Public Sector: Digital Transformation for the Future-Ready Administration

Government Technology (GovTech) is more than a collective term – it encompasses different aspects that are crucial for the development and application of digital products and services for the public sector.² GovTech solutions address problems across the entire spectrum of public tasks and have the potential to digitally transform the public sector.³

The OECD defines GovTech as collaboration between the public sector and start-ups, innovators, government "intrapreneurs" and academia on innovative digital government solutions.⁴ This collaboration enables innovative approaches to be developed and implemented more quickly. Amazon Web Services identifies five key areas where GovTech innovation will be supported in 2025: from cloud infrastructures to AI-powered citizen services.⁵

 

Practical implications:

 

• Automation of routine administrative tasks
• Improvement of citizen experience through digital interfaces
• Data-based policy decisions through modern analytics
• Accelerated development cycles through agile methods ⁶

Through automating routine tasks, analysing data and predicting outcomes, AI can help the next generation of governments to make better, more agile decisions.⁷ However, state-level technology leaders identify a crucial missing AI skill that is hindering government innovation.⁸

The challenge lies not only in the technology itself, but in developing appropriate AI policies. New developments in Virginia and Texas signal that the debate over artificial intelligence (AI) policy could be turning in a more positive, pro-innovation direction.⁹ Big Data is discussed as untapped treasure or digital nightmare, with the goal being data-supported optimisation of many processes in the public sector.¹⁰

Vast demographic changes are affecting how the public sector manages talent. Six priorities can help leaders shape a robust talent framework.¹¹ The Thuringian state government has developed an exemplary concept with the Personnel Development Concept 2035 from June 2024 to counteract these developments.¹²

 

Central challenges:

 

• Ageing workforce and skills shortage
• New competency requirements through digitalisation
• Attractiveness of public service for young talents
• Lifelong learning as a future trend ¹³

 

Studies in the public sector demonstrate that employees are particularly proud in difficult situations that they manage to deliver high-quality work despite adverse circumstances.¹⁴ This "producer pride" can be an important building block for successful transformation processes.

The integration of agile methods in the public sector is increasingly recognised as necessary. All interview partners in the public sector evaluate agility as partially to very relevant for their work.⁶ Innovation labs are emerging as new tools for the public sector to accelerate innovation processes and develop new solution approaches.¹⁵

 

Practical implementation:

 

• Establishment of innovation laboratories in administrations
• Training of employees in agile methods
• Pilot projects to test new approaches
• Cross-functional teams for complex challenges