Digitizing the Public Sector and Its Effect on Business Growth

With the massive and widespread digitization of the private sector, the public sector is being asked to catch up. 

The digital transformation of the business world has raised customer experiences incredibly in recent years. This has led people to expect the same level of service from both the public sector and private sector.

Conjointly, the advent of COVID-19 has magnified the need for public sector digitization, advancing an era of improved technologies, modernized collaboration, and an increase in data usage. 

This article will explore the digitization of the public sector and what kind of effect this has on business growth.

Why and How Is the Public Sector Being Digitized?

In the public sector, digitization is the integration of digital technologies into different areas and institutions. This change is made with the goal of changing how governments operate and provide services to residents. 

Digital public services make it easier for institutions to meet public expectations efficiently and in a sustainable manner. In the 2018 Public Sector Journey Benchmark Survey by Mckinsey, it was determined that residents who are satisfied with public services are nine times more likely to trust their government. 

One of the main ways public institutions are being digitized is through the implementation of digital offices. Unlike physical offices, these are open and available at all times while reducing the need for many unnecessary and burdensome processes. 

Further benefits come from innovations such as automated case-handling, which save time, increase productivity, and free up resources for other public goals. Digitization also helps critical services such as medical benefits to be provided faster and more efficiently.

Countries that have digitized public services in similar ways include Germany, United Arab Emirates, Australia, Denmark, Estonia, South Korea, Singapore and the United Kingdom, among many others.

Public Sector Digitization and Business Growth

Digitizing the public sector also has significant positive effects on business growth. Mckinsey found that there are more than 50% lower costs for companies when interacting with public administrations that have implemented digital technologies. 

Digital public services make it much easier for companies to collaborate and communicate with the government. This is particularly helpful in promoting small business growth, where saving costs and time can be paramount for success. 

In the wake of COVID-19, these digital transformations have helped governments to reallocate resources to support businesses facing substantial new challenges. 

An example of public sector digitization aimed at both the public sector and private sector is the recently launched UK National Data Strategy. This plan aims to improve data use within the government, to increase productivity, create new businesses and reduce unemployment. 

Its goals include making data usage easier for businesses and organizations to help them innovate at a faster scale. The scheme ensures that small business growth is not burdened by limits on data usage or experimentation while keeping entrepreneurs to standards of responsible innovation.