Unlocking public sector innovation: 3 keys to success

By Jonathan Selbie, CEO of Univrses

Why we must innovate

Urbanisation is accelerating. People are moving to urban centres at an astonishing rate of 1.3 million per week. Public sector organizations are under increasing pressure to expand and improve essential services and infrastructure. However, this comes at a time when budgets, eroded by inflation, mean less spending power in real terms. Public entities are therefore faced with the daunting puzzle of having to do more – with less.

In this challenging environment, sticking to traditional methods is no longer an option. The public sector must innovate - harness the latest technology and adopt new approaches to meet escalating demands. Yet, despite this critical need, the capacity to embrace transformative solutions is often constrained by current workloads, financial limitations, and rigid multi-year contracts with suppliers that limit the flexibility needed for innovation.

Whilst this may seem a discouraging and unfortunate scenario, at Univrses, we see things differently. We view these challenges, not as unconquerable barriers, but as opportunities. We see an industry that is ripe for disruption. With strategic adjustments and the integration of cutting-edge technologies, we are confident that this industry can be transformed.

What we’ve seen in the field

At Univrses, a Stockholm-based startup, we specialise in AI and Computer Vision technology to transform urban management and road maintenance. Since 2020, we've worked with a wide range of public entities, spending nearly half a decade understanding the challenges and navigating the complex landscape of public sector engagement. Our experience has exposed us to the various obstacles that frequently arise when trying to innovate in this sector – from extended decision-making processes to the complexities of procurement and implementation.

"Adopting new technologies can bring billions of dollars in gains and millions of tons of CO? emission savings."

The potential and challenges we face

Innovation and change can bring vast potential gains across various sectors and industries. But the public sector is like no other. By adopting new technologies, streamlining operations with advanced data capture and analysis, and leveraging emerging fields such as AI and autonomous vehicles, we can achieve gains worth billions of dollars and reduce CO? emissions by millions of tons.

Startups, often closely connected to academic research, are typically at the forefront of technological progress and act as vectors for delivering innovation. They seek to produce groundbreaking solutions that will disrupt the status quo and deliver meaningful impact in addressing some of the major challenges of our time. With their deep technical expertise and rapid development cycles, leading startups can redefine how sectors and even entire industries approach problems. In theory, this makes them ideal partners for the public sector, offering fresh perspectives and potentially transformative solutions.

So why is it that innovation in the public sector is so hard? And why do startups struggle to engage successfully with the public sector and deliver the change that is so badly needed? The answer lies not in a lack of cutting-edge solutions or even in a lack of awareness of the need, but in systemic obstacles that persist within the public sector. These obstacles impede progress and hinder the adoption of new tools and technologies that can deliver meaningful impact.

Operational and decision-making challenges

Lengthy and bureaucratic decision-making processes in the public sector present critical challenges for those seeking to innovate. For startups in particular, rapid market engagement and clear commercial progress are essential, not merely beneficial, for a startup's growth and survival. The existing public sector processes are ill-suited for the agility required by those that bring innovative solutions to the table. Often, decision-making involves multiple stakeholders and can extend over years. Moreover, regulations intended to ensure transparency and fairness unfortunately tend to complicate and extend the procurement process. This complexity and perceived risk discourage public sector workers from engaging with innovators; innovators, in turn, are often unfamiliar with navigating these complicated processes.

Cultural and perception barriers

In the public sector, hesitancy to partner with innovators stems from a perception of risks: potential for failure and resulting reputational damage, and the potential for a public outcry if a new initiative is not successful and taxpayer money is perceived to have been wasted. This caution is fueled by the political cycle, which typically prioritizes short-term results over long-term projects with more significant, lasting impacts. The incentive structures within many public sector organizations rarely reward taking bold steps. Consequently, this leads to a tendency towards inaction and a preference for familiar, established methods, even when they may be less effective in addressing current challenges.

Financial and procedural constraints

Although the public sector has access to funding for innovation, the allocation of these funds often presents challenges. Typically, this financing is earmarked for early innovation stages like research and development or proof of concept, where risks are perceived to be highest. This focus overlooks critical later stages of the product development cycle, such as large-scale deployment, workflow integration, and general adoption by the broader community. This gap can undermine promising innovations, causing them to fail as they lack the necessary support and planning for a transition from successful pilot project to comprehensive organizational implementation.

3 keys to unlocking innovation

At Univrses, our long experience working with public sector entities has deepened our understanding of the persistent challenges that obstruct the adoption of innovative solutions. Providing advanced technology, while crucial, is only part of the solution. Equally important is the ability to adapt to and navigate the public sector's unique landscape which enables us and other startups to foster meaningful innovation.

There is also a need for the public sector to evolve, fostering a culture that supports innovation and collaboration. A McKinsey study reveals that a mere 20% of transformation efforts within the public sector achieve their intended outcomes, underscoring the critical need for innovative approaches and fresh perspectives—elements that startups are uniquely positioned to provide.

We advocate for a significant shift in mindset and approach within the public sector to fully unlock the potential of partnerships with innovative startups:

1. Reduce the fear of failure

We encourage public sector organizations to create an environment where taking calculated risks is not only accepted, but seen as a vital aspect of progress. In this environment, failure should not be viewed negatively but, instead, as an important opportunity to learn. Embracing this mindset can lead to groundbreaking advancements and a departure from overly cautious decision- making that slows down progress.

2. Prioritise innovation?

Innovation must become a central focus of public sector agendas. Recognizing the critical role of new technologies and solutions is essential in addressing the challenges of both today and tomorrow. This priority shift requires active engagement from political leaders and public sector executives to champion and implement these innovative approaches. They must commit a budget and then foster an environment where transformative changes are not just possible but actively pursued.

3. Fast-track technology adoption

Simplifying procurement processes will facilitate faster and more effective adoption of new technologies. By creating more efficient pathways for technology integration and breaking down organizational silos, the public sector can shorten the timeline from idea to implementation, respond more swiftly to emerging needs and ensure innovative solutions benefit all departments.

The Univrses-Helsingborg initiative

This call for a new mindset in the public sector is not just theoretical; it's grounded in real-world success stories. The partnership between Univrses and the City of Helsingborg serves as a prime example of successful public-private collaboration.

By integrating our 3DAI? technology into Helsingborg’s infrastructure, we significantly enhanced urban management and achieved major resource and time savings. This initiative reduced potholes from 3,000 to 900 in just six months, improving road safety and urban efficiency. Furthermore, streamlined inspections and optimised logistics have yielded annual savings of approximately €80,000. The project also transformed routine operations: Road status checks that previously took 2.5 days each week are now completed in under an hour. This increased efficiency has freed up over 50% of the workforce to focus on strategic tasks, boosting overall productivity.

This partnership demonstrates the vast potential for innovators, and startups in particular, to bring efficient, effective solutions to the public sector when given the right opportunities and support. By addressing systemic challenges, such successes could become more widespread, transforming the “exception” into the “norm”.

Mutual benefits and shared visions

The benefits of innovative public sector collaborations extend beyond technological advancements. For governments, these partnerships mean access to cutting-edge solutions and enhancing public services. But they also support the development of companies that will produce economic benefits for Sweden; generating tax revenue, increasing national competitiveness and creating jobs in an area of technology that will see significant growth in the next decade. For innovators, they offer opportunities for growth and a platform to make meaningful contributions to society. Together, these collaborations can lead to increased tech sovereignty and create a more resilient and dynamic public sector.

Building a technologically empowered society is a journey that requires the collective effort of all stakeholders. At Univrses, we are committed to this path and stand ready to collaborate with visionary public entities. Together, we can forge a smart, sustainable, and technologically advanced future.

Get in touch with Univrses

Are you intrigued by the potential of 3DAI? technology and how it can transform urban infrastructure maintenance? Reach out to [email protected] to schedule a demonstration or to learn more about Univrses’ innovative projects.

www.univrses.com | [email protected]