel approach. Focus
                 scratch.                                                                    especially on data governance.

                 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.

                                                                                                                     18     An IDC InfoBrief, sponsored by
How Digital Transformation of the Public Sector Can Succeed in the Post-Crisis Environment

About IDC
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