Local Government 2018 Technology Priorities and Predictions

Prepared for Socitm by Jos Creese, digital advisor

Introduction

Each year I write some IT-focused predictions for the coming year, in the context of the public sector - especially local authorities. This is particularly about technology change, and the impact on public services looking ahead.

Lots of people make predictions at this time of year, but they are often from enthusiastic geeks or agencies and suppliers with vested interests in their products. The best technology predictions should be based on common-sense and reality, such as:

•  The effect of legacy technology and practices – organisations cannot just jump on the latest technology band wagon without dealing with legacy issues.
•  Priorities are complex, especially in the public sector. Just because some new technology trend is obviously a good idea, does not mean it should be prioritised now now.
• Technology predictions are often optimistic: they are rarely as easy, quick, pain-free, low-cost, scalable, and risk defined as the pundits promise.
•  Most technology changes require cultural change to create digital transformation. Organisations that fail to understand this will underinvest in technology, or will fail to secure the potential value that technology can offer.

Many technology trends are also long term, not just for the next year. Last year, for example, I predicted the growing impact of cyber risks and the opportunity of automation. Both will remain trends for some years to come, with the need for organisations to invest more in the skills and technologies to manage risks and benefits.

This article is not just about predicting technology trends – it is as much about seeking to help councils consider how they should plan to realise digital potential in the coming year.

It seeks to be realistic, countering the populist arguments from some punters that public sector CIOs are, as a group, too slow to adopt technology innovation. This is, in my view, lazy journalism perpetuating past myths, or a deliberate attempt by those with other interests (privatisation or technology sales) to encourage spend where it is not always needed.

Nonetheless, some councils are well behind the curve and are, despite legacy and financial constraints, too reticent to adopt new technology and implement more radical change in a move to digitally designed services. This article is especially for them.

 Context Matters

The public sector should be looking at technology as an opportunity for dealing with many of its ongoing pressures and challenges. These are the areas that I hope will define digital priorities for councils. For instance, to list but a few:

 ·        Growing demands for digital services and expectations of joined up solutions provided digitally. Too many public services have been digitised in silos, with limited connections around life-episodes spanning public-sector boundaries. Failed national programmes and incoherent cross-government policies don’t help. For example, take health and social care. Despite a compelling business case, services are not joined up electronically between these two related areas in a seamless fashion. Even within the health service, digital silos exist in different departments, and there is a lack of a common digital foundation such as a single record identity key.

 ·        Growing risks of disruption through malicious or unintentional cyber-attack. We have seen ransomware attacks during 2017, and growing sophistication of national and international cyber-attacks. The public sector needs to consider how this threat will grow across new digital platforms and services, such as Internet of Things, automated systems and virtual reality avatars. Public services need to invest in new skills internally to define, manage and mitigate risks in new digital architectures, whether these are provided internally or externally. There is also a need to protect the public and review regulation in this area.

 ·        On-going cuts to public services. It is clear by now that cuts that started in 2010 are likely to continue. Simply continuing to cut services in response to reduced income will never solve the problem and could lead to a build-up of future burdens on councils. Not only does productivity need to increase, but new models of delivery need to emerge that involve communities, the private sector, and more commercial delivery. Digital design offers councils a chance to do this and to become increasingly independent of national government which is now focused on Brexit.

·        Devolution of services. This is more than just devolving services from Whitehall to local government, since it involves integration of services at a local level across a whole range of solutions provided by public, private and charity sectors. Shared services, data and teams will be essential to achieve the outcomes required, and digital solutions at a local level will be key. Not only do neighbouring councils need to work together better, sharing digital platforms and best practice, but the same is true across all local public protection – Health, Education, Social Care, Fire, Police and more. Never has there been a stronger need for councils to develop ‘smart places’ for the areas they represent.

 Brexit is also inescapable for local government and will have an impact for a few years from 2018. Although not as all-consuming as it is for Whitehall departments, it will require a review of a wide range of regulations overtime, especially in areas such as IT procurement, and in some services, there may be direct impact on workforces such as in social care. Greater automation, digitisation and improved handling of data and information will help to offset the burden. Councils that have made progress in creating ‘smart places’ (see Socitm research projects on this) will also help to mitigate the social and economic uncertainties in their areas, creating a basis for equality, regeneration, jobs and economic growth.

 Priorities and Digital Alignment

These are the sort of priorities that should be the focus for public-sector technology planning, and for local councils especially. Councils need to consider the wider implications of digital solutions beyond just cutting services.

 For example, it may be expensive to keep bus services operating, but without them issues of isolation, loneliness, community disengagement, congestion on the roads and frustration for young and old alike increase. Many might wish the cuts to rail services in the 1960s could, with hindsight, be reversed given road congestion today. The answer today is, of course, complex, but maybe in the future autonomous small bus services, especially in rural areas, may offer solutions; in which case, councils should be planning for that now.

 Notably, councils need to ensure that their digital and IT plans are fully integrated in their strategic corporate plans. Too often there is a disconnect – ‘digital’ becomes a separate plan associated with the corporate strategy, rather than an opportunity which defines new service models in all areas. As a result, IT plans are left to the IT department, with a focus on the management of existing technology and new IT possibilities, without a strong link to digital operation.

 Much of this is about cultural change. It is too easy to simply see IT as the main ingredient to digital, propelled by supplier pressure

 IT Leadership is Key

IT leaders may be frustrated if their main corporate board appear not understand the challenges that they face in IT, such as securing the opportunities from technology, whilst managing the risks from cyber disruption. They see a need for IT to protect the organisation from itself, rather than to empower it. This further alienates the IT role from digital programmes within local authorities.

 At the same time, the board sees IT as out of touch with technology opportunity, held back by legacy technology, thinking and policy, whether in-house or externalised. It has top be able to make a coherent case for greater (proportionally) investment in technology to support digital operation.

 Currently in Local Government only about 2% of revenue is invested in IT. As the sector becomes more data and systems driven, with reduced staffing and administrative overheads and greater automation, self-service and machine learning, this proportion of spend must increase. This needs technology potential to be seen as a business opportunity to transform and integrate, both across sectors as well as within councils. Until this happens nationally and locally, IT under-investment (and wasted investment) is a risk. Hopefully the case will be made, especially in areas such as Strategic Transformation Plans covering both Heath and Social care.

 The role of IT leadership is therefore clear for 2018 and beyond:

 ·        Ensure effective management of existing legacy and operational IT services, whether internal or external. This requires close communication with business leaders to understand opportunities, limitations, risks, and costs. IT needs to describe these in terms of business outcomes, not in terms of IT threats, features or costs, helping disentangle the interdependence of related priorities. This is about optimising existing IT estates, including a sensible rationalisation of legacy applications, policies, skills and practices in IT. It can’t all be done at once, so what is the best prioritised sequence to sell to the board for investment that unlocks IT capacity and capability?

 ·        Help the business to understand IT risks and potential to deal with the main pressures facing the organisation, with an understanding of the need for this. It requires close communication with business leaders to understand opportunities, risks, and costs and how these are best managed in the context of wider pressures. Given the importance of the digital agenda for councils, funding is not the issue for IT – it’s about making a case for investment and having the capability and competence to deliver (real and perceived).

 ·        Develop a clear mechanism for prioritisation and risk management.  IT often feels under pressure to please everyone and do everything – e.g. deliver new systems, improve old systems, meet the whims of directors, keep up with public and private sector exemplars. Just because there is a business case does not mean something is a priority. Most IT risks are a corporate responsibility, not just an IT responsibility and need to be corporate managed collectively. Take for example GDPR, which comes into effect this May. This clearly demands corporate investment and focus on information risk and opportunity. But it is also a chance to secure greater value from information, to increase trust in and digital engagement from the public, and to accelerate safe information interchange between related services. GDPR is an opportunity, not a regulatory overhead.

Technology......

So, let’s move to some areas of technology:

 Cyber security

If only we had a new title for this, since although it is beginning to be understood more widely, the broader definition of this activity and protecting public service organisations is not fully understood. It needs a dedicated internal leadership at the most senior level, well-informed with support from external professionals as necessary. It is also about linking technology risk and activity with business risk connectivity. I see growing trend for recruitment of specialists in this area and the development of apprenticeships across the public-sector. This is a role that could easily be shared across public service organisation at a local level, and it is as much about public trust and protection as it is about public service resilience.

 Cloud Adoption

Nearly a decade after cloud solutions first appeared, some councils are still hesitant in their adoption. But the benefits in terms of efficiency, productivity, modernisation, agility and unlocking legacy IT are so great all councils should review their approach to cloud adoption in 2018. It is a chance to rationalise software portfolios and to put in place intelligent policies to embrace cloud offerings, addressing concerns about security, sustainability and practicality. This includes seeing beyond supplier hype and avoiding the creation of a new legacy patchwork of cloud solutions, where access, interoperability and support become difficult. Security is largely about data integrity, accessibility and retrievability – which requires establishing appropriate credentials for cloud suppliers and a homogeneous approach to data and information management – a key criteria for GDPR compliance in any case

 Broadband, Mobile and Equality of Access

The UK has failed to secure great coverage in this respect over many years. Well over a decade ago the requirement of universal broadband access as a right was clear, and yet we have not been able to deliver. Many parts of the UK, urban and rural, still do not have good mobile coverage, with social and economic downsides as a result. Much could be solved easily, but it requires government regulation to mandate mobile providers to work together, and BT to invest more heavily in ‘not spots’ and perhaps less in the excitement of 5G coverage. Poor mobile coverage stunts economic growth and opportunity, and leads to inequality. Councils should prioritise any remaining dark spots, working with industry, communities and national government.

 Dealing with IT skills shortages

The demand for technology skills at all levels in the public sector is only going to grow. All councils need a clear digital skills strategy, including ensuring workforce diversity, if they are to exploit digital opportunity, and to be prepared to pay the going rate for new, highly sought-after skills. This includes consideration of digital leadership, specialist technology skills, and wider digital literacy in communities. Councils should prioritise IT apprenticeships, encouraging businesses as well as their own organisations to invest for the future of young talent. Shortfalls in areas such as business analysis, change leadership and cyber resilience should be prioritised, reducing the dependence on external consultants (like me!). Furthermore, despite a decade of trying to encourage more young people and women to join the IT profession, the fact remains that there is more to do - the proportion of women employed in IT has not budged much from 15%-17%. This requires government intervention and support – locally and nationally.

Digital Implies non-Silo Public Services

Digital delivery implies sharing platforms, processes, integrating teams, and sharing common functions. This is alien to parts of the public sector that have built a whole infrastructure around competition and control. New models of shared services are emerging that exploit the potential of digital, sharing information, systems and digital services where it is appropriate, typically on a geographical basis. This includes automation of whole supply chains, removing the need for any sort of professional intervention between user and provider. Councils need to consider the opportunity for digital sharing, not just to save money, but to increase capacity, resilience, innovation and ultimately better outcomes for citizens.

 Automation, Artificial Intelligence and Robotics

This has become a fashionable trend during 2017. In practice, deep adoption of AI and robotics will be a slow burn, despite the early adopters of avatars, autonomous vehicles and voice recognition systems such as Alexa. But we are seeing an inevitable removal of any last remaining manual activities that are better outsourced or automated, as well as the increasing encroachment of machine learning to supplement and, over time, to replace professional activities and judgements. Even today many council employees are working for machines which determine their priorities and rostering, and we are seeing ‘things’ becoming customers of public services, on behalf of citizens they represent. This will increasingly erode roles in Finance, IT, HR, Corporate Services, Legal, Procurement, Audit, in support teams and other areas. HR leaders should be considering their role in reshaping workforces for the future, and governments need to consider the tax implications of greater automation and fewer tax payers.

 Advanced analytics and data

All public services, and local authorities especially, are becoming increasingly data-driven. The focus on service delivery is reducing, as much becomes automated, outsourced or eliminated together and the key is ‘data intelligence’ to ensure services are provisioned efficiently and effectively, in timely fashion and in ways that anticipate needs and preferences. There is a huge opportunity to exploit the growing volume of data to better target resources and activities in the interests of both citizen needs and demands. Data intelligence linked across related public services, can ensure targeted detection, and intervention in a whole range of areas – troubled families, fraud, modern slavery, protection of children at risk, better use of resources, increased democratic engagement, health detection, crime and other risks. It requires a redefinition of both the function and activity of government, including a review of regulation and controls. But without appropriate planning, poorer families will be the worst hit as more jobs are automated, so creating new pressures on local government.

 Smart places

The idea that ‘smart’ should be focused entirely on ‘cities’ has been proved to be a supplier-lead myth. Of course, large urban areas are attractive for investment in technology, since the returns are greater and the risks lower. But the problems of congestion in our cities along with the starvation of some rural and smaller community areas which become no longer sustainable, can be addressed with a broader perspective on the potential of technology to transform whole areas. This lends itself to the role of local government, working with industry and research institutions to maximise the potential in stimulating social and economic well-being without and beyond our cities. Examples not only include the Internet of Things, but also autonomous vehicles and mobile/broadband coverage. However, it requires all councils to be enlightened in terms of the potential of digital not just to transform their own organisations, but also the areas within which they operate. This in turn requires an understanding that, by so doing, costs to local government will over time reduce.

 Virtual Reality and 4G TV

These are going to grow in importance during this year, as more streamed content becomes available at 4G quality. However, this will mostly be for the domestic commercial marketplace, and the extent to which they can be exploited by local government is questionable. Long term though, the value of video-based data as a business tool will increase, and high-quality streaming will be important in areas such as training, healthcare and support. VR will have a growing role in design and development of care services as well as support for housing and in other areas. Of course, it all depends on broadband and mobile coverage!

 Bitcoin, Blockchain and cryptocurrencies

This is becoming increasingly tempting as a potential investment for the future, with eye-watering returns recently. But, in my view, councils should be very wary of investing. Public money should be invested in relatively low risk and appropriately philanthropic sectors. Finance directors need to consider the portfolios of investment they oversee for new risks in the light of these enticing new offerings. However, the growth in the value and interest in cryptocurrencies is symptomatic of the pace at which technology disruption will continue to occur, and councils need to be prepared for this. Dominance of the large corporate IT players needs to be watched with care to ensure that the clash between public and commercial interests is kept in balance. Only governments can do this, and should perhaps consider their own alternatives to support regeneration and those who struggle financially.

 Blockchain is more exciting, but will take more than 12 months to become a significant part of council’s digital architecture. But it offers massive potential for the public sector in areas such as social care, identity management, financial control, cross-service integration of complex transactions.

 Commercialisation

We’ve heard a lot in 2017 about councils becoming more commercial. This trend will continue, but care is needed and becoming truly commercial may not be a long-term sustainable role for the public sector. Being more commercial is not the same as becoming more ‘business-like’ and is typically driven by market failure (broadband, outsourcing, or specialist software tools) or a desire to be independent of government grants (and cuts). The latter implies business awareness, efficiency, productivity and focus on outcomes rather than inputs. But being truly commercial implies much more, including new risk models, financial mechanisms, investment in marketing and sales, developing and selling new products, developing skills in areas such as pricing strategies and competing directly with neighbouring councils and other providers. Both depend on mature digital models of delivery.

 A Word About Government as a Platform

Please can we stop using this glib phrase? The concept is good, but the practice in a complex and diverse environment such as local government make the GDS vision from 5 years ago somewhat questionable. For it to be meaningful it needs translation. I think this is about defining a unified IT architecture in a council, where common things are shared, never replicated. For example, common apps and transactions such as payments and receipts, access and security infrastructure, identity and verification methods, communications and social media tools – all of these should be brought together, simplified and where possible shared not just within the council but across neighbouring local councils. What would be really fantastic would be if GDS, using all its resources and influence across Whitehall, developed a universal solution to citizen and public-sector employee identity, used across health, social care and in all areas requiring secure and robust assurance. But I think I am being fanciful in my predictions now!

Who knows what 2018 really holds with all these new technologies, but as a good CIO friend of mine recently said, “I’m happy for artificial intelligence and automation to take the cap off my bottle of beer, but not to drink it for me”.

Have a great 2018!