Digital transformation - what is the role for government?
New Zealand is a long way from everywhere else – be it by waka, Dreamliner or container ship - we are distant from friends, whanau and people with whom we trade. Modern telecommunications have shrunk the impact of our distance for many things – but our future growth is heavily dependent on maximising the value we get from digitalising our economy. New Zealand’s economy is too small to do this in different ways - it seems unlikely that a wholly private sector response will invest enough, sufficiently quickly, to ensure everyone has access to the opportunities digitalisation presents. Indeed digitalisation of government services represents a major opportunity for economic productivity gains.
Climate change, regional economic development and resilience, urban planning, infrastructure and housing affordability are just a few of the high-profile issues that local and central government are grappling with that will ultimately require digital transformation to resolve.
Digitalise, not digitise.
New Zealand has successfully invested in its nationwide digital backbone, and has a growing record of successful digital upgrade projects – Inland Revenue’s Business Transformation Programme, for example.
There is still a long way to go to achieve economy-wide digital transformation, however. New Zealand is clearly lagging many of our trading partners in the transition to digitally native systems, to the detriment of our ability to engage and compete in the global marketplace.
At the core of digitalising government services lies the promise of efficiency. By transitioning from traditional paper-based processes to digital platforms, administrative tasks are streamlined, reducing the time and resources required to complete them. Automated workflows, online forms, and electronic document management systems enable government agencies to operate more efficiently, leading to cost savings and improved productivity. This efficiency not only benefits government departments but also translates into faster and more responsive service delivery for citizens.
Digitalising – rather than digitising – gives us the opportunity to enhance our efficiency and productivity further. Ensuring that the data everyone provides can be appropriately, safely and confidentially shared and reused will unlock productivity gains by speeding up administrative and regulatory processes and decreasing the potential for errors.
A key role for central government
Government has a real role to play since the private sector, the public and community organisations don’t have the coordination and mandating power central government does.
Coordination of our existing efforts provides the opportunity to deliver much greater outcomes than leaving all the individual players to find their own way through – just as with our transport network, some underlying rules and systems create a successful network that enables greater economic benefit.
This is not an opportunity to centralise – it’s an opportunity for the coordination from the centre to support the maximisation of system benefits. Local government doesn’t gain the dynamic benefits that our economy gains from supporting digitalisation of administrative and regulatory process, so local government is unlikely to invest sufficiently to achieve those benefits.
Added benefits
Moreover, digitalization enhances the accessibility of government services, making them available anytime, anywhere.
With the proliferation of internet access and mobile technology, most of us can conveniently interact with government agencies from the comfort of our own homes or on the go. Online portals and mobile applications provide easy access to a wide range of services, from applying for consents through to applying for educational opportunities and accessing healthcare resources. This increased accessibility can be particularly beneficial for people living in rural areas, who may face challenges accessing traditional central or local government offices.
Additionally, digitalisation enables governments to harness data-driven insights to better understand and address the needs of their constituents. By collecting and analysing data generated through digital interactions, policymakers gain valuable insights into demographic trends, service usage patterns, and citizen preferences. This data-driven approach allows for more informed decision-making, targeted resource allocation, and the design of tailored services that meet the evolving needs of the population.
Caution is warranted – but isn’t a reason to delay
This is another reason, however, for central government to take interest in the way support services (income support, for example) and regulatory services (building consents, resource consents, etc) are digitalised.
Just as our transport system does not deliver the same level of service in all locations, nor does it meet the needs of some people that rely on it, our digital infrastructure will also leave some people behind without coordination to support market interactions and long-term vision to support the maximum number of people being bought along into the digital future. The risks to private investment mean the public benefits of digital transformation will be under-delivered without some centralised coordination.
Furthermore, cybersecurity and data privacy are paramount considerations in the digital realm. As government agencies collect and store huge amounts of sensitive data, they must implement robust security measures to safeguard against cyber threats and ensure compliance with the Privacy Act 2020. Transparency and accountability in data handling practices are essential to maintain public trust in digital government services.
To overcome these challenges, collaboration between the government, the public, and private sector users and providers is essential. Central government must leverage the expertise and resources of local government and the private sector to develop innovative solutions and bridge the digital divide. Engaging the community in the design and implementation of digital services will also help to ensure that solutions are user-centric and address their needs effectively.
To boldly go… (where lots of other countries have already gone)
The digitalisation of government services offers a compelling value proposition that delivers efficiency and productivity improvements, as well as dynamic benefits enabling better planning, faster processes, and a much better understanding of what is happening in our environment, and what to do about it. By leveraging digital tools and platforms, central and local government can streamline administrative processes, enhance service delivery, and encourage greater citizen engagement and empowerment.
It won’t happen on its own – local government does not have the resources or receive sufficient benefit to invest to the level required. Central government has choices to make about how much to invest – be it the labour of its public service, or everything up to and including regulatory support for data standards and architecture, and the funds necessary to bring local government and citizens along on the journey. Making visible steps in this direction, even if not accompanied by the necessary cash, will still help to shape the investment that local government and the private sector are already making.
Many other countries we like to compare ourselves to have already moved firmly in this direction. We shouldn’t follow them just because they’ve done it – we should learn from how they’ve done it and move in a similar direction because it will improve our efficiency, increase our productivity and make our country grow.
