Capturing the real value of process digitalization in public service
Niklas Scipio
From Strategy to Execution: M&A, Tech & Business Transformation / Clients: Investors, Fortune 500 Executives, Consulting Leaders, Mittelstand & Family-owned Businesses, Scaleups (NA, EMEA, APAC)
Capturing the real value of process digitalization in public service
How State Ministries in Europe have the chance to enter the next level of digital supported processes?
As we embark on the further digitalization journey of state ministries in Europe, one can't help but think of it as a game of Tetris. Just like the colorful blocks in the game that need to be placed in the right order to create a perfect line, our processes require the right digital tools to fit seamlessly together.
But why bother with the digitalization of processes in state ministries? The answer lies in the data. According to a recent report by the European Commission, the digitalization of public services could save up to €50 billion per year. That is equivalent to the annual GDP of a country such as Luxembourg or Latvia.
But it's not just about saving money. Digitalization can also lead to increased efficiency and better service delivery - which is the core mission of a state ministry. Just like how a well-oiled machine runs smoothly, a well-digitized ministry can operate with ease. A study by the McKinsey Global Institute found that digitalization can increase productivity by up to 15%.
Of course, the digitalization journey won't be without its challenges. One wrong move and it could all blow up in our faces. But with careful planning and implementation, we can navigate our way to success. We require a clear strategy and critical thinking. We need to be forward-thinking and innovative.
There are several arguments why ministeries and their leaders benefit by focusing time and resources on screening of their processes and identifying and optimizing digitalization potentials right now.?Here are a few:
There are also risks associated with not focusing on digitalization:
Overall, it is crucial for ministeries to focus on digitalization to stay competitive, efficient, and secure, while avoiding the risks associated with not doing so.
The following 5-step framework can help to find a path to unlock real value for a state ministry.
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Step 1: Assess the current state of processes.
Before any digital transformation can take place, it's important to understand the current state of processes. This involves mapping out all existing processes, identifying pain points and wishes for the future, and assessing the level of automation and digitalization. This step will provide a baseline for ministries to measure progress and identify areas for improvement.
Step 2: Define goals and priorities.?
The next step is to define goals and priorities. Ministries should identify what they hope to achieve through digitalization, such as increased efficiency, better service delivery, or cost savings. Prioritizing these goals will help ministries focus their efforts and allocate resources effectively.
Step 3: Identify digitalization opportunities.?
Once goals and priorities have been defined, ministries can start identifying digitalization opportunities. This could involve automating manual processes, implementing digital tools, or integrating data analytics. Ministries should consider both short-term and long-term opportunities and evaluate the potential impact of each.
Step 4: Develop a roadmap with digitalization opportunities.?
Ministries can develop a roadmap for implementation. This roadmap should outline the steps required to achieve digitalization goals, including timelines, budgets, and resources. It should also consider potential risks and challenges and include contingency plans.
Step 5: Monitor progress and adjust as needed.?
As implementation begins, it's important to monitor progress and adjust as needed. Ministries should establish key performance indicators (KPIs) to measure success and regularly evaluate progress against these KPIs. This will enable ministries to make data-driven decisions and adjust their approach as needed to ensure success.
By following these steps, ministries can understand the state of the art of their processes and find the right path to unlock value for themselves and their citizens.?
Some KPIs can help to measure the efficiency and effectiveness of digitalization efforts in processes. For example:
The game of digitalization may seem daunting, but with the right framework and mindset, ministries can successfully navigate their way to success. It's as always all about getting started, with the right approach to get to great results.