Denmark’s digital ambassador: should the UK be following suit?

 

By Steven McGinty

On 26 January, the Danish Ministry of Foreign Affairs announced that they would be appointing the world’s first ‘digital ambassador’ to act as the nation’s representative to major technology companies, such as Google, Apple, Facebook and Amazon.

At a conference on the future of the Foreign Service, the Foreign Minister, Anders Samuelsen, explained that:

Denmark must be at the forefront of technological development. Technological advances are making such a great impact on our society that it has become a matter of foreign policy. I have therefore decided to announce the appointment of a digitisation ambassador.

In a follow up interview with Danish newspaper Politken, Mr Samuelsen expressed his belief that multinational technology giants “affect Denmark just as much as entire countries”. He highlighted the examples of Apple and Google whose market values are so large that if they were countries they would only narrowly miss out from inclusion in the G20 – the global forum for cooperation between the world’s 20 major economies.

As a result of this economic strength, together with tech firms’ impact on the everyday lives of citizens, Mr Samuelsen argues that the technology sector should be treated as a form of ‘new nation’, which Denmark must develop closer relationships with.

Cooperation between nation states and the technology sector

Technology companies are becoming involved in activities that were once reserved for nation states. For example, Mr Samuelsen’s Liberal party accepts donations in Bitcoin – an online currency which challenges the state’s role as the only issuer of legal tender. And Microsoft have signed a partnership agreement with the French Ministry of Education to provide teacher training, in order to prepare teachers for running special coding classes.

The technology industry argues that it is better placed than national governments to provide effective digital services, at cheaper prices. In terms of national security, computer engineering expert and academic, Jean-Gabriel Ganascia, argues that this is probably the case. Mr Ganascia highlights that Google and Facebook have vast image databases that enable them to use facial recognition software far better than any national security service. Therefore, countries have started working with technology companies on a variety of crime and public safety issues.

Citizens are also spending greater amounts of time on social media platforms. In an interview with The Washington Post, Mr Samuelsen stated that more than half of the world’s data has been created in the past two years (much of this from major platforms such as Facebook). This trend has implications for the privacy of citizens and the spreading of false information, a phenomena that has been labelled ‘fake news’. These issues are fundamentally important for citizens and nation states, and are likely to increase cooperation between countries and the technology sector.

Australia’s Ambassador for Cyber Affairs

Although Denmark will be the first country to introduce a digital ambassador, another government has made a similar appointment. In January, Dr Tobias Feakin was appointment as Australia’s Ambassador for Cyber Affairs. His role focuses on cyber-security, but also includes issues such as censorship and promoting internet access. At this stage, it’s unclear whether Dr Feakin will have direct contact with technology companies and whether this relationship will involve discussions over economic issues such as taxation.

Is a digital ambassador necessary?

Not everyone, however, is buying into the appointment of a government representative focused solely on digital issues. Technology journalist, Emma Woollacott, believes that it’s a ‘terrible idea’.

According to Ms Woollacott, Denmark already has a good relationship with technology companies, highlighting that Facebook has recently announced plans to build a new data centre in Odense, creating 150 new permanent jobs. These views may have some merit, as Mr Samuelsen has confirmed that the deal between the Foreign Ministry and Facebook was the result of three years of behind-the-scenes work.

Ms Woollacott also argues that Denmark is setting a worrying precedent by equating a private company to a nation state.  In her view, the importance of the technology sector could have been acknowledged through hiring knowledge staff, rather than granting it a ‘unique political status’.

However, Professor Jan Stentoft, who researches the insourcing of technological production to Denmark, believes creating the ambassadorial post is a good idea. He explains:

We have much to offer these companies, but Denmark is a small country, and we obviously need to make ourselves noticed if we are to attract them to the country.

Marianne Dahl Steensen, CEO of Microsoft Denmark, also welcomed the creation of a digital ambassador position, but did acknowledge that the company ‘can hardly be equated with a nation’.

Should the UK introduce a digital ambassador?

By introducing a digital ambassador, Mr Samuelsen is taking a pragmatic approach to ensure Denmark is a key player in the international digital economy, as well as attempting to manage the impacts of an increasingly digital society.

Although appointing an ambassador for the technology sector poses philosophical and ethical questions, the UK should closely monitor how this new role develops and the potential benefits (and challenges) it brings for Denmark. In particular, if the new role is able to improve dialogue between technology companies and the security services on matters such as privacy, or help address the sector’s need for digitally skilled workers, then maybe introducing a digital ambassador is something worth exploring.


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Government Transformation Strategy 2017 to 2020: has it been worth the wait?

Whitehall, London

By Steven McGinty

On 9 Feb 2017, and after over a year of delays, the UK Government finally published the Government Transformation Strategy 2017 to 2020.

It’s been a long time since the Government Digital Strategy was published in 2012. Therefore, it’s understandable that politicians, industry leaders and media commentators have been frustrated by the lack of a new strategy in 2016.

In January 2017, Iain Wright MP, chairman of the Business, Energy and Industrial Strategy Committee (BEIS) warned that the UK risked being left behind and losing its competitive advantage in the digital economy because of its ‘absence of clarity and strategic focus’.

Similarly, Stephen Metcalfe, chairman of the Science and Technology Committee, wrote a letter to digital minister Matt Hancock highlighting his disappointment at the lack of a government digital strategy.

However, now that the Government Transformation Strategy is here, what does it say and will it have a lasting impact?

A brief overview

According to Ben Gummer, Minister for the Cabinet Office and Paymaster General, the Government Transformation Strategy is:

“The most ambitious programme of change of any government anywhere in the world, by a government that has already done more to transform itself than any other.”

It sets out the government’s aim to build on the success of the 2012 strategy, and to not only focus on improving the citizen experience but to change the way services are delivered. The strategy states that the government will achieve this by transforming:

  • Whole citizen-facing services – ensuring an improved experience for citizens, businesses and users within the public sector
  • Full government departments – enabling organisations to deliver policy objectives more flexibly, improving citizen experience, and working more efficiently
  • Internal government – supporting the collaboration of government departments and delivering digitally-enabled change more effectively

However, the majority of the strategy is structured around five main objectives:

Business transformation

Government departments have made significant progress over recent years.  The strategy explains that lessons have been learned through this service transformation process, and that there is now cross-government agreement on the key areas that transformation must focus on. These include bringing policy development and service design closer together and recognising that government services are delivered through a variety of channels (online, telephone and face-to-face).

Grow the right people, skills and culture

Since 2012, government departments have been recruiting digital, data and technology specialists to improve their digital capability. However, the strategy accepts that the public sector is working in a competitive market and that recruiting and retaining staff is likely to remain a challenge. Embedding a new culture is also identified as an important enabler of change, with several goals highlighted, including increasing civil servants’ knowledge of digital and improving digital experts’ understanding of government.

The Digital Academy, which was formed in 2014 by the Department for Work and Pensions (DWP), will be transferred (by the end of 2017) to the Government Digital Service (GDS) to create nationwide training opportunities for civil servants.

Build better tools, processes and governance for civil servants

Civil servants vary widely in how they work, including the digital technologies they use and their approach to policy development. The new strategy explains that the government will create a better working environment by developing common and interoperable technologies that can be shared across government and adopt a more agile working environment.

Make better use of data

Data is vital for providing services that meet the needs of citizens. However, the strategy emphasises that the government must earn the public’s trust in managing data safely, securely, and ethically.

Create shared platforms, components and reusable business capabilities

The government has already had some success in introducing shared platforms, such as GOV.UK – a publishing platform which brought together over 300 government agencies’ and arm’s length bodies’ websites within 15 months. The strategy outlines the steps to be taken to encourage the development of new technologies, including leaving large single contracts with IT firms – a practice which is deemed a barrier to providing better technologies for civil servants – and purchasing from a wider variety of suppliers, such as SMEs.

From digital to transformation

It’s important to note that the strategy’s title has changed: from a digital strategy to a transformation strategy.

Jane Roberts, strategy director at Kable, suggests that this reflects the government’s realisation that digitisation is not a process with a defined end date, but a ‘constant dynamic ongoing process.’ Government, says Roberts, now understands that digitisation involves more than just moving services online, and that whole scale change is needed, from encouraging civil servants to work more collaboratively (including sharing cross-governmental data), to digitising back office processes.

In addition, Roberts also highlights the need for digital services to be designed to cope with this dynamic process. This includes supporting the integration of new technologies – particularly those related to the Internet of Things (the use of internet technology to connect everyday items) – and responding to increased citizen demand for greater control over their personal data.

What does it mean for local government?

The Government Transformation Strategy makes no comment on the challenges facing local government. However, London Borough of Camden councillor, Theo Blackwell, suggests that the strategy leaves scope for a ‘digital settlement’ to be developed between central and local government. He observes that the strategy:

leaves the door open for this discussion to be starting and concluded in short order, kickstarted by elected mayors and combined authorities in May 2017, and building on the groundwork of the last two years”.

Mr Blackwell also sets out what needs to be done to achieve this digital settlement:

  • Support the ‘coalition of the willing’, as well as improvement – encouraging local councils who have already made progress with digital transformation to work together, as well as helping struggling councils to improve;
  • Open platforms and a new market for start-ups – enabling the development of platforms and smaller start-up companies;
  • Shared Resource – developing partnerships between local councils and central government, which fund digital initiatives jointly.

Missed opportunity

The strategy has also received a significant amount of criticism for its lack of detail and limited commitments. Independent digital analyst, Jos Creese, has described the strategy as:

“…a mix of re-packaged principles and refreshed ‘transformational government’ themes, coupled with some new but not revolutionary ideas.

Creese argues that there is a general lack of pace with government programmes, such as with GOV.UK Verify – an identity assurance platform that allows people to prove who they are when using government services. And – unlike Theo Blackwell – Creese believes that the lack of collaboration between central government and the wider public sector is a missed opportunity (particularly as 80% of public services are outside central government). In his view, the strategy should have addressed some of the fundamental challenges facing local services, such as healthcare and crime prevention.

Final thoughts

Although the Government Transformation Strategy has received a mixed response since it was first published, there are certainly positives which provide hope for the future. Firstly, it was important that the strategy was finally published to provide a clearer indication of the government’s future direction.  Secondly, in the coming months, the government will have the opportunity to provide greater clarity, and set out how they intend to achieve the praiseworthy objectives of the strategy and realise the full potential of digital transformation.


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Slow by default: achieving digital transformation in the complex world of local government

City Hall, London

By Steven McGinty

Bringing local government into the 21st century is fraught with well documented challenges. In 2015, the Department for Communities and Local Government (DCLG) carried out a survey into local government leaders’ views on digital transformation. The research identified six key barriers to digital adoption:

  • Legacy systems and ICT infrastructure
  • Lack of development funds
  • Unwillingness to change / non-cooperation of colleagues
  • Lack of in-house digital skills
  • Culturally uncomfortable for the organisation
  • Supplier inflexibility

However, there have been signs we are heading in the right direction. LocalGov Digital, a network of digital practitioners in local government, published a common approach for delivering services – an issue we discussed on our blog in June. Their hope is that this new standard (known as the Local Government Digital Service Standard) will support the sharing of good practice and lead to better public services.

In addition, many councils are involved in pilot projects and introducing new services.  For example, Cambridge City Council have launched Cambridgeshire Insight, a shared research knowledge base which allows over 20 public and third sector organisations to publish their data and make it freely available. We have also seen 18 councils coming together to collaborate on a project which aims to keep electoral registers up-to-date, potentially saving £20 million a year.

Over the past year, commentators have provided their views on what’s holding back digital transformation in local government. Below we’ve highlighted some of these.

Digital inclusion

At a TechUK event in November, Labour councillor for Harrow Council, Niraj Dattani, argued that councils should ‘aim for digital first and think about digital exclusion later’.

He suggested that if local government focused too much on the 15% of people who can’t access services, then, ultimately, nobody will have access to better services. In his view:

It’s better to serve the 85% than serve nobody at all

Theo Blackwell, Labour councillor for Camden Council, supported this view, and although he acknowledges there are legitimate digital exclusion concerns, he argued this should not limit innovation. In his blog article, ‘Scaling digital change for better public services — reflections on UK local government digital strategies’,  Mr Blackwell also expresses his fear that council leaders are setting the pace of digital transformation by their digital inclusion priorities.

However, it’s likely that organisations who advocate greater digital inclusion, (such as the Royal National Institute of Blind People (RNIB) – who have challenged local authorities to improve accessibility), would disagree with this approach.

Interestingly, Mr Dattani emphasises that digital exclusion cannot be solved by one service or one local council, but requires cross-government collaboration.

Local leadership

Stephen Curtis, head of The Centre of Excellence for Information Sharing, has suggested that public sector leaders are ‘holding back digital revolution’. He explained that with digital transformation, technology is less important than the vision and leadership provided by senior officials. Encouraging data sharing across organisations, empowering employees, and importantly, investing in digital services, are just some of the key ingredients.

Similarly, a council chief executive has suggested that the public sector lacks people with the necessary skills to lead digital transformation. He highlighted that in many cases, anything to do with digital is given to the head of IT. As such, digital projects are often poorly planned and systems which are not fit for purpose are being digitised, when a radical rethink of a whole service is needed.

National leadership

In the March 2015 Budget, former Chancellor George Osborne confirmed that there would be a role for the Government Digital Service (GDS) in helping local government achieve their digital transformation ambitions (the success of which is up for debate). However, in Philip Hammond’s most recent Autumn Statement, there was no mention of local government.

In a recent blog article, Theo Blackwell, argues that this omission should be corrected in the upcoming Government Digital Transformation Strategy and the 2017 Budget. In his view, central government, including the GDS, have an important role to play in supporting local government. He also highlights that a coherent digital strategy has not been included in any of the agreed devolution deals.

Fear over job losses

One of the major challenges highlighted for implementing artificial intelligence (AI) is the fear over a reduction in jobs.  However, Richard Sargeant, Director of ASI Data Science, suggests this isn’t necessarily the case. In his experience, AI will usually be used for tasks that are repetitive and that most staff members don’t enjoy. Staff can then be re-targeted to areas of work best suited to people, such as human interaction, making complex decisions or thinking creatively.

Security concerns

High profile data breaches – such as the 13,000 email addresses stolen from Edinburgh City Council’s database in 2015 – are one of the main concerns for local government.

However, Martyn Wallace, new chief digital officer for 28 of Scotland’s local councils, argues that local authorities need to move away from their negative thinking on this issue. Although he acknowledges the potential harm which could come from a data breach, he emphasises the need to focus on the facts and to take an ‘appropriate view’. For him, if you have appropriate security measures, then there is no reason why security fears should limit your digital progress.

Final thoughts

Although digital change requires overcoming a variety of challenges, such as those highlighted here, the opportunities they present have the potential to create efficiencies and provide better public services. Achieving digital transformation won’t be easy, but, by building partnerships with central government and the private sector, local councils are more likely to make a success of it.

Despite the prospect of Brexit and ongoing budgetary pressures, investing in digital transformation is not an option for local government, but a necessity.


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Government as a Platform: a new way of thinking about digital transformation

Multi-coloured blocks on the table, with a green dinosaur

By Steven McGinty

The term ‘Government as a Platform’ (GaaP) was coined by Tim O’Reilly, a technology entrepreneur and advocate.

The Government Digital Service (GDS), the body responsible for UK Government digital transformation, has started to introduce ‘platform thinking’ to government services. However, according to a survey carried out in February, three-quarters of civil servants hadn’t heard of or didn’t understand ‘Government as a Platform’. This may be concerning for government, whose efficiency programme greatly relies on successful digital transformation.

On the blog today, I’m going to reflect on the concept of ‘Government as a Platform’, as well as outlining its adoption in the UK.

The ‘gubbins’ of government

Mark Foden, an organisational change strategist, explains the platform-based view of government in a simple (and humorous) video.

In his view, government has traditionally been made up of independent departments, providing services such as benefits, pensions, and tax. These services use bespoke technology provided by large technology companies, over long contracts.

However, the platform based-view is different. He illustrates this by splitting a government department into three sections:

  • Levers and dials – the part of the service the user interacts with (e.g. websites and mobile apps)
  • ‘Gubbins’ – in simple terms, it’s the common capabilities (e.g. checking identity) and the bespoke services (e.g. calculating tax) that government services need to function
  • Machinery – the fundamentals of technology (e.g. mainframe computers, storage, and databases)

Foden explains that a key element to platform thinking is the ‘gubbins’ section. Advances in technology now make it possible to untangle these ‘gubbins’ government services, without affecting others. In practice, this means that common capabilities used by government, such as making payments or checking identity can be developed and used across departments. Websites can also be shared to create consistency across government digital services – a sort of ‘brand government’. This approach limits the number of bespoke services developed in ‘silos’ (or within departments).

Additionally, having this separation between common capabilities and bespoke services also presents opportunities to involve a greater number of suppliers.

Potentially, this approach could be worth £35 billion in savings across government.

Organising Government as a Platform

Mark Thompson, senior lecturer in information systems at Cambridge Judge Business School, suggests three principles to enable Government as a Platform to succeed:

  • gradually moving towards more common capabilities and reducing departmental bespoke services
  • developing common capabilities across the public sector must be a priority for digital transformation
  • optimising the relationship between common capabilities and bespoke services within government departments

The UK approach  

GDS

A widely used definition by the GDS is that digital government should include:

 “a common core infrastructure of shared digital systems, technology and processes on which it’s easy to build brilliant, user-centric government services.”

GOV.UK was the first attempt to transform how the UK does government. Launching in 2012, the publishing platform brought together over 300 government agencies and arm’s length bodies’ websites within 15 months. Replacing DirectGov and Business Link alone saved more than £60m a year. Early testing also showed GOV.UK was simpler for users, with 61% completing tasks on the new Business Link section; compared to 46% on the old website.

GOV.UK Verify has also been introduced – an identity assurance platform which allows people to prove who they are when using government services. The common service is the first of its kind and is being used by organisations such as HM Revenue & Customs (HMRC) and the Department for Environment, Food & Rural Affairs (DEFRA) to build new services.

More recently, GOV.UK Notify, a service which sends text messages, emails or letters, has sent notifications to its first users. GOV.UK Pay also just secured compliance with the Payment Card Industry (PCI) Data Security Standard.

NHS

Although the GDS have taken the lead on platform thinking, the NHS launched NHS Jobs, a shared recruitment service, in 2003. The service has been remarkably successfully, generating over £1 billion in savings.

Mark Thompson suggests this is because of its platform approach. The Department of Health (DoH), working alongside Methods Consulting, convinced over 500 NHS employers to give up their own recruitment services and to make use of this common capability. The website is the biggest single employer recruitment site in Europe, with one unique visit every two seconds. The service has also become a valuable commodity with suppliers willing to provide the service at near cost, and compete on providing innovative services. The creation of this high quality recruitment service has therefore become a spur for innovation – something which is at the heart of Tim O’Reilly’s work on Government as a Platform.

Local government

Adur and Worthing council have recently taken a platform approach to their digital transformation. Paul Brewer, digital lead for the council, notes that it was struggling on several fronts, including IT outages and systems replicating inefficient paper-based processes.

To solve this problem, the council went through a capability mapping exercise. They identified departments which had common functions, such as undertaking case management, taking payments and booking appointments for customers. With this roadmap, they developed a CRM system to manage customer interactions (including social media), and purchased a platform which supports the creation a range of new IT products. The new approach enabled the council’s waste management service to support full mobile and remote working. Within a year, the department saved £20,000 on software and the equivalent of 1.5 staff members.

Interestingly, the council did not built their own platform, on the GDS model. Nor did they purchase an inflexible technology. Instead, they chose a third way by purchasing the building blocks of capability, and controlling where the capability was slotted in.

Final thoughts

The lack of knowledge about Government as a Platform within the civil service is somewhat disheartening. However, the GDS has introduced many new approaches to government and shown practically how they can work. Projects such as GOV.UK and GOV.UK Verify have been well received and countries such as New Zealand have looked towards the UK for their own digital transformation.

In August, the UK was ranked as global leader for e-participation on the United Nations E-Government Survey, ahead of Australia and South Korea.


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Digital Greenwich: a local council approach to smart cities

By Steven McGinty

According to research by Lucy Zodion, a leading designer and manufacturer of streetlighting equipment, smart cities are not deemed a priority for local government. The findings show that 80% of local authorities have little or no involvement with smart cities, and that only a few had specific teams managing smart city initiatives.

The research explains that the challenging financial environment was the main reason for the lack of prioritisation. However, it also finds despite funding challenges, some local councils have been successful at introducing initiatives, through working in partnership with private organisations and universities and encouraging local businesses to participate in developing solutions.

On our blog today, we’re going to look at the Royal Borough of Greenwich, a local council quietly leading the way in the smart cities revolution.

Greenwich Smart City Strategy

On the 22nd October 2015, Greenwich council officials launched their smart city strategy at the Digital Greenwich hub. Denise Hyland, Leader of the Royal Borough of Greenwich, outlined the council’s reasoning for investing in technology, explaining that:

In the face of the rapid increase in the borough’s population and in the face of globalization and technological change, we have to invest in the future and face these challenges head on, right now.”

The strategy introduces four key principles:

  • Inclusivity – the strategy will benefit all citizens, communities and neighbourhoods.
  • Citizen centric – citizen engagement will be transformed to ensure citizens are at the heart of policies and that their needs are met.
  • Transparency – citizens will be informed of changes and desired outcomes and accessible information will be provided to all citizens.
  • Standards and good practice – the Royal Borough of Greenwich will become a ‘learning organisation’, willing to listen and share ideas, and using evidence to inform decision-making.

The strategy also explains that it will transform four main areas:

  • Transforming Neighbourhoods and Communities – the council will reach out to the Boroughs diverse communities, including strengthening links with key organisations to improve the quality of life for citizens, and introducing projects to reduce digital exclusion and promote digital skills.
  • Transforming Infrastructure – the council will improve fixed and mobile connectivity in the Borough and encourage the widespread use of sensors in the built environment, to provide the building blocks for smart city projects.
  • Transforming Public Services – innovative pilot projects will be introduced to help ensure public services are co-ordinated and citizen-centric.
  • Transforming the Greenwich Economy – many jobs in Greenwich’s economy are vulnerable to automation, therefore the council will look to make businesses more resilient to technological change, as well as encourage the development of digital SMEs.

Bringing together the right team

Digital Greenwich has been established to develop and take forward Greenwich’s smart city strategy. The in-house, multidisciplinary team, provides expertise in the areas related to smart cities, such as the modern built environment, implementing Government as a Platform, and economic regeneration in the digital age.

The team will play an important role in shaping thinking, managing pilot projects to mitigate the risks of innovation, and ensuring that the council’s strategy is aligned with emerging practice.

 Partnerships

The ‘Sharing Cities’ Lighthouse programme

The ‘Sharing Cities’ Lighthouse programme is a €25m project, which involves cities from across Europe investigating how innovative technology can be used to improve the lives of citizens. As part of this programme, Greenwich will act as a demonstrator area and trial several initiatives, including:

  • introducing 300 smart parking bays to help drivers find parking quickly and conveniently
  • developing a shared electric bicycle and car scheme to reduce the number of citizens using private cars
  • installing solar panels in local homes to improve energy efficiency
  • using the River Thames to provide affordable heating for local homes.

Digital Greenwich and Surrey University

On 27th July 2016, Digital Greenwich and the University of Surrey set up a partnership to develop smart city technologies, with a focus on creating ‘resource-efficient, low-carbon, healthy and liveable neighbourhoods’.  The Digital Greenwich team will now have access to the university’s 5G Innovation Centre (5GIC), which will enable it to develop and trial smart city solutions. The university have highlighted that the centre’s 5G infrastructure (the next generation of communications technology) will provide the opportunity to scale solutions to a city or national level.

The university’s 5GIC is funded by a £12 million grant from the Higher Education Funding Council.

Leader of the Royal Borough of Greenwich, Denise Hyland, commented that the new partnership will act as a ‘valuable catalyst’ to their smart city strategy and help strength the Borough’s economy and improve services.

Involving industry

GATEway (Greenwich Automated Transport Environment)

GATEway is a collaborative project involving academia, government and industry in the field of automated vehicle research. It’s led by TRL, the UK’s transport research centre, and has several aims, including:

  • safely and efficiently integrating automated transport systems into real life smart city environments
  • inspiring industry, government and the wider public to engage with using autonomous transport technology
  • understanding the technical, legal, cultural and social barriers that impact the adoption of autonomous transport technology

One of the companies involved in the research (based at the Digital Greenwich Innovation Centre) is Phoenix Wings Ltd, who specialise in innovative mobility solutions, fleet management and autonomous vehicle technology. In 2014, they announced ‘Navia’, the first commercially available 100% driverless shuttle.

The GATEway project is funded by an £8 million grant by industry and Innovate UK.

Final thoughts

The Institute of Fiscal Studies (IFS) have highlighted that local council spending power reduced by 23.4% in real terms between 2009–10 and 2014–15. This is clearly significant, particularly when there is pressure to meet greater demands.

However, to conclude, we’ll leave you with the comments of Professor Gary Hamel, a leading management expert,

My argument is the more difficult the economic times, the more one is tempted to retrench, the more radical innovation becomes the only way forwards. In a discontinuous world, only radical innovation will create new wealth.”


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The public-private sector: working in partnership to create innovative digital solutions

By Steven McGinty

When most people think of public-private sector technology collaboration the word ‘controversy’ isn’t too far behind. High profile failures such as the Home Office’s immigration computer system (which cost the taxpayer £224 million) and NHS Connecting for Health (which cost £9 billion over 10 years), have made both the public and politicians wary of investing in large-scale digital projects.

So, it wasn’t too surprising when the Cabinet Office announced in January that it was conducting a review of government IT contracts.

 Why do digital projects fail?

In 2003, the Parliamentary Office of Science and Technology published a report outlining the key reasons why digital projects struggle to meet expectations:

  • Fast moving technology – technology differs from other projects in that advances are so rapid that technologies can become obsolete by the time a project is complete.
  • Defining requirements – a study by the British Computing Society found poor management of requirements as the main reason for failure of the Home Office’s immigration system.
  • Complexity – IT projects can be complex, and it’s not always possible to estimate the full extent of the difficulty of a project.
  • Oversight – staff can find it difficult to judge the success of project during its development (particularly non-technical staff).
  • Interoperability – IT projects generally involve different systems. It can be challenging to ensure that these systems interact, particularly if no plan has been developed.
  • Limited skills – many software developers do not have formal qualifications and there is a shortage of senior developers to undertake projects.

Why should the public-private sector collaborate?

In a recent interview with Business Voice, Stephen Foreshew-Cain, Government Digital Service (GDS) executive director, explained his views on the private sector. He stated:

I want the private sector to understand that we are open for business and we need suppliers as part of the ecosystem

In some respects, Mr Foreshew-Cain was addressing his remarks to those involved in the digital sector interested in new opportunities. But he understands that the government cannot achieve digital transformation on its own, not just because of the rapid changes in technology, but also the challenges in recruiting the right skills. For instance, the traditionally long recruitment process in the civil service can act as a barrier when digital skills are in high demand.

He also suggests that ‘insourcing’ (only developing projects within the public sector) is not the way forward, and that government should be tapping into the UK’s world leading digital sector.

Digital Marketplace  

The GDS has created the Digital Marketplace, an online platform which aims to make procurement as simple and fast as possible for the public sector and suppliers. In his interview, Mr Foreshew-Cain explained that the marketplace allows the public sector bodies to access the skills and services they need, whilst providing digital innovators with an opportunity to grow and develop their ideas, in a way that directly benefits the government.

He also highlighted the success of the Digital Marketplace, with over £1 billion in contracts being awarded, including over half to small and medium-sized enterprises (SMEs).

Key factors for successful collaboration

Rob Lamb, Cloud Business Director at the EMC multinational data storage corporation, has outlined a number of actions that the UK must take to benefit from digital technology. These include:

  • Information – It’s important that technology is more than just websites, and that data is used to provide meaningful insights to business and the public sector.
  • Clustering experts – traditional organisations and digital innovators need to be given opportunities to collaborate to solve problems and share good practice.
  • Government role – public sector organisations should embrace new technologies, open up as many data sets as possible, as well as introduce a framework for data analytics (so customers can be assured that data is being managed appropriately).

 Innovative practice – Civtech

In July 2016, the Scottish Government announced the launch of Civtech, a pilot project which encourages entrepreneurs, start-ups and small and medium-sized businesses (SMEs) to develop innovative solutions to public sector problems.

Unconventionally, the tender does not include pre-determined solutions, instead opting to pose six open questions, known as ‘challenges’, and inviting participants to provide answers. These include:

  • How can we get health and social care data and analysis to the widest possible audience?
  • How can we make our data publications more accessible and appealing?
  • How can we use technology to design smart roads?

The project involves a number of stages, including the ‘exploration stage’ where sponsoring public sector organisations work with teams to develop their solutions. At each stage funding is available, with companies keeping their own intellectual property and equity.

This approach may provide a viable alternative to the more traditional methods of procuring digital services.

Final thoughts

Public-private sector collaborative projects fail for a number of reasons. However, if the public sector is to progress with digital transformation, it must allow the private sector to play active role in the ‘eco-system’. The real debate going forward should focus on how we address challenges and provide the environment for successful public-private sector collaboration.


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Digital Economy Bill – the impact of Brexit

By Steven McGinty

On the 18th March, the Queen’s Speech set out the government’s legislative programme for the year ahead. This included the Digital Economy Bill, a piece of legislation which aims to ensure the UK is a world leader in digital provision.

However, as former British Prime Minister Harold Wilson once said ‘a week is a long time in politics’. The UK has unexpectedly voted to leave the European Union (EU). The Prime Minister has stood down, leaving a leadership contest in the Conservative Party. And many are uncertain about the future direction of the country.

In this article, I’ll outline the Digital Economy Bill, highlight some of the early commentary, as well as comment on the new political landscape the Bill now finds itself in.

Digital Economy Bill

The Digital Economy Bill focuses on five main areas. These include:

Fast broadband

The Bill introduces a ‘Broadband Universal Service Obligation’, providing all citizens and businesses with the legal right to have a fast broadband connection installed (of at least 10Mbps initially). This is similar to the telephone landline obligation which currently exists.

There is also an emphasis on cutting the costs and improving the processes for building broadband infrastructure. However, at this stage, there is very little detail on how this might be achieved, apart from introducing a new Electronic Communication Code and making changes to the planning system.

Consumers

New powers will be given to Ofcom, the UK communications regulator, which will enable them to request data, such as broadband speeds data, which will help consumers in choosing a provider. The Bill also attempts to make it easier for consumers to switch provider and to receive compensation when things go wrong.

Data sharing

Public bodies will be given powers to share information in an effort to combat fraud, which costs the country billions every year. For example, the cost of tax fraud was estimated to be £15 billion in 2011. Other notable measures include encouraging the use of data to provide better public services and identifying and helping people with debts at an earlier stage.

Intellectual property rights

The new Bill recognises that it’s important to support digital industries by addressing the difference in online/offline copyright laws. In addition, the process of registering copyright should be easier and cheaper.

Unsolicited Marketing

Consumers will be given further protection against spam emails and nuisance calls.

Early commentary  

TechUK, industry body for the digital sector, has welcomed the new Bill, highlighting that if implementation is successful, the measures will play an important role in growing the UK’s digital economy. They do, however, note the need for careful consideration when making changes to the planning system and the Electronic Communication Code, alongside stressing the need to ensure changes to copyright law are technically feasible.

Geoff French, chairman of the Enterprise M3 Local Economic Partnership, has also welcomed the advantages the new Bill could bring to business. He highlights that there are still too many urban and rural areas that have low broadband speeds, affecting the growth of the digital economy, as well as the innovation, productivity and competitiveness of the wider economy.

Brendan O’Reilly, Chief Technology Officer at O2 UK, suggests that the planning system needs to be streamlined to allow the expansion of the network. He explains that the process of deploying a mast can take up to three years from start to finish. To emphasis his point, he contrasts the situation in the UK with that in South Korea, where three months to deployment of a mast is considered a long time. And although the new Bill may provide for this change, he highlights the need for collaboration between government and industry, and to think more of ‘UK plc’.

Landowners, however, have been less positive about the new Bill. Under new proposals, landowners would receive ‘compensation’ for masts located on their property; as opposed to the current system where they receive ‘market rate’. As Strutt & Parker telecoms specialist Robert Paul explains, this could mean landowners who used to receive £7,000-£8,000/year, would instead receive £200-£300/year, if classed as compensation. Mr Paul suggests that this could result in landowners taking their case to tribunals, with the result being expensive and time consuming legal challenges to the deployment of masts.

The elephant in the room – Techxit?  

Before the referendum result was announced, Ed Vaizey, UK digital economy minister, stated that there would be a ‘significant economic impact’ if we voted to leave the EU, with uncertainty affecting investment decisions in the UK.

Although it’s too soon to comment on whether this is the case, there has been some notable reaction since the UK voted to leave the EU. Firstly, Ed Vaizey has stated that progressing the Digital Economy Bill will not be delayed as a consequence of the result. However, unconfirmed reports (reported in the media) have suggested that the Bill may have to have its contents altered.

The Economist Intelligence Unit reports that the telecoms industry has been negatively affected by the result, with revenue forecasts being reduced from 29% to 23% by 2020. They highlight, though, that the Digital Economy Bill is still likely to contain regulation that supports increased investment, and that Brexit may even lead to a more favourable investment environment. Yet, the EIU also notes that other broadband targets, such as the elimination of rural ‘not-spots’ may be deemed less important.

At the moment, the reforms in the Digital Economy Bill are still on the agenda. But it’s not clear how future changes will affect its progress. For instance, issues such as the free movement of skilled professionals, the UK’s position in the single market, and the impact on investment for start-ups are all sources of uncertainty.

The Knowledge Exchange will monitor the Bill’s progress as it receives parliamentary scrutiny.


The Digital Economy Bill was introduced into Parliament on 5 July 2016.

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Now we’ve got a Local Government Digital Service Standard … what now?

By Steven McGinty

After two months of consultation and the input of more than 60 councils, the final Local Government Digital Service Standard was published in April.

The standard, introduced by practitioner network LocalGov Digital, aims to provide a ‘common approach for local authorities to deliver good quality, user centred, and value for money digital services’.

According to Phil Rumens, Vice Chair of LocalGov Digital, the new standard provides a “big step forward” for local government digital services. He also highlights that it not only helps create better services, but enables this in a more joined up way.

In total, there are fifteen standards, including:

  • Understand user needs. Research to develop deep knowledge of who the service users are and what that means for the design of the service.
  • Ensure a suitably skilled, sustainable multidisciplinary team, led by a senior service manager with decision-making responsibility, can design, build and improve the service.
  • Create a service using the agile, iterative and user-centred methods set out in the Government Service Design Manual.

Differences from the Digital by Default Service Standard

Many will have welcomed the collaboration between LocalGov Digital and the Government Digital Service (GDS), the body responsible for digital transformation in central government. During the consultation stage, the GDS hosted a workshop with participants from over 30 local councils.

The Local Government Digital Service Standard is also heavily based on the GDS Digital by Default Service Standard, with only a few notable differences. For instance, in the local government standard, accountability for digital services lies with the appropriate council member or a senior manager responsible for the service, rather than a government minister (which is the case with the GDS standard). The local government standard also includes an additional requirement to re-use existing authoritative data and registers and to make data openly available.

 Will local councils adopt the new standards?

Local government is under no legal obligation to implement the Local Government Digital Service Standards. Gill Hitchcock, reporter at Public Technology.net, suggests that, although the standards look like a great initiative, they may lack the teeth to have any real impact.

Interestingly, in a recent interview, Phil Rumens appears to agree with this sentiment, highlighting that LocalGov Digital need to make the case for the new standards. He explains that regional peer networks will be created to allow councils to share their experiences of implementing standards and to promote their value to digital leaders. In September, a ‘standards summit’ will be held, bringing together local councils who have adopted the standards and the GDS.

TechUK view

TechUK, the industry body for the technology sector, has voiced support for the underlying principles of the new Local Government Digital Service Standard, and said it’s been encouraged by the involvement of GDS in the initiative.

However, techUK have highlighted their concerns over the wording of one particular standard:

Where possible, use or buy open source tools and consider making source code open and reusable, publishing it under appropriate licences

They contend that this goes against the government’s policy of creating a level playing field, and could lead to unintended consequences for SMEs trying to work with local government.

Jos Creese’s view

Jos Creese, an independent IT consultant and the man described as the ‘most influential and innovative UK Chief Information Officer’ by CIO UK, has written a briefing on the need for local GDS standards.

Similarly to techUK, Jos Creese welcomes the new local government digital service standards. Yet, he also highlights their limitations, noting that they are primarily focused on on-line transactions and channel shift (encouraging people to make use of digital services) and that they don’t consider the difficult issue of information flows across local public services.

For him, standards need to be accompanied by some form of practical guidance, and they must address ‘digital by design’ challenges, including digitising the high cost, high value, ‘relational services’, such as adult care, safeguarding, and adoption services.

In his concluding comments, he states that introducing standards may not be enough to transform services and that local government must consider outcomes, rather than just the methods used to develop services. He provides examples of suggested outcomes, including:

  • take up of digital services relevant to target user base
  • satisfaction of service users and reduced complaints
  • lower operating costs and greater measurable efficiency of operation
  • integration and linkage of related transactions, services and information

‘Digital Council of the Year’ – Wigan Council

This year, Wigan Council has been recognised by the Digital Leaders’ 2016 Awards for their successful digital transformation. Their new website provides a seamless user experience and services such as the Report It app and MyAccount have revolutionised the way residents interact with the council.

They have also been commended for their attempts to tackle digital exclusion by helping hundreds of residents, including the elderly, access the internet.

Additionally, the council’s strategy has focused on supporting business through introducing superfast broadband, encouraging businesses to build efficient websites, and funding digital apprenticeships.

Final thoughts

The new Local Government Digital Service Standard is a step in the right direction and provides a basis for developing good quality, cost-effective and user-centred digital services. There are, however, still many challenges that local government needs to face as they progress with their digital transformation journeys.

Wigan Council shows that when you put the ideas of the new standard into practice, it is possible to create excellent digital services that benefit residents and business.


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Digital – making the case for investment within local government

By Steven McGinty

In March, a report by Nesta and the Public Service Transformation Network suggested that local councils could save £14.7 billion by going ‘digital by default’ by 2020, i.e. moving all transactional services online and digitising back office functions.

However, this is not the first report to highlight the potential savings in going digital. In 2015, the Policy Exchange think tank published a report outlining how £10 billion could also be saved by councils by 2020, if they made smarter use of data and technology. Similarly, the Local Government Association (LGA) has published guidance on the benefits of digital technologies for councils, including financial savings.

All these documents make the positive case for digital. Yet, as discussed in a previous blog article, local government is still lagging behind when it comes to implementing new technologies. Jos Creese, Chief Information Officer (CIO) at Hampshire County Council and Chair of the Local CIO Council, explains that:

It’s doubtful if any local authority is not making savings from digital investment. The challenge is being able to quantify savings.”

This suggests that if local government is ever going to achieve its ambition of becoming ‘’digital by default’, then attempts must be made to evaluate projects, to develop a strong evidence base, and to share examples of best practice. Below I’ve highlighted some projects which provide a strong case for investment.

Manchester City Council

In 2012, Manchester City Council decided to create a more responsive ‘mobile first’ website that citizens could access from free Wi-Fi spots around the city via smartphones and tablets. The website was developed by an integrated team comprising IT and marketing staff from Manchester City Council, and developers from the supplier. From the beginning, the team reviewed how people interacted with the council, such as how they asked for services and how they reported problems. The website was tested by members of the public, as well as accessibility experts and representatives from organisations representing blind and partially sighted people.

This website redesign has led to Manchester City Council saving £500,000 in the first nine months and winning a European award for website design and functionality.

Nottingham City Council

Nottingham City Council has introduced a workflow management app, replacing an inefficient paper-based system. The new app allows staff from customer services, highway inspectors and response teams to enter faults, such as potholes or damaged street lights, directly into the system. It then automatically allocates the fault to the relevant inspector and, once the work is completed, digitally signs it off. Residents are also kept informed via updates, as the progress of the work is linked to the initial order raised.

The council has reported that the app has created £100,000 in savings in less than one year. In addition, the improved monitoring of productivity has led to 40% field efficiency savings and 60% back office savings in the Highways department.

London Borough of Camden

In 2013, the London Borough of Camden introduced a programme to create a single source of residents’ data. The Camden Residents Index (CRI) used a technological solution to match different types of data with individual residents (allowing the council to have a single point of view for each resident’s data).

The CRI has been used for a number of purposes, including detecting fraud and managing the electoral roll. For instance, the index was able to identify 752 council properties that could have been illegally sublet. The council estimated that a quarter of these properties were reclaimed, saving approximately £18,000 per property and £3.4 million in total. The CRI was also able to validate 80% of data from the electoral roll (which is higher than the 50% rate of the Department for Work and Pensions, which usually validates the council’s electoral data). This increased match rate resulted in less manual checking, which saved Camden council £25,000.

Poole County Council

Poole Borough Council has recently moved towards using cloud-based services. They highlighted three main drivers for this change: complying with the Cabinet Office’s Cloud First Directive; improving the agility of services; and making the necessary savings to the information and communications technologies (ICT) budget. The move has already saved the council £60,000; with an additional £750,000 worth of savings possible over the next three years.

Conclusion

Local council leaders may be anxious about making the case for investment, but investing in digital should be considered as a necessity, rather than a luxury, for meeting growing citizen demands with fewer resources.

These are just a few, of the many examples, of how local councils have benefited from digital transformation.


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Further reading: if you liked this blog post, you might also want to read our other posts on digital