How to Transform Public Services With Innovative Digital Solutions Digital transformation of public services is not merely a trend; it is a necessity. However, getting a contract can be a challenging task for companies. Why do governments sometimes hesitate to invest in digitalization, and how can businesses overcome this challenge? Let's figure it out.

The urgency for the public sector's digital transformation emerged during the Covid-19 outbreak when it became impossible to pay bills or visit clinics offline. Today, numerous initiatives globally are using innovative technologies to modernize public services.

Georgia's online voter registration system in the U.S. serves as a great example. It has proven effective, enhancing electoral participation and improving accessibility, leading to increased voter turnout.

Another example of technology in public services is New York City's "CompStat" police strategy, introduced in 2022. It helps reduce crime rates by analyzing data and predicting crime hotspots. Similarly, the UK's National Health Service (NHS) employed data analytics to improve patient care outcomes and operational efficiency within hospitals. By March 2022, more than 300,000 people were waiting over a year for routine planned care, compared to only 1,600 people in February 2020 before services were substantially affected by Covid-19. By analyzing infection rates, hospital admissions and other health data, the NHS was able to allocate resources efficiently, predict hospital capacity needs, and identify hotspots requiring immediate attention.

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Outside the U.S., there are notable examples, too. For instance, Saudi Arabia's Vision 2030 encompasses public initiatives regarding health, school, business, etc. As stated in the National Transformation Program's 2022 report, the kingdom leads regionally and ranks third globally in the World Bank's GovTech Maturity Index 2022.

Singapore and Estonia are also among the leaders, thanks to their well-conceived strategies. The latter has a notable e-health system for digital health records, which aims to improve patient care by digitizing medical information. Currently, over 99% of this data is digitized, enabling patients to access online care services such as video consultations, e-prescriptions and automated life event notifications, facilitating clear patient-doctor communication and citizen involvement for more efficient healthcare.

Opportunities for business

The expansion of digital government services presents vast opportunities for businesses to develop products and services tailored to meet public sector needs. Typically, this occurs within the framework of public-private partnerships (PPPs), enabling businesses to collaborate with government agencies to innovate and deliver solutions.

The Government Digital Service's GOV.UK Pay platform serves as an example of the financial benefits for IT businesses involved in creating government service platforms. Over the last year, it onboarded 163 services and processed 23 million payments, handling £1.3 billion in cash value.

However, getting a contract might be a challenging task. Governments globally struggle to fully embrace some technologies, such as using the cloud, for security reasons. According to research by KPMG, 69% of government respondents say that a lack of understanding or trust in innovations makes them less confident about investing in digital transformation. After all, public services collect troves of personal and private information on citizens, including their financial details, which makes them one of the primal targets for hackers. In January 2024 alone, there were 183 malicious incidents in this sector, including both ransomware attacks and data breaches.

This, in turn, makes it difficult to create quality services. Recent data shows that only 60% of the population in the U.S. is satisfied with digital public initiatives such as Medicaid, which helps cover medical costs for people with limited income and resources, or the Supplemental Nutrition Assistance Program (SNAP), which provides food benefits to low-income families to supplement their grocery budget.

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Rules to follow

How can businesses overcome the challenges of securing government contracts for digital transformation projects? Here are several strategies:

1. Demonstrate capability with pilot projects: Start by launching a small pilot to showcase your ability to build a safe and effective tool.

2. Efficient development and deployment: Prove that you can develop, test and deploy new products — and enhance existing ones — quickly and cost-effectively. This requires building a robust infrastructure. It includes data platforms, authentication systems and cybersecurity measures. These components must be well-designed to allow for easy scaling of services.

3. Leverage statistics: Use data to support your case. For example, a 2023 survey by Deloitte revealed that over half of Americans prefer to interact with their government online, with 23% doing so regularly. This trend highlights the need for mobile app development and can help prioritize areas for cybersecurity.

4. Adopt zero tolerance for cybercrime: Implement security models that emphasize continuous monitoring, third-party risk management and cloud security. This approach ensures that no actor or system is automatically trusted, making multifactor authentication essential due to the various points where data access can occur.

5. Offer transparent and detailed proposals: Ensure that your proposals are transparent and detail all aspects of your project, including timelines, costs and potential risks.

6. Stay compliant with regulations: Ensure that your solutions align with all relevant regulations and standards, such as data protection laws and government IT policies. This would demonstrate your commitment to protecting citizens' data.

Related: How Entrepreneurs Can Break Into the Government Contracting Space